4 Reasons Why Card-Present Transactions Are Better for Your Business

FoodDeliveryWhen it comes to managing a business, owners want to run it efficiently, maximize revenue and optimize their operations. But often, they miss on simple opportunities and leave money on the table – and sometimes, it all comes down to how they accept payments.

Every transaction has an associated fee attached to it depending on how your business accepts electronic payments (in-person, online or over the phone). If you think about your delivery and home service businesses, you might not be aware of the difference in the fee structures and can unintentionally overlook them deciding how to best accept payment. Card-not-present (CNP) transactions have higher fees when compared to card-present (CP) transactions, as they carry a greater risk of fraud. A recent report by Juniper Research explained that retailers will lose $130 billion due to CNP fraud over the next five years. These high costs can negatively impact your operating costs and bottom line profitability.

This is where CP transactions can help. As the term suggests, these transactions occur when the card and the cardholder are physically present to make the payment. Think of a typical customer’s visit to a take-out restaurant: when they pick up their food, they pay using their credit/debit card either by swiping, inserting the EMV chip or by simply tapping their contactless card or mobile wallet. However, if they ordered their meal over the phone or online for delivery, it is most likely a CNP transaction, where the card and the cardholder are not physically present to pay. These transactions also come with larger fees to the merchants due to a higher risk of fraud.

When evaluating how your business accepts payment, here are a few things to keep in mind:

Cost Savings

In a CP transaction, the issuer charges the merchant a lower fee than a CNP transaction. Sure, these fees are smaller and are in mere cent amounts, but when this is scaled up to potentially thousands of orders each week, the cost goes up significantly. In a cost and price-competitive industries such as home improvement, food delivery, home services, etc. these savings make a strong case for moving to CP transactions. Take food delivery, for example: with an average order ticket of $20, the total base rate charged to the merchant is 48 cents for CNP versus 34 cents for CP transactions. Over the course of 1,000 orders, that’s $480 in fees versus $340 – a whopping 41% more.


During CNP transactions, customers give payment card information to the merchant either over the phone or by typing it in an online form. This gives cyber-criminals a better opportunity to compromise the sensitive card information. With a CP transaction, the payment card never leaves the customer’s sight, and a payment acceptance solution allows the customer to securely complete the transaction while also ensuring the card’s authenticity. This provides stronger protection and makes consumers feel more comfortable when paying.

Enhanced Customer Experience

Apart from creating efficiencies and reducing costs, CP transactions can also help enhance your customer’s experience. A staff member using a mobile POS solution can better engage with your customers while delivering your product or service. This creates a positive brand image and is more likely to turn customers into repeat buyers.

Upselling Opportunities

While engaging with the customer, your staff can also upsell additional products or services on the spot, regardless of whether the original goods and services were already paid for. If you deliver food, your driver can offer beverages or other items that the customer might not have ordered and collect payment on the spot. This not only increases revenue but adds further value to the delivery or service experience.

Mobile POS Can Help with CP Transactions

To maximize the ability to accept CP transactions, mobile POS solutions are a great way to bring secure payment acceptance to the point of service, rather than accepting payment online or over the phone. This enables your business to save on transaction fees and securely accept all forms of electronic payments including EMV, magstripe and NFC/contactless. You are also able to better interact with your customers and potentially upsell on other merchandise.

The customers, on the other hand, feel secure about using their card in person rather than giving the details over the phone or online. This helps create trust and brand loyalty, which in turn creates the opportunity for repeat business.

Enhance customer experience by bringing secure payment acceptance to your customers with mobile POS in your business. Drop us a line and get started.

Nerino Mayer is Vice President, Sales & Strategic Accounts, Mobile Solutions at Ingenico Group, North America

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