By merchantserviceshagerstown.com April 4, 2025
With customers demanding ease at every opportunity, providing the flexibility to pay in different ways is more necessary than ever before. That’s where MOTO payments—short for Mail Order/Telephone Order—step into the picture. Whether you own a small retail store, have phone orders for a restaurant, or operate a service-based company, MOTO empowers you to accept card payments without the customer present with you.
It’s an easy, secure, and surprisingly good solution for companies that wish to provide a more personal or remote checkout process. If you’ve ever had a customer ask, “Can I just give you my card details over the phone?”—this article is for you. Let’s see what MOTO is, how it works, and why it could be the missing link in your payment setup.
What Is MOTO?
MOTO is an abbreviation for Mail Order / Telephone Order, and it describes a payment process where the buyer provides their card information remotely—usually over the phone or by post. Since no actual card is present during the transaction, MOTO is considered to be in the “card-not-present” (CNP) category of payments.
This form of payment is particularly convenient for companies that don’t have a traditional storefront operation. Whether you’re in business with a call center, processing orders from a catalog, or making reservations by phone, MOTO provides a convenient means of accepting card payments without requiring the customer to be present in front of you.
What Sets MOTO Transactions Apart
No Card in Hand: Because the customer is not present, there is no requirement to swipe, tap, or insert a card.
Manual Processing: The merchant manually enters the card details into a virtual terminal or secure environment.
Convenient for Remote Sales: Ideal for companies that use phone sales, mail orders, or isolated payments outside of a standard checkout environment.
Although MOTO is not as prevalent as in-person or online payments today, it remains a vital alternative for some businesses and customer segments that need or prefer a more personal or remote payment experience.
Why MOTO Payments Can Be a Game-Changer for Your Business
MOTO (Mail Order/Telephone Order) payments present an easy yet effective means of serving customers—particularly when face-to-face transactions aren’t feasible. Below are the reasons more companies are opting for MOTO as part of their payment policy:
Greater Reach, Larger Audience
One of the most significant strengths of MOTO payments is that they can bypass geographical barriers. Regardless of your customer’s proximity to your store or location in another nation, you can accept payment safely without having them come to your store or access your site. This is particularly handy for stores that engage in catalog sales, phone orders, or serve clients who might not be internet experts. By providing an easy means of paying from afar, you can reach and serve more people—including those who prefer the comfort of speaking on the phone to navigating an online checkout.
Customer Convenience
Consumers these days demand flexibility. While a lot of folks are okay with online buying, not everybody likes it—or has access to it when they need it. MOTO payments provide your customers with an easy means of making purchases without having to deal with the inconvenience of browsing a site or going into a store. It’s as simple as reaching for the phone or responding to an email. This method is particularly worth it in businesses where customers desire a more personal, guided experience—such as requesting a special item, scheduling a service, or obtaining answers to particular product questions before purchasing. With MOTO, you’re offering consumers another means of purchase, and that typically means more sales.
Ideal for Subscriptions and Recurring Billing
If your business model involves recurring payments—like monthly membership, service plans, or subscriptions—MOTO is a super handy tool. You can accept payment information over the phone or by mail securely and follow up with automatic billing, minimizing friction for both you and your customers. This works especially well for businesses in industries such as veterinary services, wellness, or education, where repeat business is prevalent. MOTO ensures it is simple to keep those repeat customers happy while maintaining a consistent flow of revenue with little admin hassle. Also, most clients don’t mind not having to remember to pay manually every time.
Which Business Can Benefit from MOTO Payments
MOTO payments can be a wonderful addition to nearly any company wanting to provide more flexible options for customers to pay—particularly when in-person transactions are not possible. Though any company is technically able to utilize MOTO, it’s especially useful in a couple of specific situations:
Restaurants and Takeaways
If someone calls in an order, MOTO makes it very easy to collect payment immediately there, and then there is no necessity to refer them to a website or app. It maintains the procedure short, straightforward, and simple for both parties.
Retail Stores with a Bricks-and-Mortar Component
Even if you’re primarily an in-store business, MOTO is convenient when someone calls or emails inquiring about a particular item. If you have it on hand, you can process their payment by phone and keep the item or send it out—no additional trip for them to make.
Online Stores
Got an e-commerce setup but sometimes have to deal with customers who like a bit more of a personal touch? MOTO is a good fall-back option for customers who want to pay over the phone or by email rather than going through an online checkout.
How Do Merchants Process a MOTO Payment?
Processing a MOTO (Mail Order/Telephone Order) transaction is very straightforward—and does not involve the presence of the customer or their card. Instead, the merchant manually enters the customer’s payment information into a secure environment. There are two primary ways this is accomplished:
1. Using a Virtual Terminal
A virtual terminal is an online platform that behaves similarly to an electronic checkout stand. Your payment gateway or processor gives it to you and it’s opened from within a web browser on your phone or computer. If you get the customer’s card information via the phone or by email, you simply put that into the terminal and execute the sale. No equipment is necessary—just a secure internet connection and log-on access to the portal.
2. Using a Credit Card Machine
Although most people imagine card machines as devices for on-site payments, most models also enable you to manually key in card information. Therefore, even if the card is not physically there, you can still make the payment by typing the information directly into the terminal. This is convenient for companies that already have a POS system but wish to accept remote payments as well.
Things to Keep in Mind When Setting Up MOTO Payments
If you’re considering offering MOTO (Mail Order / Telephone Order) payments, there are a few key things to think about before jumping in. While this payment method can add convenience for both you and your customers, it also comes with its own set of requirements and considerations.
1. You'll Need a Merchant Account
To process MOTO payments, your business will need a merchant account. This is a special type of account that temporarily holds customer funds while the transaction is being verified and approved. Not all merchant accounts support MOTO, so make sure to choose one that does.
2. Be Aware of Card-Not-Present Fees
As MOTO transactions are considered “card-not-present,” they will typically have slightly more expensive processing fees. This is because there’s more potential for fraud since the payment is not made directly in front of the business. These vary from payment provider to payment provider, so it’s a good idea to shop around to find one that fits your budget and requirements to avoid unwanted disputes.
3. Use a Secure Payment Gateway
Security is paramount when dealing with remote payments. A trustworthy payment gateway will secure and encrypt sensitive card information throughout the transaction, ensuring your and your customers’ safety. Choose a provider that provides tokenization and adherence to industry security standards (such as PCI DSS).
Conclusion
MOTO payments may not be the newest thing going, but they’re still a trustworthy and valuable resource—particularly for companies that appreciate personalized service and wish to provide customers with more options when it comes to paying. If you’re processing phone orders, operating a subscription service, or simply want an avenue to connect with more customers without asking them to shop in person or via the Internet, MOTO can assist in bridging that gap.
With the proper setup—secure systems, a reliable merchant account, and a reputable payment gateway—you can make MOTO payments a smooth part of your business and keep transactions simple, secure, and convenient for all parties involved.