Mail Order Telephone Order Merchant Account

Mail order merchant accounts, or mail order telephone order (MOTO) merchant accounts usually have the same rates and fees as an Internet merchant account.

MOTO Account Details

Mail order merchant accounts are utilized by card not present businesses (CNP). MOTO accounts carry the same risk factor as an Internet merchant account, and therefore usually have the same rate and fee schedule.

Any business that transacts the majority of their credit card sales when the customer is not present, and does not have the need for real-time Internet transactions is an ideal candidate for a mail order merchant account.

Qualifications & Rates and Fees

Credit card processors impose stricter guidelines on mail order merchant accounts, and the accounts can be more difficult to obtain than retail merchant accounts.

Some processors will not accept mail order businesses that are less than a year old, and those that will often have higher rates and fees. However, there are a few processors that will underwrites a new MO/TO business if they agree to a merchant account with a contract. Keep in mind that contracts are not always the best thing for a new business.

Finding the Best MO/TO Merchant Account

Where processing quotes for a retail merchant account may remain more steady from processor to processor, mail order merchant account quotes may tend to vary more widely. The main reason for this is the higher risk factor and unwillingness of some processors to underwrite the accounts at all. Those processors that will underwrite new mail order businesses should be examined closely.

Alternatives to Mail/Order, Telephone Order Accounts

Touchtone Telephone Merchant Accounts
A touchtone telephone merchant account is an account where a touchtone phone is used to call credit card transactions into an automated service to obtain a real-time authorization. Touchtone telephone accounts may prove to be a better account than a MO/TO accounts for businesses that need to have a real-time transaction, but do not have a high enough processing volume to justify a wireless merchant account.

Wireless Merchant Account
A wireless merchant account is great for businesses that have a moderate to high processing volume and the need to obtain real-time authorizations.

Store and Forward Merchant Account
Store and forward merchant processing is quickly becoming a great alternative to standard MO/TO merchant accounts. Store and forward allows a merchant to use a special terminal to swipe a credit card transaction while traveling and transmit the transaction information to a processor for an authorization at a later date.