What makes MOTO payments high risk?
MOTO payments are processed without the cardholder being physically present, which removes key security checks used in face-to-face transactions.
The main risk factors include:
1. No cardholder present
The customer is not physically there, making it easier for fraudsters to use stolen card details without being detected.
2. Fewer security checks
MOTO transactions do not benefit from protections like chip & PIN or contactless verification, which help confirm the cardholder’s identity during in-person payments.
3. Higher chargeback rates
MOTO payments are more likely to be disputed. Customers may claim they did not authorise the transaction or did not receive the goods or services.
4. Increased fraud exposure
Because these transactions are completed remotely, they carry a higher risk of fraudulent activity compared to in-person payments.
Why does this matter?
Due to this increased risk, payment providers such as Adyen may:
Apply stricter monitoring
Require additional verification
Limit or review MOTO usage
These measures help protect both merchants and customers from fraud.