MOTO is the abbreviation for Mail Order/Telephone Order payments. They offer businesses a practical way of accepting payments without customers having to be present physically.
Irrespective of whether it’s small businesses managing catalog orders or a service provider asking for payments on the phone, this kind of payment processing provides an efficient and worthwhile solution. It has existed for years.
The method is an invaluable option for remote businesses and those who are serving customers in various locations.
Are they easy to set up?
These payments are easy to set up. Businesses can be able to serve customers anywhere and anytime. They benefit from the convenience of paying without their card. Businesses gain the ability to process sales 24/7. Flexible payment options are key to staying ahead in today’s business environment.
Mail and telephone order payments increase sales and also improve customer satisfaction. We will now understand what MOTO payment processing is, its working mechanism, and how it benefits businesses. We will also examine its key aspects.
Understanding MOTO Payments
These payments are under the category of transactions where a debit/credit card is not present. The discussion of MOTO vs POS payments proves the former is better. Because it does not need the customer’s card for transactions.
If you ask yourself what is MOTO transaction? then the answer is simple. It is a payment method where payment details are provided remotely via email, telephonic conversation, or online forms.
Businesses then process these details manually via secure systems. This helps them complete transactions. The flexibility removes the need for face-to-face interactions, which helps businesses serve customers with ease, especially those who are at a distance.
These Payments help customers earn the convenience of paying from anywhere without the need to visit the business or the business’s outlet in person.
For which reasons do businesses rely on Mail and Telephone Order payments?
These payments are a lifeline for businesses that work remotely and need to reach customers in distant locations. They are particularly useful for companies that rely on the following:
- Mail orders.
- Phone orders.
- Online communication.
For example, industries like hospitality, retail, and travel frequently manage bookings and orders from customers they hardly meet in person.
These payments ensure these businesses can provide seamless and convenient payment options while maintaining strong relationships with customers. It is of enormous advantage in today’s digital age.
How? The method is relevant for businesses working with niche markets and segments. Also, customers who prefer traditional communication methods are in luck thanks to these payments.
How do MOTO Payments Work?
Mail and telephone order payments are user-friendly, fast, and secure. They provide customers and merchants with a seamless experience. Their processes require two fundamental components:
- A MOTO merchant account.
- A MOTO Virtual Terminal.
Let’s explore the process in brief detail:
On a Card Machine
Before conducting a transaction, employees must be sure to check the card machine’s instructions. Each brand has its own processes in place.
Here are the steps to conduct these transactions on these machines:
- Entering the transaction amount on the POS system.
- Then the customer’s debit/credit card number, CVV2 code, and card expiry date are input into the machine.
- Choose either the manual entry option or the CNP payment one.
- Waiting for the transaction’s approval message.
On a Virtual Terminal
These terminals are computer-operated payment terminals. It is popular, especially if businesses have employees working on computers. It also works when businesses want to accept payments directly via email, order form, or a telephonic conversation.
Virtual machines have a process similar to card machines. Once the virtual terminal is open, the card number, expiry date, and CVV2 code can be easily input.
Businesses should also add the customer’s name, address, and other details to process the mail and telephone order payments. Processing them takes only a few seconds.
Both of them are usually provided by the business’s chosen payment service provider. The payment process is simple.
How are these payments processed on Virtual Terminals?
Processing these payments is an easy method completed in a few simple steps:
Mail and Telephone Order Payment Virtual Terminal Log-In
Also known as a MOTO payment gateway, the merchant logs into their virtual terminal using an email address and a password (associated with the account). It can be done through an app, software, or web portal.
Card Details
Employees input the customer’s debit/credit card details and send them to the payment processor for verification.
The Verification and Authorization Process
Once the correct card details are submitted to the processor, they are securely submitted. Then they are later sent to the relevant payment processor for verification and payment authorization.
Payment Confirmation
The customer receives an automated receipt through email. It confirms the transaction’s validity.
Fund Settlement
The merchant receives funds from the sale, depending on the settlement agreement with the payment service provider.
Benefits and Drawbacks of MOTO Payments
Let us briefly examine the benefits and drawbacks of Mail and telephone order payments:
| Benefits | Drawbacks |
|---|---|
| Mail and telephone order payments amplify customer experience. | There are instances of potential chargebacks. |
| Customers find it convenient to make payments for goods/services without visiting the store. | These payments have a higher rate of processing charges due to higher chances of risk. |
| Businesses offering customers these payments can retain them instead of losing them. | They also carry more risk due to higher chances of fraud. |
| They are easy for customers and businesses alike, as they are accepted in most places. | These payments do not need cards and cardholders present on site. Verifying the payee for the payments made is hence difficult. |
| A laptop/phone/tablet with internet access is required for running these payments. | |
| Flexible payment options help businesses earn more revenue and improve customer experiences (CX). |
Over to You
MOTO payments are indeed quick and easy for businesses serving customers in far-flung locations. All that is needed is a laptop, phone, or tablet with an internet connection and the right software.
But businesses need to be wary. They are risky and have risks of potential chargebacks. If businesses want to employ this payment method, they should study all potential benefits and risks before going ahead with it.
