For small and medium-sized businesses (SMBs), in-person card payments remain one of the most reliable and straightforward ways to accept payment. These are commonly referred to as card-present (CP) transactions, meaning the customer and their payment method are physically present at the point of sale.
Card-present transactions generally have higher authorization rates than online transactions because the payment method is presented in person and can be verified through methods such as chip, contactless or wallet-based authentication. As a result, they are typically considered lower risk than card-not-present transactions, where the customer and payment credential cannot be verified in the same way. In fact, Visa card-present transactions are approved about 98% of the time,1 significantly higher than online orders.
To remain competitive, businesses should be prepared to accept a broad range of in-person payment methods. Card-present transactions increasingly take place through contactless cards and digital wallets, including Apple Pay and Google Wallet. Adoption of these payment methods continues to grow because they offer speed, convenience and a familiar customer experience. For example, 74% of Apple Pay users globally had used their digital wallet for in-store purchases over the past year in 2024.2
Today, the in-store experience is becoming more digitally connected. Customers often use their phones while shopping to compare prices, review product details or check availability. In response, many businesses are investing in “unified commerce” approaches that connect in-store and digital systems, helping them deliver more consistent customer experiences across channels.
The traditional checkout model is also evolving. Fixed countertop terminals are increasingly being supplemented—or in some cases replaced—by mobile point-of-sale (mPOS) devices and Tap to Pay solutions that allow compatible smartphones to function as payment terminals. These tools give businesses greater flexibility in how and where they accept payments.
By adopting mobile and software-based acceptance solutions, SMBs can enable checkout in more locations throughout the store, reduce congestion at traditional payment lanes and support a more flexible operating model. Mobile payment acceptance can also help businesses serve customers more efficiently in a range of environments, including pop-ups, events, curbside pickup and other remote or on-the-go settings.
What are card-present transactions?
Card-present (CP) transactions are in-person payments processed directly through a merchant's physical point-of-sale terminal.
1. Typically lower risk
A card-present (CP) transaction occurs when the shopper and their method of payment are used in person at the time of sale. Historically, this has meant presenting a physical card, but the category now also includes many in-person contactless transactions made with digital wallets, wearables and other forms of payment. This means if a customer taps their smartphone to pay, it is considered an in-person, card-present transaction because the credential is physically presented to the terminal at checkout.
2. Physically in-store
For SMBs, this physical presence makes it more difficult to misuse stolen card details compared with online transactions because the payment credential can be validated using card or device-based security methods. Therefore, card-present transactions are generally lower risk.
3. Interaction types explained
How your customers pay at the counter has evolved, and offering the right options can speed up payments. A card’s magnetic stripe contains static data, making it easy for fraudsters to copy. Because of this risk, swiping is becoming obsolete. The current standard asks customers to insert a card’s EMV chip, which connects the card directly to the issuer. But the fastest growing interaction is where customers tap their card or device, which uses contactless technology. A customer simply hovers their card or smartphone over your terminal. It’s fast, hygienic and just as secure as inserting the chip. Being able to accept taps is essential for keeping customers happy. Around 60% of merchants3 say they have added new payment methods like digital wallets specifically to improve the customer experience.
4. EMV chip security explained
Why are chips so much safer than stripes? It comes down to how they interact with the payment network. The magnetic stripe has one permanent code on it, so if a thief steals that code, they can clone your card. EMV chip technology is much smarter because every time a customer inserts or taps their card, the chip generates a unique code just for that specific sale. For an SMB, using EMV-compliant terminals is the best way to lock the door against counterfeit fraud and protect your business from liability.
How do card-present transactions work?
Card-present transactions work by securely capturing payment data when a physical card or digital wallet interacts with a point-of-sale terminal, instantly encrypting and routing that information to the issuer for immediate, trusted authorization.
1. Fast, secure and less likely to be declined
By relying on the security of the physical chip—or a digital wallet with additional security features like biometrics—you get the green light from the issuer instantly, securing your sale and getting your customer on their way. This high level of defense leads to Visa’s 98% authorization rate,4 meaning the CP payment goes through almost every time.
2. Tapping has become the norm
Customers love using digital wallets on their smartphones or watches because it’s incredibly fast and convenient. If a customer holds up their wrist to pay and you have to ask them to insert a card instead, it adds friction to the sale.
3. Technology is freeing up staff
The days of being stuck behind a cash register are fading. Technology means SMBs can spend more time helping customers wherever they are in the store. This can involve using mPOS devices or software that turns a regular smartphone or tablet into a secure payment terminal. By adopting unified tools, you can create a modern, connected ecosystem where sales happen anywhere.
4. Fewer disputes, chargebacks and headaches
The statistics tell a powerful story: fraud rates for Visa’s CNP transactions are a whopping 7.5 times higher than for Visa’s card-present sales.5 When a transaction is card-present, it is much harder for a fraudster to use a stolen account—or abuse returns policies—and this physical presence of the chip or digital wallet acts like a shield for your business. It means you spend less time fighting expensive disputes and chargebacks and more time focusing on running your store.
What can you do with card-present transactions?
1. Enable contactless
Tap and go is the new way to pay. By enabling near-field communication (NFC) on your card terminals, customers can just hover their card or phone to pay—which saves time. If the line moves fast, people are happier and less likely to walk away without buying anything, avoiding abandoned sales. Plus, since the customer keeps hold of their card, it’s more hygienic, too. Upgrading your machines to accept these taps is a quick win for you and your customers.
