Merchant Account Services: Evaluating Touchtone Credit Card Processing

Merchants using touchtone phones for secure payments.

Touchtone credit card processing enables merchants to accept credit payments using a touchtone telephone. This service is typically provided by Independent Selling Organizations (ISOs) through a Mail Order/Telephone Order (MOTO) account. Besides telephone payments, MOTO services also support payments via onsite card terminals, virtual terminals, and terminal software, which converts a computer into a payment terminal.

How It Works

To accept a payment, a merchant follows these steps on a touchtone telephone:

  1. Calls an 800 number to connect to an interactive response system.
  2. Enters a PIN to access the touchtone account.
  3. Inputs the customer’s credit card details.
  4. Enters the total sale amount.

Transactions are recorded by a computer and settled daily. Within 72 hours, funds are transferred to the merchant’s bank account through ACH payment. Merchants receive monthly statements detailing daily transactions and can access account information via a voice response system over the phone.

Who Uses Touchtone Processing?

Touchtone processing is ideal for small, mobile merchants such as home-based businesses, small retailers, seasonal sellers, and those who take payments on job completion, like landscapers and painters. Those experiencing frequent transactions may prefer a wireless terminal account due to its benefits.

Comparing Touchtone and Wireless Processing

Both touchtone and wireless terminals support mobile businesses and are cheaper than traditional retail terminals. However, wireless terminals provide enhanced security, lower discount rates due to this security, and quicker transaction times.

Merchants with low transaction volumes might choose a MOTO account if the cost of a wireless terminal seems high. However, for those with more frequent sales, a wireless terminal is more advantageous due to its security and efficiency.

Considerations for Touchtone Accounts

Touchtone accounts are suitable for merchants handling either low volume, low-ticket or high-ticket transactions. However, the higher discount rates on high-ticket items can significantly reduce revenue.

AVPS: Tailored Merchant Account Services

At AVPS, we cater to diverse business needs, offering merchant account services for companies of all sizes, whether mobile or stationary. With over 25 years of experience serving merchants and 16 years focused on small businesses, we are equipped to help your business manage payments efficiently, whether on the go, online, or over the phone. Contact us today to explore your options.