A CP transaction refers to a card transaction in which the card and the cardholder are physically present at the location where the transaction takes place.
Card Present transactions occur when the information on the card's magnetic stripe (Track data) or chip is read by a POS terminal or ATM, or when the transaction is carried out contactlessly. In CP transactions, the card and the fraudster are physically present at the location where the transaction takes place. This type of fraud is most often carried out with lost, stolen, or cloned cards, typically by swiping the magnetic stripe without entering a PIN.
The merchants where this type of fraud is most frequently seen are jewelers, stores selling mobile phones and prepaid airtime top-ups, electrical/electronics stores, grocery stores and gas stations, and naturally ATMs, since there is no one present at the moment the transaction occurs who could detect that it is fraudulent.
With the transition to Chip & PIN, Card Present transaction fraud decreased significantly, but there was a sharp increase in cash withdrawals made at ATMs using counterfeit cards.
The most fundamental way to prevent this type of fraud is to process the transaction through the chip reader with PIN entry. For cards without a chip, fraudulent transactions can be reduced by checking the card's physical security features (ultraviolet light markings, logo, signature panel, etc.) and by verifying the signature (comparing the signature on the signature panel with the one signed on the sales receipt).
