How to Choose the Right MOTO Payment Processor for Your Business

MOTO (Mail Order/Telephone Order) payments allow businesses to accept card transactions when customers aren’t present in person. Instead of swiping or tapping a card, merchants manually enter the customer’s payment details into a secure virtual terminal. This method remains essential for call centers, delivery services, and companies that take orders by phone or mail.

A study published in Applied Sciences confirms that card-not-present (CNP) fraud, which includes MOTO transactions, is the dominant type of payment fraud worldwide, with losses continuing to rise year after year.

This makes selecting the right MOTO processor critical, not only for protecting against fraud but also for ensuring reliability, customer trust, and sustainable business growth.

In this guide, we’ll explore the benefits of MOTO processing, the features you should look for in a provider, common challenges, and how to choose the best partner for your business.

Why MOTO Payments Still Matter for Businesses

Even with the rise of online shopping and digital wallets, MOTO credit card transactions continue to be important for many businesses:

• Wider customer access: Some customers prefer phone or mail orders over filling out online forms; MOTO gives them a trusted method to buy.
• Flexibility across industries: Travel agencies, medical offices, delivery services, and professional service firms often take orders via phone, making MOTO essential.
• Reliable backup option: When online payments fail (due to site issues, internet problems, or customer concerns), MOTO acts as a dependable fallback.
• Trusted for high-ticket sales: For expensive orders, talking directly to a representative often increases comfort and reduces buyer hesitation.

Federal Reserve Bank of Kansas City analysis shows the share of card-not-present (CNP) transactions in U.S. non-prepaid debit spending on dual-message networks rose from 33% in 2011 to 61% in 2021, and the CNP fraud rate trended upward over 2011-2021.

Does using MOTO increase fraud risk significantly?

Yes, MOTO transactions are part of CNP fraud risk, but using a processor with advanced fraud prevention (AVS, CVV checks, monitoring) greatly reduces that risk.

How MOTO Payment Processing Works

MOTO (Mail Order/Telephone Order) is a card-not-present flow that lets you take payments when the customer isn’t there in person. Here’s the process, step by step, kept simple and practical:

• Take the order & consent: Your staff collects the customer’s card details by phone or mail (card number, expiry, CVV, billing address) and confirms the total, refund policy, and your business name/descriptor. Never store raw card data outside the secure terminal.

• Enter details in a secure virtual terminal: Log in to your processor’s web dashboard (virtual terminal) and key in the payment. Use a private, encrypted connection; avoid writing details on paper or saving them in notes/spreadsheets.

• Real-time checks & authorization: The terminal runs fraud/risk checks (e.g., AVS on the billing address, CVV verification, velocity controls). The transaction is sent through the card networks for authorization, returning an approved, declined, or referred response in seconds.

• Capture & batching: Approved authorizations are captured immediately (or later if you ship later). Captured transactions are grouped into a daily batch for settlement.

• Settlement & funding: Your acquirer submits the batch to the card networks and banks. Funds are typically deposited into your business account in 1-2 business days (timing can vary by processor, cutoff times, and weekends/holidays).

• Receipts & recordkeeping: Email or text the receipt to the customer. Keep proof of authorization (call notes/order form), which helps resolve disputes. For recurring payments, use your provider’s tokenization/card-on-file tools; don’t store card numbers yourself.

• Exceptions: refunds, voids, chargebacks: If you cancel the same day, void the auth; otherwise, process a refund. If a dispute occurs, submit your call/order records, receipt, and delivery evidence to contest the chargeback.

Unlike in-person payments, MOTO is considered card-not-present (CNP), which comes with higher fraud risks. That’s why having the right fraud prevention tools and compliance features is crucial.

Is a MOTO terminal the same as a card machine?

No. A MOTO terminal is usually a secure online dashboard where you enter card details manually, not a physical swipe machine.

Features to Look For in a MOTO Payment Processor

Choosing the right processor can make or break your MOTO strategy. Prioritize these essentials:

• Fast and easy approval: Some providers take weeks to approve merchants, especially higher-risk categories. Look for a processor like 2Accept that can review, approve, and get you live in as little as 48 hours.

• Strong fraud prevention: MOTO is card-not-present, so the risk is higher. Your provider should offer AVS (Address Verification), CVV checks, velocity limits, risk scoring, and block/allow lists to stop bad transactions before they settle.

