Mail Order/Telephone Order (MOTO) payments are a specific type of transaction where the cardholder provides their payment information over the phone or through mail. This method is commonly used in scenarios where online or in-person payment options are not available or practical.
MOTO payments are considered out-of-scope for Strong Customer Authentication (SCA) requirements, as they do not involve a direct interaction with the cardholder at the time of the transaction. This means that MOTO payments can be processed without the need for additional authentication steps, such as 3D Secure.
This however comes with the following risks:
- Increased Fraud Risk: MOTO transactions are more susceptible to fraud since the cardholder is not physically present to verify their identity. Merchants should implement additional fraud prevention measures, such as verifying the billing address or using AVS (Address Verification Service) checks.
- Chargeback Risk: MOTO transactions may have a higher chargeback rate compared to other payment types. Merchants should ensure they have clear policies in place to handle disputes and chargebacks effectively.
Please Note: MOTO payments are only enabled on request and based on a valid use-case being provided. Merchants interested in enabling MOTO payments should contact Ryft support for assistance.
Given the higher risk associated with MOTO payments, merchants should follow these best practices to mitigate potential issues:
- Manual Capture: Capturing a payment involves the movement of funds from a payment out of the cardholder's account. Once this process takes place, merchants are liable for receiving disputes and/or fraud notices, should the cardholder contest the transaction. Therefore, it is recommended to manually capture MOTO payments. By doing so, merchants can reserve the funds on the cardholder's account without immediately transferring them. This allows for a review period where the authorization can be voided and the funds returned to the cardholder, should any issues arise about the authenticity of the transaction.
- Address Verification: Merchants have the option to provide a billing address on each payment. If provided, Ryft will request an Address Verification Service (AVS) check to verify the billing address against the cardholder's bank records. Based on the result, the card issuer may approve or decline the transaction. Should the issuer approve the transaction but the AVS check fails, it is recommended to cancel the payment.