- What is a Card-Present over Internet® transaction?
Card-Present over Internet® transactions (or CPoI®) simplify the payment ecosystem – they’re really simple. CPoI® enables Chip and PIN payments to be made on a consumer’s mobile device. It replicates the in-store payment process made on traditional payment terminals, but with a key difference being this technology works outside the store, anywhere, anytime.
When a cardholder makes an in-store purchase using their physical card and PIN, their bank can easily verify their identity. This is known as a card-present payment, and the card issuer becomes responsible for the transaction. Before CPoI®, confirming the cardholder’s identity for transactions made online or outside of a physical channel impossible – the absence of a physical card and PIN entry led to increased levels of fraud. These are card-not-present transactions, and the transaction liability sits with merchants. With CPoI®, merchants can accept card-present transactions in digital as well as physical channels.
- How does CPoI® actually work and what issues does it solve?
For merchants who have integrated CPoI®, online shoppers will be able to select CPoI® at the checkout like they would any other payment method. Once selected the customer simply taps their card to their mobile device and enters their PIN – mirroring the familiar in-store process.
Because the data is sent directly to the payment processor and not stored, the transaction is instantly encrypted and fundamentally safer than a customer manually entering their card details. As a card is present during this transaction, the liability sits with the card issuer, substantially reducing the opportunity for fraud and merchant fees.
- How does Burbank’s CPol® facilitate financial inclusion for customers, especially older demographics?
During the Covid-19 pandemic, my mother-in-law had lingering issues purchasing online. She wanted the familiarity of in-store purchases and couldn’t understand why she couldn’t also have this at home – this sparked the idea of CPoI® for me. People of all ages find online payments uncomfortable at the best of times, but for the older generation this can be especially tough. Online payment fraud cost merchants over $40 billion last year, with Card-Not-Present (CNP) transactions being a major contributor to this.
From this experience I realised that a lack of financial literacy was holding my mother-in-law back. That fear of fraud and complex payment processes contribute to a widespread lack of trust, especially among older generations and so, for many, online payments feel unfamiliar and not secure. CPoI® fixes this by bringing what is familiar into their homes.
- Online fraud and chargebacks are a big issue, how does CPoI® address this (for merchants and consumers)?
Online merchants faced an estimated $40 billion in loss due to fraud in 2024 and the problem grows each year. CPoI®, however, can drastically reduce online payment fraud, eliminate false positives and reduce chargebacks to more manageable, in-store levels.
This is because CPoI® enables card-present transactions online. It offers categoric verification of the cardholder through the card’s chip and PIN – card details are never stored. Consequently, transaction liability sits with the card issuer.
A lesser spotlighted issue that plagues online merchants is false positives. When legitimate payments are incorrectly flagged as fraud, merchants can take a significant financial hit – last year this was calculated to be over $443 billion. Furthermore, false positives severely harm the customer experience and reduce the likelihood of repeat purchase. CPoI® completely eliminates false positives; if the card, PIN, and funds are legitimate, the transaction proceeds.
- Why is CPoI® better than traditional online payment methods?
The benefits of CPoI® are clear and tested. Merchants experience fewer disputes and chargebacks, and can eliminate false positives. Consumers can pay with the same secure, familiar and trusted experience in all channels, and have confidence their payments won’t be needlessly blocked.
