What Are MOTO Payments and How Do They Work?
If a customer wants to pay you over the phone and you do not have a 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 exactly what MOTO payments are, how they work in practice, which types of 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, that means the customer gives their card details to you 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 payments are one of several types of card-not-present transactions, alongside online payments. The key difference is that with MOTO, it is the business, not the customer, who manually keys in the card details.
How Do MOTO Payments Work?
The process is straightforward once you have a virtual terminal set up. Here is how a typical MOTO payment works step by step:
You receive a call or message from a customer who wants to pay by card.
The customer gives you their card number, expiry date, and CVV code.
You log into your virtual terminal on any internet-connected device, such as a laptop or tablet, and enter those 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 are then settled into your business account in the normal settlement window.
The whole process takes under a minute. You do not need a card machine, no hardware is required, and it works from any device with a browser and an internet connection.
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 with your credentials, enter the customer’s card details, and submit the payment. The terminal handles everything from there, communicating with the card network to verify and authorise the transaction.
Virtual terminals can usually be accessed from a computer, tablet, or smartphone, which means you can take card payments remotely from anywhere you have an internet connection. Most also support multi-user access, so more than one member of staff can process payments simultaneously.
Which Businesses Use MOTO Payments?
MOTO payments suit any business that regularly takes orders or enquiries over the phone and wants to convert those calls into paid transactions. Common examples include:
Restaurants and takeaways taking advance bookings or phone orders
Healthcare and dental practices collecting payment before or after appointments
Trade businesses and contractors invoicing clients remotely
Retailers handling phone or mail orders
Salons and beauty businesses taking deposits for bookings
Professional service firms such as accountants, solicitors, or consultants
MOTO payments are also useful as a backup for businesses that primarily take in-person payments. If your card machine goes down or a customer is unable to visit in person, a virtual terminal gives you an alternative that keeps you trading.
What Are the Benefits of MOTO Payments?
No hardware needed
All you need is an internet connection and a device you already own. There is no card machine to rent, no installation, and no waiting for equipment to arrive.
Take payments from anywhere
Because it runs in a browser, you can process a payment whether you are in the office, at home, or on the road. This makes MOTO particularly useful for mobile businesses and sole traders.
Widen your customer base
Some customers, particularly older customers or those less comfortable with online checkouts, strongly prefer paying over the phone. Offering MOTO means you are accessible to a broader audience.
Fast and simple to use
Once set up, processing a MOTO payment takes less than a minute. There is no complex integration or specialist training required.
Works alongside your existing setup
MOTO does not replace your card machine, it complements it. Most businesses use both, with the virtual terminal handling phone and remote payments while the physical terminal covers in-person transactions.
What Are the Risks and Limitations?
MOTO payments are card-not-present transactions, which means they carry a slightly higher risk than in-person payments. There are a few things worth being aware of.
Higher transaction fees
Because the cardholder is not physically present to verify their identity, card networks treat these transactions as higher risk. MOTO transaction fees are typically higher than face-to-face rates as a result.
Chargebacks
Without the physical card or a PIN to verify the transaction, it is harder to dispute a chargeback if a customer claims they did not authorise the payment. Keeping clear records of every transaction, including the customer’s name, the date, and what they purchased, helps protect you.
Manual entry errors
Entering card details by hand introduces the possibility of a typo. The virtual terminal will decline incorrect details, so errors are caught quickly, but it is worth reading details back to the customer before submitting.
PCI DSS compliance
Any business processing card payments must be compliant with the Payment Card Industry Data Security Standard (PCI DSS). When you take MOTO payments, that includes never writing down or storing card details outside of your secure virtual terminal. Your provider should guide you through what compliance means for your setup.
What to Look for in a MOTO Payment Provider
Not all virtual terminals are the same. When comparing providers, these are the most important things to check:
Settlement speed. Does the provider offer next-day gross settlement, or will funds take two to three days to arrive? This matters more than most businesses realise when it comes to day-to-day cash flow.
Transaction fees. MOTO rates vary between providers. Get a clear quote on the specific rate that applies to card-not-present transactions, not just the headline in-person rate.
Contract terms. Check the minimum term and whether there are exit fees if you need to leave early.
Support. If something goes wrong mid-transaction, you want a real person to call, not a chatbot. Look for a provider with UK-based support you can actually reach.
PCI compliance support. A good provider will help you understand and meet your compliance obligations, rather than leaving you to figure it out alone.
If you are considering switching card machine providers at the same time, our guide walks you through how to do it without losing a day of trading.
MOTO Payments with BoonPay
BoonPay offers MOTO payment capability as part of NPI’s virtual payment solution. That means you can process card payments securely over the phone using a browser-based terminal, with no card machine required.
All BoonPay accounts include next-day gross settlement as standard, meaning the full value of your transactions arrives in your account the following business day with no deductions. Fees are billed separately at the end of the month as a single, clear statement.
Whether you want MOTO as your primary way to take payments, or as a backup alongside a physical terminal, we can set you up with the right arrangement for how your business actually operates.
MOTO Payments: Frequently Asked Questions
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 physically present and the business manually enters 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, which is 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, which means card data is encrypted during transmission. You should never store card details outside of the secure system, and your provider should guide you through your compliance requirements.
Why are MOTO transaction fees higher than in-person fees?
Because the cardholder is not physically present to verify the transaction with a PIN or contactless authentication, card networks classify MOTO payments as higher risk. This is reflected in slightly higher transaction fees compared to face-to-face payments.
Can I use MOTO payments alongside a card machine?
Yes, and most businesses do. MOTO works well as a complement to a physical terminal, handling phone orders and remote payments while your card machine takes care of in-person transactions.
How quickly will I receive the money from a MOTO payment?
This depends on your provider's settlement terms. BoonPay offers next-day gross settlement as standard, which means the full value of your MOTO transactions arrives in your bank account the following business day with no fees deducted upfront.
What information do I need to take a MOTO payment?
You will need the customer’s long card number, expiry date, and CVV (the three-digit code on the back of the card). Some providers also ask for the customer's billing postcode as an additional verification check.
Ready to Take Payments Over the Phone?
If you want to add MOTO capability to your business, or if you are looking for a virtual terminal with transparent fees and next-day settlement, get in touch.
We will walk you through exactly how it works and what it would cost based on your setup.
Get in touch at boonpay.uk/contact or leave a review at boonpay.uk/review.