Cardholder-not-present (CNP) transactions - Frequently Asked Questions

Modified on Mon, 26 May at 5:35 PM

What is a CNP transaction?

Cardholder-not-present (CNP) means that the cardholder is not physically presenting their credit or debit card at the time of the transaction.

In RoomRaccoon, card details are received and encrypted by the payment provider. This method allows you to charge the card for specific scenarios from the reservation:

The moment you click on "charge credit card" (as shown in the image), the transaction is no longer processed with 3DSecure, which increases the risk of fraud, which is why CNP transaction fees are higher.

When should a CNP transaction be used?

Use a CNP (Card Not Present) transaction only if 3DSecure is not available, i.e. in cases of no-shows, late cancellations, or damage costs. For this, it is crucial to ensure that your Terms&Conditions are updated and clearly state your policy. Also, your cancellation and payment policies must match the timing of the charge, so you can defend it if the booker disputes it (in case of chargeback).

How to accept payments securely
RoomRaccoon offers safer ways to accept payments, like payment request links, pre-payments through the Booking Engine, or secure transaction during online check-in or check-out. These options use 3DSecure, which helps protect you from chargebacks and makes payments more secure for you and bookers.

What is a 3DSecure transaction?

A 3DSecure transaction is a safer way to pay online with a credit or debit card. It adds an extra step to make sure the booker authenticates the payment, reducing the risk of fraud. The booker will be required to validate the payment in their bank's app by entering a password or a code sent to their phone.

Good to know

CNP transactions are especially beneficial and should be used in the following situations:

- Protect against no-shows and late cancellations by securely charging deposits or full payments in advance.

- Pre-authorise cards in advance to ensure funds are available and make the check in process smoother.

- Save time and effort by avoiding the need to follow up on payments during or after the guest’s stay.

Learn more about our new feature: Scheduled Pre-Payment Request and how this can help improving your cashflow.