• A MOTO transaction is a card not present transaction where merchants use virtual terminal and payment
software to manually key in consumers' payment information that the merchant receives over the phone, in
the mail, or through fax.
• MOTO (Mail order, telephone order) transactions occur when the card is not physically present at the time
of the transaction, and the card details are manually entered on the EFTPOS machine. When you, the
business owner and merchant, enter the customer's card details then the processing is a MOTO
transaction.
• On the other hand, when the customer enters their credit card information on your website, it's not a
MOTO transaction. However, both transaction types are a Card Not Present transaction.
• Flagging MOTO transactions in the correct way is the liability of the merchant and the PSP and the
acquirer.
What is the difference between Moto and ecommerce?
• MOTO merchant accounts vs standard merchant accounts. MOTO processing carries higher
fees as a result of this.
• E-commerce stores have a merchant account and payment gateway to process orders from start
to finish.
• A keyed-in transaction is a card payment that where a person manually types in the card
information. This is also known as a 'keyed' or 'manually entered' transaction. It's used when the
card can't be swiped or chip-read, either because it isn't physically present or for other reasons.
How do merchants accept card payments?
• Your customers pay with their card numbers/ details they provide your staff or IVR over the phone.
This is known as a Mail Order or Telephone Order (MOTO payments).
• Additionally, you store these cards for future transactions. If the charge was the same
frequency/amount this is classified as a MOTO Recurring Transaction.
• If the charge is at different intervals/amounts this is classified as a MOTO Merchant Initiated
Transaction
• If these merchants have URL or loaded as ecommerce merchant, then should flag when
using MOTO as they are potentially bypassing 3D Secure and contravening SARB and
scheme regulations
• Investigate e-commerce merchants set-up as MOTO/Phone/Mail order merchants and those performing
Card on File and Recurring transactions