UATP has entered into a partnership with Burbank to introduce Card-Present over Internet solutions to airline merchants. The collaboration will enable online transactions to be processed as card-present payments, addressing longstanding challenges around fraud, chargebacks, and transaction accuracy in digital commerce.
The CPoI system allows online customers to tap their physical payment card on their mobile device and enter a PIN, replicating the same verification process used in physical retail settings. The transaction is then treated as card-present, maintaining issuer liability and enhancing security for both merchants and consumers.
Addressing online payment fraud and false positives
Industry data shows that online merchants collectively lose over USD 40 billion annually to fraud and chargebacks. Payment fraud is increasing by close to 70% each year, while chargebacks rise by more than 50%. Merchants also face substantial costs from false positives, instances where legitimate payments are declined, resulting in estimated global losses exceeding USD 400 billion annually.
Representatives from UATP said the partnership aligns with the company’s effort to collaborate with emerging payment technology providers that can improve transaction reliability and efficiency for airline clients. Officials noted that CPoI technology could reduce processing expenses and fraud-prevention costs while improving authorisation rates, which are typically higher for card-present transactions.
Burbank officials described the agreement as a step toward integrating in-store security standards into online payment environments. They said the goal is to significantly reduce fraud and false declines while creating a more consistent payment experience for consumers.
The initiative will initially focus on airlines but is expected to extend to other sectors. Benefits cited by both firms include lower transaction costs, reduced exposure to fraud, and greater protection for both merchants and their customers.
