Mail Order/Telephone Order (MOTO) Definition

Merchant Account MOTO Explained:

What is MOTO? MOTO, or Mail Order/Telephone Order, is a type of card-not-present transaction in which services are paid for and delivered via telephone, mail, fax, or internet communication. Because MOTO transactions take place without the merchant or the card physically in the store, they are at a higher risk for credit card fraud than card-present transactions. MOTO merchants therefore will likely pay higher transaction rates to help offset the potential for disputed payments and chargebacks.

Although MOTO stands for “Mail Order/Telephone Order,” the diminishing popularity of those two technologies has resulted in MOTO being repurposed as a general term for all card-not-present transactions, including internet purchases.

Phillip Parker is a former merchant services sales agent who believes the industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. He created this website to help you avoid the bad players, save money on fees, and to get peace of mind with your merchant account. If you would like to help support his work, learn more about our cost reduction service. We can evaluate your statement, tell you exactly how much you're overpaying, and then help you dramatically reduce your fees with your current credit card processor. Looking to switch instead? See our list of the best merchant account providers.

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