You’ve probably come across the term “MOTO POS” as a business owner or manager before. What does this acronym stand for anyway? It’s actually a simple term that can help you with your online business.
Defining MOTO POS
MOTO stands for mail-order telephone order, and POS represents a Point of Sale. When you take a credit or debit card over the phone or the Internet, the physical card isn’t present. The transaction goes through a different processing service than a swipe, which makes it a MOTO scenario.
Putting MOTO and POS together simply means that a business is running a card number through a transaction that’s processed through your POS software. In the virtual world, these types of transactions occur many times every minute. Your online business never sees these credit or debit cards in person.
Understanding the Risk Involved
There’s a specialized world for MOTO-POS transactions. They’re technically different than swiped cards. As the business, you cannot verify the name on the card with the individual’s identification. A certain amount of risk is involved because fraud is easily perpetrated through these types of transactions.
Many banks are hesitant about working with MOTO-POS transactions because of this fraud risk. As a business, you must diligently work with legitimate suppliers, vendors, and consumers. Reducing the amount of chargebacks and other reversals is important to show off a successful business. No bank wants to have multiple credits on the same business account.
Use a MOTO-POS account, and audit it yourself. Use your gut instinct when it comes to possible fraud. Your reputation and bank will thank you.
Combining MOTO and POS Together
You may be confident about gaining a MOTO account, but there’s the “POS” part to contend with now. Point-of-sale software may be the only hurdle to your success with MOTO. Your software must ultimately work with a MOTO account.
Perform a bit of research in this area. Most POS systems have a feature that can be added or upgraded to support MOTO accounts. They essentially give access to your customers’ accounts, inventory, and general ledger.
As the charge runs through the MOTO account, your POS software takes in the data. You can follow the virtual paper trail with the POS and MOTO matched together. Work with a different account if the current one cannot communicate on a reliable basis.
Making a Splash in the Business World
There’s a simple pathway to legitimizing MOTO POS by being a business that plays by the rules. To apply for this processing service, collect all of your latest invoices paid through card transactions. Be aware of your website’s functionality and traffic.
Don’t forget to pull out those banking transactions too. By showing that you’re a strong business in the virtual world, working with a MOTO-POS account is possible. Versatility for your customers is the result of these efforts.
Keep up with the busy business world with a MOTO-POS account of your own. Be transparent about your business dealings to see an approval on this type of account. Move ahead with extensive profits with a MOTO-POS account in your back pocket.