What are MOTO Payments and How Do They Work?

A MOTO payment is a type of virtual transaction that allows businesses to accept payments via phone, email, post - and, if you still use it, even fax.

This can be an ideal payment processing option for small businesses and startups. What’s more, you won’t need a card reader, only a virtual terminal, to get started.

But more on this below.

What is a MOTO payment?

MOTO is short for mail order/telephone order.

MOTO payments work in a similar fashion to how card readers work. The business must first partner with a payment service provider, who’ll give them a MOTO merchant account and secure virtual terminal to process transactions.

How do MOTO payments work?

Once you (the business) have chosen your preferred payment service provider, setting up your MOTO transactions is easy.

Typically, you’ll have the option of both an app or browser for your MOTO virtual terminal, which you’ll be able to access on either a mobile device or desktop.

1) Visit the link of your virtual terminal and log in, using your email address and newly created password.

2) Enter the customer’s card details and verify that their identity is as stated.

3) The request for payment is then transferred to the customer’s card issuer, who will perform their own checks before authorising the transaction.

4) Once the transaction clears, the customer receives a digital receipt.

5) You will then receive the funds once the agreed settlement period ends (more on settlement periods in our guide on PDQ machines).

Which businesses benefit from MOTO card payments?

Outside of an e-commerce website, having the option to process payments remotely can be a tidy revenue stream for any business. That said, the option of a mail order/telephone order system suits the following businesses in particular.

And alternatives?

If you’re a small business operating in these sectors and are unsure if MOTO card payments are for you, you’ve got plenty of other card payment solutions to choose from.

Popular alternatives that are nimble and seamless include mobile card machines and portable card machines.

Features of MOTO payment systems

Giving you the option to take card payments remotely, there are many perks to integrating a mail order/telephone order system into your business. Here, you can expect:

Flexibility: it’s unlikely that you’ll use MOTO payments in isolation. However, paired with your main system - such as your countertop card machine - you’ll have a handy alternative to rely on. Should you have any on-site issues too, like your card machine going down , you’ve got backup.

Multi-user access: you can add multiple people to your virtual terminal. What’s more, as it’s completely digital, you can access it across multiple sites 24/7.

Simplicity: MOTO payments are super simple to set up. Once you’ve chosen your payment provider and logged into your virtual terminal, you can access the system from anywhere that you can get the internet. Happy days.

Data storage: once a customer has made a MOTO transaction, the terminal will keep them saved for next time. Should you expect repeat business - if you’re running a takeaway, for example - this can be incredibly convenient.