Interested in updating the way you accept transactions? Looking to make things more convenient for your customers, even when they don’t have their cards? You might be interested in integrating the card-free transaction method known as Mail Order, Telephone Order (MOTO).
What is a MOTO Payment?
Mail order, telephone order (MOTO) payments are an alternate method of accepting remote payments. When you integrate this payment method into your business, you can accept transactions even when the customer’s card is not physically present such as over the telephone.
Once an item or service has been chosen, the customer must provide their personal information and card details verbally (over the phone) or through an encrypted web form to complete the payment process. Accordingly, the merchant takes the responsibility to enter these details into a virtual or EFTPOS terminal. In line with regulations, the merchant must not store these details under any circumstances.
Why Accept MOTO Payments
There are plenty of benefits to MOTO payments beyond the ability to process payments remotely, each factor making your business more efficient and successful:
- Convenience: Not only can you and your business accept payments remotely, but your customers can also easily pay for products and services.
- Split payments: Customers can pay in full or split their transactions into multiple tenders. MOTO payments accept not only debit or credit card payments, but also vouchers or gift cards in a matter of moments.
- Efficiency: With the speed and ease of payment processing offered by MOTO, you will have more free time to concentrate on the rest of your business. Skip weeks-long invoice processing and the wait of transferring funds between different banks with MOTO.
- Simplicity: You can accept payments with your EFTPOS terminal from anywhere, so long as you have a machine with an internet connection.
- Bigger customer base: You can reach more customers with a broader range of payment options. Additionally, a MOTO payment is currently the only way to pay remotely with a terminal without needing to tap, swipe or insert a card.
- Multi-user access: Authorise any number of employees to access the MOTO payment system across multiple locations.
Fast payment: Once the customer’s bank authorises a payment with sufficient funds, you will receive the funds quickly. There is no need to risk waiting for customers to transfer funds, or losing out on sales if your customer does not have another way to pay.
Examples of common MOTO transactions
It is common to see MOTO systems in businesses that take orders for products or services through emails or by telephone. Some of the more notable examples include:
- Takeaway food services
- Health & fitness services
- Repair services
- Retail outlets
- Online retailers
- Travel agencies
However, a customer may also request a MOTO payment in the case of them:
- Forgetting their card, but having record of card details.
- Making a purchase over the phone or to online retailers.
- Cannot physically reach the store’s location in time to pay.
- Ordering from a remote location or requesting a service for their home.
How do MOTO transactions work?
The process of paying through virtual terminals like MOTO is fairly simple, with most of the work undertaken by the card network and the customer’s bank once their card details have been inputted.
The card details include the customers’:
- Card number
- Expiry date
- Address details
- Email (in some circumstances)
When a merchant enters these details into an EFTPOS terminal, the customer’s bank will check if there are sufficient funds to authorise the payment. Once finalised, the merchant is notified about the payment. Like usual card readers, the funds are typically settled to the merchant’s bank within a working day.
How much is the MOTO transaction fee
The banks or the card network usually set card processing fees. They are usually calculated by adding component fees like interchange or risk coverage. With Smartpay, there are no additional fees for processing MOTO transactions, and no surprise costs for implementing it into your business. Smartpay’s add-on EFTPOS features come at no extra charge, allowing you to pick and choose how you want to process transactions at your business.
How to make a MOTO transaction with Smartpay
If you are a Smartpay client, please double-check that you have MOTO payment functionality enabled before beginning to accept transactions. You can enable this function by calling Worldline on 0800 729 627 and talking to one of our many experienced support staff. You will just need to have your terminal ID at the ready for verification.
Otherwise, if you do not have the MOTO functionality, please call your merchant bank and request that this be enabled.
Once the functionality is engaged, you can take a MOTO transaction by following the process below:
- Select PURCHASE, enter the purchase amount and press ENTER
- The terminal will prompt the user to PRESENT / INSERT or SWIPE CARD
- Press ENTER at this stage
- Type in the 16-digit card number, press ENTER
- Enter card expiry date [mm/yy], press ENTER
- The terminal will prompt you to enter CSC – select YES or NO and follow the screen prompts
- Select SINGLE MOTO
- Select CRD account type (This will only work with the credit account option)
- EFTPOS terminal displays ACCEPTED or DECLINED result
- EFTPOS receipt will be offered (depending on receipt print/prompt settings)
- EFTPOS terminal returns to the idle screen ready for the next transaction
How to perform a MOTO refund
In the case of a customer requesting a refund through the MOTO virtual terminal, you should implement the following process:
- Select REFUND.
- Swipe the merchant refund card and enter the refund PIN.
- The terminal will prompt the user to PRESENT / INSERT or SWIPE CARD.
- Type in the 16-digit card number, press ENTER.
- Enter card expiry date [mm/yy], press ENTER.
- The terminal will prompt you to enter CSC – select YES or NO and follow the screen prompts.
- Select SINGLE MOTO.
- Select CRD account type (This will only work with the credit account option).
- EFTPOS terminal displays ACCEPTED or DECLINED result.
- EFTPOS receipt will be offered (depending on receipt print/prompt settings).
- EFTPOS terminal returns to the idle screen ready for the next transaction.
The refund amount should be credited back to the card used for the original purchase within the next few business days.
Are MOTO payments secure?
There are security risks involved in not having a card not physically present, with scams and fraud being some of the biggest concerns.
While being cautious with each MOTO payment can lessen the potential risks, you should also be aware of the scenarios that commonly pose security risks:
- Chargeback: If a cardholder disputes a transaction, then the responsibility of proving the purchase was made falls to the merchant. Without sufficient evidence, the merchant is liable for chargeback and will have to pay a full refund for the products or services that may have already been provided.
- Stolen card details: Not having a physical card makes it difficult to verify that the card details belong to the person making the MOTO transaction. Fraud is often conducted through stolen card details or by faking personal information, including delivery addresses.
It is vital to your business and its security to keep an eye out for any potential red flags in your orders before you process them.
Tips to Protect Your Business
To minimise any risks of fraud or chargeback, you should understand how to identify the following red flags:
- The order is placed by someone other than the cardholder.
- Multiple orders from the same card, increasing in value.
- An email using a name belonging to someone different from the cardholder’s is used as a point of contact. In contrast, just a phone number is used.
- Orders come from the same delivery address across multiple cards, particularly when only the last 4 card digits are changed.
- The supposed cardholder cannot be contacted.
- It is an overseas order, especially if the country is uncommon or has the goods/services available locally.
We always recommend checking that the billing and delivery address match to protect your business. Additionally, you can ask customers to provide photographic proof of the front and back of their card, as well as an image of their ID, to make sure the details match.
By taking these steps, you can reduce the risk of you or your customers experiencing fraud. This is not a guarantee, however, that the potential of chargebacks is completely eliminated.
Should I accept MOTO payments?
At this point, you may still be asking yourself whether or not you should accept MOTO payments into your business practice. To help you find a definitive answer, you can ask yourself the following questions:
- Will my business be more successful with this new payment process?
- Does my industry require mail order, telephone order payments?
- Do I need to set up a phone, website or alternate virtual terminal for my business?
- Can I guarantee both my business and customers’ details stay secure?
- Is my current EFTPOS setup capable of MOTO payments?
By taking the time to sit down and consider not only the benefits of incorporating MOTO payments into your business, but also how this process can become viable, you can come to a definitive answer.
Why consider Smartpay for your business
Incorporating MOTO transactions into your business is just one of many steps to broadening your business horizon. With Smartpay, you cannot only enable MOTO payments but also enjoy several free features with our dynamic EFTPOS machines.