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 e-commerce?
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.