MOTO Payments: Secure Phone & Mail Transactions
A woman making a moto payment with a smart phone
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MOTO payments allow customers to pay over the phone or by mail without being physically present. Great for remote purchases, these transactions help businesses manage phone and catalog sales. This article explains how MOTO payments work, their benefits and the security measures.
Summary
- MOTO payments are transactions where customers provide card details via phone or mail, requires strict security to prevent fraud.
- Businesses can offer MOTO payments to increase customer convenience and reach more customers, especially those without internet or prefer traditional way of buying.
- Best practices including PCI DSS compliance and staff training is essential to secure MOTO transactions against fraud risks.
What are MOTO Payments
MOTO payments, short for Mail Order/Telephone Order, are transactions where customers provide their payment card details to businesses via phone or mail. Unlike card transactions, MOTO payments don’t require the physical presence of the card, perfect for phone orders, catalog sales and other remote purchases.
Customer shares their customer’s card information, merchant manually enters it into a secure payment system. Strict security protocols are needed to ensure the authenticity and safety of the transaction, protect both the business and the customer from fraud.
| Meaning | Mail Order / Telephone Order payments – card-not-present transactions where customer shares card details via phone or mail. |
|---|---|
| Common Users | Call centers, travel agencies, insurance, professional services, charities, delivery-based businesses. |
| How it Works | Merchant manually enters card details into a virtual terminal or payment gateway. |
| Advantages | Accepts payments without physical presence, convenient for remote sales, good for phone-based businesses. |
| Disadvantages | Higher fraud/chargeback risk, stricter PCI DSS compliance, often higher processing fees. |
| Security Needs | PCI DSS compliance, encryption, tokenization, fraud detection tools (AVS, CVV, 3DS where possible). |
| Typical Fees | Often 0.3%–1% higher than standard card-present transactions. |
| Industries Best Fit | Hospitality, travel, legal/accounting services, utilities, charities, delivery/repair services. |
How MOTO Payment Processing Works
The beauty of MOTO transactions is its simplicity and flexibility. When a customer chooses MOTO payment, merchant manually enters the card information received from the customer into a virtual terminal or credit card machine. These transactions are classified as card-not-present (CNP) transactions since the physical card is not required for the process.
Once the card information is entered, the process involves:
- Securely processing the information through a payment gateway, seamless transfer of funds to the merchant’s account.
- Payment gateway facilitates the transaction by providing an extra layer of security and confirmation.
- Merchant receives a receipt confirming the transaction is complete.
Additional information such as cardholder’s full name and zip code may also be required during the transaction to verify the payment. Using specific features in payment gateways designed for MOTO transactions allows businesses to process payments outside of standard online checkout.
MOTO Transaction Features
One of the key characteristics of MOTO payments is that the card is not physically present during the transaction. This allows businesses to process payments in situations where the customer is not physically present, such as over the phone or by mail.
MOTO transactions are great for businesses that operate through catalogs, call centers or online orders. For example, a customer calls to order a product and provides their credit card information verbally and the merchant manually enters it.
Despite online payments, MOTO transactions are still significant especially for customers without internet or those who prefer traditional way of buying.
Benefits of MOTO Payments
MOTO payments offer several benefits that can help your business:
- It’s a flexible and convenient payment option for customers.
- Customers can buy from the comfort of their homes.
- This flexibility is valuable for customers who don’t have access to physical stores or prefer not to shop online.
MOTO transactions can also be paired with other payment methods such as checks or bank transfers to offer more payment options to your customers. This variety can attract and retain customers, drive sales and enhance customer satisfaction.
A USPS Delivery Truck
Increased Customer Convenience
One of the biggest benefit of MOTO payments is the convenience it offers to customers. Allowing transactions to be done without the customer being physically present, MOTO payments cater to a wide range of needs and preferences. Whether a customer is calling from a remote location or simply prefers not to visit a store, MOTO payments is a hassle-free solution.
This convenience is especially beneficial for customers who don’t have access to physical stores or reliable internet connections. Offering MOTO payment options ensures services are available to a wider audience, increase customer satisfaction and loyalty as provided by our quality commitment.
Broader Sales Opportunities
MOTO payments open up new sales opportunities by allowing businesses to reach customers who are otherwise unreachable. For example, customers who don’t have internet or are uncomfortable with online transactions can still buy through MOTO payments. This can significantly expand a business’s market reach, allowing it to serve diverse customer segments.
Moreover, businesses can attract customers who prefer the perceived security of phone transactions over online payments. Accommodating these preferences allows businesses to tap into a market segment that values personalized service and secure transactions, further expanding their customer base.
Repeat Purchases
MOTO transactions also allows for efficient repeat purchases by storing customer payment information. This way returning customers can complete their purchases faster without having to re-enter their payment details every time.
The ease and speed of repeat purchases can increase customer satisfaction and loyalty. Customers who know their payment information is stored securely and available for future transactions are more likely to come back, resulting to more sales and stronger customer relationships.
Different locks representing security
MOTO Payment Security
Securing MOTO payments is crucial because of the risks involved in card-not-present transactions. Implementing advanced security protocols such as encryption, tokenization and multi-factor authentication can help safeguard sensitive card information during MOTO transactions.
Using compliant virtual terminals for MOTO payments enhances security by ensuring secure entry and processing of card details. Adding 3D Secure also provides an extra layer of security against identity theft.
