What you need to know about MOTO (Mail Order Telephone Order) payments

Take safer MOTO payments using a telephone keypad

What you need to know about MOTO payments

When you're looking to start trading online, or perhaps expanding into home delivery or other services, it's vital that you understand how different types of payment could affect your business. Some payment types are categorised as card-not-present (CNP) transactions, and, as such, are governed by a particular set of rules.

CNP transactions are those which are processed without the merchant having physical access to the card's chip for scanning or swiping. They can include payments made online, over the telephone, via fax or by post.

As the merchant will not be able to look at the card, such transactions carry a heightened potential for fraud. Furthermore, if a cardholder claims that a fraudulent CNP payment has been made, the merchant will be held liable and often have to pay a chargeback fee to their bank. These fees can be significant sums, especially for smaller organisations. It is, therefore, crucial to ensure that security protocols are carefully followed by all staff if you decide to accept CNP payments.

How MOTO differs from e-commerce transactions

It's important to understand that not all card-not-present transactions are treated in the same way under the law. E-commerce transactions, for example, whilst taking place where the customer's card is not in front of you, do not count as MOTO transactions.
This can essentially be summed up with this simple analogy of coffee and cappuccino. Every cup of cappuccino is a coffee, but not every coffee is a cappuccino. In this way, every MOTO transaction is a card-not-present transaction, but not all card-not-present transactions are MOTO.

MOTO stands for Mail Order Telephone Order, and covers transactions whereby the merchant accepts payment or card details over the telephone, or in written form such as via email, fax or post. The merchant then enters these details into their payment system in order to process the charge. This is the key distinguishing feature of MOTO transactions, as other card-not-present payments such as via a website, require that the customer is the one to enter their card details.

The benefits of MOTO transactions

Offering your customers the opportunity to pay over the telephone can certainly be a great advantage for your business. It's a smart choice for making sure that you don't miss out on sales even if your customer cannot visit you in person, and offers convenience for immediate payment of invoices.

MOTO transactions are used by a wide variety of organisations, such as property management companies, hotels, restaurants, membership associations, schools and universities. Since the pandemic and subsequent lockdown shut down many bricks and mortar businesses, there has also been a marked increase in merchants beginning to offer MOTO payments for delivering their products, particularly for those which do not have a website equipped to process online sales.

Such MOTO transactions can be quick and easy for both you and your customers, and are very popular with older people who may not feel confident paying online. They allow you the opportunity to engage with your customer and deliver a great customer service experience. When delivered effectively, MOTO transactions can be extremely secure, offering peace of mind for everyone involved. MOTO transactions can be linked up to accountancy applications such as QuickBooks, enabling seamless record-keeping with minimal staff input required.

How to take safe MOTO payments

It's important to take steps to make sure that MOTO transactions are secure and transparent. Recording telephone calls is a useful practice, as it means that there will be a way to trace every processed payment, which helps to meet compliance regulations. Whilst it's a fact that there is a significant threat of card-not-present fraud associated with MOTO transactions, fortunately, there are now services available that can protect your business from the risk.

Advances in Artificial Intelligence (AI) technology have been applied to make automated payment methods safer and more seamless than ever, and such services can even remove the liability for the merchant in the case of fraud claims. These services mean that when a customer wishes to make a payment over the telephone, they can be transferred to a secure, fully automated line where they can enter their card details.

This removes the need for your staff to handle sensitive financial data, ensuring PSI DSS compliance is met, and takes away the liability for any later chargebacks. Payments can be processed quickly and efficiently, and your records updated immediately. This kind of service is especially useful for businesses which wish to continue to meet compliance regulations and ensure that data security is maintained now that their customer service teams are working from home.

It's clear that offering MOTO payments can be a useful addition to a range of organisations, and it's never been easier to make sure that such payments can be made simply and securely. This offers both you and your customers the best of both worlds: a great personalised experience, alongside the peace of mind that comes from knowing that the risk of fraud is minimised.

 

Would your company benefit from being able to take credit card payments over the telephone - without the need for the customer to read out their confidential details?

NO integration required - Quick - Easy to implement - Low cost solution - FULLY PCI DSS compliant

 

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