what is the difference between card present and card not present transactions?
Q. what is the difference between card present and card not present transactions?In the payment marketplace there exists two kinds of transaction processors:
- card present transaction. Typically a physical machine supplied by a bank / merchant services company:
These are lower cost, 1-> 1.5 % typically, simply because the fraud risk is lower than the alternative. So the processor doesn't need to charge so much.
But BRM recognises this and we have a clever work-flow built in.2.card not present transaction. Web-based transactions. Buying / reserving stuff online. Paypal, Stripe etc. Typically around 2.9% Higher risk.
- online booking - leave credit card details. (free)
- pay in-store at lower rate with card. (chip and pin and hence very low fees)
Best of both worlds. This is actually a tried and tested workflow. You may have noticed if you book a car / hotel room you reserve on line with your card as a guarantee. Then you have to pay in-store by presenting your card - for precisely this reason.