E-commerce (best described as online shopping) offers the convenience of shopping from home—an added benefit when everyday life changed. Many Americans increased their purchasing through online channels over the last several years, which unfortunately has also led to an increase in “Card-Not-Present” (CNP) fraud. In this blog, we’ll cover CNP transactions, the explosion in e-commerce transactions, and how best to protect your cards from fraud.
What is a CNP transaction?
This type of transaction occurs when neither the cardholder nor the card is physically present during the transaction. Purchases made online are considered CNP transactions.
The rise in e-commerce sales.
In 2020, e-commerce grew by 44%. This created a tempting target for fraudsters to take advantage of online payment vulnerabilities and sell stolen information on the “dark web,” thus allowing third parties to process charges on someone’s account. Or worse, these criminals could use this information to steal your identity, open loans or mortgages, and ruin your good credit. To learn more about identity theft protection, check out this blog post.
How to protect yourself?
Loading your cards into a Mobile Wallet (such as Apple Pay™, Samsung Pay™, or Google Pay™) gives you an added layer of security through tokenization. Tokenization is the process of replacing confidential data with non-confidential data—aka “token.” So, when you process a transaction using a Mobile Wallet, your card number is replaced with a non-confidential value which changes each time a transaction is processed, making the experience more secure.
Mobile Wallets also offer additional security for Card-Present (CP) transactions (when you and the card are physically present). CP transactions are processed with multilayered authentication. To pay with a Mobile Wallet, you will need to enter a form of identification—such as a fingerprint, face scan, or PIN—to enable the payment. Not only are Mobile Wallets more secure, but they are also a much quicker form of payment and, in most cases, contactless.
As we move into a more digitized world, it’s essential to take precautions on how you shop. Many online retailers accept Mobile Wallet payments within their transaction process. With the added security and ease of use, Mobile Wallets are the best way to shop. Even better, all Yolo FCU cards are compatible with every Mobile Wallet app. To learn more, schedule an appointment with a Yolo Federal representative today!