MOTO stands for Mail Order Telephone Order. This refers to situations where payments are taken from a customer without the card or the customer being physically present. A common example is when a customer calls a supplier and provides their card details over the phone to pay for a product or service.
In addition to MOTO there are two other main types of card payments: cardholder present and eCommerce. Cardholder present and eCommerce refer to transactions made either in person or online.
MOTO payments are particularly valuable for Business-to-Business (B2B) transactions. This is especially useful when new customers make purchases before their credit accounts are set up and authorised. By allowing card payments over the phone—whether through the accounts or sales department—businesses can immediately establish and fulfill new relationships, enabling smooth and efficient operations from the start.
How Are MOTO Payments Taken?
There are two main methods for processing MOTO payments:
- PDQ Terminal: The person taking the payment manually enters the card details into a PDQ terminal while the customer provides the information over the phone.
- Virtual Terminal: This is a browser-based web form where the payment handler enters the card details, processing the payment in real-time. Integrating with Payment Gateway providers Agile Payment Solutions offers a virtual terminal as part of our service, allowing businesses to take MOTO payments and handle online payments through their website.
Are MOTO Payments Secure?
When handling cardholder-not-present payments, security is a major concern. Cardholder-present transactions are protected by PIN numbers, and eCommerce transactions use 3D Secure, like Mastercard’s SecureCode and Verified by Visa, to safeguard payments. Ensuring strong security measures for MOTO card payments has become equally important.
To enhance security for MOTO transactions, businesses often require additional information, such as the full cardholder address to authorise and verify payments. This helps protect both businesses and customers from potential fraud.
What Are the Drawbacks of MOTO?
While MOTO payments remain a popular method for processing transactions, they do have some downsides:
- Manual Involvement: MOTO payments require a person to take the call and manually enter the card details, which can take time and incurs employee costs. In contrast, online payments allow customers to complete transactions independently, saving businesses time and resource.
- Limited Hours: MOTO payments rely on phone calls, typically during business hours. This can be inconvenient for customers who may not be able to call during the day, limiting the flexibility of when payments can be made.
For more information on MOTO card payments simply contact us and one of our team will be happy to provide further information.
