MOTO payments
In this article, you will learn what MOTO payments are, where and how they are used, and how you can utilize them in Payrexx.
MOTO payments refer to transactions where the customer does not enter their credit card information online. Instead, they provide their credit card details to the merchant via telephone, email, or postal mail to complete a transaction.
MOTO payments are commonly used for remote purchases where the customer is not physically present in the store, and the payment is not processed through a direct card reader.
The abbreviation MOTO stands for "Mail Order/Telephone Order".
How Do MOTO Payments Work?
The customer provides their credit card details or payment information to the merchant via telephone, email, or postal mail.
The merchant manually enters the information into a specialized payment system or terminal to process the payment.
The payment system authorizes the transaction, and the amount is debited from the customer's account.
MOTO Payments in Payrexx
Requirements for use
To enable MOTO payments in your Payrexx account, the following three requirements must be met:
During the verification of your merchant account, in response to the question "What industry are you in?", please select Travel and Transportation > Hotels, Motels, Resorts.
You must provide your customers the option to pay using the E-Commerce Tool Terminal.
One of our in-house payment providers, Payrexx Pay or Payrexx Pay Plus, must be activated. MOTO payments can also be activated with some external payment providers. Please contact our support team to learn more.
Activation of MOTO payments
If you meet the requirements, please contact Payrexx support to activate MOTO payments in your account.
MOTO Payments from a Merchant's Perspective
Who are MOTO payments intended for?
Mail and telephone order companies: Businesses that sell products or services over the phone or by mail (e.g., catalog retailers).
Service providers: Companies like travel agencies or insurance firms that take orders over the phone.
Nonprofit organizations: Organizations that accept donations via phone or mail.
Advantages of MOTO Payments
Offering MOTO payments is advantageous for merchants for the following reasons:
Expanded customer base: Merchants who offer MOTO payments can reach additional potential customers. These may include individuals who are skeptical about online purchases or those who have limited or no internet access due to age or location.
Flexibility: Merchants provide more flexibility to their customers, allowing them to place orders even when they are not on-site or without internet access.
Personalization of purchase: The conversation during the phone-based collection of credit card details adds a personal touch to the purchase, which can be beneficial for more complex or high-value products.
Disadvantages of MOTO Payments
However, there are also disadvantages to offering MOTO payments:
Higher fraud risk: Since the credit card does not need to be physically present for the transaction, it is easier for fraudsters to use stolen credit card details.
More disputed payments: There is a higher risk that customers may not recognize their payment on their credit card statement, leading to more disputed transactions.
Privacy concerns: Customers may have concerns about privacy when transmitting sensitive data via mail or phone.
Increased effort: Processing MOTO payments involves more effort for the merchant compared to online payments.
Higher costs: Due to the higher risk associated with MOTO payments, transaction fees are often higher.
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