What does MOTO stand for in transaction types?

MOTO stands for Mail Order/Telephone Order, which refers to a specific type of transaction conducted when a customer places an order over the phone or via mail. This practice is significant in the payments industry because it allows merchants to accept orders that do not require a physical presence or face-to-face interaction with the customer.

In MOTO transactions, customers provide their payment information, usually credit card details, directly to the merchant through a phone call or by filling out and mailing an order form. The merchant then processes the payment without the customer being physically present, which is crucial for businesses that operate remotely or do not have a traditional point-of-sale system.

Understanding MOTO is essential for professionals in the payments field, as this transaction type has its specific risks and regulatory considerations compared to standard credit card transactions processed in person. Having clarity about MOTO plays a vital role in ensuring secure and compliant transaction practices within the industry.