What is MOTO Payment Processing?

what is moto payment processing

MOTO payments are simple to set up. With MOTO, you’ll be able to serve customers anywhere, anytime. They benefit from the convenience of paying without their card while you gain the ability to process sales 24/7. Offering flexible payment options is key to staying ahead in online business. MOTO increases your sales and also brings better customer satisfaction.

In this blog, we will discuss “what is MOTO payment processing” how it works, and its benefits for merchants, and also touch upon key aspects like security and fraud prevention.

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    Understanding MOTO in Payment Processing

    As a merchant, you want to make it as easy as possible for your customers to pay for goods and services. While in-person payments are convenient, there are situations where customers don’t have their physical cards available. That’s where MOTO payments come in.

    MOTO, which stands for Mail Order/Telephone Order, allows you to securely process card payments even when the customer isn’t physically present. By implementing a MOTO solution like a virtual terminal or mobile card machine, you can start taking payments over the phone, by email, or by post. 

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    What is MOTO Payment Processing?

    MOTO, which stands for Mail Order/Telephone Order, is a payment method used in transactions where the customer’s payment details are not directly entered on a merchant’s website but provided over the phone, mail, email, or fax. 

    When a customer places an order over the phone, by mail, or through other channels without physically presenting their card, the transaction is referred to as a MOTO. In such cases, instead of entering their card details online, the customer verbally provides their name, card number, CVC/CVV, and expiration date to the merchant over a call or by filling out an order form. 

    The merchant then processes this payment information through their payment gateway, virtual terminal, or card machine to complete the transaction. While e-commerce has made online shopping mainstream, MOTO payment processing still plays a crucial role, especially for merchants who don’t have an online storefront or need an additional payment option for orders placed through non-digital channels.

    How do MOTO Payments Work?

    Here are a few common ways through which a MOTO payment can be processed:

    • Virtual Terminal

    Merchants can use a virtual terminal, which is an online interface, to manually enter customer payment details received over call/form and process transactions. This is best suited for payments taken over the phone.

    • Payment Gateway

    Some gateways allow processing payments entered outside of an online checkout on a merchant’s website through a dedicated MOTO option. 

    • Card Machine

    Card machines with chip and pin facilities can be used to manually key in card data received from the customer and process transactions in offline/MOTO mode.

    Regardless of the method, the merchant securely takes down a customer’s payment information, enters it into their payment solutions, and upon authorization, the transaction is completed. A receipt is then issued to the customer either physically or via email.

    Benefits of Accepting MOTO Payments

    Here are several advantages for merchants to offer MOTO payment facilities:

    • Increased Sales: It allows merchants without an online store to still accept card payments, driving more business.
    • Customer Convenience: Customers get the flexibility to shop through their preferred channels like phone and mail instead of requiring them to visit in person. 
    • Omnichannel Experience: MOTO payments help deliver a seamless shopping experience across all customer channels.
    • Wider Reach: Merchants can now cater to customer segments that are otherwise not reachable, increasing their potential customer base. 
    • Always-On Acceptance: Payments can be processed 24/7 without requiring physical card terminals or online checkouts.
    • Secure Transactions: With proper security protocols like EMV, 3D Secure etc., MOTO payments are highly secure for processing sensitive card data.
    • Compliance Support: Payment partners ensure MOTO transactions fully comply with PCI DSS and other regulatory mandates.

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    We at NTT DATA Payment Services remove the friction from payment processing to enable your business to run more efficiently. With payment solutions that provide robust reporting tools, you can gain valuable insights into sales channels, performance, and more. 

    This data-driven approach helps optimize your processes and identify growth opportunities. By enabling flexible payment options for customers, we increase your chances of converting browser buyers.  

    NTT DATA Payment Services offers a complete payment solution to advance both your offline and online businesses from,

    We ensure maximum comfort, convenience, and safety for all your payments.

    Security and Fraud Prevention for MOTO

    MOTO transactions involve manually handling unencrypted card data, they are more vulnerable to fraud compared to online payments. However, modern payment technologies have made MOTO quite secure when used along with the right security practices:

    • 3D Secure/2FA Authentication: Subjecting high-risk MOTO transactions to 3D Secure authentication adds another layer of security verification. 
    • Tokenisation: Payment partners tokenise sensitive card data during MOTO processing, replacing primary account numbers with unique security tokens. 
    • Data Encryption: Card details should be encrypted both during transmission as well as at rest using industry-standard techniques like TLS, SSL, AES-256, etc.
    • Personnel Training: Extensive security training must be provided to staff processing MOTO payments to ensure compliance with policies.
    • Device Security: Devices used for MOTO, like terminals/phones, should have updated OS and antivirus, and complex passwords and automatic screen locks should be used. 
    • Monitoring & Alerts: 24/7 transaction monitoring along with rule-based alerts help detect anomalies and prevent fraudulent MOTO activity.
    • Address & CVC Checks: Simple checks like verifying the billing address and last 3 digits of CVC go a long way in ascertaining a transaction’s legitimacy.

    With judicious use of the right technologies and security best practices, merchants can securely enable MOTO payments while minimizing fraud risks for themselves as well as their customers. Partnering with a reliable payment provider also ensures all payment and security standards are followed diligently.

    Future of MOTO Payments

    Implementing the right MOTO payment solutions can significantly streamline your order processing while improving the customer experience. By removing friction from the payment process, your business will run more efficiently, and customers can pay however suits them best. 

    While the overall shift is towards digital commerce, MOTO payments will continue playing a key role, especially for certain customers.   

    Also, you can get frequent updates on nttdatapayments Instagram page.

    MOTO Payment Processing: Frequently Asked Questions (FAQs)

    1. What is a MOTO payment?

    MOTO stands for Mail Order/Telephone Order. It refers to card payments taken remotely when the physical card is not present, such as over the phone, by email or post.

    2. How do MOTO payments work?  

    The customer provides their payment details to the merchant verbally or via order form. The merchant then securely enters these details into a payment terminal or gateway to process the transaction.

    3. Is accepting MOTO payments secure?

    Yes, MOTO payments are highly secure when proper security protocols are followed. Tools like encryption, tokenisation, and authentication help protect sensitive card data during remote processing.

    4. What are the benefits of MOTO payments for merchants? 

    MOTO payments offer convenience to customers and increase sales opportunities for merchants. They allow 24/7 payment acceptance and help reach a wider audience through omnichannel services.

    5. How can I start accepting MOTO payments?  

    Merchants can enable MOTO payment acceptance through solutions like virtual terminals integrated with their payment gateway. Service providers ensure simple, compliant solutions for merchants of all sizes.  

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