What You Need to Know About MOTO Payments

Understanding MOTO Payments

Mail Order/Telephone Order (MOTO) payments are card-not-present transactions where customers provide their payment details over the phone or through mail order. Despite the growth of e-commerce, MOTO payments remain crucial for many businesses, particularly those serving customers who prefer phone-based transactions or require agent assistance.

What Are MOTO Payments?

MOTO stands for Mail Order/Telephone Order, a payment category used by card brands to classify transactions where the cardholder is not physically present. These transactions include:

Telephone orders - Customers calling to make payments over the phone
Mail orders - Customers sending payment details via mail or email
Agent-assisted payments - Staff helping customers complete transactions
Recurring payments - Subscription services and regular billing

Why MOTO Payments Matter

MOTO payments continue to be essential for many businesses:

Customer preference - Many customers, particularly older demographics, prefer speaking with an agent
Complex transactions - High-value or complicated payments benefit from human assistance
Accessibility - Customers without internet access or digital payment capabilities rely on phone payments
Urgent transactions - When online systems are unavailable, phone payments provide a reliable alternative
B2B transactions - Many business customers prefer phone-based payment processing

Security Challenges with MOTO Payments

MOTO transactions face several inherent security challenges that businesses must address:

1. Higher Fraud Risk

Without physical card presence or real-time electronic verification, MOTO transactions have higher fraud rates than card-present transactions. Fraudsters can use stolen card details more easily when the card isn't physically present.

2. Agent Exposure to Sensitive Data

Traditional phone payment processes require staff to see or hear complete card details, including:

Full card numbers
Expiry dates
CVV codes
Cardholder names

This exposure creates security risks and increases PCI DSS compliance requirements.

3. Call Recording Risks

Many businesses record customer calls for quality assurance, training, or compliance purposes. If these recordings capture card details, they become sensitive data requiring:

Secure storage and encryption
Access controls and monitoring
Secure deletion procedures
Additional PCI DSS compliance measures

4. Documentation Security

When customers provide card details via mail or email, written records require:

Secure storage in locked cabinets
Proper disposal through cross-cut shredding
Access logging and monitoring
Background checks for staff handling documents

Compliance Requirements for MOTO Payments

PCI DSS Requirements

All MOTO transactions fall under PCI DSS scope, requiring businesses to:

Protect stored card data with encryption
Implement access controls and monitoring
Conduct regular security testing
Maintain information security policies
Complete annual self-assessment questionnaires (SAQs) or formal audits

Strong Customer Authentication (SCA)

Under PSD2 regulations, MOTO transactions are currently exempt from SCA requirements, but merchants must:

Properly flag transactions as MOTO
Implement additional fraud monitoring
Be prepared for potential future SCA requirements

GDPR and Data Protection

Processing card details requires compliance with GDPR, including:

Lawful basis for processing
Data minimization principles
Secure storage and transmission
Data subject rights (access, deletion, etc.)

Best Practices for Secure MOTO Processing

1. Use Secure Payment Technology

Modern payment solutions can dramatically reduce security risks:

DTMF masking - Customers enter card details via keypad while agents remain on the call
Tokenization - Replace card numbers with secure tokens for recurring payments
Secure payment links - Send customers secure links to complete payments online
Automated fraud screening - Real-time fraud detection and prevention

2. Staff Training and Management

Comprehensive training is essential for secure MOTO processing:

Security awareness training
Clear desk policies for written card details
Regular audits of payment handling procedures
Background checks for staff handling payments

3. Process Improvements

improve your payment processes to minimize risk:

Minimize data collection to essential elements only
Implement verbal verification procedures
Establish clear authorization workflows
Create documented refund and dispute processes

How Paytia Simplifies MOTO Payments

Paytia offers specialized solutions for secure MOTO processing that address the unique challenges businesses face:

Agent Assist Technology

Paytia's Agent Assist solution allows customers to enter card details via their phone keypad while remaining on the call with your agent. Approach:

Keeps agents from seeing or hearing complete card details
Dramatically reduces PCI DSS compliance scope
Maintains the personal touch of human interaction
Protects payment data from call recording systems

Enhanced Security Features

DTMF audio masking - Prevents payment data from being captured in recordings
Real-time fraud detection - Automated screening of suspicious transactions
Tokenization - Secure storage for recurring payments
PCI DSS Level 1 compliance - Reduces your compliance scope by up to 85%

Operational Benefits

smooth integration with existing telephony systems
API integration for payment processing systems
Comprehensive transaction reporting and audit trails
Multi-currency support for international transactions

MOTO payments remain essential for many businesses, but they require careful attention to security and compliance. By understanding the challenges, implementing best practices, and using modern payment technology like Paytia, businesses can process MOTO payments securely while maintaining excellent customer experience.

If you're looking to improve your MOTO payment security and reduce compliance burden, contact Paytia today to learn how our secure payment solutions can help your business.