2. Go mobile
Imagine if you could take your cash register around the store with you. With mPOS or Tap to Pay technology, you can. Turn handheld devices, smartphones or tablets into a secure payment terminal—and make sure your staff aren’t stuck behind a counter. They can help a customer pick out a pair of sneakers and take the payment right there in the aisle. Tap to Pay is great for sidewalk sales or pop-up shops, too. By untethering your staff, you make shopping easier and more fun, letting customers pay the moment they decide they want something.
3. Integrate loyalty
When you connect your payment terminals to a loyalty program, you make it super easy for customers to earn points or get discounts. Instead of having to carry a separate loyalty card, the payment terminal recognizes them instantly when they pay. They can see their rewards add up in real time, encouraging them to come back and shop more often. Using tools like tokenization helps keep customers’ information safe while tracking their points, turning a one-time shopper into a loyal fan of your brand.
4. Sync with online
Running a business is hard if your in-store sales software and online sales software don't talk to each other. By using a unified payment platform, you can sync everything up. This "unified commerce" approach shows you every sale, whether it took place at your front counter or on your website, and helps you manage your inventory better—so you don't accidentally sell the last skateboard online when someone just bought it in the store.
5. Support digital wallets
Mobile wallets with tools like Apple Pay and Google Pay are becoming the favorite way to pay for many shoppers. When a customer uses a digital wallet in your store, it counts as a CP transaction. This is great news because these transactions are super secure and use tokens to protect customers’ information and money. By making sure your terminals accept these wallets, it builds trust and makes paying so much easier.
FAQs
Card‑present (CP) transactions happen when the payment credential is presented to a physical terminal. Examples include tapping a card, smartphone or smartwatch in a store. Card‑not‑present (CNP) transactions occur when the card and customer are not physically there, such as online, phone or mail‑order purchases. Because CP transactions involve physical verification and secure chip or contactless technology, they carry a lower risk of fraud than CNP transactions.
Fraud rates for online CNP transactions are higher than for in‑store CP payments because financial institutions are able to check for several security signals during a CP transaction. It’s not just that they know the card or device is physically there in the store; there’s also the EMV chip or contactless cryptograms (unique, one‑time codes) and, in the case of digital wallets, strong device-level authentication such as biometrics on the customer’s phone. These protections all add up to make CP transactions much better at stopping fraudsters.
Yes, when a digital wallet is used to make a payment in store it is treated as a CP transaction just like a credit card. But this applies only to in‑store tap‑to‑pay transactions; online or in‑app wallet payments are considered CNP. When the customer taps their smartphone, smartwatch or tablet to use Apple Pay or Google Pay at the counter, it is recognized as an in-person payment because the device is physically there even though the card is stored digitally. There’s an added advantage too: devices use NFC (near-field communication) technology, tokenization and biometric authentication, so digital wallets are often more secure than a plastic card.
Tap to Phone lets you take payment from customers using just your phone with no dedicated payment terminal required. This solution turns your smartphone into a secure payment terminal, allowing shoppers to tap their card or digital wallet directly onto your device. For business owners, Tap to Phone not only lowers setup costs but it also enables a mobile, flexible checkout experience, so people can pay for goods anywhere in the store and you can reduce the time spent waiting in line to pay. Tap to Phone is secure because it uses the same EMV and NFC standards as traditional terminals and it encrypts and tokenizes payment data while also meeting PCI DSS compliance requirements.
A chargeback is when a customer contacts their card issuer to dispute a charge and get their money back, which can have a huge impact on your revenue and reputation. Chargebacks may take place when a customer has received an item and they believe it’s not what they ordered or were expecting—but they can also be made for fraudulent reasons. The retailer must return the money or prove they sent the correct goods. This type of dispute is less likely to happen when the customer has picked out the item in the store themselves. Sadly, a lot of chargebacks are due to “friendly fraud,” for example when a customer buys something online, then claims they never received it.
When it comes to online or CNP transactions, your business is usually the one held responsible for the financial losses when fraud occurs. However, if a merchant uses an extra layer of authentication like EMV 3-D Secure, the liability shifts to the issuer, or customer's financial institution. CP transactions are much safer—using chip and PIN or contactless technology—so the liability for fraud usually rests with the issuer for failing to prevent the unauthorized transaction. Merchants can become responsible if they accepted older, less secure ways to pay such as chip and signature or magnetic swipe.
Yes, CP payments are a great way to bring together customer transactions and loyalty programs in one place. Your business can integrate modern CP systems easily, allowing customers to earn rewards automatically whenever they pay. Implementation depends on the POS system and customer consent. Secure technologies like tokenization make it possible for merchants to recognize returning customers without storing sensitive card data too, creating a loyalty experience that is both frictionless and secure.
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Visa. "Gross Approval Rate from Global Risk Team, Global Authorization Trends Tracker" 2024.
PYMNTS, in collaboration with Google Wallet. "Digital Wallets Beyond Transactions: Global In-Depth Report" 2024, www.pymnts.com/study/digital-wallets-beyond-transactions-global-in-depth-report/.
Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. "2025 Global eCommerce Payments and Fraud Report" 2025, www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf.
Visa. "Gross Approval Rate from Global Risk Team, Global Authorization Trends Tracker" 2024.
Visa. "VisaNet Data: US Credit Cards, October–December 2024." 2024.
Disclaimer: Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
