Merchants who accept credit cards as a method of payment when the buyer is not physically present are participating in MOTO credit card processing. MOTO is an acronym for Mail Order Telephone Order, however it is not just mail order businesses which use this type of processing. Any business which manually keys in card information when the card is not present is participating in MOTO processing.
Merchants using MOTO credit card processing have special needs different from merchants who physically swipe a card that is present. Here we look at these special needs. Payment Processing
- Virtual terminal – Many merchants using this type of processing will use a virtual terminal that allows for manually keyed in transaction onto a secure website. This type of terminal makes it possible to key in entries from any location where Internet access is available.
- Credit card terminals – One of the more secure ways to process cards, a merchant using MOTO processing can opt for a card terminal without a printer. This should reduce costs compared to other terminals.
- PC processing – When choosing this option, merchants manually enter the card information onto their individual PC.
- Merchant accounts – Special care must be taken when obtaining a merchant account for a business using MOTO processing as this type of business is considered a higher risk when compared to a standard retail merchant account.
- Security- As with all credit card processing, security is a major concern for merchants who do not have the physical card present.
- Fraud protection – Going hand-in-hand with security, MOTO merchants are at a higher risk of fraud. Special measures must be taken to ensure all transactions are legitimate. Stolen credit cards or unauthorized transactions are always a concern for both merchants and card holders.