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Card-present vs card-not-present transactions: The two sides of payment processing
Imagine this: You’re running a thriving consulting business. A client steps into your office for their scheduled session. After a productive hour, they’re ready to settle the bill. They hand you their card, you swipe it on your POS terminal, and in seconds, the payment is done. Later that evening, another client—one who lives out of town logs onto your website to pay an invoice. They enter their card details, hit 'submit,' and the transaction goes through seamlessly.
In both scenarios, you’ve accepted a payment, but the way it happened was entirely different. Welcome to the world of card-present and card-not-present transactions. These are the two sides of the payment coin, and as a business owner, understanding the difference and why you need to offer both can have a big impact on your success
Card-present transactions: the face-to-face experience
Let’s kick things off with card-present transactions. This is what happens when a customer is physically present at the point of sale. Whether they’re swiping, tapping, or inserting their card into a reader, it’s not just about the card being there—the cardholder is right there too.
Why card-present transactions matter
Here’s why your business needs card-present transactions.
- Enhanced security: When the card is right there in front of you, the risk of fraud drops. With EMV chip technology and PIN verification in play, you get an extra layer of security that keeps both you and your customer safe.
- Lower processing fees: Less risk means lower costs. Because card-present transactions are more secure, payment processors usually charge less in credit card processing fees, leaving more of your revenue where it belongs—in your business.
- Instant payment confirmation: No waiting around here. The payment goes through on the spot, so you and your customer can both walk away with peace of mind knowing everything’s been fully sorted out.
Tools for card-present payments
When it comes to card-present payments, having the right tools can make all the difference. It’s not just about taking payments—it’s about making the whole experience better for your clients and smoother for your business. Here’s how Helcim can help you enhance your card-present transactions:
Payment Terminal: This isn’t just your average payment processor. With Tap & Pay, Chip & PIN, and a built-in receipt printer, it’s designed to keep every transaction smooth and secure. But that’s not all—it also comes with our integrated POS software that lets you manage sales, track inventory, and check out transaction history, all in one spot. It’s like having a business management tool right at your fingertips, making your day-to-day operations much easier.
Card Reader: If your business keeps you on the move - say you’re a contractor, you offer home services or even have a food truck, the Helcim Card Reader is your go-to portable solution. It syncs up perfectly with your mobile device, letting you accept payments anywhere—whether you’re in your office, visiting a client, or at a busy conference. It’s all about giving you the freedom to get paid wherever your business takes you. These tools do more than just handle payments. They enhance the entire transaction experience, making it smoother, more secure, and totally stress-free for both you and your clients.
Card-not-present transactions: the flexibility factor
Now, let’s flip the coin to card-not-present (CNP) transactions. These are the payments where the customer isn’t standing right in front of you. Instead, they’re somewhere else—at home, at work, or even on vacation—entering their card details into a website or over the phone.
Why card-not-present transactions are essential
Here’s why card-not-present transactions are important for your business.
Take your business global: When you accept remote payments, your business isn’t limited to local clients. You can reach people across the country—or even across the globe. Whether your client is in a neighboring city or halfway around the world, you’re opening up new revenue streams and creating opportunities for growth.
Convenience, convenience, convenience!: Clients appreciate the flexibility of paying online or over the phone by providing their credit card details. Whether they’re juggling a busy schedule or just prefer the ease of remote payments, this convenience gives them a better experience with your business and even builds loyalty.
Automate recurring payments: If your business operates on a subscription model, card-not-present transactions let you automate the payment process. No more chasing down payments, your clients enjoy the hassle-free experience, and you get the peace of mind that comes with consistent cash flow. It’s a win-win for everyone involved.
Tools for card-not-present payments
When it comes to card-not-present payments and online transactions, having the right tools is key to making remote transactions smooth, secure, and stress-free. Helcim offers a variety of solutions that simplify the process and help you manage payments from anywhere:
Virtual Terminal: Perfect for businesses that handle orders over the phone, the Helcim Virtual Terminal lets you securely enter card details directly into your browser. Whether you’re processing a last-minute booking or taking a payment from a client who’s on the go, this tool ensures that you can handle payments efficiently, even when your client isn’t right there in front of you.
