For businesses that thrive without having a physical store to
swipe cards, a Mail Order/Telephone Order (MOTO) account may be
essential to the business, as they operate on a 'card not present', or a
'non face-to-face' basis. This is preferred by both customers and the
owners as it is convenient for them. Given that the cards are not swiped
in a machine, the rates and fees may be higher than retail accounts.
MOTO generally operates through keying in card information using a
machine. It was originally created to attend to the credit card
processing needs of mail order companies that receive most of their
profit from transactions made on the phone or through mail order forms.
Today, it has evolved into a wide variety of other services, helping
businesses one at a time.
Compared to retail accounts, MOTO's advantages lie in the fact the transactions can be viewed online at any time, as opposed to waiting by the end of the month. This allows you, as a merchant, to gauge your business activity and make sure that everything is up and running smoothly. You are also not required to have multiple licenses, as one account can be used on various computers at a time.
Security is also not an issue for customers, as only the bank can see the transaction, given the data encryption. The set-up is relatively easy, with the process similar to all merchant account applications. And, if you're lucky, the fees can be low with the most cost-effective institution.
To open up an account, you must first research to find the best institution to entrust your business with. Plenty of banks, credit card companies, and third-party providers are available to choose from. Approval may take a few days to process, but once it is given, you no longer have to worry about various other things as the institution will supply both the terminal and the program. It also gives you the opportunity to use your own browser.
It is true the transaction fees for MOTO are higher than that of retail, because these types of transactions are more high-risk and more convenient. However, the restrictions in the contract are less, giving you more freedom when it comes to the business. With the rates similar to their internet-based counterparts, the extra amount goes to the expansion of the customer base, regardless of location.
Over the phone, the customer is required to provide information, including their name, billing address, the card's number, security code, and expiration date. This information is keyed into a terminal with a keypad through software installed on a computer, or a virtual terminal through the service provider's own website.
Given all these benefits, businesses are bound to expand their customer base, especially to those who want to purchase something from your store without being in the vicinity. Nothing is worse than losing customers because you do not offer a service that lets them pay through a way that is convenient for them. As a merchant, you also do benefit from the convenience of not having to maintain a store, and not dealing with the long customer lines. With only a few clicks needed, by the end of the phone conversation the funds will be transferred to your account.
Compared to retail accounts, MOTO's advantages lie in the fact the transactions can be viewed online at any time, as opposed to waiting by the end of the month. This allows you, as a merchant, to gauge your business activity and make sure that everything is up and running smoothly. You are also not required to have multiple licenses, as one account can be used on various computers at a time.
Security is also not an issue for customers, as only the bank can see the transaction, given the data encryption. The set-up is relatively easy, with the process similar to all merchant account applications. And, if you're lucky, the fees can be low with the most cost-effective institution.
To open up an account, you must first research to find the best institution to entrust your business with. Plenty of banks, credit card companies, and third-party providers are available to choose from. Approval may take a few days to process, but once it is given, you no longer have to worry about various other things as the institution will supply both the terminal and the program. It also gives you the opportunity to use your own browser.
It is true the transaction fees for MOTO are higher than that of retail, because these types of transactions are more high-risk and more convenient. However, the restrictions in the contract are less, giving you more freedom when it comes to the business. With the rates similar to their internet-based counterparts, the extra amount goes to the expansion of the customer base, regardless of location.
Over the phone, the customer is required to provide information, including their name, billing address, the card's number, security code, and expiration date. This information is keyed into a terminal with a keypad through software installed on a computer, or a virtual terminal through the service provider's own website.
Given all these benefits, businesses are bound to expand their customer base, especially to those who want to purchase something from your store without being in the vicinity. Nothing is worse than losing customers because you do not offer a service that lets them pay through a way that is convenient for them. As a merchant, you also do benefit from the convenience of not having to maintain a store, and not dealing with the long customer lines. With only a few clicks needed, by the end of the phone conversation the funds will be transferred to your account.
To accept a MOTO business phones purchase, one must go through a credit card merchant who caters specifically to this need.
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