Understanding MOTO Chargebacks

Understanding MOTO transactions and the associated chargeback risks is crucial for any business operating in today’s economy. Let’s take a look at what they are, why they occur, and why we’re your one stop shop to preventing MOTO chargebacks.

Key Takeaways

  • Due to their remote nature, MOTO transactions pose the highest risk among different transaction types.
  • Combatting MOTO friendly fraud chargebacks is challenging for merchants.
  • Issuers tend to favor cardholders in MOTO dispute cases, making it difficult for merchants to provide evidence offline.
  • CB-Alert specializes in MOTO chargebacks and understands what must be done preventatively.

Understanding MOTO Chargebacks

When customers make purchases without physically presenting their cards, it opens up opportunities for fraud and disputes.

A MOTO chargeback occurs when a customer calls their bank to dispute a transaction made with your business rather than going directly to you.


Get your free demo today for your MOTO services by simply filling out the form and providing us with the following:

  • Company name
  • Official business address
  • Descriptor for your merchant account
  • Merchant account number issued by your payment processor
  • Access to your sales system for refunds/alert resolutions on your behalf
  • The more information you provide, the better we can help you fight chargebacks.

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Why Do MOTO Chargebacks Occur?

-MOTO (Mail Order/Telephone Order) chargebacks occur for several reasons, primarily stemming from the nature of these transactions being “card-not-present” and thus more susceptible to disputes and fraud. Here are the main reasons why MOTO chargebacks occur:

  1. Fraudulent Transactions: MOTO transactions are vulnerable to fraud since they don’t involve physical verification of the card. 
  2. Customer Disputes: Customers may dispute MOTO transactions if they do not recognize the charge on their credit card statement or the transaction. 
  3. Authorization Issues: If the merchant fails to properly authenticate the transaction or obtain proper authorization (such as not verifying the customer’s identity or not obtaining a signed authorization form), it can lead to chargebacks.
  4. Service or Product Issues: Chargebacks can occur if customers receive defective products, do not receive the ordered goods or services, or if there is a discrepancy between what was promised and what was delivered.

MOTO Chargeback Prevention

MOTO chargebacks occur more frequently than in-person and online transactions due to their remote nature. Here are our top prevention tips:

  • Fraud Prevention Tools Implement tools such as 3DS2 authentication, RDR, and chargeback alerts to outsmart fraudsters.
  • Billing Descriptors: Ensure that your business name on financial statements is clear and unmistakable, like putting a bold sign on your shop for easy recognition.
  • Partner with CB-ALERT: By partnering with us, you are choosing a partner dedicated to lowering your chargebacks, ultimately saving you money.
  • Add an Extra Layer of Security: Prioritize customer authentication to shield against chargebacks and ensure each transaction is rock-solid, like adding an extra lock to your door.
  • Deliver Exceptional Customer Care: Treat your customers like royalty. Swiftly address their questions and concerns for happier customers and fewer chargebacks.
  • Extend a Helping Hand with Refunds: Offering a refund can be like extending an olive branch. 
  • Verify Customer Readiness: Before diving in, ensure your customers are financially prepared for your coaching services, like ensuring your team is ready for a big game.
  • Keep Detailed Records: Think of your records as a keepsake of your coaching journey. Document every interaction – names, orders, and conversations. They’re your safety net in case of disputes.
  • Scrutinize Every Transaction: Like checking IDs at the door, be cautious of orders from unfamiliar places or significantly higher amounts. Verify each one to keep chargebacks at bay.

Partner With CB-Alert

Partner with CB-Alert to enhance your MOTO chargeback prevention strategies and strengthen your defenses against fraudulent transactions.

MOTo transactions can turn problematic quickly.At CB-ALERT, we know exactly what to look for when optimizing your website to fight chargebacks. With over two decades of experience in payment processing, we can help grow your business and be a vital piece of the puzzle. Below are some of the things we bring at CB-ALERT:

  • Alerts in real-time Ethoca and Verifi
  • 24/7 customer service
  • Transparent pricing
  • RDR
  • Gateway/CRM agnostic
  • Order Insight
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