MOTO Credit Card Processing

If you run a mail order business and/or take credit card payments over the telephone, you are participating in, what we call in the industry, MOTO Credit Card Processing. (MOTO = Mail Order Telephone Order). Essentially, this means that you collect credit cards in an environment where the customer and credit card are not physically present at the time of purchase. Another term used for this is card not present credit card processing.

New MOTO credit card processing options are available with a wide range of card processing equipment and software. Merchant Warehouse can help you get the processing solution that's just right for your business.

You will find useful MOTO credit card processing information in the links below that will help you to start credit card processing by phone and by mail order. As always, if you have further questions feel free to call us.


How MOTO Credit Card Processing Works

moto credit card processing

The model below describes how MOTO credit card processing works - step by step.

  1. The customer calls or mails in an order to the merchant and provides their credit card information. The merchant enters the card information and sale amount it into a credit card terminal, PC software or payment gateway.

  2. The processing system connects to Merchant Warehouse’s processor for authorization.
  3. The processor passes the sale information on to the bank that issued the credit card which checks to see that the card is valid and if the amount requested is available on the account.
  4. The issuing bank sends an approval number or a decline message back to the processor.
  5. The information is passed back to the processing system which gives the merchant the approval number and allows them to print a receipt for their records. It takes approximately 3-15 seconds to complete steps 2-5 on a traditional terminal or just a few seconds with a terminal or software connected to the internet.
  6. The merchant must "settle" their processing sales on a daily basis which begins the final process in the transactions. In most cases the credit card machines can be programmed to settle the account at a specified time each day. The sales proceeds are then transferred from the card issuing bank and are electronically deposits into the merchant's checking account. It typically takes two business days from the time of the original transaction for the funds to reach the merchant's checking account.

For more information on merchant accounts or how MOTO credit card processing works call us at the number at the top of the screen or request a merchant account online.


MOTO Credit Card Processing Tips

Follow the tips in this article and you’ll be sure to avoid any of the possible pitfalls of setting up a MOTO credit card processing account.

Tips on setting up your mail order and/or phone order credit card processing

  • Most MOTO credit card processing accounts can be set up in a few days but is still a good tip to start thinking about setting up your account a few weeks before you plan on using it. The last thing you want to be worried about in the days before you open for business is whether or not your merchant account will be ready.
  • Your local bank or other business whose primary focus is something besides credit card processing may not be the best option. While most merchants like the idea of doing business with their local bank or may initially be attracted to deceptive deals posed by wholesale chains, they often do not realize that these companies have little experience setting up MOTO merchant accounts. It is generally good advice to go directly to a company who specializes in MOTO Credit Card Processing like Merchant Warehouse. This will usually save you both time and money, and ensure that you have the best equipment and service for your particular needs.
  • When you get a quote for MOTO credit card processing, make certain you understand all of your rates and fees. Take the time to go through your application and ask questions about fees you don’t understand. Taking the time to go through the fees may save you an unpleasant surprise when you get your first merchant statement. If a fee or particular field on the application is blank, make sure to ask about it and, if possible, have the blank filled in with a zero or “none.”
  • Double check to make certain that the rate you are quoted is for MOTO credit card processing. Many merchants have mistakenly signed up for a retail account, with seemingly low rates, only to found themselves getting charged much higher fees than necessary. A good litmus test to check if you are being quoted an incorrect rate is to look at the “qualified rate.” Most retail businesses pay less than 2% per transaction for cards they can swipe through a terminal. If your rates are below 2%, it is likely that you have been quoted for a retail account.

If you have further questions feel free to call us at the number at the top of the screen or request a merchant account online.


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