Which of the following is an example of a card-absent transaction?

Which of the following is an example of a card-absent transaction?

• A. An online purchase using a credit card
• B. A contactless payment made at a store
• C. A cash payment at a physical location
• D. A transaction using a personal identification number (PIN)

Answer: (A)

An online purchase using a credit card exemplifies a card-absent transaction because the physical card is not presented during the transaction process. In an online setting, the consumer inputs their credit card information into a website or app without providing the actual card. This contrasts with card-present transactions, wherein the card is physically swiped, tapped, or inserted at a point of sale. In contrast, a contactless payment made at a store, a cash payment at a physical location, and a transaction utilizing a PIN all involve scenarios where the customer is physically present and interacting directly with the payment medium or terminal. These situations inherently require the card or another tangible method of payment for the transaction to proceed, thus categorizing them as card-present transactions.

An online purchase using a credit card exemplifies a card-absent transaction because the physical card is not presented during the transaction process. In an online setting, the consumer inputs their credit card information into a website or app without providing the actual card. This contrasts with card-present transactions, wherein the card is physically swiped, tapped, or inserted at a point of sale.

In contrast, a contactless payment made at a store, a cash payment at a physical location, and a transaction utilizing a PIN all involve scenarios where the customer is physically present and interacting directly with the payment medium or terminal. These situations inherently require the card or another tangible method of payment for the transaction to proceed, thus categorizing them as card-present transactions.