MOTO Merchant for High Risk Accounts

Mail order companies sell their goods through catalogs, television commercials or the World Wide Web. The difference with mail order telephone orders (or MOTO) is that they accept credit card payments over the phone. You dial their toll-free number and speak to a company representative who then takes your credit card or debit card information over the phone. Most of these companies accept the standard credit cards on the market today—American Express (Amex), Discover, MasterCard, and Accepting Visa making it easy for customers to buy items they’ve seen in television infomercials or in mail-order catalogues.

How does it work? You see an ad on the television, a product on an online website, or a product in a catalogue that you really want. The television ad, website, or catalogue will have a toll-free number that you call to place orders. You dial the number and wait for an operator. Once you have been connected, you will need to provide your account information to the customer service operator. Typically, this information will include your mailing address, the mailing address where your credit card bills are sent, your credit card number, the card’s expiration date, and then the three-digit security code on the back of your credit card. At no point is a signature required making it easy for anyone to order an item using your card

Cheapest Rates and Fees

Are mail order systems of this type without risk? In actuality, there are two main dangers to using a MOTO system. First, there are some cordless phones on the market that are easily picked up through CB radio or walkie-talkie systems. While you think your call may be private, there may be others who have picked up on your conversation without your knowledge. As you give your credit card information over the airwaves, they can take that information and use it themselves for their own gain. If you have a corded phone, it is often safer to use this type of telephone when placing an order over the telephone. Either way banks consider your type of business to be slightly higher risk and therefore charge slightly higher fees then retailers.

Risk Issues For Service Providers

The second problem with mail order telephone ordering systems is that if your card is stolen, the MOTO system does not ask for a signature. Anyone can call and order products by using your name and credit card information and then having the product mailed to any address they choose. If you think you can catch them by having police track the address they’ve given for shipping, guess again. While the world is getting better at tracking down cyber thieves, there are still many steps that need to be made. The cardholder has no repercussion and is not allowed information into who stole their card information. Because the risk of potential theft for this method is higher, there are many customers out there who are hesitant to use this service. Having your company take extra measures to prevent the possibility of theft can help customers feel more comfortable with any mail order telephone ordering system. You can do things like require a signature to be on file with the first order, create a special customer account number, and then send a slip to the billing address on any credit card company instead of the shipping address to protect against theft. Not only does this protect your company, but it also makes customers much happier in the long run. This payment system works well when used with the aforementioned protection measures. Your company has the chance to talk directly with the customer to build a solid customer relations base and be able to use sales techniques to suggest additional products. You can ensure payments by accepting the major credit cards and make it easy for customers to order the items they need.