Merchant Card Services: What is a Mail Order / Telephone Order Account?

Modern merchant's office with various payment processing equipment for MOTO account transactions including a computer, card terminal, and touch-tone phone.

Understanding MOTO Accounts: A Merchant’s Guide

A MOTO (Mail Order/Telephone Order) account enables merchants to accept payments without the customer’s card being physically present. This can occur through mail, telephone, or fax. These accounts are essential for expanding payment options and, consequently, customer purchasing alternatives.

Why Consider a MOTO Account?

Despite the rise of online transactions, some customers prefer not to make purchases online due to concerns like identity theft or a preference for interacting with a live representative. Others may browse online but choose traditional payment methods like mail or phone due to familiarity. Offering MOTO accounts helps merchants cater to these customers, potentially boosting sales.

How Are Payments Processed?

MOTO account payments can be processed in four primary ways:

  1. Virtual Terminal: Customers input their payment details on a secure website.
  2. Onsite Card Terminal: Merchants manually enter payment details using a retail card terminal.
  3. Terminal Software: Payment information is entered via a computer.
  4. Touch-Tone Processing: Payment details are entered using a touch-tone telephone.

Understanding the Fees Associated with MOTO Accounts

Fees for MOTO accounts vary, but common charges include:

  • Discount Rate: This is a percentage taken from each transaction to cover various costs associated with credit transactions. Rates below 2.65% are favorable.
  • Transaction Fee: Charged per transaction, with fees under 35 cents considered favorable.
  • Monthly Gateway Fee: For using a payment gateway like a virtual terminal. Fees under $25 are favorable.
  • Monthly Statement Fee: Covers the cost of preparing monthly statements. Fees under $15 are ideal.
  • Monthly Minimum Fee: Applies if transaction fees don’t meet a certain threshold. A fee under $10 is favorable.

Learn More About MOTO Accounts at AVPS

At AVPS, we offer flexible merchant card services, including MOTO accounts, that meet the diverse needs of businesses while maintaining low costs. For more details on how MOTO accounts can benefit your business, or to explore other merchant account options, contact us today.