What, exactly, is MOTO? MOTO, or Mail Order/Telephone Order, is a type of card-not-present transaction in which services are paid for and delivered via telephone, mail, fax, or internet communication. Although MOTO stands for “Mail Order/Telephone Order,” the diminishing popularity of this industry has resulted in MOTO being repurposed as an all purpose, industry term for any card-not-present transactions.

Relying primarily on MOTO is often perceived as involving substantially greater risk than a traditional brick and mortar retail business. When a card is not present, the risk for Chargebacks is greater. At Card Payment Systems, our ability to underwrite enormous swaths of business – and thereby mitigate risk among banks – allows us to save substantial amounts of money; savings that we pass on to our business partners.

Furthermore, our underwriting team is constantly monitoring these Chargebacks, providing our merchants with the information required to either challenge the chargeback or refund the customer.

Why settle for the higher fees that most processing companies charge? CPS knows that, by requiring an extra level of information for each transaction, (ie., CVV2 codes, numerical street addresses and zip codes) we can reduce credit card fees. Some of the ways MOTO accounts can reduce their cost is by

• Address verification (AVS) (zip codes and CVV2 numbers, as well as billing address data.
• Having a strong customer service team.
• A clearly defined return policy to reduce or prevent chargebacks.
• Verification of customer orders on high ticket and/or customized items.
• Signature verification and ID requirement prior to delivery.