Mail Order/Telephone Order (MOTO)
Mail Order/Telephone Order (MOTO) refers to transactions where the customer provides their credit card details over the phone or via mail, instead of in person or online. These are card-not-present transactions, as the merchant does not physically handle the card.
MOTO transactions require a different method of processing and carry higher risk, so they are often subject to higher processing fees. MOTO transactions are common in businesses that take orders via telephone or mail, including catalog retailers or food delivery services.
Due to the higher risk associated with these transactions, merchants must take extra precautions to verify the cardholder’s identity and ensure the validity of the transaction. For example, they may ask for additional information such as the billing address associated with the card or the card’s security code.
Merchants that process a high volume of MOTO transactions may want to consider using additional fraud prevention tools, including address verification service (AVS) or card verification value (CVV) checks, to help reduce the risk of fraudulent transactions.
Additionally, some payment processors may have specialized services or rates for businesses that primarily operate via mail order or telephone order, so it’s essential to shop around and find a provider that best suits the business’s needs.