Card-Present Transaction

A Card-Present (CP) Transaction is a payment event where the cardholder and the physical payment card are both present at the point of sale (POS) and the card is read by a terminal, which is a critical factor that significantly lowers the risk of fraud compared to remote transactions. This physical interaction, typically involving a chip-and-PIN, swipe, or contactless tap, allows for immediate verification of the card's authenticity and the cardholder's identity, resulting in lower interchange fees for merchants.