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Why are Visa/MC rates higher for eCommerce and Mail Order / Telephone Order (MOTO) transactions than Retail face to face transactions?

April 26, 2017ecommerce mail MC Moto rates telephone transactions Visa

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Why are Visa/MC rates higher for eCommerce and Mail Order / Telephone Order (MOTO) transactions than Retail face to face transactions?

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Face-to-face transactions where the credit card is swiped and a signature is being obtained are considered less risky by banks and processors. Therefore eCommerce and MOTO rates are higher because the risk of fraud and chargebacks.