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Should You Accept Card-Not-Present Payments?



Should You Accept Card-Not-Present Payments?

Discover the benefits of accepting CNP transactions.

While card-not-present (CNP) payments may not be a universal customer term, it’s an important business concept. 

When a customer pays for a product or service in person — using a physical debit or credit card, smartwatch or other device — it’s referred to as a card-present payment. Card details are captured in person, at the time of sale. On the flipside, a card-not-present payment occurs when neither the customer nor their card are in front of the merchant. The transaction happens remotely. 

CNP transactions are playing an increasingly important role in helping small businesses scale up and reach more customers. Read on to learn more about the benefits of accepting card-not-present payments.

Types of CNP transactions

CNP transactions often take place over the phone or via mail. These transactions are referred to as MOTO (Mail Order, Telephone Order) payments, which encapsulates exactly how these transactions can occur. 

Merchants can accept card-not-present payments quickly and securely via Zeller Terminal by manually inputting the cardholder’s details. Regardless of whether a transaction is processed in-person or remotely, there are a number of security checks that occur behind-the-scenes to ensure the funds are available before authorising a payment and encrypting cardholder data — to keep your business and customers safe.

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Benefits of CNP payments

Being able to offer your customers multiple ways to provide payment is important. Considering whether to begin accepting card-not-present payments at your business? Here are some key benefits of accepting CNP payments.

1. Minimised invoice payment terms

Forget waiting up to 30 days for your customers to pay an invoice. By accepting CNP payments, you’re giving customers the ability to pay you immediately — from wherever they are. 

The true costs of late payments are substantial, both to your bank account and your business operations. Prompt payments aren’t just a convenient timesaver for business owners who would typically waste time chasing invoices each month, they also help speed up cash flow.

2. An alternative to face-to-face payments

Situations like COVID-19 highlight the importance of offering alternate transaction options. During a lockdown, the ability to accept CNP payments could be a lifeline for businesses to continue operating. 

As a business owner, there’s nothing worse than turning away customers. So, while restrictions such as 5km radiuses and border closures may keep customers away from your shopfront, mail and phone orders can keep them loyal to your business.

3. Access to new markets

Accepting CNP transactions can also open your business up to brand new customers you wouldn’t have otherwise been able to reach. 

With the added convenience of not having to head in-store to make a purchase, more potential customers can now access your goods and services from the comfort of their own home — which means you can tap into new interstate and overseas markets effortlessly.

4. Enhanced customer experiences

The convenience of MOTO transactions means that customers can approach the purchase process at their own pace. Not only do they trigger the sale in their own time, but they’ll have direct contact with an important brand touchpoint — your staff. This gives your business the chance to bolster brand sentiment by making the MOTO process a positive one, inviting future loyalty and repeat sales to boost your bottom line.

5. Future-proofed business

There’s been a sizeable, generational shift towards CNP payments — thanks largely to inventions in the digital payment realm, such as Apple Pay and Google Pay. On the other end of the scale, older Australians with a growing distrust of the internet are opting for more secure payment methods that give them more control. By adopting CNP payments, you future-proof your business against these shifting purchase trends.

6. Quick and easy setup and use

One of the biggest benefits of accepting CNP payments is how easily it can be implemented into current operations. With Zeller Terminal, it’s as simple as toggling MOTO on, entering the transaction amount, and following best practices for confirming the identity of the cardholder. Your staff can begin processing phone and mail orders on the spot.

Safely accepting CNP payments with Zeller

There are a number of security checks in place to ensure both your business and your customers are protected, in the event a fraudulent transaction is put through a Zeller Terminal. 

To account for the increased likelihood of fraud and chargebacks, CNP transactions come with a slightly higher processing cost. Transactions processed over the phone incur a transaction fee of 1.7%, which can be passed onto the customer as a surcharge.

It’s also imperative that staff tasked with accepting payment from customers over the phone or via mail take appropriate steps to verify that the customer is who they say they are. Once your staff are trained in safely accepting CNP payments, your business can benefit from healthier cash flow, tighter payment periods, greater customer satisfaction, and greater market reach.

Now that you’re aware of the benefits associated with accepting CNP payments, it’s time to start planning how this extra revenue can help you scale your business and reach more customers. 

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