Card-present rates refer to transactions in which the credit or debit card is physically present with the merchant, such as at a brick-and-mortar store. These transactions are considered to be less risky since the merchant can verify the cardholder’s identity. Card-not-present rates, on the other hand, refer to transactions in which the customer’s card is not physically present with the merchant, such as online or over the phone. These transactions are considered to be more risky since the merchant has no way of verifying the customer’s identity.