What is 'Card Not Present' transactions related to Form 1099-K?
664 views |Last modified 6/13/2024 1:46:32 PM EST | Added by TaxBandits Team

A Card-Not-Present (CNP) transaction occurs when neither the cardholder nor the credit card is physically present at the time of the transaction. 

Below are the scenarios, including card-not-present (CNP) transactions:

Online purchases: A customer purchases products from a website and pays with credit card information.

In-store pickup (BOPIS): Similar to online orders, however, the buyer picks up their order rather than having it delivered.

Telephone orders: A customer calls in an order over the phone and gives the salesperson their credit card information.

Mailing Orders: Payments made through Postal.

Payments that are recurring: According to the credit card information saved in the retailer's system, when clients sign up for a recurring delivery, such as a subscription box or a product they want to restock frequently, their payment is processed automatically.

On file card payments: Customers authorize retailers to save their credit card information for future payments, which they can use for future transactions.