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Mail Order / Telephone Order (MOTO)

What Is MOTO?

Mail Order / Telephone Order (MOTO), also known as MO/TO, is a payment processing method where customers provide their payment information via telephone or mail, rather than in person or through an online platform. This approach is commonly used in contact center operations, allowing agents to manually enter payment details into a system to complete transactions.

Key Components:

  • Mail Order (MO): Customers place orders through physical mail, submitting an order form with payment details.
  • Telephone Order (TO): Customers place orders by providing payment information over the phone to a contact center agent.

MOTO transactions are considered card-not-present (CNP) payments, meaning the physical card is not present during the transaction.

How MOTO Transactions Work

  1. Order Initiation: Customers contact the merchant via phone or mail to place an order.
  2. Payment Information Collection: During the interaction, customers provide their payment details, such as credit card information. This may also include customer identity verification to ensure the transaction is legitimate.
  3. Data Entry: Contact center agents manually enter the provided payment information into a payment processing system or terminal.
  4. Authorization: The payment processor verifies the payment details and authorizes the transaction if the information is valid.
  5. Confirmation: The customer receives confirmation of the transaction, and the order is processed accordingly.

This method is particularly useful for businesses that operate in industries like travel, catalog sales, or customer service, where customers may prefer or require non-digital ordering methods.

Security Considerations for MOTO

MOTO transactions carry higher security risks compared to card-present transactions due to the manual entry of payment information. To mitigate these risks, businesses should implement robust security measures:

  • PCI DSS Compliance: Adhere to the Payment Card Industry Data Security Standard (PCI DSS) to ensure the secure handling of cardholder data.
  • Address Verification Service (AVS): Utilize AVS to verify the billing address provided by the customer matches the one on file with the card issuer.
  • Card Verification Value (CVV): Require the CVV code to verify that the customer possesses the physical card.
  • Fraud Detection Tools: Implement tools to monitor and detect suspicious activity, such as unusual purchasing patterns or high-value transactions.
  • Employee Training: Train staff to recognize and handle potential fraud scenarios, ensuring they follow security protocols during customer interactions.

By adopting these security measures, businesses can reduce the risk of fraud and enhance the safety of MOTO transactions.

Related

  • Card-Not-Present (CNP) Transactions: Transactions where the physical card is not present during the payment process, including MOTO and online payments.
  • Payment Card Industry Data Security Standard (PCI DSS): A set of security standards designed to ensure that all companies that process, store, or transmit credit card information maintain a secure environment.
  • Address Verification Service (AVS): A security feature that checks the billing address provided by the customer against the one on file with the card issuer to prevent fraud.
  • Card Verification Value (CVV): A three- or four-digit number on a credit card used to verify that the customer possesses the physical card during a transaction.
  • Fraud Detection Tools: Software and systems used to monitor and detect fraudulent activities, helping businesses identify and prevent unauthorized transactions.

Understanding these related concepts is essential for businesses to effectively manage and secure MOTO transactions, ensuring both customer satisfaction and compliance with industry standards.

 
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