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MOTO MERCHANT ACCOUNT
MOTO is the abbreviation
of “Mail Order/Telephone Order”. It is
used for referring to anything “non
face-to-face” or “card not present”.
Internet processing is sometimes
referred as MOTO. Since the credit card
is actually not being swiped in the
machine, the fees and rates are higher
when compared to transactions in which
the card is present. One has to remember
that MOTO also refers to retail
merchants who “keys” in the information
of the credit card with the help of the
credit-card machine instead of swiping
the credit card through a machine.
There are several ways in
which the MOTO transactions cane be
processed. They are listed below:
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Virtual Terminal.
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POS Software.
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Touch-Tone Processing.
Virtual Terminal – a
web-based, secure “terminal” which
allows a user to enter the information
of the credit cards manually is known as
a virtual terminal. These terminals are
advantageous as no software
installations are required. The virtual
terminals are accessible from any
machine which can be connected to an
internet. Moreover, it is one among the
most cost-efficient methods for
processing the MOTO transactions.
POS Software – POS is the
abbreviation for “Point of Sale”. The
POS software, like PC Charge Pro,
ICVerify, among others will be installed
on the computer. This software uses the
computer’s modem for sending through the
transactions made by credit cards. No
detailed functions are offered by the
POS software in comparison to the
virtual terminals, but they have steeper
price tags.
Touch-Tone Processing –
The tough-tone processing is considered
to be the most inexpensive and basic
method for processing of credit cards.
In this method of processing, additional
equipment are not required. Here, a
keypad is used on a telephone to order
to enter the information of the credit
card, amount, etc. this service can also
be exploited with a cell phone.
Touch-tone processing is a perfect
solution regardless of the location.
Hence, it also makes an excellent mobile
solution. Though the pricing is cheap,
the processing fee is high. Also, the
touch-tone processors are very simple to
set up. They are highly suitable for
traders who process less than $10,000
every month.
The orders made through a
telephone are processed at transaction
rates that are higher in comparison to
the retail accounts. These accounts were
mainly created to meet the needs of the
processing of credit cards for firms who
receive sales either through the
telephone or through the mail. The
merchants who possess MOTO merchant
accounts generally process the payments
made by credit cards by entering the
information of the card onto a terminal
which consists of a keypad. This is done
with the help of the terminal software
installed on the computer along with the
usage of virtual terminals. This allows
the dealer to utilize a web browser for
processing transactions on the service
provider’s website. The MOTO service
providers too charge fees such as
discount rate, transaction fee, set up
and application fee, the fee for using
the virtual terminal, support fee and
the fees for monthly statement.
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