Article Reducing Chargebacks on Card Not Present Transactions Amid COVID, there's been a huge spike in off-premise orders, and in Card Not Present transactions - so take the time to learn how to reduce the risk of chargebacks. We know there are several ways to accept credit card payments: via traditional swipe, EMV dip, online ordering, contactless methods, and manually keying in information. But do all of these transaction types carry the same risk? The answer is no — and amid COVID, there's been a huge spike in off-premise orders, and in Card Not Present transactions.Not only is keying in transactions more time consuming and prone to error, it is also the most risky method for accepting payment. Below, we will go over some of the risks that you take on when you regularly process Card Not Present (CNP) transactions. CNP - What’s the big deal? A CNP transaction is defined as any transaction in which the card is not or can not be physically present at the Point of Sale (POS) during the authorization process. Online, telephone, and any other keyed transaction are considered a CNP transaction. While there are risks associated with accepting any form of credit card payment, CNP transactions are the riskiest. Because of this risk, the fees associated with processing them are almost always higher. This is because credit card issuers lose millions of dollars every year due to fraudulent use of credit cards that are not present at the time of sale. In short, if your business is regularly keying in cards, you are not only paying a higher cost to process those transactions you are also exposing yourself to potential further loss due to fraud. Keys to Reducing RiskThe most effective way to eliminate the risk of CNP transactions is to avoid processing them as often as possible. For times that keying in cards can’t be avoided, following the steps below can help reduce chargeback risk. Collect CVV2 information from the card holder. An issuer-validated CVV2 code is a good indicator that the card is genuine.Ask for a card holder ID. If the card holder is present, ask to see their ID before you key it in. If you are taking the order by phone, match the ID with the name on the card when they come to pick it up. If you are taking delivery orders via telephone, it’s good practice to have and maintain a Grey List. This is where you can track customers and addresses that have had chargebacks or previous dispute issues. Be wary of multiple transactions from the same card within a short period of time. Transactions from the same card over a short amount of time can be indicative of suspicious behavior. Happy Dipping (or swiping)When possible, it’s best to process as many transactions as possible through an EMV dip or card swipe. For times when this isn’t an option, be sure to follow the steps above to cut down on the risk of fraudulent transactions.For even more info about disputing chargebacks, check out this post. Products Simple Credit Card Processing Manage your money, your way, with transparent and secure payments processing. DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.