MOTO (Mail Order/Telephone Order) payments are a payment system to process card payments over the phone, by written mail or email. As the business landscape transitions to a contactless environment, MOTO payments are becoming increasingly important for merchants that don't have an active ecommerce presence, but still want to accept card payments.
Essentially, it allows merchants to process orders in a secure and efficient manner, no matter where the customers are located.
It also offer additional benefits for businesses such as fraud prevention, online reporting systems and the ability to track customer information.
A MOTO payment is a type of Card-not-present (CNP) transaction, made either on a card machine or a virtual terminal, that enables merchants to process customer payments over the phone, email or written mail.
The terminal serves as an intermediary between the customer and the merchant, allowing transactions to be securely processed without customers having to present their physical cards.
Many types of businesses, such as mail order companies, telephone order businesses, takeaway retail outlets and door-to-door sales businesses, rely on MOTO payment systems to accept payments.
A MOTO payment system provides merchants with a virtual terminal that they can log on to. When the customer calls to make a purchase, the merchant will enter their card details into the system.
The payment processor then verifies the information with the customer's bank and authorises or rejects the transaction.
Once the transaction is authorised, a receipt is automatically issued to the customer.
Like a regular POS card reader system, the funds are then deposited directly into the merchant's bank account in a few days.
MOTO Payment systems are an excellent payment option for businesses that don't have a physical presence, a full fledged ecommerce store or those who cannot accept payments in person.
Entrepreneurships and SMBs in particular can benefit from MOTO payments as they can accept orders without any additional investment in hardware or software.
Here are some of the perks of opting for a MOTO payment system.
Customers today demand convenience and flexibility. By offering MOTO payments, businesses are able to meet the demands of their customers by allowing them to pay remotely - be it over the phone or via mail order.
This translates into more sales and an increase in customer satisfaction.
A MOTO payment system is one of the easiest payment systems to set up and use. As the virtual terminal is hosted by the payment processor, merchants don't need to invest in additional hardware or software.
A MOTO virtual terminal can be accessed by multiple users, depending on the payment processor's setup. This means that businesses can assign different access levels and user roles to their employees so that they can accept payments 24/7 from any location in the world.
MOTO payment systems are highly secure and encrypted, which helps to protect businesses and their customers from fraud and data theft.
Every transaction is authorised by the customer’s bank and is also monitored by the payment processor. This helps to ensure that all transactions are safe and secure.
Apart from enhancing the customer experience, MOTO payments also enable businesses to store customer data, which they can use to offer repeat customers special discounts and other offers. This helps to improve sales and increases their customer loyalty.
One of the newer features of MOTO payment systems is the ability to split payments. This means that customers can pay using multiple methods or cards in a single transaction. This is an excellent way to offer customers more payment choices and increase the chances of completing a successful sale.
While MOTO is a great payment option for businesses, it is not without some drawbacks.
The advantages of a MOTO payment system can be offset by the higher risk of chargebacks. Customers who make purchases via MOTO payments have more time to dispute a transaction, which can result in costly chargebacks for the merchant.
MOTO payments also incur higher processing fees than regular POS payments. Depending on the payment processor, merchants may also have to pay additional fees for setting up and using the system.
Different payment processors charge different rates for taking MOTO payments. However, the average cost is around 2-3 percent per transaction plus a flat fee for every transaction.
Companies may also levy a fixed charge per calendar month for using the system, which will vary depending on the total transaction volume.
Any CNP transaction is considered higher risk than an in-person swipe, and so businesses may be charged an additional fee for taking CNP payments, by the card issuers too.
MOTO Payments via virtual terminals are easy to set up and use, and do not require any additional hardware or software.
Most payment processors will provide businesses with a secure website and login details to access the virtual terminal, where they can enter customer details manually.
Typically, the set up takes less than a day or two.
Businesses can also integrate their existing e-commerce platform or shopping cart system with the payment processor's MOTO service if they wish to offer customers more options when making payments.
Similarly, most data can be exported to the business’s own accounting system, so that they can keep track of all their financial transactions with ease.
MOTO payments are an excellent payment solution for businesses that wish to leverage the potential of CNP sales. They are easy to set up and use, highly secure, and enable businesses to enhance their customers’ purchasing experience.
If you are looking to get started with MOTO payments, we can help by connecting you with a reliable payment processor. Our network of trusted and experienced professionals will help you find the best MOTO solution for your business’s needs, at the most competitive rates.