Card-present vs card-not-present

Two ways a card payment can be taken, with different costs and different risk for the property.

Card-present means the card and usually the cardholder are physically at your terminal. The guest taps, dips, inserts or swipes. The card is authenticated by the chip or by the phone's wallet, so the bank treats the transaction as low risk.

Card-not-present means you have the card number but not the card. A payment taken over the phone, keyed into the PMS from a booking form, or collected through a payment link is card-not-present.

Why it matters: processing fees are generally lower on card-present transactions, and liability for a disputed charge usually sits with the issuing bank rather than with you. On a card-not-present transaction the property often carries the chargeback, even when the booking was genuine. Properties in markets where terminals are not available have no choice, which is why terminal availability by country is worth checking before you plan your payment flow.