• PCI DSS compliance: Your virtual terminal and data handling must meet PCI DSS. The provider should minimize your scope (no raw card data on your systems), support tokenization, and provide guided SAQs and audit documentation.

• White-glove customer support: When a keyed transaction fails or a chargeback hits, you need human experts, not bots, to troubleshoot approvals, batching, and representments quickly.

• Integration flexibility: Your MOTO setup should work alongside e-commerce, in-person POS, and ACH. Demand seamless virtual terminal access, user roles, and simple reporting that fits your current stack.

The Federal Reserve Bank of Kansas City finds the U.S. card-not-present fraud rate for non-prepaid debit rose gradually from 2011 to 2021, with merchant CNP fraud loss rates increasing (while issuer loss rates stayed roughly flat) and liability shifting to issuers when 3-D Secure is used, a clear signal to choose processors with strong CNP controls and 3-D Secure support.

Challenges of MOTO Payments and How to Overcome Them

While MOTO is convenient, it does come with challenges:

• Higher fraud risk: Card-not-present fraud is more common. Use AVS/CVV checks, velocity limits, risk scoring, 3-D Secure where applicable, and tokenization to screen transactions and protect card data.

• Higher fees: MOTO transactions often carry slightly higher processing costs than in-person payments. Choose a provider with transparent pricing and optimize data you send (full billing fields, timely settlement) to help lower costs.

• Compliance requirements: Manual entry means strict PCI DSS controls. Work with a processor that provides a secure virtual terminal, reduces your PCI scope (tokenization), and guides your SAQ C-VT process.

Federal Reserve Payments Study findings show remote (card-not-present) card fraud grew from $3.4B in 2015 to $4.6B in 2016, while in-person card fraud fell from $3.7B to $2.9B, underscoring the higher risk in CNP channels such as MOTO.

Are MOTO payments safe for small businesses?

Yes, when you use a PCI-compliant provider with robust fraud tools (AVS, CVV, risk monitoring) and follow secure handling practices, MOTO is safe and widely used across industries.

Best Practices for Using MOTO Payments

To make the most of MOTO processing, businesses should:

• Train staff carefully: Employees handling card details must follow strict procedures to avoid mistakes or compliance breaches.
• Always verify customers: Collect billing addresses and phone numbers to match against card details.
• Use MOTO as part of a multi-channel strategy: Offer MOTO alongside e-commerce and in-person payments to give customers maximum flexibility.
• Keep records secure: Never write down card details; always enter them directly into the secure terminal.

Can I use MOTO for recurring payments?

Yes, many processors allow recurring billing through virtual terminals, which is ideal for subscriptions or memberships.

MOTO Processing for High-Risk Businesses

High-risk industries such as CBD, firearms, travel, and adult services often face rejection from mainstream processors. Many providers avoid MOTO in these industries due to fraud risk. This is where specialized providers like 2Accept step in. With expertise in high-risk merchant accounts, 2Accept can set up secure MOTO processing quickly, even for industries that Stripe, PayPal, or Square refuse to support.

Can high-risk businesses still use MOTO safely?

Yes. With the right provider offering compliance, fraud prevention, and hands-on support, high-risk businesses can safely accept MOTO transactions.

Choosing the Right MOTO Payment Processor

MOTO payments remain a vital part of business for companies that accept phone or mail orders, and choosing the right processor can protect your sales, reduce fraud, and keep customers happy. The best provider combines fast approval, strong fraud prevention, and real human support. With 2Accept, you can start processing MOTO payments in as little as 48 hours, backed by industry expertise and white-glove service. Contact us today to set up your MOTO solution and give your business the flexibility it needs.

Frequently Asked Questions

1. Can I accept both MOTO and online payments with the same provider?

Yes, many providers, including 2Accept, offer multi-channel solutions for MOTO, online, and in-person payments.

2. Do I need special hardware for MOTO?

No, most MOTO systems use a secure web-based virtual terminal. A computer or mobile device with internet access is enough.

3. Are MOTO payments suitable for international transactions?

Yes, as long as your provider supports cross-border payments and multiple currencies.

4. Do MOTO payments take longer to process?

No, settlement times are typically the same as standard credit card payments, usually 1-2 business days.

5. Is MOTO processing expensive compared to other methods?

MOTO fees are slightly higher than in-person transactions, but they’re affordable and worthwhile if you choose a provider with transparent pricing.