User:Leinadear/sandbox

A human not present transaction (HNP) is a payment transaction made by an Internet of Things (IoT) device in which the owner of the payment device (such as payment card, bank account or other payment device such as digital currencies or cryptocurrencies) is not present and the transaction is initiated and made on his/her behalf. An example of a human not present transaction would be a smart refrigerator ordering milk after it has sensed that the milk is sour or is out.

Fraud
It is predicted that HNP transactions will create a new route for financial fraud. Depending on the payment device being used, fraud may manifest itself as credit card fraud or wire fraud (or other). The main challenge with HNP transactions will be authentication and authorization, as the payment device owner may not have any knowledge of the transaction taking place, or may be geographically apart from the IoT device initiating the transaction.