How to Set Up a MOTO Account 

A high risk processor typically divides merchant accounts into two areas: those whose credit card purchases are made when the card is present, and those whose are not. High risk merchants who obtain their customer’s credit card details over the Internet, telephone, mail or fax are known as “MOTO,” or Mail Order/Telephone Order merchants. 

 The fraud and chargeback potential for MOTO accounts is great, as there is ample opportunity for identity theft when the merchant is not able to verify the actual cardholder is, indeed, the customer making the purchase. For this reason, many transaction processors are hesitant to offer MOTO merchant accounts. 

Although more and more businesses are signing up for MOTO accounts, there are many transaction processors who are not familiar with this type of merchant account and will need to refer you to a third party processor. If you are an internet or other high risk merchant, and you are looking for a MOTO account, it is best to take the following steps in order to secure this type of merchant account as quickly as possible: 

1.       Get started as early as possible. It generally takes a few days to apply for and set up a MOTO account; however, in some cases the high risk processor may need a bit more time to get it fully approved. Most merchants need to begin the process a few weeks before they actually plan on using the account, in order to test out the equipment and otherwise make sure that everything is working properly. Never assume everything will come to you in working order, otherwise you may find that you have both frustrated employees and impatient customers.

2.       Get confirmation on all of your account fees. If this is your first merchant account, some of the fees may be confusing. Ask all of the questions you want during the application process, and get clarification on which fees are included in the quote by the processing company.

3.       Don’t depend on your local bank for your high risk merchant account. You may enjoy working with staff you know at your local bank, but most banks are not equipped to deal with merchant accounts, particularly with MOTO accounts. Instead of going through your local bank and having to pay them commission for finding you a third party processor, do the searching yourself and go directly to a high risk processor. You can set up your merchant account to deposit the funds into your account at the local bank, regardless.

4.       Double check that the rates you are quoted are for MOTO. The rates are very different between retail merchants who actually swipe a physical credit card and merchants who key in information via phone, internet or mail orders. Make sure that any fees and rates you are quoted are for a MOTO merchant account. You can usually tell if you are being given an invalid quote if you receive a per-transaction rate of 2% or less; because MOTO accounts generally have a significantly higher rate.

High Risk Processor specializes in High Risk Merchant Accounts, High Volume Merchant Accounts and Offshore Merchant Accounts. High Risk Merchant Accounts include such industries as mail order, telephone orders, adult entertainment industry, direct marketing industry, dating, online dating and escort services, outcall services, travel, telecom, timeshares industry, herbal supplements, diet companies, subscription services, membership services and clubs, ticket sales, MLM merchant accounts, multi-level marketing businesses, bail bonds, pawn shops, water filtration systems merchants, collection agencies, auto rental companies, rare coin and collectible shops, computers, custom design products, software sales and service, detective services, door to door sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high-end ticket sales, high volume merchant accounts, home based and telecommuting businesses, fortune tellers, infomercial merchant accounts, insurance products, investment products, custom jewelry sales, multi level marketing, MLM organizations, phone sales, internet businesses, seminars, educational institutions, sports collectibles, used auto sales, water purifier sales, weight loss centers, vitamin and herbal supplement stores, international merchants, companies facing high chargebacks, etc.