MOTO Payments: The Essential Guide for Fraud and Risk Teams

Moto Payments

MOTO payments, or “Mail Order / Telephone Order” payments, are a type of electronic payment that has been used for decades. They differ from e-Commerce transactions in that the merchant is processing cardholder data manually and not through an online store. This means that MOTO payments are often more vulnerable to fraud than e-Commerce transactions, but with the right security protocols in place, they can be just as safe. In this blog post, we will discuss the importance of MOTO payments in the 3D Secure space, examine common types of fraud associated with them, provide ways to prevent fraud and explain how 3D Secure authentication helps protect both merchants and customers.

What is MOTO?

MOTO payments involve the manual entry of cardholder data by a merchant or third-party processor. This includes all relevant information such as the card number, expiration date and CVV code. Merchants using MOTO must abide by PCI-DSS regulations to ensure secure handling of customer data. In addition to manual entry via telephone or mail order forms, MOTO can also include decoupled authorisation (or “offline”) which allows merchants to securely process payments without taking possession of a customer’s card details.

How Does MOTO transactions Differ from E-commerce Transactions?

The main difference between MOTO transactions and e-commerce transactions is the way in which cardholder data is collected and processed. With e-commerce transactions, customers enter their payment details directly into a secure online form or gateway provided by the merchant or third-party processor whereas with MOTO transactions these details are handed over verbally via telephone call or through mail order forms sent out by merchants.

Additionally, while both types of payment require some degree of risk assessment and authentication prior to completion (e.g., 3D Secure), only with MOTO do merchants have access to more direct methods such as signature verification or identity checks when verifying certain customers’ identities prior to completing their transaction.

Moto Fraud in UK

What is the importance of MOTO in the 3D Secure space?

MOTO plays an important role in the 3D Secure space due to its ability to provide an additional layer of authentication for Card Not Present (CNP) transactions — those where physical cards are not available for presentation at point-of-sale locations — as well as providing liability-shifting capabilities for CNP transactions during 3D Secure authorisation windows when chargebacks may still occur despite a successful authentication process being completed on each individual transaction.

This means that if a customer were to dispute a valid CNP transaction after it had been successfully authenticated through 3D Secure or if any fraudulent activity occurred within a CNP transaction during its authorisation window, then merchants would be protected from financial losses due to chargebacks through liability-shifting initiatives which is provided by 3-D Secure.

How Does 3D Secure Help Prevent Fraud In  MOTO Transactions/Environments?

The most common type of fraud associated with MOTO payments are fraudulent orders placed using stolen credit cards; however, there are other types including:

Moto Fraud Types

It is therefore essential for businesses accepting MOTO payments to have strong fraud prevention measures in place including risk-based authentication (RBA) protocols which assesses each individual transaction against various parameters such as IP address location anomalies before approving it for completion — otherwise they run the risk of being exposed to potential fraud.

Decoupled Moto Authentication

What Are The Ways To Prevent Fraud In MOTO Payments?

There are several ways businesses can reduce their exposure to potential fraud when accepting MOTO Payments:

  1. Educate employees on proper security protocols – Ensure your employees understand proper security protocol when collecting customer payment information over phone calls or mail order forms such as verifying credit cards via 3-D Secure before completing any purchase orders.
  2. Implement strong authentication procedures – Employ strong authentication procedures during checkout processes like requiring customers provide additional identification information beyond just credit cards numbers such as passwords/PINs.
  3. Utilise monitoring systems – Use monitoring systems that track customer behavior patterns over time so you can easily detect any suspicious activity occurring during MOTO Payment processing sessions.
  4. Invest in advanced analytics tools – Leverage advanced analytics tools which uncover hidden patterns behind large datasets so you can identify potential risks associated with certain customer profiles before approving them for checkout.

What Is The Future Outlook On MOTO And Where Is It Heading?

As online commerce continues its growth trajectory across many global markets today so too does MOTO Payments — it has become increasingly popular amongst small business owners who don’t necessarily have access nor resources needed for setting up online stores but still need a reliable way for accepting electronic payments from their consumers quickly and securely without having them present physical cards upon checkout.

With new technologies being developed around mobile wallet applications becoming increasingly popular amongst consumers today, we believe there will be greater opportunities opening up within this sector moving forward, allowing businesses to securely process MOTO payment requests effectively whilst reducing overall exposure associated with fraud and risk –– ultimately making MOTO payments safer than ever before!

Here’s how to process MOTO payments as a retailer


Process Moto Payment

In conclusion, we have learned about what makes MOTO transactions unique compared to ecommerce transactions along with exploring various types of fraud typically associated with MOTO environments. We also looked at strategies businesses can take advantage of when mitigating potential risks associated with MOTO payments, such as leveraging end-to-end fraud and risk management solutions provided by services like GPayments’ 3DS ActiveServer, helping keep both merchants & cardholders safe from financial losses due to chargeback disputes and fraud.

 If you want to learn more about GPayments’ solutions designed specifically to help prevent fraud, please fill in the contact form below and one of our friendly team members will be with you shortly. Contact Us