Card Present vs. Card Not Present: What Field Technicians Need to Know

By alphacardprocess August 3, 2025

When accepting payments, field technicians usually handle both card-present and card-not-present transactions. It is essential to understand the difference between the two since it influences how you charge customers, handle security, and deal with processing fees. Here’s a brief overview of what you should know.

What Is the Difference Between Card-Present and Card-Not-Present?

The main difference between card-present and card-not-present transactions is the method of payment processing. A transaction is card-present when electronic card data is read at the point of sale, such as swiping the magnetic strip or EMV chip. This method assists in authenticating the payment in real time and tends to keep transaction fees much more lower.

On the other hand, card-not-present transactions include online transactions, payments made over the phone, or even situations where a merchant types out card information, even if the consumer has the card in hand at the moment.

Why does this matter? Card-not-present transactions typically carry much more higher processing fees and a very greater chance of chargebacks, as it is much more difficult to verify the cardholder’s identity. Understanding which category your transactions fall into can assist your business in more better managing both costs and fraud risk.

Examples of Card-Present vs Card-Not-Present Transactions

Card-present transactions are those payments in which the card’s electronic information is entered directly during checkout, including swiping a card on a countertop terminal, tapping at a contactless payment reader, using a POS system, or paying with a card reader.

In contrast, card-not-present transactions are online transactions, phone orders when an employee manually enters the card information, recurring payment subscriptions, payment apps that don’t have a card reader, and paying with electronic invoices. Even if the customer’s card is present, they are still considered card-not-present.

Card-Present and Card-Not-Present Rates

Card-present and card-not-present transactions have varying fees, primarily due to risk. The major fee in this case is referred to as an interchange fee — this is the fee the merchant’s bank pays the cardholder’s bank for facilitating payment.

In the case of card-present transactions, such as when a client swipes, taps, or inserts their card, fees are lower because the risk of fraud is significantly lower.

Card-not-present transactions, such as online shopping, phone purchases, or subscriptions, cost more. This is because the card is not present, so the risk of fraud is higher. In general, card-present fees are approximately 1.50% to 2.50% of the sale, in addition to a small flat fee.

For card-not-present transactions, the rate will typically be higher — roughly 1.80% to 3.50% — plus a flat fee as well.

Knowing Card-Present vs Card-Not-Present Fraud

Card-not-present fraud is one of the largest fears for companies today. It resulted in losses of approximately $9.49 billion in 2023 alone. Card-not-present fraud typically occurs when stolen card information is used to make a purchase over the phone or online.

As neither the card nor the cardholder is physically present, businesses find it much more difficult to verify the legitimacy of the transaction.

To minimize this, most companies use tools such as the card’s verification number (CVN), the Address Verification System (AVS), which verifies whether the billing address provided is the same as the one the card issuer used before.

The most effective way to stay one step ahead is with the latest fraud detection tools that employ intelligent algorithms and machine learning. These tools monitor for suspicious transactional and customer behavior patterns to identify any potential fraud, making your business and customers more secure.

Benefits and Challenges of Card-Present Transactions

Benefits

Card-not-present (CNP) transactions can make field technicians’ day-to-day operations much easier and less time-consuming. When remotely accepted payments, such as by phone, app, or online, are involved, technicians can complete jobs on the spot without customers having to present a physical card.

This translates to faster checkout and fewer delays. CNP payments also allow technicians to accept deposits or full payments from anywhere remotely.

Also, by employing mobile invoicing applications, technicians can extend their service to more areas, address emergency requests immediately, and maintain business flow even when customers are unable to meet in person.

For field technicians who usually collect in-person payments, understanding card-present (CP) transactions is very important. With the customer’s card present, the business can easily verify the identity or request a PIN to enter for further verification, thereby reducing the risk of fraud.

Since CP payments are regarded as more secure payment method, fees for transactions are frequently lower than those for card-not-present transactions, resulting in cost savings for the company over time.

Speed is also an advantage—CP transactions go through immediately, so technicians immediately know the payment has been processed. This rapid, secure procedure makes on-site payment acceptance easier and keeps clients happy.

Challenge

Field technicians must also be aware of some disadvantages of card-present (CP) transactions. To begin with, CP payments require physical devices such as POS terminals, which can be difficult to obtain or maintain in many areas. Such equipment also malfunctions, threatening delays or lost sales.

Although CP payments are more secure, they don’t completely reduce the risk of fraud—card skimming and counterfeit or stolen cards are common risks for many businesses.

Finally, CP transactions must be executed face-to-face only, resulting in companies missing out on online sales opportunities and increased market access.

Benefits and Challenges of Card-Not-Present Transactions

Benefits

This translates to faster checkout and fewer delays. CNP payments also allow technicians to accept deposits or full payments from anywhere remotely.

Challenges

Although card-not-present (CNP) transactions facilitate distant payments, they come with a couple of challenges. Since the customer and card aren’t present, it is more difficult for technicians to verify the identity of the buyer, hence increasing the potential for fraud.

Payment providers also charge higher fees for these transactions since they carry more risk. Some customers might feel uneasy sharing card details over the phone or online, which can affect their willingness to pay right away. Plus, without an in-person interaction, there’s a greater chance of payment disputes or chargebacks, which can complicate billing and hurt cash flow.

Choosing Between Card-Present and Card-Not-Present: What Field Technicians Should Know

When weighing card-present (CP) vs card-not-present (CNP) transactions, field technicians must consider the context in which they work with their customers. CP payments typically occur when customers swipe, tap, or insert their cards in a reader at a physical location.

