As a result, merchants aim to make it as easy as possible for customers and debtors to pay their bills. All credit card transactions should be made in person, and chip-enabled cards should be used although less susceptible to fraud than online or over the phone credit card payments, this kind of transaction is less convenient for the customer.
By complying with a set of rules, vendors may accept credit card payments without having to meet face-to-face with the cardholder. This may be avoided by working with a company that has expertise in secure payment processing.
When a trader gets payment information through email or phone, they place a MOTO order
Customers may supply payment information when placing these kinds of orders over the phone, over a computer network, or by email. When using a mail order telephone order device, the risk of fraud is higher than when using a normal credit or debit card. As a consequence, dealers will almost probably have to pay additional fees to assure more client protection in order to minimize the risk of a refund or chargeback.
Customers frequently utilize this order type for orders done over the phone or by email as well as for purchases submitted over the Internet, a term known as a “card not present” order. It is possible to commence transactions by hitting a function key on the payment page when this functionality is used by customers.
Since the consumer is not need to be present, MOTO is considered one of the simplest and most popular transactions. A third party will get the cardholder’s personal information from the trader and use it to authenticate the transaction to avoid fraud. Amounts will be transferred regardless of whether or not a credit card is accepted. These orders provide several benefits for both merchants and consumers due to the fact that purchases may be made at any time and in a number of ways through this kind of order.
Telephone Payment System Regulations
The Payment Card Industry Data Security Standard (PCI DSS) governs all credit card transactions and ensures that all cardholder information is kept safe and secure. For example, PaymentVision’s IVR Payment Processing Solutions are PCI DSS Level 1 compliant.
For MOTO transactions, businesses are expected to keep detailed records that contain specific information. The method of payment must be noted on the recipient’s copy of the payment, whether via phone, mail, or the internet. When processing credit cards, retailers must also utilise an SSL connection. In the case of credit card information being stored in a company system, maintaining security requirements is essential.
The Possible Negative Effects
The possibility of being a victim of credit card fraud exists with each and every purchase. Telephone card payments, on the other hand, pose a greater risk to merchants than in-person transactions. Since MOTO transactions are reimbursed by the bank hosting the merchant account in the event of fraud, the reason for this is clear. The bank that issued the card is liable for any in-person purchases.
Many transactions that customers claim are fraudulent are really legitimate charges that the client didn’t approve of. Because there is no physical signature or record of a personal identification number (PIN) with a MOTO transaction, it is more difficult to spot fraud.