A card-not-present or CNP transaction is any transaction for which the physical credit card is not on location when the purchase is made. E-commerce transactions are the most prominent example of CNP purchases.

Card-not-present transactions require a degree of trust on behalf of the merchant, as the cardholders’ physical absence limits the merchant’s ability to verify the identity of the individual who initiates the transaction. CNP transactions, also known as MO/TO or MOTOEC for Mail Order / Telephone Order, are more likely than brick-and-mortar transactions to result in fraud and chargebacks.