Which aspect of card transactions does the Card Not Present category relate to?

The Card Not Present category specifically pertains to remote or online transactions where the physical card is not required for the transaction to occur. This classification arises because, in such transactions, the customer typically provides card details via digital means, such as entering them into a website or an app, rather than swiping or inserting a physical card at a point of sale.

This environment accentuates certain risks, such as increased potential for fraud, since the merchant does not have the card physically on hand to verify its authenticity. Understanding this context is essential for managing payment processing and security risks associated with electronic transactions.

The focus on remote or online transactions underlines the importance of adapting strategies for fraud prevention and securing payment data when dealing with Card Not Present scenarios, reinforcing why this choice is the most accurate representation of what the category encompasses.