Cardholders can use the payment cards in two ways, when the card is present (CP), and when the card is not present (CNP).
Merchant can see the card (in a shop) or not (online)
|CP||Cardholder uses the card to pay in a brick-and-mortar shop using a point of sale (POS) or terminal.|
|CNP||Cardholders buy online with their payment card. It is card not present because the online merchant does not see the card.|