This section covers only Mail Order and Telephone Order (MOTO) sales.
Reduce the risk of fraud
Most MOTO sales are genuine. However, because they are relatively anonymous – you don't see the card or the shopper – some people see it as a less risky way to attempt fraud. Many want to obtain goods they can sell on for cash; others 'card test', placing an order to check if the card details they have will be authorised.
If a MOTO transaction is disputed, it is very difficult to prove that the real cardholder ordered the goods. To reduce the risk of fraud and financial loss to your business, it is extremely important to follow the correct procedures.
What details do I need from the cardholder?
To process a MOTO transaction, you will need to take the cardholder's:
· Card number – the long number across the centre of the card
· Name as it appears on the card – including any initials
· Card expiry date
· Issue number or start date for UK-issued Maestro cards only
· Full postal/billing address, including postcode, as it appears on the cardholder's statement
· Chosen delivery address – if different from above
· Card Security Code (CSC) - three-digit code at the end of the signature strip
If you have a limited returns policy, such as no refunds, you must make this clear to customers before asking for payment. To avoid disputes, we recommend you ask them to agree to your terms, in writing if possible, before completing the transaction.
Never ask for a customer's PIN.
The Data Protection Act 1998: Please remember that if you are collecting personal data like the above, you need to register as a data controller.
How to complete a MOTO transaction
Follow the prompts on your terminal and enter the information asked for, including the additional security checks of the Card Security Code and Address Verification Service. The exact process depends on the terminal you have.
To help make MOTO transactions as secure as possible, you will need to key in details on your terminal for both of the following. You will then get a response on your terminal to help you decide whether to go ahead with the sale.
Card Security Code (CSC)
This is a three-digit code at the end of the signature strip or in a separate white box next to the signature strip. American Express cards have a four-digit CSC on the front of the card. Never record the CSC – it must only be used for one transaction.
Address Verification Service (AVS)
Checks the numerical part of the cardholder's registered billing address with the card issuer. Find out more about the CSC in Examples of MasterCards and Examples of Visa Cards.
Examples of CSC and Address Numbers
Address:
Mr AN Other
22 High Street
Anytown
AB1 2BB