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Naturally, with these types of transactions, the risk of fraud increases. A fraudster may attempt to make a phone or mail order purchase using someone else’s compromised card information, taking advantage of the fact that it’s difficult for a merchant to verify the identity of a cardholder without meeting them face-to-face.
When processing MOTO transactions, there are a few things to look out for:
In all of the above circumstances, it pays to take a few extra steps to verify the customer is indeed the cardholder.
Although it's unlikely your business will be the unfortunate target of fraud, it's important to mitigate the risks. The vast majority of disputes can be halted before they even happen.
The most important thing you should always do when processing a transaction is to verify that the customer is who they say they are.
When processing a manually entered card payment, there is an obvious hurdle to consider: your customer is not standing in front of you. Instead, they are placing the order via phone (or perhaps email mail). Because neither the card nor the cardholder is present, it can be difficult to verify the customer’s identity.
If you’re not able to verify a customer’s identity, you can:
If any of the details are inconsistent, let the customer know and request clarification. Any customer that is not willing to provide this information should not be served.
It’s always a good idea to obtain signed documentation for the goods or services you provide. Doing so allows you to establish a clear set of payment conditions with your customers, whilst also capturing signatures for your records.
Plus, requiring a signature may put off any potential fraudsters. If a customer refuses to sign a document you require, you may decide to refuse them business.
An email receipt is easier to keep on hand and track than a paper receipt. It’s a good idea to email your customer a receipt after the transaction is processed, so that they have the details in front of them.
Of course, if you typically accept transactions of a higher amount, the risks are greater so you should implement more stringent security measures.
Depending on the type of business your run, there are additional security measures you could consider. There are three documents you should consider.
Whenever money is involved, there is always a potential risk of fraud. Whether you’re accepting cash, card, or MOTO payments, vigilance is required; it's part and parcel of running a business.