MOTO Discount Rate

Posted in Marketing and Strategy Terms, Total Reads: 616

Definition: MOTO Discount Rate

MOTO discount rate stands for mail order/ telephone order discount rate.


It is a fee charged by the merchant account provider over credit card transactions where the credit card is not physical available to the merchant such as mailed-in or telephone orders. MOTO discount rates are higher than fee for an actual card-swipe payment because the risk of non-payment increases in non-card transactions.


It does not apply to online net banking, credit/debit card payments as in that case the payment is received by the merchant at the time of purchase itself and hence the risk of non-payment is not there.


Example of mail order/telephone order – When food is ordered over phone, MOTO discount rate is included in the bill.


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