What is MOTO Credit Card Merchant Processing?

Have you heard of MOTO Credit Card Processing? MOTO stands for Mail Order Telephone Order and is a type of credit card processing for merchants who want to take customer orders via mail or the telephone.

In a MOTO credit card merchant processing, the credit card is not presented or swiped to a terminal. Hence, the information necessary to process payment must be manually entered by the seller.

The equipment used for this type of processing can be a credit card terminal or a computer software application or payment gateway.

The procedures that follow are similar to retail credit card processing. First, the information entered is forwarded to the credit card processing company for authorization to make sure that the bill can be charged to the account.

The credit card issuer or the bank will either decline or accept the transaction and will send the message back to the processor and then to the seller. The whole process is fast and typically takes only 15 seconds to complete.

After the sale has been processed, the credit card merchant processing company deposits the payment into the merchant’s checking account within two business days from the time the transaction has been made.

Tips for MOTO Credit Card Processing

Listed below are useful tips for merchants who want to accept MOTO credit card payments:

* Set up early. 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.

*Choose a specialist. 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.

* Check the quote. 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 merchant account.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

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