Gravity Payments

MOTO Payments: Everything You Need to Know

Learn what MOTO payments are, what benefits accepting MOTO payments brings to your small business, and use cases for MOTO payments.

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Modern technology makes paying for goods and services possible with a tap or a click. But some customers prefer to pay by mail or telephone.

Accepting MOTO payments is a way to accommodate these customers.

In this article, we will tell you everything you need to know about this payment method.

What is a MOTO (Mail Order / Telephone Order) Payment?

A MOTO (Mail Order / Telephone Order) payment is a way for customers to pay without being at your physical location or online – customers provide their card details via mail or phone. You can then enter their card details manually into your payment system to process the payment.

How Do MOTO Payments Work?

When you take a payment by phone or mail, it requires you to manually key in the customer’s card details. To help you get started, here’s a step-by-step overview of how this process typically works:

  1. A customer initiates the transaction by contacting you remotely, such as via mail or phone.
  2. Before asking for the card details, make sure you have your credit card terminal ready or that you are logged in to your virtual terminal using a desktop or mobile device.
  3. The customer shares their payment details, including their credit card number, expiration date, CVV, and billing address.
  4. You manually enter their payment details into your payment system.
  5. After you’ve done this, your payment processor initiates an automated process that is similar to what happens when you physically swipe a card in your terminal. The payment processor sends an authorization request to the customer’s issuing bank to verify the payment details and ensure the customer has sufficient funds for the transaction.
  6. If the bank approves the transaction, you receive an authorization code while the bank moves forward with the transaction.
  7. The customer receives an automated receipt, usually via email or SMS, and the funds from the sale appear in your merchant account within a few business days.

MOTO Payments Benefits

Accepting MOTO payments offers some advantages to your small business:

  • Increase your reach. Some people don’t feel comfortable keying in their card information online – and you obviously don’t want them to turn elsewhere. By accepting payments securely over the phone or mail, you can win their business. 
  • Offer alternatives. Paying online isn’t always possible – power outages and other technical issues happen. This alternative can save the day if a customer can’t pay online – for whatever reason.
  • Easy to repeat orders. Save your customer’s details securely in your virtual terminal, so you can easily use them again when the customer calls with another order.

MOTO Payments Examples

If your business receives a lot of orders over the phone or by mail, accepting payments at the moment a customer orders is useful – and helps reduce any potential for non-payment.

Here are four examples where taking payments by phone or mail can be convenient:

Take-Out Orders in Restaurants

Restaurants can take phone payments from customers who call in a takeaway order but don’t currently have internet access – for example, because they are in transit.

Travel Bookings

Travel agencies and hotels that often get last-minute bookings from customers who are already on the road can streamline the payment process by taking payments directly when they are talking to customers on the phone.

Contractors, Freelancers, and Consultants

If a typical day involves being on the road, taking MOTO payments using a virtual terminal on your phone is convenient.

Taking Donations

Non-profits and charitable organizations can receive donations from supporters via phone and mail, allowing them to contribute without navigating online donation platforms, or taking an additional step when receiving a request in the mail.

How Much Do MOTO Payments Cost?

It varies depending on your payment processor.

Most payment processors present their fees as a combination of a percentage of the transaction amount and a fixed transaction fee.

The exact percentages and fixed fees can differ based on the processor, the volume of transactions, the industry, and the types of cards being processed.

At Gravity Payments, we use a transparent credit card pricing structure for all of our payment processing services.

Is Taking MOTO Payments Safe?

MOTO Payments can be risky. That’s because a fraudster can impersonate a customer on a phone call or by mail.

But don’t fret! You can make this a low-risk payment method for your business if you use fraud prevention methods such as the card verification value (CVV) and the Address Verification Service (AVS).

And at Gravity, we can help your business become PCI compliant. PCI Compliance refers to the security standards and guidelines established by the Payment Card Industry Security Standards Council (PCI SSC) to protect credit card data during transactions.

For more tips on safely processing MOTO payments, read our article on card-not-present transactions. Also, don’t hesitate to contact us if you need help safely processing MOTO payments.

Accept MOTO Payments With Gravity Payments

For many small businesses, accepting payments via mail orders and telephone orders is a great way to increase their customer base and simplify transactions for those who aren’t well-versed with online payments.

Gravity Payments provides a white glove set up and training. We can advise you on setting up your merchant account and virtual terminal to accept MOTO payments, and any other payment methods that could be useful for your business. 

At Gravity Payments, we don’t want to be just another financial tool in your small business – we want to be your ally.

Learn more about Gravity Payments’ merchant services or give us a call at 866-701-4700 if you have any more questions about accepting MOTO payments.

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