MOTO Business: Card Reader Not a Necessity

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Due to the e-commerce boom, Card-not-Present accounts have been exponentially growing in number in the last few years.
Given that most consumers no longer carry a large amount of cash with them, and there is no longer a need to physically be present during the transaction, business owners capitalized on these insights and set up separate accounts of their own.
These can come in the form of either internet merchant accounts that use a gateway and virtual terminal to process payment from a website, or through Mail Order - Telephone Order accounts (MOTO) that process payments through the phone, by mail, via fax, or over the internet.
This item should eliminate the need for a physical card reader.
Merchants prefer this method as they broaden the market of the business.
Those with MOTO processing merchant accounts may opt for a card-present account as well, especially if the business transacts through a store and a website.
In addition, it only requires the following to process transactions: a computer with an internet browser, a full-time internet connection, and an account with a provider.
In this method, the credit card has to be verified to proceed with the process to ensure security.
For mail orders, this can be done through the use of an order form.
For transactions based on the phone, the information is keyed in directly into a terminal through software installed on a computer, or a virtual terminal that lets merchants use a web browser.
Generally, the information needed from the customer includes the cardholder's name, their complete billing address and zip code, a potential shipping address, the account number, its security code, and the expiration date.
After the information has been collected, it gets transferred to the customer's credit card issuing bank.
Once the validity of the buyer is confirmed, it determines whether the account has enough funds to process the payment request, as well as checks for any suspicious circumstances involved in the transaction, including the matching of the customer's address and their current location, as well as the type and amount of purchase in reference to previous purchases.
Once it is determined that the transaction is safe, the bank sends back an approval number.
The profit will now be transferred electronically to the merchant's account, similar to the process with other merchant accounts.
The charges and fees deducted along the way are usually presented on the next statement.
Some of the benefits of this method include the following: First, the business owner and the customer do not have to be in the same place to process the purchase.
Second, the owner no longer has to worry about other machines and equipment so long as he or she has a computer.
The provider supplies the program.
Third, the merchants can view all the transactions made online at any time.
Fourth, the owner does not need to purchase the program for every computer, as the one account he or she owns can be used for multiple computers at a time.
Last, security becomes a non-issue as the data encoded is encrypted.
With all of these advantages, no wonder e-commerce is the future of business.
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