cardpresent

Cardpresent describes payment transactions in which the cardholder is physically present at the point of sale and the card is used to initiate payment at the time of purchase. The card’s data is read from a magnetic stripe, an EMV chip, or an NFC interface, and the customer may verify the transaction with a PIN or a signature depending on the card and market.

Cardpresent transactions contrast with card-not-present transactions, such as online or mail-order purchases, where the cardholder is not present. Cardpresent payments generally carry lower fraud risk and often lower interchange fees, though rates and liability vary by issuer, network, and region. EMV chip technology and dynamic cryptograms improve security compared to magnetic stripe transactions.

Technologies commonly used for cardpresent payments include EMV chips, magstripe readers, and contactless NFC payments. EMV requires compatible cards and readers and often enables PIN verification for certain card types and markets. Tokenization and point-of-sale integration help minimize exposure by avoiding transmission of raw card data.

Security and compliance: merchants processing cardpresent payments must follow PCI DSS standards, maintain secure terminals, and protect access to payment data. EMV and tokenization reduce fraud risk, but transactions still require proper handling of data and adherence to regulatory requirements.

Use and scope: cardpresent payments are typical in retail stores, restaurants, hospitality venues, and attended kiosks. They enable real-time authorization and settlement through payment networks, and are distinguished from card-not-present transactions by the physical presence of the card and cardholder.