--- title: What Is MOTO Credit Card Processing? description: Gain a comprehensive understanding of MOTO credit card processing and how to reduce risks and rates with this setup. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/moto-processing-definition.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. Get time back and spend it with furry patients.](https://www2.payjunction.com/payment-processing-veterinarians) - [Dental Simplify patient payments with multiple means of collection at your dental practice. Meet patient expectations and elevate the payment experience.](https://www2.payjunction.com/payment-processing-dentists) - [Auto Dealer Manage dealership payments by department, brand and location. Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # What Is MOTO Credit Card Processing? ![What Is MOTO Credit Card Processing?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/moto-processing-definition.svg) [![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=48&height=48&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) Christina Lavingia](https://blog.payjunction.com/author/christina-lavingia) 8/17/2021 MOTO stands for Mail Order/Telephone Order and is a credit card processing pricing [setup on a Tiered plan](https://blog.payjunction.com/tiered-pricing-options/). MOTO credit card processing is best suited for businesses that primarily accept card-not-present transactions: Examples include e-commerce and delivery-based businesses. In contrast, Retail pricing is appropriate when the majority of transactions occur in-person. It’s important to establish the correct setup, which depends on the type of business you run. Failing to do so could result in higher rates, incorrect risk assessments and lost savings opportunities. ## How Tiered Pricing Works With [Tiered pricing](https://blog.payjunction.com/interchange-plus-pricing-tiered/), transactions are bundled into one of three buckets: Non-Qualified, Mid-Qualified and Qualified. Known as tiers, Non-Qualified transactions have the highest cost, and Qualified transactions have the lowest cost. ![Tiered-pricing-options](https://blog.payjunction.com/hs-fs/hubfs/BLOG/BLOG%20IN-LINE%20IMAGES/Tiered-pricing-options.jpg?width=780&name=Tiered-pricing-options.jpg) Risk and reward factor into the cost associated with a given transaction. For instance, in-person debit transactions carry little risk and are, therefore, less expensive. In contrast, rewards cards carry a higher cost to cover the value of the rewards provided. It’s important to note that Tiered pricing [is not regulated](https://blog.payjunction.com/credit-card-processing-regulators/). It may seem straightforward, but there is no official guidebook for the tier a given transaction will fall into, which makes it easy for [unethical providers](https://blog.payjunction.com/tag/unethical-billing/) to note transactions in any tier they like, potentially making the transaction cost higher than it should be. In terms of “how” MOTO credit card processing works, businesses typically key card-not-present transactions in to a [Virtual Terminal](https://blog.payjunction.com/virtual-terminals-everything-to-know/) or accept them via their online shopping carts. A Virtual Terminal is a companion, web-based application that syncs with your credit card terminal (if you accept in-person payments) and helps you manage your transaction history and activity online. There are numerous online shopping cart providers that make it easy to deliver a [conversion- and user-friendly experience](https://blog.payjunction.com/e-commerce-conversion-rates/). So, how does your Tiered account setup affect your rates? ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## How Tiered Pricing Changes on MOTO vs. Retail Setup When a business is set up on MOTO pricing, it’s expected that it’ll process the majority of its transactions over the phone or online. With this setup, the Check Qualified tier is absent, as it does not pertain to these higher-risk transactions. Overall, e-commerce businesses and others with a majority of card-not-present transactions pay higher fees to account for the heightened risk of accepting payments without seeing customers in person to verify their identities. In contrast, a business on retail setup is expected to process the majority of its transactions in person. In this case, a card-not-present transaction could be [downgraded](https://blog.payjunction.com/interchange-downgrades-unethical-billing/) to a higher rate tier (e.g., moved from Qualified to Mid- or Non-Qualified). This downgrade happens because card-not-present transactions aren’t accounted for with this rate plan. ## Reducing Risk and Improving Rates on MOTO Pricing If you operate an e-commerce