MOTO processing stands for “Mail Order/Telephone Order” processing. It is a Card – not – present type of service which means that the credit card need not be physically present, just the details of the credit card will do. Sometimes, you need the personal details for verification purposes.

MOTO card processing is done by giving the details of the credit card over phone, fax or email. The convenience that it offers comes with many security issues.

A MOTO transaction can be completed in 3 ways: a) Virtual Terminal b) POS Software and c) Touch Tone Processing.

a)    Virtual Terminal is the common and most popular method for MOTO processing because it is very versatile and cost effective. The virtual terminal allows the merchants to enter the order and the credit card information directly from their web store. The shopping cart application will have a virtual terminal integrated with it. This terminal is given for free with some processing accounts, offshore merchant accounts and high risk merchant accounts.

b)    POS Software means “Point of Sale” software. This is a special software application that is installed on the online merchant’s computer. When the customer provides his credit card details through the phone, the merchant enters those details in this software for further processing. This mode needs a computer and an active internet connection to process credit cards.

c)     Touch Tone Processing is completed over the telephone and does not require any manual keying in of data. When the order is placed and the merchant receives the customer’s credit card details, he has to dial the credit card processor and key in the numbers through the keypad for verification and completion of the transaction. This is a very simple method for processing of credit cards which does not require the computer or an internet connection.

The primary benefits of credit card processing using MOTO are mobility and security. This type of processing is reported to have lesser number of fraudulent transactions because not many fraudsters have the courage to call an ecommerce merchant.

When is comes down to costs, the MOTO processing is costly in a few cases for a few ecommerce merchants. The Virtual Terminal is the cheapest service and most appropriate for most businesses.

Using the Virtual Terminals, credit cards can be processed from any part of the world provided you have access to the internet. Therefore, an online merchant will not have to worry about processing credit cards while he is on a holiday or a business trip.

The primary disadvantage of the Dial Tone processing mode is the high telephone bills that you will have to pay at the end of the month. If you are on a holiday then you will have to pay much higher bills.

The POS software is very expensive making it affordable only to rich merchants. However, it provides more details regarding transaction statistics compared to virtual terminals.

The MOTO processing is a good alternative payment mode that you should offer to your customers. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.