Help & support
Online or Mail Order/Telephone Order (MOTO) transactions (also known as Card Not Present) carry a higher risk of fraud due to the limited ability to authenticate the cardholder as genuine and the anonymity of the purchasing process. Examples include purchases where your customer provides their credit card details over the phone, via email or through the mail.
You can use the below tips to reduce the risk of fraud and chargebacks:
Sam owns a catering company and received an order valued at $5,000 over the phone to supply food at a wedding. The customer asked if she could pay Sam $10,000 as the customer needed to pay $5,000 to the florist but was having trouble with their internet banking. Sam agreed and the customer paid $10,000 over the phone using a credit card and provided a BSB and account number to transfer the $5,000 to the florist.
A couple of weeks later Sam received a chargeback for the $10,000 transaction as the credit card details were stolen. Sam was immediately debited for the $10,000 transaction and also liable for a chargeback fee. Sam also experienced a $5,000 loss as the funds transferred to the florist could not be recovered.