Is Apple/Google Pay using a QR Code/Link considered a Card Not Present (CNP) transaction?

[chcu001]

Since the contactless reader seems to be out of stock everywhere, if I were to conduct an in-person sale using Pay with QR Code or Send Payment Link, and the customer then uses the Apple Pay or Google Pay button on their phone, would it be considered a Card Not Present (CNP) transaction?

[pessosices]

Hey @chcu001 

@I believe that even though it’s using Apple Pay / google pay, as of now because it’s through the website and not directly in person through your POS, it still counts as card not present payments, and the fees are charged as such. 

[chcu001]

Hello @pessosices and thank you so much for your reply.

I accept that your answer is likely the correct one, although I am curious as to why this is the case.

As per this article, the justification for higher fees for CNP transactions is that they are higher risk for fraud. However, Apple/Google Pay use virtual account numbers in place of the real card number; card info is not exchanged with the merchant. On top of that, these payment methods are locked behind biometrics or a passcode on an individual's phone.

I do hope this is changed in the future...

Anyway, thank you again!

[pessosices]

@chcu001 

I definitely agree, and it would be awesome if they were charged at the standard fee instead. 

Although I kind of get it. Even though there is some type of authentification via biometric or passcode, because the transaction isn’t happening directly, there is still a risk that the person isn’t who they say they are, or are using someone else’s device or something else. 

Having said that, the risk is super low, and I totally agree that it shouldn’t count as card not present.