Today more than ever, Card Not Present (CNP) merchants face mounting challenges managing a safe and efficient operation. Merchants that property understand regulatory requirements and industry best practices for fraud prevention, risk management and authorization optimization will be better equipped to navigate the complex CNP payments landscape. The following are a few ways CNP merchants can create a more secure and efficient environment:
I. Effective Payment Processing – Getting Set Up for Success:
- Ensure correct Merchant Category Code (MCC) is assigned to your type of business
- Best Practices for CNP: MasterCard Secure Code, CVV2 Verification, AVS Authentication
- Use Data Protection, Tokenization and End-to-End Encryption to further insulate payment processing beyond PCI
II. Protection from Fraud: Tools and Trends
- Common Types of CNP Fraud: Phishing, Account Takeover, Carding, Malware
- Different Fraud Solutions Exist for Various Technologies: Device Specific, IP-Based, Data Solutions and Mobile Based
III. Navigating Post Sale Chargeback Challenges
Understand how chargebacks occur, including Criminal Fraud, Card Not Processed, Item Not Received, Technical Problems, Canceled Recurring Transaction and Friendly Fraud
- Understand Myths and Misconceptions
- Preventing Chargebacks for Single Sale vs. Recurring Billing
- How Proactive Customer Service Helps Avoid Chargebacks
IV. Maximizing Your Billing Efforts and Customer Retention
- Evaluate Authorization Decline Response Codes
- Understand difference between hard and soft declines to operate within an acceptable decline ratio
- Understand Churn and Why Customers Leave, Especially for Recurring Billing
Click Here for the PDF document for all the details related to CNP Merchant Best Practices.