What is MOTO: How to Make the Most of Your Telephone Order

In the ever-evolving landscape of digital commerce, businesses are constantly seeking innovative ways to cater to diverse customer preferences and broaden their market reach. While online transactions have undoubtedly gained prominence, a significant segment of consumers still prefer the convenience and personal touch of mail-order or telephone-order (MOTO) transactions. This comprehensive guide delves into the intricacies of MOTO payments, providing businesses with a holistic understanding of their mechanics, advantages, challenges, and best practices for seamless integration into their payment ecosystem.

What is MOTO?

MOTO transactions, an acronym for “mail order/telephone order,” refer to payment processes where customers provide their card details to businesses over the phone or through the mail rather than in person or online. These transactions are facilitated without the physical presence of the payment card, making them a viable option for businesses catering to customers who may have limited internet access, prefer traditional modes of communication, or seek a more personalised shopping experience.

The Mechanics of MOTO Payments

The MOTO payment process typically unfolds as follows:

1. Customer Initiation: A customer decides to make a purchase over the phone or through a mail order form, providing their card information, including the card number, expiration date, and sometimes the CVV code.
2. Manual Entry: The business representative manually enters the provided card details into a secure payment terminal or a virtual terminal, which is a web-based platform accessible via a computer or internet-enabled device.
3. Interactive Voice Response (IVR): For phone orders, businesses may leverage IVR systems that prompt customers to enter their card details using the phone’s keypad, enhancing security by minimising direct handling of sensitive information by staff.
4. Authorisation and Settlement: Once the details are entered, the payment processor communicates with the card network and issuing bank to authorise the transaction. After authorisation, the transaction is queued for settlement, and funds are earmarked for transfer to the merchant’s account, typically within a few business days.

Benefits of MOTO Payments

Incorporating MOTO payment methods into a business’s payment ecosystem can yield substantial benefits, including:

1. Expanded Customer Base: By accommodating diverse payment preferences, businesses can attract customers who may be hesitant to enter card details online due to security concerns or those who prefer the personal touch of a phone conversation.
2. Inclusivity: MOTO payments break down barriers to internet access, enabling businesses to serve segments of the population that may be excluded from the digital economy due to limited connectivity or technological proficiency.
3. Personalised Communication: For businesses offering high-ticket items or customised services, MOTO payments facilitate personalised customer service, allowing representatives to provide tailored advice, upsell additional products or services, and foster customer loyalty.
4. Flexibility: During peak times or high-attendance events, businesses can swiftly handle orders without relying on website performance, reducing the likelihood of abandoned carts and lost sales.

Potential Drawbacks and Mitigation Strategies

While MOTO payments offer numerous advantages, businesses must be cognisant of the associated risks and challenges, including:

1. Increased Fraud Potential: Without a physical card present, verifying the legitimacy of the cardholder can be more challenging. Mitigation strategies include implementing security measures such as Address Verification Service (AVS), requiring the card’s CVV code, and employing two-factor authentication wherever possible.
2. Chargebacks and Disputes: MOTO payments may be more susceptible to chargebacks and disputes, as customers might not recognise a charge on their statement or claim they never authorised the transaction. Maintaining detailed records of transactions and customer interactions, including recorded calls (with consent) and signed order forms, can provide evidence in dispute resolutions.
3. Data Security Concerns: Handling sensitive payment information over the phone or via mail involves risks of data breaches and unauthorised access. Adhering to the Payment Card Industry Data Security Standard (PCI DSS) requirements, training staff on data security, and ensuring proper storage and destruction of written information are essential.
4. Higher Processing Fees: Payment processors often charge higher fees for MOTO transactions due to the increased risk. Businesses should shop around for competitive rates, negotiate fees based on transaction volume and security measures, and consider dedicated merchant accounts for MOTO transactions.
5. Operational Challenges: Accepting MOTO payments can require more effort from employees for order processing and may slow down operations, especially during high call volumes. Streamlining the process with efficient order-taking systems, such as IVR for calls, and training staff to handle transactions quickly and accurately can mitigate these challenges.
6. Limited Customer Verification: Certain verification checks, possibly in person or with digital transactions, may require more work to perform for MOTO payments. Implementing alternative verification processes designed specifically for MOTO transactions and training staff to identify potential red flags or inconsistencies in orders can help mitigate this risk.

Best Practices for Secure and Efficient MOTO Payments

To maximise the benefits of MOTO payments while minimising associated risks, businesses should adopt the following best practices:

