A card-not-present (CNP) transaction takes place when the cardholder is not physically at the point of sale with their card. This type of transaction is common in the travel sector, where most reservations are made online or via phone, requiring customers to input their card information remotely. Although CNP transactions provide a level of convenience, they also present a greater risk of fraud compared to face-to-face payments, as merchants are unable to verify the cardholder's identity in person. To address these heightened risks, travel companies frequently adopt enhanced security protocols, including Strong Customer Authentication (SCA) and 3D Secure, to reduce the likelihood of fraud and safeguard customer data.
CNP transactions play a crucial role in the travel sector, where online and telephone bookings are prevalent. As e-commerce and digital platforms continue to grow, CNP payments have emerged as the primary choice for customers reserving flights, accommodations, car rentals, and various travel services. This remote payment option allows customers to make bookings from any location at any time, enhancing accessibility and simplifying the booking experience. For travel companies, CNP transactions enable them to connect with a wider, global customer base, catering to those who may not have access to traditional payment methods.
Nevertheless, the ease of CNP transactions necessitates increased security measures. Given that travel companies often handle high-value transactions, they are attractive targets for fraud. To safeguard against unauthorised payments, these businesses typically implement robust security protocols such as Strong Customer Authentication (SCA) and 3D Secure, which confirm the cardholder's identity prior to finalising the transaction. These safeguards not only enhance security but also ensure compliance with regulations like the PSD2 in Europe, allowing travel companies to operate within legal frameworks.
Additionally, CNP transactions influence how travel companies handle chargebacks. The absence of in-person verification in CNP payments makes it more difficult to contest disputes. When a chargeback arises, travel companies are required to submit comprehensive documentation to demonstrate that the transaction was legitimate, which can create an operational challenge. By effectively managing CNP transactions, travel businesses can reduce the incidence of fraud-related chargebacks, thereby protecting their revenue and maintaining their reputation.
One of the main obstacles faced by travel companies in handling CNP transactions is their vulnerability to fraud. The inability to physically verify the cardholder increases the likelihood of unauthorised transactions, which can lead to substantial financial losses. Additionally, fraudulent CNP transactions often result in chargebacks, incurring extra fees and potentially damaging the travel company's reputation with payment processors. To counter these threats, travel businesses need to invest in robust payment systems and fraud prevention strategies, which can elevate their operational expenses.
Another significant issue is the elevated interchange fees that frequently accompany CNP transactions. Given the heightened risk, payment processors usually impose higher charges for CNP payments, which can squeeze profit margins, particularly on high-ticket items like flights and vacation packages. It is crucial for travel companies to navigate these fees while offering competitive pricing to attract customers in a crowded marketplace. This often necessitates forming strategic alliances with payment providers to secure better rates and enhance transaction routing for greater cost efficiency.
Data security also poses a critical challenge for travel businesses managing CNP transactions. Safeguarding sensitive customer information, including card numbers and personal details, is vital to prevent data breaches and uphold customer trust. Adhering to security standards, such as PCI DSS, adds complexity to the management of CNP transactions. For travel companies, this entails allocating resources to consistently evaluate and enhance data security measures, especially as cyber threats continue to advance.
Felloh’s platform enhances transaction approval rates for card-not-present (CNP) payments, mitigating the effects of elevated interchange fees while ensuring secure payment processing. By implementing sophisticated fraud prevention techniques and incorporating security measures like Strong Customer Authentication (SCA) and 3D Secure, Felloh empowers travel companies to handle CNP transactions with confidence, all while prioritising convenience and customer satisfaction. This strategy enables travel businesses to deliver a seamless booking experience that adheres to stringent security standards, safeguarding both the organisation and its clients from potential fraud.
Moreover, Felloh’s platform offers tools designed to optimise transaction costs, assisting travel companies in managing the interchange fees linked to CNP transactions. By directing payments through economical channels and securing advantageous agreements with payment providers, Felloh aids businesses in lowering their overall processing costs, allowing them to remain profitable without compromising on security. The platform also delivers real-time transaction analytics, enabling travel companies to track and evaluate payment performance, which supports informed decision-making regarding their payment strategies.
In addition to cost optimisation, Felloh guarantees adherence to data security regulations such as PCI DSS, protecting sensitive customer data throughout all transactions. This dedication to data security builds trust between travel businesses and their customers, promoting increased bookings and minimizing the risk of data breaches. With Felloh, travel companies can adeptly navigate the complexities of CNP transactions, offering a secure, cost-effective, and customer-centric payment experience that aligns with their operational objectives and fosters customer loyalty.
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Felloh provides PCI-compliant card processing, partnering with multiple merchant acquirers to offer competitive rates for Visa and Mastercard transactions. You can also choose to accept Amex cards. With real-time transaction data, you’ll see completed transactions instantly in your dashboard.
