Mail Order / Telephone Order (MOTO)

MOTO is the common term for over-the-phone transactions—for example, speaking to a customer and entering their card details into a virtual terminal or the customer interacting with an Interactive Voice Response system. When flagged correctly, MOTO transactions are deemed as out of scope for the Strong Customer Authentication (SCA) requirements under the Revised PSD2 in Europe and the United Kingdom.

In this article, you'll learn how to correctly flag a standard MOTO transaction that takes place with the customer present, that is, a customer-initiated transaction (CIT). This transaction does not require 3D Secure 2 authentication. However, if the intent is to store the card to process further merchant-initiated transactions (MITs) via MOTO, you need to make sure to store the brand reference and include the right Credential on File (COF) flags.

In this example, we simply process a one-off MOTO transaction without storing the card. As mentioned previously, the transaction does not require a 3D Secure authentication as long as it is flagged correctly as a MOTO payment (entry_mode = "MOTO").

In this example, we store the card for future transactions, regardless of whether they are customer-initiated or merchant-initiated. To do this, we include the COF data. We also need to store the brand reference that is returned in the response. For this step, you could also process a verification (Open-To-Buy, or OTB) instead of an authorization.