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Are Card-Not-Present Transactions Safe? We asked Platinum Payment Systems




Card-Not-Present (CNP) transactions are generally known to be riskier than Card-Present transactions, as they leave both the customer and the merchant open for fraud.

Online shopping is no longer the future, it’s the present.

In fact, 75% of people worldwide shop online at least once a month! This is according to Statistica, who has also reported that eCommerce sales are predicted to go as high as $4.2 trillion by the end of 2020 and over $6.5 trillion by 2023.

It’s no surprise then, that Card-Not-Present (CNP) transactions have become all the more prevalent. But, what exactly are card-not-present transactions? And, are they safe?

What Are Card-Not-Present Transactions?

First thing’s first, you’re probably already familiar with traditional Card-Present transactions.

Card-Present transactions are when a customer swipes a credit card through a terminal or mobile swiper, and the payment is processed by a merchant processor that facilitates the transfer of funds from the customer’s bank account and into the merchant’s business bank account.

In effect, a Card-Not-Present transaction is pretty much the same thing — funds are transferred from a customer’s bank account to the merchant’s bank account by a ‘middleman’.

The only difference is that, because the transaction is happening virtually, there is no way of physically swiping a card through a terminal. Which basically means, that the transaction has to happen with the card not present.

Evidently, this changes a lot of things. Including how the payment is settled.

Because, CNP transactions are initiated and authorized with the customer inputting their card credentials (their account number, card expiration date, card security code, etc.) through a payment gateway available on the merchant’s eCommerce store.

And, unfortunately, because it’s harder to prove card ownership with CNP transactions, it’s definitely riskier than traditional CP transactions. After all, with CP transactions, at the very least, the card’s physical presence allows for a more direct authentication process.

What Are the Risks of CNP Transactions?

As described above, because CNP transactions are virtually facilitated, there are more definite risks involved. And, the most common types of these risks are:

  • Credit Card Fraud: Credit card fraud is more likely to occur for CNP transactions because it’s much easier to steal relevant credit card information (the account number, expiration date, security code, etc.) than it is to physically steal a card. This type of fraud definitely affects the card owner — who may not even notice that their card is being used to purchase items without their consent. But it can affect merchants as well — as it could lead to chargebacks.
  • Chargeback Fraud: A chargeback fraud occurs when a customer purchases and then receives goods and services from a merchant and then has their payment returned to them by the bank because of an issue with the transaction. In this case, the merchant is at an obvious loss — as they lose out on both their product and the payment.

Either type of fraud is incredibly damaging for the merchant, and potentially damaging for the customer as well — which is why it is so important that you know how to protect your business, and secure your customers, from these types of risk.

The Bottom Line: How Can You Protect Your Business from The Risk of Card-Not-Present Transactions?

Fraud is an incredibly real danger. And, as mentioned, the risks of fraud are definitely higher for Card-Not-Present transactions. Fortunately, however, it’s not all bad. There are ways of mitigating these risks — whether you’re the buyer or a merchant.

For merchants, as an example, you can hire a merchant processor like Platinum Payment Systems, who offer both fraud and chargeback protection. And thus, can help support you with navigating through the risks involved.

In fact, in a recent interview, one of Platinum Payment Systems’ managing founders, Jed Morley, said: “Our goal with PlatPay, is to help others solve their payment processing problems and support them with whatever else they need to handle the risks and balance the different types of payments they receive.”

And so, again, while CNP transactions are not quite up to the same security standards as CP transactions are at present, there are ways of protecting yourself and your business from the risks. It’s just a matter of finding a solution that will work for you.

Jenny is one of the oldest contributors of Bigtime Daily with a unique perspective of the world events. She aims to empower the readers with delivery of apt factual analysis of various news pieces from around the World.

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Top Road Trip Destinations in Canada




Did you know that 1.93 million Americans traveled to Canada in 2020? That number was down year-over-year due to COVID-related travel restrictions. 

While some Americans visit the Great White North via plane, others prefer road trips. It can be fun to plan an itinerary, book a hotel, pack the luggage, load your family into the car, and head to the border. But if a road trip to Canada is in the plans for you and yours this summer, what Canadian destinations are worth the potentially thousands of miles of driving? Keep reading to learn about the top road trip destinations in Canada.

Grasslands National Park in Saskatchewan

Grasslands National Park is one of Canada’s 44 national parks and park reserves. Whether you’re an earlier bird or a night owl, the national park in Southern Saskatchewan provides an ideal prairie landscape. It’s the perfect place to unwind, immerse yourself in nature, and recalibrate your life.

Enjoy the great outdoors on a campsite, or take part in hiking adventures by exploring trails. The solitude and breathtaking beauty of this national park will leave you in awe. Make time for the Ecotour Scenic Drive. It’s about 20 km (around 12.5 miles) long and will take one to three hours to complete depending on your pace. 

Toronto to Stratford, Ontario

If there’s one Canadian city most Americans have heard of, it’s Toronto. Toronto, the capital of Ontario, is the fourth largest city on the continent. It’s also home to the only authentic castle in North America. Casa Loma, located in midtown Toronto, is worth the visit. So, too, is the CN Tower, which is the biggest free-standing structure in the Western Hemisphere. The city also has citizens representing 200+ ethnic groups. 

While there’s plenty to see and do in Toronto, why stop there? It’s a good idea to include a Toronto-to-Stratford excursion while on your road trip to Canada. You must travel 150 km (about 93 miles ) west to get to Stratford. You’ll see Victorian architecture and get to take in the live theater. Most Americans probably haven’t heard of Stratford before. But when you come for a visit, there’s a good possibility you won’t ever forget it.

North Cape Coastal Drive, Prince Edward Island

If you haven’t ever taken a road trip to Prince Edward Island, you don’t know what you’re missing. It’s Canada’s smallest province, but it sure offers a boatload of fun. Are you a foodie or do you like to indulge in the local cuisine when traveling? Check out the western peninsula. You can delight your tastebuds with the range of food available. 

Make time to visit the Canadian Potato Museum in the province. After taking in the sites and attractions at the museum, enjoy a meal at the onsite PEI Potato Country Kitchen. The menu has items like the chili topped baked potato, which features a baked potato, homemade chili, and cheese. Meanwhile, the pulled pork potato features a baked potato topped with pulled pork, cheese, and sour cream on the side. That’s just a sampling, and all baked potato dishes are served with fresh-cut, homemade chips.

If you’re intersted in a U.S. to Canada road trip this year, the options above will give you some ideas. The sky’s the limit since there’s so much to see and do. 

You’ll want to ensure your vehicle is in good working order to avoid breakdowns. You’ll also want to stay alert on the road since you’ll be traveling a lot of miles and spending hours behind the wheel of your car. 

If you get into an accident, you must know what to do. In addition to reporting the accident, calling your insurer, and possibly even booking a rental car to complete your road trip, you’ll want to contact a personal injury lawyer if anyone is injured. 

No one wants to consider accidents or injuries when on a road trip. But it’s best to hope for the best while being prepared for the worst. You’ll enjoy the journey and the destination a lot more when you’ve done everything possible to prepare for any possible issues.

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