07 Feb

By Aditya Williams

Category: Mobile Payment Gateway, MOTO Merchant Accounts

Difference between Moto Payments and Retails Payments Comments Off

Difference between Moto Payments and Retails Payments


irect accounts or Retail accounts are for card-present conditions when cards are being swiped at the spot. A mail order/telephone order or internet account is used when the card and customer are not present at the merchant’s location.

Retail vs MOTO TRANSACTIONS vs E-commerce – What category do you fall in?

Usually, your interchange rate or fees will depend if the credit card transaction is card present or card not present, or to break it down further; if the transaction takes place in a store, on the phone, or through the internet. Also known as, the method of sales.

Retail – In a retail transaction, the card will always be present. The credit card can be swiped, keyed, or inserted into the terminal with the new EMV chip.  If considered “retail” there is usually a terminal that is present.

Types of Retail Businesses

There are an estimated 3.7 million retail establishments in the U.S., from stores to restaurants to salons to gas stations, pest control providers, and auto mechanics. Those businesses employ close to 42 million people, making retail the nation’s largest private sector employer.

There are four major categories of retailers:

  • Hardlines – things that tend to last a long time, such as appliances, cars, and furniture
  • Soft goods or consumables – things like clothing, shoes, and toiletries
  • Food – things like meat, cheese, produce, and baked goods
  • Art – things like fine art, as well as books and musical instruments.

    Within those categories, you’ll also find different types of retail stores. Some of the most common types include:

  • Department Stores – the oldest, and often largest, a place for consumers to shop for a variety of products under one roof. Target and Macy’s are examples.
  • Big Box Store – major retailers that specialize in one type of product, such as electronics. Best Buy and Bed Bath and Beyond are examples.
  • Discount Stores – department stores that stock discounted items and lower priced brands. Walmart and Kmart are examples.
  • Warehouse Stores – these no-frills warehouses often require you to be a member to access their low prices. BJs and Costco are examples.
  • Mom-and-Pop Stores – smaller, often niche stores run by small business owners. These are your corner stores and local storefronts.
  • E-tailers – online retailers that sell via the internet and have products delivered to your door. They typically do not have physical stores. Amazon and Etsy are examples.

    E-commerce or Internet – This type of transaction takes place when the consumer enters their credit card information onto a website or online payment gateway. Online shopping is a great illustration of an internet transaction. This type of transaction will also require verification including the billing address, CVV or CVC2 code and the expiration date.

    MOTO TRANSACTIONS– Mail Order/Telephone Order – Such type of event takes place when the credit card number is given over the phone or through the mail and the merchant enters in the credit card information. This can be done through a terminal or an online gateway. In this case, the card is not present. There are certain verification methods a merchant uses such as the CVV or CVC2 code, zip code, address, and expiration date. Receiving this information as a merchant helps with a more secure transaction. The CVC2 or CVV code will never be stored in order to protect the security of the cardholder.

    Mail Order Telephone Order (MOTO) payments enable merchant account holders that operate remotely to process debit and credit card payments from their customers, via telephone, letter, or email requests. MOTO transactions are processed on a web-based payment system, which works very much like an online card machine, as it will contact the customer’s bank to check funds are available before authorization.

    It’s a unique payment processing solution when a customer can’t pay face to face. Virtual terminals are popular with e-commerce businesses, online retailers and other remote businesses.

    How do MOTO TRANSACTIONS operate?

Fast, reliable, and user-friendly, virtual terminals are intended to make business owners’ lives comfortable and so using them tends to be straightforward and easy to follow. All you need to get started is internet access and the virtual terminal can be accessed using a laptop, mobile, tablet or desktop computer. Here’s how it works:

  1. Merchant Account holder logs into a virtual terminal online via a laptop, tablet, mobile or computer.
  2. The customer’s name, address, email address and card details are keyed in.
  3. The transaction is submitted to the customer’s bank for authorization.
  4. Once approved, confirmation is received, and the customer will receive a receipt via email.
  5. Much like payments processed via a credit card reader, the retailer will usually receive payment into its account within a few working days.

    What are the advantages of MOTO TRANSACTIONS for modest businesses?

The fact that you can process payments remotely brings numerous advantages to entrepreneurs and small business owners.

  • Gives your customers a fast, protected and professional way to pay for goods and services.
  • Easy to set up, all you need to access a virtual terminal is an internet connection and a laptop, mobile or tablet device.
  • Set up can be done within just a few days.
  • Allows you to reach out to a wider customer base.
  • Smooth payment processing means you have more time to spend on other viewpoints of your business.
  • Multi-user access means other employees can access the virtual terminal from multiple locations.
  • Full technical support 24/7.
  • Extra payment protection via the latest fraud detection and security checks provides you and your customers with peace of mind.
  • Access to online payment reports provides you with a wealth of useful data to monitor sales.
  • Accept payments from all major credit and debit cards, including Visa, Mastercard, Maestro, and American Express.

    The Pros of MOTO TRANSACTIONS for Merchants

In the generation of e-commerce, customers demand to have the option to pay online or over the telephone. Regardless of whether merchants are selling products and services or collecting on overdue accounts, consumers want a quick and easy way to put a charge on their credit card, without the trouble of having to authorize the payment in person.

For merchants, offering telephone payment systems as an option allow for expedited clearance of overdue invoices. It also provides a financial motivation, since purchases clear more quickly than if every customer has to appear in-store or at a brand’s kiosk in order to finalize payment.

The Potential Drawbacks of MOTO TRANSACTIONS

All credit card transactions come with the risk of fraud. However, merchants incur more risk with telephone card payments than in-person transactions. That’s because if fraud does occur, the bank that hosts the merchant’s account must pay compensation for MOTO transactions. For in-person purchases, that responsibility rests with the bank that issued the card.

In addition, some transactions that the consumer claims are fraudulent are actually legitimate charges. With MOTO, there’s no physical signature or record of a personal identification number (PIN) that could actually prove the charge is valid. On the flip side, it is also harder to detect fraud with a MOTO transaction because of the lack of physical proof related to the individual who authorized the payment.

Our Approach

If you want to know more about MOTO PAYMENTS and how iPayTotal can help you in acquiring a MOTO enabled processing solution, contact us right now.

You can call us at +44 800 776 5988 or even mail us at [email protected]

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