The name of the MOTO payment stands for Mail Order and Telephone Order payment.
It allows merchants to receive payment instructions (details) of a customer, for example, a credit or debit card number, and use them to pay for goods that you sell to the customer using a virtual terminal (known as a payment gateway).
It can also work with a PoS (Point of Sale) machine.
Simply put, this type of payment occurs when a merchant accepts payment by credit or debit card via phone call or mail.
The merchant then enters the information into the payment gateway to complete the transaction.
While mail transaction is rarely used these days, phone payment is still widespread.
We need to understand why people use it to fully understand the concept of MOTO.
If it is absolutely clear why people use online payments (it is simple and saves a lot of time), then it may happen that your client finds himself in a situation where he does not have Internet access, he thinks that Internet access is compromised and personal data may become the subject of theft, or just more confident to trust the real a person is better than a bunch of lines of code.
That’s when you may need the MOTO payment system. It is mostly convenient when you are abroad. Wi-Fi access points are not located on every corner, and figuring out how to access the Internet via a foreign SIM card is always an almost impossible task without outside help.
All MOTO services must include the following characteristics:
- Secure bank card to ensure the security of customer data
- Round-the-clock customer support
- High level of fraud protection
- Instant transactions
- Automated Clearing House services
- Payment Card Industry Data Security Standard
You can ask a reasonable question. How secure is this payment method? Indeed, there is a certain risk when transferring your credit or debit card number to a stranger on the other end of a phone conversation. But all risks can be completely eliminated if you follow simple rules.
Safety measures for the MOTO seller
- Staff training. The staff must know all the security protocols, and it is not limited to sending employees a list of instructions. No, there should be a full-fledged training with a test of knowledge and skills. This will help prevent the loss of trust in your business.
- Strict confidentiality protocols. This may seem like a repetition of the point above, but there is a difference. Namely, you have to establish all protocols before staff training. This should be obvious, but, nevertheless, it is worth paying attention to. The most important security measure is the complete avoidance of external websites.
- There must be customer service rules. The main thing here is that your employee does not repeat the client’s data aloud and does not write them down anywhere. In addition, telephone conversations should not be recorded. All of the above serves a simple purpose – to minimize the possibility of data compromise.
- Implement identity verification rules. There is no way to fully verify the true identity of the cardholder. You should at least consider implementing AVS (Address Verification Service). This adds an extra layer of security.
The following actions on the part of the client may be considered suspicious:
- A lot of orders in a short period of time, mostly with growing amounts of money.
- Several credit/debit cards with repeated digits were used to place orders.
- The payments were rejected and the customer asked to continue with a smaller amount.
- The client asks to make a transaction through a third party.
- Request for urgent delivery to the post office or to a third party.
- Everyday goods that can be purchased locally are ordered from countries such as Ghana, Singapore or Nigeria.
- Free email services are used, or only the phone number is specified in the contacts.
- Orders from bank card holders.
Security measures for MOTO customers
- No recording of conversations. This is a necessary and obvious step on the part of the client to ensure security – to check whether the call is being recorded or not. Avoid MOTO services that don’t provide you with this simple security measure.
- No CVV/CVC and other unnecessary details. Basically, for MOTO transactions, you only need to specify the card number. If the MOTO service provider asks you to enter a CVV/CVC or a secure password, then something is wrong here, and you should choose another service provider.
- The transaction report should be instant. Always ask in advance about the expected waiting time. If it takes longer, something probably went wrong. And this is an alarming signal when choosing a MOTO service.
- No background noise during the conversation. If you hear several voices or just background noises during a conversation, this is a bad sign. Either MOTO was outsourced to a call center, or it’s just a scam.
The essential guide for fraud and risk teams
MOTO payments, or “mail order/phone order” payments, are one of the types of electronic payments that have been used for several decades. They differ from e-commerce operations in that the merchant processes 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 secure.
In this blog article, we will discuss the importance of MOTO payments in the 3D Secure space, look at common types of fraud associated with them, give ways to prevent fraud and explain how 3D Secure authentication helps protect both sellers and customers.
What is MOTO?
MOTO payments involve manual entry of cardholder data by the merchant or a third-party processor. This includes all the necessary information, such as the card number, expiration date and security code.
Merchants using MOTO must comply with PCI-DSS rules to ensure secure processing of customer data.
In addition to manual data entry via phone or mail order forms, MOTO can also include non-disconnection authorization (or “offline authorization”), which allows merchants to securely process payments without owning customer card data.
How do MOTO transactions differ from eCommerce transactions?
The main difference between MOTO transactions and e-commerce transactions is the way cardholder data is collected and processed.
In e-commerce transactions, customers enter their payment data directly into a secure online form or gateway provided by the seller or a third-party processor, while in MOTO transactions, this data is transmitted verbally through a phone call or through mail order forms sent out by sellers.
