Wednesday, July 9, 2014

Card Not Present Fraud

Card Not Present Fraud (CNP) as a term is a misnomer. It implies a card is a requirement for payment when it is not. Customer Not Present does not work as a proper definition because a customer can be present but usual or standard authentication procedures are not available at the point of sale. I am willing to step out on a limb and define a new term “Remote Vulnerability” (RV). Further I choose to consider RV is a cardinal value on a calibrated scale based on price because it is my blog and my term, dear reader(s).

For the sake of brevity I will use symbols to describe the concept. Let P be a unit of value and R be a distance. Define RV as PRn/P, where n is the time to authenticate the payment system user.
New definition carefully in hand can we price a service. I will go out on a limb again and say yes.

Next Blog: Lemmings


  1. It is not about the PHYSICAL presence but about the usage. CNP is a transaction that takes place without the inclusion in the messaging of the details from the card being transmitted - i.e. a direct interaction with the CHIP on the card or a read of the magnetic stripe. It is not about distances whatsoever.

  2. I know what it is currently, unfortunately its not what it needs to be, a measure of actual risk paid in part by the party to a transaction increasing the risk.