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E-commerce security is undergoing a significant transformation with Card-Present over Internet (CPoI) technology. This innovation brings the trusted security of in-store payments to the online world, addressing longstanding challenges in e-commerce fraud prevention.
Online shopping has become fundamental to modern life, yet security remains a persistent concern. Recent data from UK Finance reveals a troubling picture: over 2.1 million cases of card-not-present (CNP) fraud occurred in the UK during 2023, with losses totalling £350.5 million.
In New Zealand, the situation is similarly alarming. A study by Netsafe and the Global Antiscam Alliance found that New Zealanders have lost more than $2.3 billion to scams this year. The research surveyed over 1,000 Kiwis, discovering that roughly one-third had been scam victims, with average losses of $3,100 per person.
The standard online payment process requires customers to share their card details for each purchase. This card-not-present approach creates inherent vulnerabilities that affect both shoppers and businesses.
These vulnerabilities translate to substantial costs. According to information published on the CPoI website, global chargeback costs to online merchants exceed $40 billion annually. Additionally, retailers face higher processing fees for CNP transactions due to the increased risk of fraud.
An often overlooked issue is that of false positives—legitimate transactions incorrectly identified as fraudulent. These mistaken rejections cost online retailers an estimated $443 billion yearly in lost sales.
Developed by Burbank Software, Card-Present over Internet (CPoI) technology enables a fundamental shift in how we pay online. It allows merchants to accept card-present payments—the same secure method used in physical stores—through their e-commerce platforms.
The system works through a straightforward process:
This approach doesn’t require downloading applications or sharing sensitive card information. It leverages familiar technology that consumers already use and trust.
The inspiration behind CPoI came from an unexpected source. Justin Pike, founder and CEO of Burbank Software, credits a conversation with his mother-in-law, Mary Maddy, who struggled with online shopping during the COVID-19 lockdowns. This experience highlighted the need for a payment solution accessible to all demographic groups.
CPoI offers shoppers a familiar payment experience without exposing sensitive information. This is particularly valuable for demographics less comfortable with conventional e-commerce payment methods but familiar with chip-and-PIN transactions from physical shopping.
The CPoI approach eliminates common pain points in the online payment journey. The company’s website emphasises that their solution requires:
For businesses selling online, CPoI provides compelling benefits:
Paul Rodgers from Vendorcom, an organisation representing key merchant payment stakeholders, notes that CPoI offers a “cost advantage” to online retailers through potentially reduced processing fees and decreased fraud vulnerability.
The payment industry is taking notice of CPoI technology. Global electronic payment businesses, including platforms like Elavon and UATP, have shown interest in the innovation.
Constantino Voulgaris, chief executive of Transactility (the commercial arm of jPOS, payment software used in over 110 countries), describes CPoI as potentially a “drastic game changer” in the industry.
“It’s good for everyone, for businesses like us, for merchants, for the consumer, for everyone,” Voulgaris commented.
Pike expects consumers will begin seeing CPoI offered as a payment option before the end of 2025. As adoption grows, this technology has the potential to transform online shopping fundamentally, creating a more secure, inclusive, and seamless experience for everyone involved.
In today’s landscape of increasingly sophisticated online fraud, CPoI represents a promising approach that doesn’t add complexity but instead returns to the proven security model of card-present transactions. By bridging the security gap between physical and digital retail, CPoI may well define the next generation of e-commerce payment security.
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News says:
E-commerce security is evolving with the introduction of Card-Present over Internet (CPoI) technology, which aims to bring the trusted security of in-store payments to online transactions. The rise in card-not-present fraud, as seen in the UK and New Zealand, highlights the urgent need for such innovations. CPoI simplifies the payment process by eliminating the need to share sensitive card details, reducing vulnerabilities for both consumers and businesses. This technology could significantly decrease false positives, which currently cost retailers billions annually in lost sales. How soon can we expect widespread adoption of CPoI to address these security challenges? Given the growing economic instability due to the events in the Middle East, many businesses are looking for guaranteed fast and secure payment solutions.