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Accepting Credit Card Payments Over The Phone, MOTO Processing

MOTO processing an acronym for Mail Order/Telephone Order credit card processing, and is a type of card-not-present (CNP) credit card processing service offered by many merchant banks and eCommerce merchant account providers online. As any other type of CNP transaction, Mail Order/Telephone Order (MOTO) transactions do not require the physical presence of the credit card, just the credit card details, and, sometimes, the personal details of the cardholder.

As the name suggests MOTO credit card processing is conducted by e-mail, fax, and/or telephone. This means that clients (cardholders) will have to either send e-Commerce merchant an e-mail order, a fax order, or simply phone them and order merchandise or a service. There are many nuances when dealing with MOTO credit card processing and MOTO e-Commerce accounts, and these will be dealt with further on in this article. But first some basics’

MOTO transaction can be conducted in three ways: a) Touch-Tone Processing, b) POS Software, and c) Virtual Terminal (VT).

  1. Touch-tone processing does not need manual submission of credit card data and order details by the e-Commerce merchant. The whole transaction process is done over the phone with the use of a standard telephone touch-tone keypad (including stationary telephones and cell-phones) on the e-Commerce merchant’s side. As soon as an order is placed by phone/fax or by mail the e-Commerce merchant has to dial up the automated credit card processor number, with which he/she is signed up, and press the number keys on the keypad of the phone to submit the credit card transaction details (cardholder’s credit card number and transaction amount) for verification and subsequent transaction. This is one of the simplest methods of MOTO credit card processing for e-Commerce merchants as this type of credit card processing does not require a PC with an internet connection, or any other hi-tech equipment ’ just a phone. Moreover, the e-Commerce merchant can process transactions from any place in the world, as long as a phone is available.
  2. POS Software stands for Point Of Sale Software. This special kind of software is installed on an e-Commerce merchant’s computer and is used to key in the credit card processing details. These details are encrypted for safety and sent to through the credit card payment gateway, verified and the credit card is then credited. POS credit card processing requires a PC with an active Internet connection and a MOTO e-Commerce merchant account which supports a POS software solution. Examples of POS credit card processing software are: ICVerify and PC Charge PRO. This software may be expensive, but is sometimes provided free of charge when getting a MOTO e-Commerce merchant account.
  3. Virtual Terminal (also referred to as VT for short) is the most popular and common method of MOTO online credit card processing due to their versatility and cost-effectiveness. A Virtual Terminal lets e-Commerce merchants with MOTO merchant accounts key in credit card and order information directly from their e-Commerce web-store. A Virtual Terminal is sometimes integrated into an e-Commerce merchant’s website and made to work with a shopping cart script, especially when the online credit card processing service is acquired as a whole service bundle. The Virtual Terminal is sometimes provided free of charge along with direct/local e-Commerce credit card processing accounts, high risk merchant accounts and offshore merchant accounts. This means that e-Commerce merchants get a free MOTO credit card processing service when having successfully applied for one of the e-Commerce merchant accounts mentioned.

The advantages of MOTO processing are its security and mobility. Many cardholders do not trust small stores, with plain-looking websites, as a result the fear of fact that their credit card information may, supposedly, be stolen holds them from placing an order. Cardholders feel safer when giving their details over the phone, live and direct. Plus, they may ask questions on the product or service they’re about to pay for and/or about another product/service of interest, which can be used to the e-Commerce merchant’s advantage. MOTO is great for the e-Commerce merchant too. MOTO credit card processing is known to have a lesser percentage of fraudulent transaction cases as not all fraudsters and carders will be determined enough to call up an e-Commerce merchant, afraid to arouse suspicion.

As far as costs are concerned a MOTO service can be quite costly in some cases, and for some e-Commerce merchants, while cost-effective in other cases and for other merchants. Depending on the type of MOTO credit card processing service, almost indisputably, a Virtual Terminal service is more likely to save money. Virtual Terminals are usually not paid for on a monthly basis when they are included in an e-Commerce merchant account service. Discount rates and transaction rates are usually at the same lever, or slightly higher for non-AVS transactions.

[AVS transaction ’ a credit card transaction which makes use of the Address Verification System. The Address Verification System compares the stated address of the cardholder to the shipping address given upon order placement. This is one of the methods of credit card fraud minimization.]

Virtual Terminals can be accessed from any part of the world from a PC with an Internet connection. This means that e-Commerce merchants can carry out sales and process credit card information while on holiday, on a business trip, etc. Virtual Terminals are also safe and secure. Statistical information can be accessed 24/7 via the Virtual Terminal website account. MOTO credit card processing systems can help e-Commerce merchants keep a customer when he/she encounters a problem with the online order form ’ e-Commerce merchants can simply key in their customers’ details manually and save the day.

The disadvantages of Dial-Tone (Touch-Tone) MOTO credit card processing are in its’ phone bills (especially when abroad ’ international calls) and in the possible human error when keying in the long numbers without possible visual verification before submitting.

The disadvantage of POS Software is in its’ expensive software packages that are needed to conduct online credit card processing. Nonetheless, POS Software provides some more detail in regards to transaction statistics than Virtual Terminals.

MOTO credit card processing is an ideal supplement for e-Commerce merchants conducting online trading using e-Commerce merchant account solutions which offer a Virtual Terminal.

Express Application

Industry typeRatesIndustry typeRates
E-commercefrom 4%Nutra/Herbalsfrom 6.5%
Adultfrom 6%Forexfrom 4%
File sharing systemsfrom 10%Datingfrom 6%
Gambling from 4.5%Pharmacyfrom 8%
IT Supportfrom 10%Debt collectionfrom 7%
Travel MOTOfrom 6.5%E-cigaretesfrom 6.5%
Replica clothesfrom 8%Debt repairfrom 8%

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