The security risks associated with the CNP payment method are well known.
Merchants’ systems – which store all the information criminals need to commit fraud with consumers’ credit or debit cards – have been vulnerable attack points, hence the data breaches we read about daily. They also don’t have a way to confirm whether the information a consumer enters is their own or compromised data.
Online businesses that use this payment method expose themselves to hacking, but even if they’re not hacked, they pay a price since there is a higher fee for processing these higher-risk transactions in which the card is not physically present. So both consumers and merchants are paying a higher price for the convenience of online shopping. But the emergence of QR Codes for payments will show it doesn’t have to be that way.