How Do MOTO Transactions Work?

43 0 April 10, 2024

The process of paying through MOTO is fairly simple, with most of the work undertaken by the card network and the customer’s bank once their card details have been inputted.

The card details include the customer’s:

  • Card number
  • CVC/CVV
  • Expiry date
  • Name
  • Address details
  • Email (in some circumstances)

When a business owner enters these details into an EFTPOS terminal:

  • The customer’s bank will check for sufficient funds to authorise the payment. 
  • The business is notified about the payment when it’s finalised. 
  • Funds are typically settled to the merchant’s bank by the next working day*.

*Transactions that occur on Friday, Saturday and Sunday are settled on Monday.

Smart Tips To Protect Your Business

To minimise probable risks of fraud or chargeback, look out for the following red flags:

  • The order is placed by someone other than the cardholder.
  • Multiple orders from the same card, increasing in value.
  • An email using a name belonging to someone different from the cardholder’s is used as a point of contact.
  • Customer provides unusual/odd delivery instructions.
  • Orders come from the same delivery address across multiple cards, particularly when only the last 4 card digits are changed.
  • The supposed cardholder cannot be contacted.
  • It is an overseas order, especially if the country is uncommon or has the goods/services available locally.

When accepting MOTO payments:

  1. Check that the billing and delivery address match.
  2. You may ask customers to provide photographic proof of the front and back of their card and an image of their ID (to ensure the details match).
  3. Ensure controls are in place to identify who has accessed your payment system.

By taking these steps, you can reduce the risk of you or your customers experiencing fraud. 

Make sure your employees:

  1. Have passed the staff background check.
  2. Are aware of the potential for fraud and how to spot it.
  3. Adhere to PCI (Payment Card Industry) requirements.
  4. Are provided with regular refreshers so they can recognise signs of fraud and take appropriate action.

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