Mail Order Telephone Order payments, more commonly known as MOTO payments, allow businesses to take card details and manage transactions without a customer being present. This remote payment service allows credit or debit card payment to be taken via phone call, email correspondence, fax machine or a written request.

MOTO payments are currently utilised by a variety of businesses. If you’re a restaurant taking booking deposits, a local grocery store taking pre-orders or an online retailer selling wares - you may want to use MOTO payments. Enabling MOTO transactions can benefit your business by helping you reach a wider customer base as they’re also accessible from anywhere, as long as there is an internet connection.

In this guide, we’ll define MOTO payments and go into more detail regarding the benefits of MOTO payments. We’ll also outline how much a MOTO transaction costs and discuss the payment processing procedure.

What are MOTO payments?

What is a MOTO payment? MOTO is the acronym that stands for Mail Order Telephone Order. MOTO transactions utilise a web-based payment system also known as a virtual terminal - think of it as an online card machine.

Customers give their card details to the vendor via phone call, email, fax or written request which gives the retailer permission to start processing the transaction via a virtual terminal. Then, before the payment is completed, the system will contact the customer’s bank to check for available funds. Finally, authorisation takes place.

MOTO is the perfect opportunity for small businesses to start selling their goods or services remotely. It can be inexpensive to set up and is a secure method of payment.

How do you set up MOTO payments?

You need to set up a MOTO merchant account if you want to start taking MOTO payments. This account type differs slightly from a regular merchant account.

This is because MOTO payments are considered to be a little more risky, due to the customer not being present at the time of purchase.

Most payment gateways offer a MOTO service. So, if you already have a merchant account and a payment gateway, it should be simple to start offering MOTO payments to your customers.

What is MOTO payment processing?

A MOTO payment is a quick payment solution. It’s perfect for when a customer is unable to pay for goods or a service face-to-face.

To take a MOTO payment, a retailer needs to log onto their virtual terminal. Then, they must key in the relevant data needed to make the sale. This includes:

  • The customer’s card number
  • The customer’s name
  • The customer’s address
  • The customer’s email address

Once all data is logged in correctly, the customer’s bank will authorise the payment. Then, the customer will automatically be sent a receipt via the email they provided the retailer with. This automated confirmation will be sent every time they complete a transaction with you.

The retailer will also receive a confirmation of the payment. However, like most payments processed via regular card readers, funds do not come through immediately. Typically they’ll be accessible within a few working days but with Dojo, we endeavour to get your funds into your business account the very next day with our next-day transfers.

What are the benefits of MOTO payments?

In regards to benefits, offering a remote MOTO card payment option allows both small startups and large-scale businesses to accept flexible payments. Here are five key benefits of using MOTO payments:

1. Safe and secure payments

Making a MOTO payment is a safe and secure way for your customers to pay for your products or services remotely. Customers can do this online, via a phone call or a written note.

2. Ease and accessibility

Setting up a MOTO system is simple. You can also access the virtual terminal from anywhere. This is as long as you have an online connection.

3. Convenience is key

The key function of a MOTO card payment is that customers can purchase something without being present. This is convenient for customers who often purchase goods online. It also makes paying for goods more accessible.

4. Access from multiple locations

MOTO transactions are versatile. You can set up your virtual terminals to be accessed from various locations. You can also allow for multiple-user access. If you opt for these, you can start offering MOTO payments 24 hours a day and seven days a week.

5. Start accepting most leading credit and debit cards

You can accept almost all leading debit and credit cards with MOTO payments. For example, depending on your provider, you can take payments from Visa debit cards as well as from American Express users.

What are the costs of a MOTO card payment?

When you start taking MOTO payments, you will also begin paying card-not-present (CNP) fees. These fees are compulsory because a MOTO card payment is considered slightly less secure, compared to when a customer is present for the purchase.

Card processing fees will also be added to a MOTO card payment. However, these are set by individual banks and networks. See your business bank account for more details.

How much does it cost to process MOTO payments as a small business?

Pricing varies depending on the provider you choose to use for MOTO payments and most card providers will charge a transaction fee.

If you sign up for a Dojo card machine, you’ll be able to access the virtual terminal for no additional monthly fees. A remote payments transaction rate of 0.5%, above the rate you pay for in-person payments made through your card machine, will apply.

Click here for more information on pricing options with Dojo.

What are the next steps?

If MOTO payments sound like something you’d like to start offering, we’re here to help. We offer a range of remote payment solutions that can elevate your business. If you’re looking to integrate an online checkout with your existing website or start creating instant payment links, you can get started with Dojo here.

For more information on getting started with MOTO payments, see our website.