What Are MOTO Payments and How Do They Work?

If a customer wants to pay you over the phone and you have no way to take their card details, that is a sale you are probably losing. MOTO payments fix that, and they are far simpler to set up than most people assume. This guide explains what MOTO payments are, how they work, which businesses benefit most, and what to look for when choosing a provider in the UK.

What does MOTO stand for?

MOTO stands for Mail Order / Telephone Order. It refers to any card payment where the customer is not physically present at the point of sale.

In practice, the customer gives you their card details verbally over the phone, by email or by post, and you enter those details into a secure web-based system called a virtual terminal to process the payment on their behalf. MOTO is one type of card-not-present transaction. The difference from an online payment is that with MOTO it is the business, not the customer, who keys in the details.

Payment type	Who enters the card details	Customer present?
In-person (card present)	Customer taps or inserts the card	Yes
MOTO	You key them in	No, over phone or mail
Online	Customer enters them at checkout	No, self-service

How do MOTO payments work?

Once you have a virtual terminal, the process takes under a minute and needs no hardware, just a device with a browser and an internet connection.

A typical MOTO payment runs like this:

• A customer calls or messages wanting to pay by card.
• They give you their card number, expiry date and CVV.
• You log into your virtual terminal on any internet-connected device and enter the details.
• The terminal submits the transaction to the card network and the customer's bank for authorisation.
• Once approved, the payment is confirmed and the customer receives a digital receipt.
• The funds settle into your account in the normal settlement window.

What is a virtual terminal?

A virtual terminal is the software that makes MOTO payments possible. Think of it as an online card machine that lives in a browser tab rather than on a countertop.

You log in, enter the customer's card details and submit the payment, and the terminal communicates with the card network to verify and authorise it. It can usually be accessed from a computer, tablet or smartphone, and most support multi-user access so more than one staff member can process payments at once.

Which businesses use MOTO payments?

Any business that regularly takes orders or enquiries over the phone and wants to turn those calls into paid transactions.

Common examples include restaurants and takeaways taking phone orders or advance bookings, healthcare and dental practices collecting payment around appointments, trade businesses invoicing clients remotely, retailers handling phone or mail orders, salons taking booking deposits, and professional firms like accountants or solicitors. MOTO is also a useful backup: if your card machine goes down or a customer cannot visit, a virtual terminal keeps you trading.

What are the benefits of MOTO payments?

No hardware, payments from anywhere, a wider customer base, and a setup that complements rather than replaces your card machine.

• No hardware needed. Just an internet connection and a device you already own.
• Take payments from anywhere. It runs in a browser, so you can process a payment from the office, home or the road.
• Widen your customer base. Some customers, particularly older ones, strongly prefer paying over the phone.
• Fast and simple. Once set up, a MOTO payment takes under a minute with no specialist training.
• Works alongside your card machine. Most businesses use both, with the virtual terminal handling remote payments.

What are the risks and limitations?

MOTO is a card-not-present transaction, so it carries slightly higher risk than in-person payments. There are a few things to be aware of.

• Higher transaction fees. Because the cardholder is not present to verify their identity, networks treat these as higher risk, so rates are typically higher than face-to-face.
• Chargebacks. Without a card or PIN to verify, chargebacks are harder to dispute. Keep clear records of every transaction.
• Manual entry errors. Hand-keying invites typos. The terminal declines wrong details, but read them back to the customer before submitting.
• PCI DSS compliance. Never write down or store card details outside the secure terminal. Our guide to the PCI compliance fee explains the basics.

What to look for in a MOTO payment provider

Check settlement speed, the card-not-present rate specifically, contract terms, support, and PCI help.

• Settlement speed. Does it offer next-day settlement, or will funds take two to three days?
• Transaction fees. Get a clear quote on the card-not-present rate, not just the in-person headline.
• Contract terms. Check the minimum term and any exit fees.
• Support. Look for UK-based support you can actually reach if something goes wrong mid-transaction.
• PCI compliance support. A good provider helps you meet your obligations rather than leaving you to it.

If you are weighing up a new provider at the same time, our guide covers how to switch your card machine provider without losing a day of trading.

MOTO payments: FAQs

What does MOTO stand for in payments?

MOTO stands for Mail Order / Telephone Order. It refers to card payments taken remotely, typically over the phone, where the customer is not present and the business keys the card details into a virtual terminal.

Do I need a card machine for MOTO payments?

No. MOTO payments are processed through a virtual terminal, a browser-based system that works on any internet-connected device. No card machine or hardware is required.

Are MOTO payments secure?

Yes, when processed correctly. Virtual terminals are PCI DSS compliant, so card data is encrypted in transmission. Never store card details outside the secure system, and your provider should guide you through compliance.

Why are MOTO transaction fees higher than in-person fees?

Because the cardholder is not present to verify the transaction with a PIN or contactless, networks classify MOTO as higher risk, which is reflected in slightly higher rates than face-to-face payments.

Can I use MOTO payments alongside a card machine?

Yes, and most businesses do. MOTO handles phone and remote payments while your card machine covers in-person transactions.

How quickly will I receive the money from a MOTO payment?

It depends on your provider's settlement terms. Look for next-day settlement, where the full value arrives the following business day with no fees deducted upfront.

What information do I need to take a MOTO payment?

The customer's long card number, expiry date and CVV. Some providers also ask for the billing postcode as an extra verification check.

Thinking about taking payments over the phone? Get a free, no-obligation statement review and we will help you find a setup with a virtual terminal, transparent fees and fast settlement.

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