business, you can improve the chances of your transactions landing in a lower-cost tier by taking heed of some safety precautions. [Address Verification System](https://blog.payjunction.com/avs-cvv-benefits/) (AVS) and Card Verification Value (CVV) are both card-not-present, fraud-prevention measures that should be required on every transaction you take. AVS costs $0.01 per transaction and verifies that the billing address the customer enters matches the address on file for the card with the bank. Approving transactions with an AVS match can reduce your risk of chargebacks and fraud and can help you achieve lower credit card processing rates. CVV is the three-digit number on the back of MasterCard, Discover and Visa cards or the four-digit number on the front of Amex cards. Requesting it either over the phone or in your online shopping cart confirms that the customer has physical possession of the card. Doing your part to reduce risk will help you achieve the best MOTO credit card processing rates. ## See if there's room to improve your current rates. Are you on the right pricing plan? What questions do you have about MOTO credit card processing? We’d be happy to answer them. *Editor's Note: This post was originally published in October 2018 and has been updated for comprehensiveness and accuracy.*   [E-Commerce](https://blog.payjunction.com/topic/e-commerce) [Rates](https://blog.payjunction.com/topic/rates) [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![A Payments Facelift for Montecito Plastic Surgery](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/plastic-surgery-payments.svg) A Payments Facelift for Montecito Plastic Surgery](https://blog.payjunction.com/plastic-surgery-payments) ##### [![What Is an AVS Mismatch?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/avs-mismatch-provider-versus-bank.svg) What Is an AVS Mismatch?](https://blog.payjunction.com/avs-mismatch-provider-versus-bank) ###### About Author ![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=200&height=200&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) ### Christina Lavingia Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease. ###### Related Posts ## [![Ecommerce Credit Card Processor: The Basics](https://blog.payjunction.com/hubfs/BLOG/HERO%20IMAGES/Basic_Online_CC_Processing_svg_ShKTTNjD.svg) Ecommerce Credit Card Processor: The Basics Whether you’re just starting your first business or breaking into ecommerce after years of success with a retail store, there are a few foundational things to know about using an ecommerce credit card processor. In this post, we’ll cover the need-to-knows of online credit card processing to ensure a smooth start.](https://blog.payjunction.com/online-credit-card-processing-basics) ## [![Tiered vs. Interchange Plus Pricing](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/interchange-plus-pricing-tiered.svg) Tiered vs. Interchange Plus Pricing You're setting up your company’s credit card processing and are considering your rate plan options. If you’re concerned about costs, you’ve likely narrowed your research to Tiered and Interchange plus pricing.](https://blog.payjunction.com/interchange-plus-pricing-tiered) ## [![How to Get an Online Merchant Account](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/online-merchant-account.svg) How to Get an Online Merchant Account With the exception of choosing a credit card terminal, getting an online merchant account is no different from setting up a standard merchant account for brick-and-mortar use. The process is exactly the same, comprised of an application process and the submission of supporting documents.](https://blog.payjunction.com/online-merchant-account) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. Get Email Updates GO Thank you for subscribing! PayJunction is a Level 1 PCI Compliant Provider. PayJunction is a registered ISO of PNC Bank, N.A., Pittsburgh, PA. © 2026 PayJunction. All rights reserved. [Privacy Policy](https://support.payjunction.com/hc/en-us/articles/211053648) and [Terms of Use](https://support.payjunction.com/hc/en-us/articles/211053628). ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Christina Lavingia" }, "dateModified" : "2023-03-09", "datePublished" : "2021-08-17", "description" : "Gain a comprehensive understanding of MOTO credit card processing and how to reduce risks and rates with this setup.", "headline" : "What Is MOTO Credit Card Processing?", "image" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/BLOG/FEATURED%20IMAGES/moto-processing-definition.svg" }, "mainEntityOfPage" : "https://blog.payjunction.com/moto-processing-definition", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/logo-400px.png" }, "name" : "PayJunction" } } ```