This will be effective if technicians work with customers at their locations with mobile POS devices or accept payment in person at an office. CNP payments, however, are ideal if you have to charge customers remotely. Perhaps the job is accepted via phone call, or a client makes payment online after receiving a bill.

These payments enable technicians to serve customers anywhere—even beyond the local area—increasing the business scope. There are some challenges to consider as well.

CP payments tend to have lower processing costs and are perceived as more secure because the card is present. But they need hardware such as card readers. CNP payments let you reach more customers, but they have slightly higher costs and a greater chance of fraud since the card isn’t present.

For field and remote technicians alike, having a payment system that can handle both CP and CNP transactions simplifies their work. It keeps payments versatile, whether you’re standing next to the customer or finishing a job from afar.

How to Make Card-Present and Card-Not-Present Payments Easy for Field Technicians

To facilitate both card-present and card-not-present transactions seamlessly, field technicians can begin by selecting a safe and versatile payment processor that enables in-person, online, and phone payments.

An advanced POS system enables easy and convenient in-person payments while connecting with resources such as inventory monitors and customer databases, ensuring everything is updated automatically. It’s best to choose a POS that supports different forms of payment, like contactless and mobile payments, so customers can pay as they prefer.

By integrating payment systems with accounting and other business software, technicians can minimize manual effort, eliminate errors, and maintain real-time visibility into business activity—all while providing a smooth payment experience to all customers.

Why Card-present vs. Card-not-present Transactions Matter for Your Business

Knowing the distinction between card-present (CP) and card-not-present (CNP) transactions can assist field technicians and business owners with cost control and minimizing risk. CP transactions, in which the card is tapped, swiped, or inserted into a secure reader, typically have lower interchange charges.

Interchange charges pay for the service of securely transferring funds from a customer’s card to your business account, and they’re typically the largest component of payment processing expenses.

Since technicians or staff can verify a customer’s ID and utilize secure terminals in person, this reduces the risk of fraud. CNP transactions—examples include payments taken over the phone or via the internet—can also be quite secure when processed through trusted payment portals.

However, without making a direct identification of the cardholder, there’s always more scope for fraud or chargebacks, and fees are a little higher.

Despite this, numerous companies operate exclusively on CNP payments and remain successful. The added expense isn’t typically burdensome, but it’s a factor to consider when setting your pricing or selecting payment platforms.

Knowing how these rates vary allows field technicians and business owners to make more intelligent decisions that meet convenience, customer access, and operating budget needs.

Is a Digital Wallet Card Not Present?

An electronic wallet can be either card-present or card-not-present, depending on usage. If you use it to make a purchase online or pay for a subscription service, it’s a card-not-present transaction because there is no face-to-face transaction and no card data is captured by a physical terminal.

But when you use the same digital wallet to wave your phone at a store’s contactless payment terminal, that is a card-present transaction. So, whether a digital wallet is card-not-present or card-present depends on how and where you use it.

Is Apple Pay Card Not Present?

Apple Pay may be card-present or card-not-present, depending on your usage. When a consumer uses Apple Pay to buy from the web, order in an app, or pay through a social media “buy” button, it’s a card-not-present transaction since there is no face-to-face card data captured.

But if the same individual presents their iPhone or Apple Watch at a retailer’s contactless payment terminal, it is a card-present transaction. The reason is that the payment terminal takes the card details securely from the device, just as it would take them from a card. So, it just depends on where and how Apple Pay is utilized.

Tools for Card-Present Payments

With card-present transactions, the right equipment can make all the difference for you and your customers. The payment terminal isn’t merely used for swiping or tapping cards—it also features a built-in receipt printer and integrated POS system that allows you to monitor sales, inventory, and even your transaction history, all from one location.

For companies that are not such as contractors or food trucks, a Card Reader allows them to take payments anywhere. These tools together don’t only process payments, but make every sale easy, quick, and stress-free.

Tools for Card-Not-Present Payments

When it comes to card-not-present payments and remote processing of transactions, having the right tools truly keeps things running smoothly, securely, and hassle-free.

A virtual terminal allows you to insert card information directly into your browser, ideal for accepting phone orders or surprise bookings when your client isn’t present in person. A subscription payment handles regular billing automatically, and so payments arrive on time without additional effort.

Payment pages enable you to create easy online forms so clients can pay at their convenience. Additionally, invoicing lets you send professional email invoices, and clients can pay securely from the link.

These features allow you to manage payments from anywhere while keeping it easy for both you and your clients.

Conclusion

Understanding the difference between card-present and card-not-present transactions enables field technicians to work more effectively and maintain payment security. By employing the proper tools and payment solutions for each scenario, you can minimize costs, decrease fraud risk, and provide customers with a hassle-free payment experience wherever the job takes you.

FAQs

What is the difference between card-present and card-not-present transactions?

Card-present refers to when the card is presented physically during checkout; card-not-present is when payment is made remotely, such as online or over the phone.

Do card-present transactions require a lower cost?

Yes, they tend to be less expensive to process since there’s less risk of fraud when the card is swiped, tapped, or inserted.

Should field technicians accept both kinds of payments?

Absolutely—using portable card readers for in-person work and online tools or invoices for remote payment addresses both.

Is a digital wallet always card-not-present?

No. If they’re used at a contactless terminal in person, they’re card-present; if they’re used online, they’re card-not-present.

Why should technicians know the difference?

Understanding the difference helps select the proper tools, keeps fees minimized, and makes payments easier and more secure for customers.