Posted by tina on Oct 04, 2016


MOTO Payment Processing Still Strong

MOTO is an acronym for Mail Order and Telephone Order. The term applies to merchants that accept orders by phone, mail & fax.

It’s easy to feel all alone if you run a MOTO business. MOTO merchants have been facing headwinds for much of the past decade.

But the business model is not doomed. Rather, the industry is evolving to better serve the needs of customers across the country.

If you run a MOTO business, you’re not alone. Research suggests that there are more than 48,000 businesses in this industry that brought in $129 billion last year in revenues. More than 200,000 people are employed by MOTO merchants.

The reason the industry feels deserted is because it’s highly fragmented and that’s a good thing for businesses that are willing to invest and evolve their services. There’s a rare opportunity to capture a lot of market share by evolving the business model and reaching out to customers through multi-channel marketing such as phone & mail order sales.  

When you accept order by phone & mail, you boost your business compared to simply accepting online payments

Better Payment Solutions

The need of the hour is a better platform for payments.

MOTO customers often want personal services and the peace of mind that comes from speaking to a representative prior to buying. In fact, customers are willing to pay more for better, more personal service.

It’s a known fact that a portion of customers abandon their purchase at the checkout because the forms are convoluted or cumbersome. 

Some customers have concerns about entering credit card details online, while other simply prefer paying through fax or mail.

This is a substantial portion of the retail market and is currently served by small, local businesses that lack resources to secure payments. Paying over the phone or through fax is a form of ‘card-not-present’ transaction, which needs added layers of security.

Fortunately, payment processors offer special accounts to MOTO businesses that solve these issues. These accounts allow you to access a virtual terminal that can accept payments over the phone or through the mail.

All transactions are routed through acquiring banks and all the details are encrypted for data protection. Acquiring banks process the payments and help you minimize the risks involved.

Processing MOTO Payments

The virtual terminal provided is a fully encrypted since acquiring banks consider these transactions high-risk regardless of the industry. This virtual terminal is easy to operate and you can train your staff to use it while processing payments for customers over the phone or through the mail.

The following guidelines will help you and your staff handle MOTO transactions safely:

  • Assess whether the address provided is the same as the address registered for the card. If the details do not match, check with the customer.
  • Get the CVV code printed on the back. This code is distinguished from all the other card details and can only be provided by a customer who has the card physically present.
  • Internal data protection is essential, and employees must only be given access to data they absolutely require for their job. Give trained and authorized employees access to the virtual terminal, but make sure they change their passwords often.
  • Request a digital electronic signature for high ticket items. Ask for permission to record telephone verification confirmation for such orders.
  • Set features on the terminal to accept payment at the lowest processing rates available.

All these measures help you improve the level of service and security you provide for your customers. They are also deemed necessary by acquiring banks who will deal with the transaction.  


MOTO merchants can easily take advantage of safe and secure virtual terminal payment processing. Specialized payment gateways help your business leapfrog the competition. Build trust & boost sales by offering phone, mail and fax payments through a secure and efficient channel.

How are you handling your MOTO orders?  

Contact today