Also called: MOTO, Mail Order / Telephone Order, Mail-Order/Telephone-Order
What MO/TO is
MO/TO means Mail Order / Telephone Order. You take a customer's card details by phone or from a mailed order, then enter them into a payment system. The cardholder is not there with the physical card, and no terminal reads it. That makes the sale a card-not-present (CNP) transaction.
A virtual terminal is a common way to key in a MO/TO payment from a browser. The transaction can be submitted as an authorization or a sale, depending on the payment system. MO/TO refers to how you receive the order and card details, not to a specific terminal or processor.
MO/TO describes how you take the order, and the card payment is still card-not-present.
How a MO/TO payment works
The customer gives you their payment details by phone or mail. You enter the amount and card information, submit the transaction, and receive an approval or decline. Unlike an online checkout, the customer does not type the details directly into a payment page.
Businesses use MO/TO for phone orders, mailed order forms, and some customer-service purchases. If you also take orders by email, do not treat ordinary email as a secure way to collect card details. Use a payment method designed to keep card data out of email and staff inboxes.
What it means for your costs
MO/TO is card-not-present, and the way a transaction is submitted can affect its interchange category. Your card costs still have three layers: interchange paid to the issuing bank, network fees, and your processor's markup. Only the markup is negotiable.
There is no single MO/TO fee or universal surcharge built into the term. Your actual cost depends on the rate and fee structure in your processing agreement and how the transaction is classified. Compare MO/TO sales with other card-not-present transactions on your processing reports, and look for any separate keyed-entry or virtual-terminal charge before judging the rate.
What to watch with remote card details
Manual entry gives you less evidence that the person placing the order has the physical card. Fraudulent or unauthorized purchases can lead to a chargeback and a loss of the sale amount. Under Visa and Mastercard rules, cardholders generally have 120 calendar days to dispute, and your response deadline is short, often 20 to 30 days as set by your processor (as of 2026).
Use Address Verification Service (AVS) to compare the billing address with the issuer's records, and request the card security code where your payment system permits it. These checks provide information to assess an order, but they do not guarantee approval or prevent a dispute. Limit employee access to payment functions and follow PCI DSS requirements when handling cardholder data.
Limits and statement details
MO/TO payment limits and any rolling reserve are set by the payment provider, not by the term itself. For example, one provider's published guidance describes lower MO/TO payment limits and a reserve, but those conditions are not universal. Check your own account's fee schedule for a stated transaction cap, reserve percentage, and release period.
The research does not establish one standard statement label for MO/TO. Compare the transaction type or entry method in your processing reports with the corresponding sales, fees, and chargebacks. If your statement does not identify how a sale was entered, request a report that separates keyed or card-not-present transactions.
What you can actually change
- Use secure collection. Do not keep card numbers in email, paper notes, or shared files. Enter details into an approved payment system and restrict access to employees who take orders.
- Check each order. Use AVS and the card security code when available, and review unusual order patterns before shipping. Keep order confirmations and delivery records in case you need to respond to a chargeback.
- Audit the pricing. Find the MO/TO or keyed transaction classification in your reports, then compare its fees with other card-not-present sales. Separate processor markup from interchange and network fees.
Frequently asked questions
Is MO/TO the same as a card-not-present transaction?
Yes. In MO/TO, you receive card details by phone or mail and enter them without the physical card being present. That makes the transaction card-not-present, even if you process it through a virtual terminal.
Does MO/TO cost more to process?
There is no universal MO/TO fee. The transaction is card-not-present, and its classification can affect interchange, while your processor's markup and any separate keyed-entry fees depend on your pricing terms. Compare actual transaction and fee details in your reports.
Can I take card details by email for a MO/TO order?
An email order can be MO/TO, but ordinary email is not a secure way to collect card details. Use a payment system designed for remote entry so card numbers do not remain in inboxes, forwarded messages, or shared records.
Can a MO/TO transaction be disputed?
Yes. MO/TO purchases can result in chargebacks. As of 2026, cardholders generally have 120 calendar days under Visa and Mastercard rules to dispute, and your response window is often 20 to 30 days, as set by your processor.