A retail account is defined as one where most of the sales transactions are done in person, “face to face”. The merchant is able swipe the clients card through a card reader/ credit card terminal and obtain a signature from the card holder. The card information is then sent electronically to the card issuing bank for authorization,
The advantage of a retail account is that it allows the merchant to have access to card processing rates that are much lower than those required on sale that is “keyed” in manually. Since the card is present, and the merchant is able to swipe the card, transmit the card information electronically, and obtain a signature, the processing bank considers this type of transaction to carry the least amount of liability and thus provides the merchant with lower discount rates.
Keyed or MOTO
(Mail Order Telephone Order)
A MOTO account is defined as one where the predominance of the sale transactions are keyed manually. The merchant keys the client’s card information into a card terminal or computer based solution. The card information is sent electronically to the card issuing bank for authorization without the ability to obtain a card holders signature.
The disadvantage of a MOTO account is that its transactions carry a higher processing cost. Since the card is not present, and the merchant is not able to obtain a signature, the processing bank considers this type of transaction to have a higher level of liability and thus charges the merchant higher discount rates.
Internet, or “e-commerce” processing, has become an important part of many companies efforts to generate additional revenue. By setting up an Internet merchant account, merchants provide their customers the ability to pay for goods and services with their credit or debit cards. In addition, a business can also log onto a virtual “online” terminal that allows them to manually key in individual transactions. Allowing customers to pay online, ensures that you are always open for business.
Internet accounts are treated by the processor the same as a MOTO account. Since the card is not present, the processed credit card transactions are charged the higher MOTO discount rates.
Mobile processing expands wireless options by adding your smartphone or tablet computer to the list of equipment that can support card payments. The availability of this new solution has added to the ability of mobile merchants to accept card payments for sales in the field. By being able to process with a smartphone like the iPhone, Droid and Blackberry, the merchant is able to go out and accept credit card payments virtually anywhere without having to carry around an actual terminal. This solution is ideal for any merchant looking to swipe cards in the field without incurring the expense, or bulk, of a traditional wireless terminal.
Non profit organizations such as schools, churches and other support organizations often need a merchant account for a fundraising events, but do not need it for the remainder of the year. A seasonal 501c3 account can be open for a one day event or remain open for a number of weeks or months. Just as with a seasonal business, this type of account is available when needed and dormant when it is not needed, to keep costs as low as possible.
Seasonal 501c3 accounts can both be set up as a retail account or a MOTO account. It just depends on the business model of the organization. Additionally, 501c3 accounts qualify for more favorable discount rates due to the 501c3 status of the organization.