| Card Present Scenario | Card Not Present Scenario | |
|---|---|---|
| Transaction Process | Physical presence of the card and customer | Absence of physical card, remote or online transaction |
| Payment Method | Swipe, chip insertion, or contactless (NFC) payments | Online, mobile, or telephone payments |
| Security | Verification through PIN or signature | Reliance on cardholder information and authentication measures (CVV, AVS) |
| Fraud Risk | Lower risk due to physical card presence | Higher risk due to potential fraudulent transactions |
| Chargeback Potential | Relatively lower chargeback potential | Higher chargeback potential due to dispute-prone transactions |
| Processing Fees | Lower processing fees due to lower risk | Higher processing fees to account for increased risk |
| Customer Experience | Fast and convenient transaction process | May require additional authentication steps and potential delays |
| Compliance | Compliance with payment industry regulations | Compliance with additional security protocols (PCI DSS) |
| Examples | In-store retail purchases, point of sale transactions | Online shopping, e-commerce, mail or phone orders |
It’s important to note that these are general characteristics of the Card Present and Card Not Present scenarios, and specific considerations may vary based on the payment processing methods, industry regulations, and individual merchant practices.