What does CNP stand for in transaction contexts?

CNP stands for Card Not Present in transaction contexts, which refers to transactions where the cardholder does not physically present their card to the merchant, commonly seen in online or over-the-phone transactions. This designation is significant in payment processing, as it typically indicates a higher risk of fraud compared to transactions where the card is present. Businesses and payment processors often implement additional security measures, such as address verification and card security codes, to mitigate this risk. Understanding the concept of Card Not Present is essential for those involved in electronic transactions, as it directly impacts how transactions are managed and the strategies used to ensure payment security.