PCI DSS Compliance
Complying to Payment Card Industry Data Security Standard (PCI DSS) protects card data during MOTO transactions. PCI DSS compliance ensures customer information is processed securely, reducing the risk of data breach and fraud.
When using virtual terminals for MOTO transactions, make sure they meet PCI DSS requirements. This compliance safeguards card information from entry to processing.
Fraud Prevention
Fraud prevention strategies are essential to mitigate MOTO payment risks. Two-factor authentication for example can significantly increase MOTO transaction security by verifying the cardholder’s identity.
Choose a payment processor for MOTO payments that has strong fraud prevention tools. AVS and requiring cvv code can further minimize fraud risks.
Staff Training
Training employees on security protocols is a crucial part of preventing fraud in MOTO transactions. Regular training sessions help staff learn to recognize potential fraudulent activities and understand the importance of secure payment processing.
Employees should handle payment details securely and maintain customer privacy during transactions. This training ensures all staff members are equipped to handle MOTO payments safely and effectively.
MOTO Payment Risks
Card-not-present nature of MOTO payments inherently carries higher risk of fraud. Without the ability to physically verify the card, it’s harder to confirm the cardholder, increasing the likelihood of fraudulent transactions.Also, MOTO payments are prone to higher chargeback rates because customers may provide incorrect information during transactions. Data security concerns such as data breach and unauthorized access to customer sensitive information are also major challenges in MOTO payments.
Moreover, operational challenges include the extra effort required from employees to manage these transactions especially during peak call hours.
Best Practices for Secure MOTO
Managing risks and securing MOTO requires best practices. Using interactive voice response (IVR) systems for example can enhance security by providing an automated way of transaction verification. Voice authentication technology can also be used to verify a customer’s identity during the transaction.
Using a virtual terminal for MOTO transactions that complies with PCI DSS is crucial for secure payment processing. Best practices include:
- Implementing AVS checks and CVV verification
- Additional verification processes
- Staff training on secure handling of payment details
Learn more about secure payment solutions and payment processing features.
How to Accept MOTO Payments
Accepting MOTO payments involves several steps. First businesses need to set up a merchant account that supports MOTO transactions. Virtual terminals and Pay by Link can be used to enter card details received from customers.
Using virtual terminals allows businesses to manually enter card details securely, so MOTO transactions are processed safely and efficiently.
Setting up a Merchant Account
A merchant account is required for businesses to process MOTO payments, to accept credit and debit card transactions and to make payment processing smooth for merchants.
To process MOTO payments, businesses must ensure their merchant account is set up for MOTO transactions. This setup allows them to process payments made via mail or phone.
Choosing a Payment Processor
Choosing a payment processor is a critical step in securing and processing MOTO payments. A good payment processor will support MOTO payments and have robust security and customer support.
The payment processor should also have a virtual terminal to allow the secure manual entry of card details. This is essential for MOTO transactions.
Investing in Virtual Terminals
Investing in virtual terminals is necessary for businesses to process MOTO payments. Virtual terminals allow businesses to enter the card details received from customers securely, so the transactions are processed safely. The main purpose of a virtual terminal is to allow the secure manual entry of card details, a safe and efficient solution for MOTO transactions.Virtual terminals should be user friendly to allow for easy manual entry of credit card details. A well designed terminal can speed up the payment process, reduce errors and enhance overall transaction security.
Who should use MOTO?
MOTO is ideal for businesses that offer personalized customer service, such as high ticket items. They can provide a more personalized and secure payment experience by accepting payments over the phone or through mail.
Also companies that serve customers with limited internet access can reach these demographics through MOTO payment options. Sectors such as non-profits, insurance and retailers that sell through catalogs or phone orders find MOTO payments useful for processing donations, claims or sales.
MOTO vs Online Payments
MOTO and online payments have their own advantages and use cases. The main difference is that MOTO transactions involve the merchant manually entering the customer’s card details, while online payments require the customer to enter their own information via a website.
MOTO can be made through phone calls and emails, giving the customer more flexibility. This is useful for businesses that want to serve a global market, MOTO payments allow them to reach customers across borders without the need for an internet connection.
Understanding the differences between MOTO and other payment methods will help businesses determine when to use MOTO.
Conclusion
Master MOTO payments and you’ll be able to offer flexible and secure payment options to your customers. By understanding how MOTO works, implementing security measures and best practices, businesses can minimize risks and maximize the benefits of accepting payments over the phone or through mail.
By setting up the necessary infrastructure, merchant accounts and secure virtual terminals and choosing a reliable payment processor, businesses can start accepting MOTO payments with confidence. Whether serving customers without internet access, secure transactions for high ticket items or expanding market reach, MOTO payments is a versatile solution. Take advantage of MOTO and watch your business grow.
FAQs
What are MOTO payments?
MOTO payments are processed by manually entering the customer’s card details into a virtual terminal or credit card machine using a secure payment gateway.
What are the benefits of MOTO?
MOTO offers customer convenience and more sales opportunities, repeat business without physical presence or internet access. It’s a win win for both business and customer.
What security measures do I need for MOTO?
To secure MOTO you need to implement encryption, tokenization, multi-factor authentication and be PCI DSS compliant and use robust fraud prevention like AVS and CVV verification. These are the basics of securing payment information.
Who should use MOTO?
MOTO is for businesses that offer personalized customer service, serve customers with limited internet access and are in non-profits or insurance sectors, especially when sales are done through catalogs or phone orders.
