Mail Order/Telephone Order (MOTO)
MO/TO (mail order/telephone order) – a type of payment transactions for goods and services via payment cards. MO / TO operations differ from ordinary transactions in that its holder communicates the payment card details (number, validity period) required by the holder of the payment document by mail, telephone, fax, or other communication.
By using MO/TO transactions, it can be struggling to identify the cardholder accurately. Since authenticity is impossible, MO/TO technology referred to a high-risk.
Benefits of MO/TO transactions
In modern life, every person wants to provide transactions without any struggle. At the same time, for every merchant, it is vital to provide services as much convenient as possible. With MOTO transactions, that doesn’t require to authorize the payment in person, the process of payment has reached a new level.
MOTO payments help speed up the process of paying overdue bills. Also, the merchant can use MOTO to receive payment from the customer, compiling accounting books.
Disadvantages of MOTO transactions
As we have mentioned above, transactions without cardholder’s authorization are subjects to online fraud. In this case, the bank of your merchant may demand compensation for a fraudulent transaction.
It should be mentioned that with the physical presence of the cardholder, the bank is responsible for the fraudulent transaction.
The absence of a signature or other entry is also a negative factor. It can lead to the impossibility of contesting the transaction since there is no evidence of its realization.