MOTO (Mail Order Telephone Order)

MOTO (Mail Order/Telephone Order)

MOTO stands for mail order/telephone order. It is a term that describes the ability to process a payment for a customer that places an order over the phone, through the mail, or through email. 

MOTO payment processing is not as popular today as it once was. But there are still businesses that use this method, so it is important to have the capability. 

How do MOTO Payments Work? 

MOTO payments use a web-based system called a virtual terminal to process payments. A virtual terminal is similar to a credit card terminal or POS system. 

When payments are processed in this way, the system checks with the customer’s bank to get an authorization for the transaction. It is a great solution when a customer is not able to pay face to face or through a payment gateway on a website. 

Virtual Terminals

To use a virtual terminal, the business must have access to the internet. Virtual terminals will work on computers or any mobile device with an internet connection. 

Processing MOTO payments require the business to follow these steps: 

1. Log on to their virtual terminal online. 
2. Key in the customer’s name, address, email address, and credit or debit card information. 
3. Submit the transaction for authorization. 
4. Receive confirmation for the transaction. 

The business will provide a receipt to the customer, usually by email. Businesses should expect to receive their funds in a few business days. 

Do MOTO Payments Offer Benefits to Businesses? 

There are a lot of benefits to processing MOTO payments for businesses, including: 

• This capability is a great way to offer exceptional customer service. 
• Setup is quick and easy. 
• Businesses may be able to reach more customers. 
• It offers a streamlined payment processing option. 
• Most payment processors offer MOTO payment functionality for multiple users in more than one location. 
• Businesses have access to online payment and sales reports. 

Are There Drawbacks to MOTO Payments? 

There are a few. 

If your business is going to accept MOTO payments, you may end up paying higher transaction fees. These are called card-not-present payments because the card is not physically present at the time the sale is made. 

Card-present payments cost less to process because there is a smaller risk of fraud. 

Card-not-present payments also have a higher risk of chargebacks, and too many can cause problems between you and your payment processor.