Subscription Manager: If your business runs on recurring billing, the Subscription Manager is a game-changer. It automates everything from invoicing to payment collection, so you never miss a payment and your clients stay on track without any extra effort. It’s a great tool for any business that wants to keep cash flow consistent and clients happy.
Payment Pages: Need a simple way to accept online payments? Our Payment Pages let you create custom payment forms that clients can access with just a click. This is especially handy for service-based businesses that want to collect payments online without the hassle of setting up a full e-commerce site. Whether you’re charging for appointments, consulting services, or even trying to get donations, Payment Pages make it easy for clients to pay you, no matter where they are.
Invoicing: For those times when you need to bill clients remotely, our invoicing tool is a lifesaver. It lets you create and send professional invoices straight to your clients’ inboxes, and they can pay securely right from the invoice—no need for physical cards. It’s a seamless way to manage card-not-present transactions, keeping your cash flow steady and your clients satisfied.
With these tools, you can manage payments effortlessly, giving you the flexibility to grow your business beyond the confines of a physical location while ensuring that every transaction is as seamless as possible.
The key differences between card-present and card-not-present transactions
Security: With card-present transactions, the card is right there in front of you, which makes it easier to verify the client’s identity and reduces the risk of fraud. Card-not-present transactions, on the other hand, require extra security steps like CVV codes, billing address verification, and two-factor authentication to keep things secure, given the higher risk when the card isn’t physically present. This is crucial in preventing card not present fraud, where fraudsters exploit the lack of physical presence to misuse stolen card information. Effective measures are necessary to combat credit card fraud in these scenarios, including using authentication methods like card verification numbers and address verification systems.
Cost: Because card-present transactions are more secure, they typically come with lower processing fees. Card-not-present transactions, while incredibly convenient, often carry higher fees due to the increased risk and the added flexibility they offer. Something’s got to give right?
Convenience: This is where card-not-present transactions really shine—they give your clients the freedom to pay from anywhere, whether they’re at home, at work, or on the go. For you, the business owner, it also means you can expand your business beyond your local area, reaching clients no matter where they are. On the other hand, card-present transactions, while offering immediate confirmation and personal interaction, can be limiting. They require the customer to be physically present, which can restrict your business to local clients and make it harder to scale beyond your immediate area.
Payment technology requirements: Card-present payments typically require physical POS terminals or card readers, which come with setup and maintenance costs. These devices need to be purchased or rented, and there’s ongoing maintenance to ensure they function smoothly. On the flip side, card-not-present transactions rely on online payment gateways, virtual terminals, or mobile apps, which can often be more cost-effective to set up. While there may be fees associated with these online tools, they generally involve lower upfront costs and can be easier to scale as your business grows.
Why you need both: a balanced payment strategy
Given the distinct differences between both transaction types, it’s clear that in today’s business landscape, offering both payment options isn’t just a nice-to-have—it’s essential. Here’s why:
Meet client expectations: Your clients want the flexibility to pay in whatever way works best for them. By providing both types of transactions, you’re making sure you can cater to their needs, whether they’re sitting in your office or halfway around the globe.
Maximize your revenue: The more ways you offer for clients to pay, the more opportunities you have to close a sale. Clients who can’t make it to your location will appreciate the convenience of paying online or over the phone, which can lead to more sales and happier clients.
Support your growth: As your business grows, so will your need to handle a variety of payment scenarios. Whether you’re expanding your local client base or reaching out to a global audience, having both card-present and card-not-present options ensures you’re ready for whatever comes next, including taking your business to new markets and opportunities.
No matter how you run your business—whether you're meeting clients face-to-face or serving them online—Helcim’s got you covered. With tools that handle every type of transaction, you can focus on what you do best: growing your business. Ready to see how easy managing payments can be? Get started with Helcim today.
