MOTO payments are purchases made using standard mail or over the phone. Specifically, the acronym MOTO stands for mail order telephone order. The reason this type of payment is its own distinct method is because both of these types of purchases are considered card-not-present transactions.
A MOTO merchant account is a customized payment processing account for businesses who use card-not-present transactions through mail and phone. This is considered a high risk merchant account because of the added security vulnerabilities.
For example, if someone ordering over the phone may not be the person whose name is on the credit card. Alternatively, some customers who receive products with longer shipping times may regret ordering the item and ask for a refund. Nonetheless, you can obtain a MOTO merchant account by working with experienced credit card processors like Zen Payments who have a range of processing solutions.
There are numerous products that can be sold over the phone or via mail, and many of them work hand-in-hand. Here is a list of the main types of businesses that take advantage of this classic form of payment:
If you take payments over the phone or by mail, you open your business up to a range of new sales techniques and customer buying habits. From a payment processing standpoint, you’re giving the customer new options to pay with the method they find most convenient. As a result, you can have different channels for selling to customers and separate streams of revenue from unique campaigns.
Phone orders can be risky for your average business model, because there is a slight added fee to the transaction cost, and they are not the most secure. To elaborate, high risk credit card processing has seen many changes over the years with the adoption of ecommerce sales, but MOTO transactions remain a classic example of why imposing added security has been beneficial to both the customer and merchant.
In any case, mail ordering and phone ordering merchant accounts remain in high demand and processors will continue to supply businesses old and new with the resources they need to transact.
Card-not-present transactions are exactly what they sound like, it means someone is paying for service without physically presenting their credit or debit card to the vendor. As you might figure, this is the opposite of a card-present transaction which is a standard in-person purchase where a buyer slides, taps, or inserts their card into the reader.
