Do your clients pay for bookings online, purchase subscriptions for your services, or sometimes pay over the phone? If so, you’ve been accepting card-not-present (CNP) payments. 

These transactions are taking over the beauty and wellness world. Who doesn’t love the ease and convenience of skipping in-person checkout? But with all that convenience comes risks, including the potential for fraud. As a business owner, staying on top of these payments helps keep your clients happy and your business safe.

Here’s everything you need to know to accept CNP transactions like a total boss – from real-life examples to pro tips on preventing fraud and securing payments.

What Is a Card-Not-Present Transaction?

So, what is CNP, exactly? A CNP transaction takes place when your client doesn’t use a physical card to pay for your services. Instead, they provide their payment details in another way – like entering them online, reading them over the phone, or giving you permission to charge a card whose details you already have on file.

This is the opposite of a card-present transaction, where the client physically swipes, taps, or inserts at your card reader. Card-present transactions are generally more secure because you can verify the card easily – for example, by checking whether the name on the card matches your client’s name. Plus, EMV compliance protects against fraud in card-present purchases.

With CNP transactions, the risk of fraud is higher since there’s no physical card to check. This is why many payment processors, like Square and Vagaro, charge higher CNP processing fees. These extra costs may not seem to make a big difference, but over time, they add up and start eating into your profits. 

But with GlossGenius, you don’t have to worry about paying more for different payment types. We offer one flat rate for all payments – card present or not – with zero extra fees. Our payment processor makes it easy to get paid no matter how your clients want to. You get to keep more of your hard-earned money, and you get to access a complete booking, payments, and business management software while you’re at it. 

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Examples of Card-Not-Present Payments in Beauty and Wellness Businesses 

CNP transactions are super common in the self-care industry, making payments easier for both clients and business owners. Let’s look at a few real-life examples:

Online purchases

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Everyone loves online shopping, especially when it comes to beauty and wellness products and services. You probably have clients who like to book appointments and prepay online or love snagging their favorite products from your online store.

When clients book a massage or buy a skincare item online, they make a CNP transaction. And by entering their payment details on your website, they enjoy a fun shopping experience without needing to call or visit your location. This makes it easy for them to support your business anytime – even when you’re closed – allowing you to capture sales around the clock.

Over-the-phone payments

Sometimes, clients prefer to connect directly when booking appointments or purchasing products. For example, they might call your spa to book a last-minute facial or buy a gift card for a friend. Then, they provide their card number verbally so you can process their payment without needing to see the card.

Subscriptions

Many self-care businesses offer subscription models. For instance, your hot yoga studio might provide monthly class packages so clients can enjoy a number of steamy sessions each month. Or your salon or spa might have a membership program that helps clients stay on top of their self-care routines.

With subscription models, clients usually give you their payment information to store, so you can charge it automatically each month instead of having them make a physical payment. Clients appreciate this setup’s convenience, and it helps you maintain a steady stream of income, too.

Card-on-file transactions

Storing client card information for future use is a game-changer for beauty and wellness businesses. Imagine a regular client who comes in for weekly lash extensions or bi-weekly haircuts. Having their card on file means you can easily charge them after each visit, even if they’ve forgotten their physical card at home.

How To Prevent Card Not Present Fraud

CNP transactions offer convenience and flexibility, but they come with higher fraud risks since there’s no physical card to verify. Criminals can easily use stolen card information to make unauthorized purchases, leading to chargebacks and financial losses for your business. 

Here are four ways to protect yourself – and your clients – from CNP fraud:

Encourage password security

Strong, unique passwords are your clients’ first line of defense against unauthorized access and potential fraud. Encourage them to create passwords that mix letters, numbers, and special characters – this makes it way tougher for cyber criminals and fraudsters to crack the code. Also, remind them to steer clear of easily identifiable info, like names or birthdays, in their passwords. This is especially important if your business website lets clients make accounts and save their payment information. 

Keeping client data safe isn’t just about security. It’s about preserving their trust in you and protecting your business’s glowing reputation. A little extra password security can save you a world of trouble down the line.

Protect your website and POS

Take advantage of security features on your website and point-of-sale system. Make sure you update your software regularly and download the latest security patches. These updates help you stay one step ahead of cyber threats.

Want to feel even more confident about preventing CNP fraud? Try GlossGenius’ point-of-sale (POS) software and hardware. With top-notch security features like active fraud protection and end-to-end encryption, you can trust that every CNP transaction is secure, whether a customer orders online or makes an in-person purchase. Plus, GlossGenius’ website builder helps you give clients an online booking experience that’s safe and stylish.

Be vigilant

Stay sharp and keep a watchful eye on your transaction histories. Regular reviews can help you spot suspicious activity before it spirals out of control. Look for any unusual patterns – like multiple charges that come from the same account in the blink of an eye. Then, take quick action to resolve these issues. A little proactivity can go a long way toward preventing CNP fraud.

3 Ways To Accept Card-Not-Present Transactions Securely

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It’s impossible to totally avoid CNP fraud. But you can optimize your merchant services to ensure security. 

Here are three ways to keep your business and clients safe when it comes to accepting CNP payments:

1. Use a secure payment gateway

When choosing a payment processor, opt for one with a secure payment gateway, like Stripe or Square. A secure payment gateway is the technology that reads clients’ cards and communicates with their bank. A reliable gateway encrypts sensitive customer data during transmission, keeping it safe from prying eyes.

Look for gateways that offer additional security features, too, like fraud detection and risk assessment tools. These layers of protection safeguard your clients’ information and build their trust in your business. Confidently accept CNP payments without compromising data privacy.

2. Implement tokenization

Another strategy for CNP payment security is tokenization. This process transforms sensitive payment information into a unique, randomly generated identifier – a token – that replaces the actual card details. 

This means that even if a would-be fraudster intercepts the token, they won’t gain access to the original payment information. As a result, you and your clients can rest assured that their data is protected. This peace of mind is a nice bonus on top of the self-care you already help clients achieve.

Tokenization should be built into your payment processor. If you’re not sure if your processor uses it, look at its security practices or reach out for support. All payment companies should have transparent security. For example, GlossGenius makes it clear that all information is tokenized and encrypted throughout transactions.

3. Offer alternative payment methods

Finally, choose a mobile POS system that accepts a variety of digital payments, including mobile wallets like Apple Pay and contactless. These alternatives come with built-in security features, reducing the risk of fraud for CNP transactions. Some also allow an extra layer of protection by allowing clients to pay without directly sharing their card details.

Plus, clients love having more ways to pay. They’re more likely to complete a purchase when they have payment options that fit their lifestyle. So, go ahead and diversify your payment methods – your clients (and your bottom line) will thank you!

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Protect Your Payments With GlossGenius

As CNP payments become more popular, it’s crucial for beauty and wellness businesses to ensure security. By protecting clients’ payment data, you also protect your business’s reputation – and you safeguard your finances from unexpected fraudulent payment reversals.

With GlossGenius, ensuring CNP security is a breeze. Our complete POS and payment system has advanced security protocols protect cardholders from fraud, and we offer sleek, stylish card readers as well as powerful financial tools to help you manage your business. Plus, enjoy other features like online booking, marketing features, and more – all in one easy-to-use platform.

Embrace the beauty of simplified payment security. Start your free trial today.

‍Disclaimer: This information is provided for general educational purposes only. For legal, cybersecurity, or compliance advice specific to your business or situation, please consult a professional.