Online merchants always want to make it easy for the debtors as well as the customer to pay. Nowadays every pays through using their credit card. However, paying offline is considered to be less risky than paying online, and that is why it becomes an inconvenience for the customers. Every bank provides credit and debit card to its customers.

MOTO transaction stands for Mail Order Telephone Order and is said to be suitable for merchants who wish to accept online payments. In order to process a credit card payments through the internet, telephone, or through mail order transaction, then you should have a MOTO merchant account. The reason behind this is, you can’t keep the credit card of your customers or debtors physically to swipe the card, and hence MOTO transaction is necessary.

In simple terms, where ever “card not present” transaction takes place, it is known as MOTO.

How does Moto credit card processing take place?

Almost every merchant stands by the statement that MOTO credit card processing is the best payment solution for merchants who wish to receive payments through the phone. Also, this payment process is also good for those who are not really tech savvy and don’t want to hand over their credit card details to make a payment.

If your merchant account has a virtual terminal, then you can add MOTO credit card processing. All you got to do is when a customer calls to place an order through phone or mail, you receive the request and enter customer’s credit card information through the telephone to process the payment. However, if you don’t have a virtual terminal, it doesn’t mean that you can’t have a MOTO credit card transaction. You can still accept it; the only difference is that it will require a tad bit more of manual work. The process will remain the same, you will allow the order over the phone, and you will take the information of the credit card details of the customer and enter it manually on the conventional credit card terminal.

After the transaction is completed, you take the receipt, keep the generated invoice and keep all the document with you. You will need all these documents to enter it on your accounting system later to never lose detail.

So, whether or not you have a virtual terminal, you will still be able to accept MOTO payment, the former will allow you to accept it automatically, however, the latter needs to be done manually. That’s the only significant difference. Rest it depends on you.

What is the business that uses a MOTO transaction?

Many businesses nowadays use moto credit card processing. It allows them to provide better and a secure way to let customers pay for their purchase without having a fear of any fraudulent activity, same goes to the merchant as well. This is the best way to accept card-not-present transactions. Here is the list of business that uses moto credit card transaction:

High-risk merchants
E-commerce
Corporate
Property management
Business and professional services
B2B
Financial Institutions
CPA Firms
Credit unions
Transportation
School and Universities
Membership associations
What are the benefits of using Moto Transactions?

Today every customer wants an easy, quicker, and a safe way to make payment for the service or product he purchases. What can be better than giving your customer an option to pay online or through the telephone? Moto credit card transaction is easy to process, and it doesn’t require the need to authorise the payment in person too.
Through Moto credit card payment, merchants can now speed up the payment for overdue invoices. Plus, when a payment happens in a jiffy, it gives you heads up to receive more financial incentive too.
Also, if you have an accounting system like QuickBooks, you can use moto facility to accept the payment from the purchaser, and it also allows you to make the invoices and create the ledger automatically too. This way, you as a merchant get to save a lot of time.
No need to enter the details manually if you have a virtual terminal.
What are the drawbacks of having a Moto transaction?

Like every other online payment transaction, Moto is also said to have a few drawbacks too. However, these are not as big as other online payment transactions suffer from. Since it is done through telephone and not in person, there remain some chances of fraud. In case if fraud does occur, then the bank that is hosting your merchant’s account will ask you to pay restitution for the fraudulent MOTO transaction. However, when a person purchases physically and suffers from fraudulent activity, then it is the bank whose credit card has been used takes responsibility.
With Moto transaction, there won’t be any physical signature of the buyer or any record to keep a track, and that could end up causing problems too. For example, a transaction which the customer claims to be fraudulent is not necessarily a fraud. It could be a legitimate, but still, since you don’t have any physical proof, you might end up paying the fines. It is equally difficult to identify a fraudulent activity too, because of the lack of any physical evidence.
While online credit card payment transaction might not be the right answer for every sale, it is still considered to be the best one in the market. It allows you to accept payment in a matter of time and it saves a lot of time too. Plus, it improves your company’s credibility and enhances customer service also.

People who work from home and have an online business, and can’t process the transaction swiping the card into the POS machine, for them MOTO transaction can be a better option. If you already have a virtual terminal, then it will become more comfortable for you to accept Moto transactions without inserting all the details manually.

However, you can choose to still have Moto transaction without having a virtual terminal though. The only difference is you will have to enter all the details of the credit card manually.