What does "credit card not present" (CNP) indicate in a transaction?

"Credit card not present" (CNP) indicates that the card was not physically shown during the transaction. This term is commonly used in scenarios involving online purchases or phone orders where the merchant does not have the physical card in hand to verify the transaction. The inability to see or touch the card increases the risk of fraud, as the merchant cannot confirm the identity of the cardholder directly.

In this context, the other options do not accurately capture the essence of a CNP transaction. For instance, saying the cardholder was present contradicts the definition of CNP. Discussing transactions completed via an ATM also misses the mark, as ATMs require the actual card to be present. Finally, while online purchases generally fall under CNP transactions, not all CNP transactions are specifically limited to online use, which makes that option too restrictive. Thus, identifying that the card was not physically shown during the transaction is a comprehensive and correct understanding of what CNP refers to.