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Modulr glossary

MOTO (Mail Order Telephone Order)

MOTO payments refer to transactions where payment card details are provided via mail or telephone and stored on site of the recipient. These are commonly used in industries where face-to-face transactions are not possible but are considerably less secure than modern digital methods.

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Banking and fintech:

Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Fraud prevention: Helps reduce chargebacks related to fraud.

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • Implementation complexity: Requires integration with card schemes and issuer systems.

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