MOTO Merchant Accounts
Accept Credit Cards by Mail Order & Telephone Order.
New To Merchant Accounts? Click here!
Merchant Account vs. Payment Gateway: What's the Difference & Which Do I Need?
A MOTO merchant accounts are the same as Internet merchant accounts in that it allows for the processing of "card-not-present" transactions. Card-not-present refers any credit card transactions where there is no physical credit card to "swipe" through a card-swipe terminal and includes mail order, phone order, fax order, and Internet order. In many cases, it will also include mobile order.
Specifically, "MOTO" refers to "Mail Order & Telephone Order" but in fact, a MOTO merchant account will include all card-not-present transactions and an Internet merchant account (or MOTO merchant account) will allow you to accept credit card payments online by allowing your customers to enter their credit card information directly into your website which enables you to accept credit card orders without your customers having to fax, phone or mail in their orders.
By using an an Internet Payment Gateway with a "Virtual Terminal", you can process fax, phone, mail, and Web orders.
Even if you plan on using a credit card terminal to process retail credit card orders, you will still need a MOTO merchant account if you also want to take orders by mail order or telephone order. How the order is entered is really not significant. It's how the order is received that determines the need for a MOTO merchant account or not.
So, if you currently run an off-line business and you already have a merchant account, you may still need to apply for a MOTO merchant account to begin taking mail and telephone orders since MOTO merchant accounts have different rules and regulations than standard retail merchant accounts.
Regardless of whether you're an established merchant looking to add a MOTO merchant account or a new merchant, you're going to want to work with a merchant account provider who has expertise in structuring and handling MOTO merchant accounts.
MOTO Processing — Common Questions
Is a MOTO account the same as an internet merchant account?
Functionally, yes. Both are "card-not-present" accounts that allow processing without a physical card swipe. The terminology varies by processor — some call it a MOTO account, others an internet or CNP (card-not-present) account. The underlying account type is the same: it permits online orders, phone orders, mail orders, and fax orders.
Do I need a separate merchant account for online vs. phone orders?
No. A single MOTO/internet merchant account supports all card-not-present transaction types — online checkout, phone orders taken via virtual terminal, mail orders, and mobile orders. You don't need separate accounts for each channel.
Can I use a MOTO account for retail card-swipe transactions too?
Yes, with limitations. A MOTO account can process card-swipe transactions, but they'll process at the higher CNP rate rather than the lower card-present rate. If you have significant swipe volume, a separate retail account is more cost-effective. CyoGate can advise on the right account structure for your specific transaction mix.
Why are MOTO rates higher than retail rates?
Card-not-present transactions carry higher fraud and chargeback risk because the physical card and cardholder aren't verified at point-of-sale. This elevated risk is reflected in slightly higher interchange rates. The tradeoff is the flexibility to accept payments from anywhere — phone, web, mail — without a physical terminal.
Retail & Internet Merchant Accounts
An Internet Merchant Account is sometimes referred to as a "MOTO" (Mail Order & Telephone Order) Account because they all require the ability to process a credit card payment when there is no physical credit card present to be swiped. A standard retail "swipe" merchant account does not allow processing of these "card-not-present" transactions.
High Risk Merchant Accounts
If the domestic banks are denying your merchant application because they believe your industry is considered high risk, CyoGate can help! We have an offshore network of merchant processing partners that enable us to provide low cost, high risk merchant solutions to a much wider range of businesses and industries.
Internet Payment Gateway
The CyoGate Internet Payment Gateway offers one of the quickest and most cost effective ways to accept and process credit card and electronic check payments online. Our payment gateway works with most existing merchant accounts and supports hundreds of popular web shopping carts and eCommerce platforms.
Take Your Business to the Next Level
Find out how our innovative payment solutions can benefit your business. Reach out to us for more information or to get started!
Let’s Get Started