Mail Order Telephone Order (MOTO) Merchant Account

Mail Order & Telephone Order (MOTO) Merchant Accounts

More people every day are using the internet for an ever-expanding variety of purchases, from airline tickets to pizza delivery. With this increased push toward online transactions, does that mean the more traditional MOTO (mail order/telephone order) payment processing method is on its way out? Absolutely not! Despite the convenience of eCommerce, there are several reasons that a customer may prefer placing an order by phone or mail order.

  • Some shoppers, especially those of older generations, may not be as comfortable with internet-based payment portals.
  • Customers who are more tech-savvy may have legitimate concerns about data security and identity theft.
  • Shoppers may have questions about a product that are best answered by a real, live person, with whom they can then place their order directly.

While it’s clear that MOTO credit card processing is still very much an important component of commerce across numerous industries, it’s also true that it can be hard for an entrepreneur or small business owner to get a mail order or telephone order merchant account at a decent rate, if they find a payment processor willing to approve them in the first place.

What is a Mail Order and Telephone Order (MOTO) merchant account?

MOTO, or Mail Order/Telephone Order businesses require high risk payment processing because of their card-not-present (CNP) nature. Card-not-present transactions involve accepting payment without the customer and card being physically present in your store. These types of transactions generally have a high risk of fraud. Types of CNP include online payments and payment received through telephone, mail, or fax.

Why are MOTO merchant accounts considered high risk?

MOTO card processing involves accepting payments when the customer (and therefore, his credit card) and the merchant are not in the same place. Payment processors consider these “Card Not Present” transactions to as inherently higher risk than transactions in which a customer swipes their credit card at a brick-and-mortar store. This is partly due to the ever-present threat of fraud, and partly due to the greater potential for buyer’s remorse and second thoughts. Institutions that offer payment processing accounts are taking a risk with every transaction! If the customer cancels or disputes a charge and the merchant doesn’t have the funds on-hand to cover the chargeback, the payment processor has to cough up the customer’s refund.

Unfortunately, this higher risk of chargebacks, fraud, and other problems could cost the payment processor money. This means that the risk is reflected in higher rates, increased restrictions, and stricter scrutiny – especially for merchants seeking mail and phone order credit card processing.

So How Can You Get a Mail Order or Telephone Order Merchant Account?

  1. Manage your expectations. No matter how careful you are about spotting potential fraud, how good you are at developing customer relationships and avoiding chargebacks, or how strong your business’s finances are, you’re not going to find the same rate for a telephone and mail order credit card processing account as you would for a swiped-card account, simply because of the Card-Not-Present (CNP) quality of the transactions. It’s just the nature of the beast, and not a slight against your business.
  2. Look for ways to offset concerns. If your industry experiences high rates of fraudulent purchases, working up a comprehensive strategy for fraud prevention may help ease some of the payment processor’s worries. Requiring the CVV2 number on the back of a card, and address verification, are security measures that are helping many businesses reduce fraud, but keeping up with the ingenuity of identity thieves is a never-ending race. Similarly, if your business deals in big-ticket purchases that could make it hard to cover a chargeback, you may be able to negotiate with the financial institution managing your account to hold a portion of your funds as a cash reserve against such costs.
  3. Stick it out and renegotiate later. If your MOTO merchant account performs well over the first three years, your rates are likely to improve. Durango Merchant Services has extensive experience negotiating processing account terms for high-risk merchant clients.

National and International Options for Mail Order and Telephone Order (MOTO) Merchant Accounts:

Durango Merchant Services works with several gateway processors and suppliers with sponsor banking relationships that provide both US based national and international credit card processing solutions. We can provide merchant accounts for the Mail Order and Telephone Order companies under one of the following two options:

Requirements to open a merchant account for MOTO businesses in the USA:

  • Company entity based in the USA.
  • REPRESENTATIVE of the company based in the USA.
  • Bank Account is in the USA

Requirements of the European Mail Order and Telephone Order merchant account:

  • Minimum $ 50,000 USD per month in sales
  • The company must be based in the EU

Merchant Service Prices and Contract Terms:

If you are looking for a Mail Order and Telephone Order merchant services provider, contact us by email or call us today to discuss setting up a merchant account for your business. We will discuss the following:

Available prices for MOTO processing:

  • Discount rates that range between 1.95% and 4.95%
  • Authorization fees ranging from: $ 0.15 to $0.25
  • Monthly installments: rates ranging from $ 5.00 per month to $ 60.00 per month

Other terms of the telephone order or mail order processing contract:

  • Rolling reserve requirements that range from: 0% of the rolling reserve to 10% of the rolling reserve
  • Variable contract lengths including availability of month to month
  • Free application processing
  • Direct financing with regular deposits (either daily or weekly depending on international vs. onshore)

Additional benefits of the telephone order or mail order merchant account:

If you get a MOTO merchant account with Durango Merchant Services, then you will also be eligible for other benefits that we offer, we can set you up with electronic commerce and recurring billing via our online portal. Businesses can receive the following additional benefits:

  • Competitive rates
  • Acceptance of multiple currencies and deposits
  • Compatibility with major gateways and shopping carts
  • Accept Visa / MasterCard / American Express at your store
  • Integration assistance with more than 100 shopping carts
  • Chargeback prevention tools and advice
  • eCheck processing
  • Our gateway comes with industry leading fraud detection and prevention tools

We provide Mail Order and Telephone Order merchant accounts for the following:

  • Startups and existing businesses – we help all types of businesses
  • If you have been Previously rejected or discarded by another processor, we can help you get back on track
  • High ticket merchants and merchants with bad credit
  • Minimum processing: $5,000 minimum for national accounts, $50,000 for international accounts

MOTO Merchant Accounts With Durango Merchant Services

Our dedicated team negotiates on behalf of more than 30,000 clients.  We understand the back and forth and give and take of negotiating processing accounts for high risk merchants.


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