In an increasingly digital world, businesses constantly seek innovative solutions to accept payments remotely. For those operating outside of a physical store, Mail Order Telephone Order (MOTO) payments offer a viable solution.
This method allows businesses to process transactions without the customer’s card being physically present, making it ideal for remote sales.
In this article, we will explore what MOTO payments are, how they work, their benefits, the types of businesses that can benefit from them, and how to get started with accepting MOTO payments.
What Are MOTO payments?
MOTO payments are a form of card-not-present transaction in which customers provide their card details remotely, typically over the phone, by email, or through the post.
Unlike online transactions, MOTO payments involve the manual entry of card information by the merchant, adding an extra layer of interaction between the business and the customer.
An example of a MOTO payment could be a customer placing an order over the phone for a product they saw in a catalogue. The customer verbally provides their credit card information to the merchant, who enters these details into a virtual terminal to process the payment. The key difference between MOTO payments and online transactions is the merchant manually enters card details.
How do MOTO payments work?
Understanding how MOTO (Mail Order/Telephone Order) payments work can streamline your transactions and improve your payment processes. Here’s a breakdown of how this method facilitates customer purchases and ensures secure transactions:
A customer places an order by phone, email, or through a mail-in form. They provide their card details to the business.
The merchant manually enters the card details into a virtual terminal, payment gateway, or card machine.
The payment system verifies the card information and authorises the transaction with the card issuer.
The customer receives confirmation of their purchase, and the business receives the funds to fulfil the order.
This payment method is facilitated by a MOTO payment gateway, which ensures the transaction is securely processed and the funds are transferred to the merchant’s account.
Benefits of MOTO payments
MOTO payments present several advantages for businesses:
Increased sales opportunities
By accepting MOTO payments, businesses can expand their customer base to include individuals in areas with limited internet access or those who prefer not to make online transactions.
Improved customer convenience
Offering multiple payment options, including MOTO, provides flexibility and convenience for customers, enhancing their overall experience.
Efficient repeat purchases
For returning customers, MOTO payments can streamline the purchase process as card details can be securely saved for future transactions, making repeat purchases quick and easy.
No need for websites
Businesses without an online presence can still accept card payments, broadening their sales channels without needing a website.
By accommodating customers who may not be comfortable with online transactions or who live in areas with limited internet access, you open up new avenues for revenue.
Which businesses are MOTO payments for?
MOTO payments are particularly beneficial for certain types of businesses, especially those that operate without a website or where customers prefer phone-based interactions. Examples include:
Takeaways
Customers can call to place their food orders and pay over the phone, simplifying the transaction process.
Travel agencies
Booking travel services often involve personal interactions, and MOTO payments allow agents to process payments while discussing travel plans with customers.
Catering services
Catering companies can take orders and payments remotely, accommodating clients who prefer to handle arrangements over the phone.
Telemarketing
This industry can efficiently close deals and process payments during customer calls, streamlining their sales process.
How to accept MOTO payments
To start accepting MOTO payments, follow these four steps:
Set up a merchant account
A merchant account is necessary to process card payments. Businesses must apply for one through a bank or payment processor.
Choose a MOTO payment processor
It is crucial to select a reliable MOTO payment processor. Look for providers that offer robust security measures and good customer support.
Invest in a secure virtual terminal
A virtual terminal allows merchants to manually enter card details securely. This terminal should comply with industry standards and be user-friendly.
Comply with PCI-DSS regulations
The Payment Card Industry Data Security Standard (PCI-DSS) outlines the security requirements for handling card information. Compliance ensures that cardholder data is protected during transactions.
Implementing these measures enhances the security of MOTO payments and builds customer trust by ensuring their card information is handled safely.
MOTO payments: Key takeaways
MOTO payments are a viable and effective solution for businesses outside the digital space. By understanding the process, benefits, and best practices, you can leverage MOTO payments to enhance your customer experience and drive sales growth.
Trust Payments offers relevant products and services, such as Virtual Terminals and Pay by Link solutions, to help businesses seamlessly accept MOTO payments. Adopting these solutions can significantly enhance your business’s ability to process payments efficiently and securely.
For more information on how to get started with MOTO payments and to explore our range of payment solutions, get in touch with our dedicated team for advice on your business’s payment needs.