In addition, although both types of payments require a certain degree of risk assessment and authentication before completion (for example, 3D Secure), only in the case of MOTO sellers have access to more direct methods, such as signature verification or identity verification when verifying the identity of certain customers before completing the transaction.
What is the importance of MOTO in the 3D Secure space?
MOTO plays an important role in the field of 3D Secure, providing an additional level of authentication for Card Not Present (CNP) transactions, as well as providing the ability to transfer responsibility for CNP transactions during the 3D Secure authorization window, when a refund can occur despite successful authentication.
This means that if a customer challenges a valid CNP transaction after it has been successfully authenticated using 3D Secure, or if any fraudulent actions occur in the CNP transaction during the authorization window, sellers will be protected from financial losses due to refunds thanks to the initiatives to redistribute responsibility provided by 3D Secure authentication.
Ways of preventing fraud in MOTO payments?
There are a number of ways in which businesses can reduce the risk of potential fraud when accepting MOTO Payments:
- Use Risk-based Authentication Protocols (RBA) – assess the level of risk associated with a particular transaction or client and determine the appropriate level of authentication required to safely complete the transaction.
- Employee training in Security Protocols – Make sure that employees follow security protocols when collecting customer payment information by phone or in the mail order form, for example, checking credit cards through 3D Secure before filling out purchase orders.
- Implement Strong Customer Authentication (SCA) – two-factor authentication that requires customers to provide at least two of the following three factors:
- Knowledge: Something that is known only to the client, such as a password, PIN, or the answer to a security question.
- Ownership: Something that only the client has, for example, a mobile phone, token or smart card.
- Inviolability: Something unique to the client, such as a fingerprint, facial recognition, or iris scanning.
- The use of monitoring systems is to track customer behavior patterns over time in order to easily detect any suspicious activity occurring during MOTO Payment processing sessions.
- Levarage’s advanced analytics tools are designed to identify hidden patterns behind large amounts of data and identify potential risks associated with certain customer profiles.
The future for MOTO payments
MOTO payments continue to grow in line with the growth trajectory of e-commerce in global markets – they are becoming increasingly popular among small businesses that do not always have the resources necessary to create online stores, but at the same time need a secure way to accept electronic payments.
As new technologies such as machine learning and artificial intelligence become available and mobile wallet applications become more popular among consumers, we expect that there will be more opportunities for businesses to securely process MOTO payment requests in this sector.
This will effectively reduce the risk of fraud and risks, which will ultimately make MOTO payments safer than ever before!
How to process MOTO payments as a retailer
To summarize, we gained knowledge about the distinctive features of MOTO transactions compared to e-commerce transactions, and also examined various types of fraud usually associated with the MOTO environment.
In addition, we analyzed the approaches that enterprises can use to minimize the likely risks associated with MOTO payments, including the use of comprehensive anti-fraud and risk management solutions, such as Wellcoinex 3DS Server, Active Server, available both indoors and in the cloud.
By using such services, merchants and cardholders can be protected from financial losses related to refund disputes and fraud, which ultimately ensures security for all parties involved.
If you would like to learn more about Wellcoinex solutions designed specifically to prevent fraud, follow the link below and one of our friendly team members will contact you soon.
How to accept MOTO payments for your business activities?
Before you purchase a MOTO system for your business, you must issue your website and terms of service, as this is required by Mastercard and Visa.
The next step is to find a trading account and sign an agreement with it. You can also use a trading account only for MOTO payments. But this is unnecessary assault, since the trading account provides endless advantages for your electronic or brick-and-mortar store.
Trading account providers must provide KYC documentation in return, which includes: payment processing history for several months, bank statements and a working website. After that, working with MOTO becomes quite simple.
MOTO for accepting transactions via a virtual terminal:
- Log in to the virtual terminal using any device at your disposal
- Enter the customer’s details: credit card number, name, address, email.
- Wait for the transaction to be approved – you will receive a confirmation, and the client will receive a letter.
- The payment will be received in a few days
MOTO for accepting transactions via a card terminal:
- Enter the price in the terminal
- Enter the customer’s card details
- Select “Client is not present”
- Wait for the transfer to be approved
- The payment will be received in a few days
WellcoinPay provides all of the above benefits and security measures. We work with companies all over the world. A simple solution can be easily integrated into systems such as SAP, ERP, etc.
All services provide insurance in fraud prevention and real-time processing with payment approval. We track transactions and send information about all status updates. Real-time data can be accessed instantly via API systems.
The reason for choosing MOTO is quite simple. The more payment options on your site, the lower the risk of abandoned cards and the higher the conversion rate. Sales opportunities are equal to opportunities to receive money.