In this article will be discussing the Pros and Cons of Moto Transaction. If this is your first time to hear about MOTO transaction that stands for Mail Order Telephone Order, it is a type of “card not present” transaction in which the services are being paid and can be delivered through mail, fax, via telephone or internet connection. In order for you to process this kind of payment transaction, you should have a MOTO merchant account.
Yes a Merchant Account. The reason behind this is that you can’t get a hold of your customers or debtor’s credit card physically to swipe it, henceforth MOTO transaction is necessary. Keep in mind that whenever you are processing a “card not present” transaction, it is known as MOTO and knowing the Pros and Cons of Moto Transaction has a great advantage on your part.
Online merchants like you always want to make it easy for your debtors and for the customer’s to make a payment and nowadays every payment especially online transaction involves the use of credit card. But they are instances that paying offline is less risky than paying online but then again, customers find it very inconvenient. This is why every bank all over the globe provides both debit and credit card to their clients.
How does Moto credit card processing take place?
The majority of merchants believe in the saying that, “MOTO credit card processing is the finest payment solution for merchant who wish to receive payment through phone transactions.” Not only that, MOTO is also good for not tech savvy merchants who finds it hard to apply other credit card processing solutions and to those customers who are not comfortable in sharing their credit card details in making payment.
If your merchant account has a virtual terminal, then you can add MOTO credit card processing. All you got to do is whenever a customer calls to place an order via phone or mail; you’ll be receiving the request and enter customer’s credit card information through the telephone to process the payment. However, if you don’t have a virtual terminal, it doesn’t mean that you can’t have a MOTO credit card transaction. You can still accept it; the only difference is that it will require a bit more of manual work. The process will remain the same, but now, you will allow the order over the phone, and you will take the information of the credit card details of the customer and enter it manually on the conventional credit card terminal.
After the transaction is completed, you’ll take the receipt, keep the generated invoice and keep the entire document with you. You will need all these documents to be entered on your accounting system later so you’ll never lose any transaction details.
So, whether or not you have a virtual terminal, you will still be able to accept MOTO payment, the former will allow you to accept it automatically, however, the latter needs to be done manually. That’s the only significant difference. The rest of the transaction process depends on you.
What are the businesses that use a MOTO transaction?
A lot of businesses nowadays use MOTO credit card processing. This process allows them to do lots of things like allowing them to provide and offer their customers a greater security as they pay for their purchase without having a fear of being a victim of any fraudulent activity which goes to the merchant as well. This is by far the best way of accepting card-not-present transactions.
Here are only some of the businesses that use MOTO credit card transactions:
- High-risk merchants
- Property management
- Business and professional services
- Financial Institutions
- CPA Firms
- Credit unions
- School and Universities
- Membership associations
Let’s us now discuss the Pros and Cons of Moto Transaction.
What are the benefits of using Moto Transactions?
Today every customer wants an easy, fast, convenient and safe payment transaction for the service or product he purchases. What can be better than giving your customer an option to pay online or through the telephone? Moto credit card transaction is easy to process, and it doesn’t require the need to authorize the payment in person too.
Through Moto credit card payment, merchants can now speed up the payment process for overdue invoices. Plus, when a payment happens in a jiffy, it gives you a heads up to receive more financial incentive too.
Also, if you have an accounting system like QuickBooks, you can use the MOTO facility in accepting payment from the purchaser, and it also allows you to make the invoices and create the ledger automatically too. This way, you as a merchant get to save a lot of time and energy in processing customer’s payment.
You no longer have to enter the details manually if you have a virtual terminal.
What are the drawbacks of having a Moto transaction?
Like every other online payment transaction, Moto is also said to have a few drawbacks. However, these are not as big compared to other online payment transactions shortcomings. Since it is done through telephone and not in person, the risk of having fraud transaction is still on the line.
In case if fraud does occur, then the bank that is hosting your merchant’s account will ask you to pay restitution for the fraudulent MOTO transaction. However, when a person purchases physically and suffers from fraudulent activity, then it is the bank whose credit card has been used takes responsibility.
With Moto transaction, there won’t be any physical signature of the buyer or any record to keep a track, and that could end up causing problems too. For example, a transaction which the customer claims to be fraudulent is not necessarily a fraud. It could be legitimate, but still, since you don’t have any physical proof, you might end up paying the fines. It is equally difficult to identify a fraudulent activity too, because of the lack of any physical evidence at hand.
While online credit card payment transaction might not be the right answer for every sale, it is still considered to be the best one in the market today. It allows you to accept payment in a matter of time and it saves a lot of time and effort too. Plus, it improves your company’s credibility and enhances customer service experience also.
A lot of people prefer a home based job and some manages their online business at home, they cannot buy something and pay it by swiping their card into a POS machine that is a big NO! NO! It can ruin their daily plan and it’s highly inconvenient for them to leave home just to pay for something they purchase. For them MOTO transaction by far is their best option. If they already have a virtual terminal, then it will become more comfortable on their part to accept Moto transactions without inserting all the details manually.
However, you can choose to still have Moto transaction without having a virtual terminal though. The only difference is you will have to enter all the details of the credit card manually.
The Final Verdict with MOTO Transaction
This article’s main purpose is to provide proper information with the Pros and Cons of Moto Transactionand will sum it up here. MOTO or Mail Order Telephone Order is a perfect choice when it comes to credit card processing transaction. With the MOTO transaction, merchants can now speed up the payment process for overdue invoices and Moto credit card transaction is easy to process, and it doesn’t require the need to authorize the payment in person too.
While the drawback of MOTO transaction is, there won’t be any physical signature of the buyer or any record to keep a track, and that could end up causing problems too. Now that you are familiar with Pros and Cons of Moto Transaction, it is now easy for you to decide if MOTO is the right choice for your business.