1. Voice Authentication: Implement voice authentication technology to use customers’ unique voice prints as a verification tool for phone transactions, enhancing security with their consent.
2. Caller Line Identification: Utilise caller line identification features to compare incoming calls against a database of known fraud risks or previous fraudulent transactions, providing an immediate flag for potentially risky calls.
3. Dynamic Currency Conversion: Offer dynamic currency conversion to international customers, allowing them to view the cost of their purchase in their home currency, improving customer trust and experience.
4. Dedicated MOTO Accounts: Set up dedicated merchant accounts for MOTO transactions to separate them from other sales channels, facilitating more effective tracking and management of potential fraud.
5. Tokenisation for Repeat Customers: Employ tokenisation to securely store repeat customers’ payment information for future purchases. Tokens are useless if intercepted by fraudulent actors.
6. Customised Fraud Scoring: Develop a fraud scoring system tailored to the profile of MOTO transactions, taking into account factors such as purchase size, frequency, and any anomalies in ordering patterns.
7. Intelligent Call Routing: Implement intelligent call routing to direct repeat customers to agents they’ve spoken with before, enabling better detection of any irregularities in regular customers’ transactions.
8. Post-Transaction Analysis: Conduct post-transaction analysis using data analytics to identify patterns that may indicate fraud, such as the time taken to place an order, hesitancy in providing information, or inconsistencies in order details.
9. IVR Payment Options: Offer an IVR system for customers who prefer not to provide their card details directly to an agent, reducing human error and data exposure.
10. Customer Education: Proactively educate customers on the MOTO transaction process, the information they will need to provide, and how they can verify the legitimacy of the call if they are uncertain.
11. Follow-up Verification: For large or unusual transactions, employ a follow-up verification call or send a text message with a unique one-time code that the customer must provide to finalise the sale.
12. Regular Staff Assessments: Regularly assess staff handling MOTO payments to confirm that they are following protocols and have not developed lax habits over time that could compromise security.
13. PCI Compliance: Businesses that accept MOTO payments must comply with PCI DSS to safeguard cardholder data, including securely storing transaction records and not retaining sensitive authentication data post-authorisation.

Indian Businesses Thriving with MOTO Payments

While the benefits of MOTO payments are universal, several Indian businesses across various industries have effectively leveraged them to cater to the unique needs of the Indian market. Here are some examples:

1. The ethnic wear and handicrafts industry: Many businesses in this sector, particularly those targeting customers in rural areas or those seeking personalised consultations, can benefit from MOTO payments. Customers can discuss outfit recommendations or product details with a representative over the phone and then securely complete the purchase through a MOTO transaction.
2. The online grocery market: Convenience is key for busy consumers, and MOTO payments allow customers to place orders and make secure payments over the phone. This caters to those with limited internet access or who prefer phone interaction for large grocery orders.
3. The jewellery industry: Building trust is crucial for businesses selling expensive items like jewellery. MOTO payments enable personalised consultations with sales representatives over the phone, followed by secure remote payment processing. This caters to customers who might hesitate about online jewellery purchases but value the guidance and reassurance of a phone conversation.

These are just a few examples, and many other Indian businesses across various sectors are successfully integrating MOTO payments. By understanding their target audience and offering a convenient and secure payment option, these businesses are expanding their reach and fostering customer satisfaction.

Setting Up MOTO Payments for Your Business

Establishing MOTO payment capabilities involves understanding the role of virtual terminals, which are secure web-based applications that allow businesses to enter payment details received via phone or mail manually.

Here’s a step-by-step guide to getting started with accepting MOTO payments:

1. Set Up a Merchant Account: Begin by establishing a merchant account that is enabled for MOTO transactions. This is a type of bank account that allows businesses to accept credit and debit card payments.
2. Choose a Payment Processor: Partner with a payment processor that supports MOTO payments and provides a virtual terminal as part of its service.
3. Perform a Security Check: Confirm that the virtual terminal is PCI DSS compliant and set up additional security measures such as AVS checks and CVV verification to reduce the risk of fraud in card-not-present transactions.
4. Integrate the Virtual Terminal: Integrate the virtual terminal into your business operations, making it accessible on multiple workstations or to remote teams as needed.
5. Train Staff: Train your team to use the virtual terminal, emphasising the importance of maintaining security and privacy when handling sensitive customer information.
6. Process a Transaction: To process a MOTO payment, enter the customer’s payment details into the virtual terminal, verify the information, and submit it for authorisation.
7. Authorise the Transaction: The virtual terminal communicates with the payment processor to authorise the transaction, ensuring the card is valid and funds are available.
8. Complete the Transaction: If authorisation is successful, finalise the transaction by completing the payment, which will then settle the funds to your merchant account.

Conclusion

In the ever-evolving landscape of digital commerce, MOTO transactions remain a relevant and valuable payment option for businesses catering to diverse customer preferences and market segments. By understanding the mechanics, benefits, and potential challenges of MOTO payments, businesses can strategically incorporate them into their payment ecosystem, fostering inclusivity, personalised customer experiences, and expanded market reach.

However, it is crucial to implement robust security measures, adhere to best practices, and leverage trusted payment processing partners like SabPaisa to mitigate risks and ensure seamless, secure, and efficient MOTO payment processing. By embracing this payment method judiciously, businesses can unlock new avenues for growth and customer satisfaction, solidifying their position in an increasingly competitive and dynamic commercial landscape.

FAQs

1. What are MOTO payments?

MOTO (Mail Order/Telephone Order) payments let Indian businesses accept card payments remotely, by phone or mail order.

2. Why use MOTO payments?

• Reach more customers (remote areas, phone preference)
• Inclusive for those with limited internet
• Offer personalised service with phone consultations

3. Downsides of MOTO payments?

• Higher fraud risk (no physical card)
• More disputes (customers might not recognise charges)
• Data security concerns (handling phone/mail orders)

4. How to securely accept MOTO payments?

• Train staff on secure procedures and fraud prevention
• Keep detailed records (phone recordings, signed orders)
• Follow PCI DSS for data security

5. Best practices for MOTO payments?

• Train staff on secure processing
• Consider voice verification for added security (with consent)
• Educate customers about the MOTO process and call verification