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
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.
ReplyDeleteI 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.
ReplyDelete