The Real Difference Between MOTO and Force Credit Card Transaction

Mail Order or Telephone order you can call as MOTO transaction. The Force transaction works the other way where merchant takes all the risk. Let me explain clear differences.

MOTO Transaction

  1. When you call or contact the Merchant (Retailer) using Phone or e-mail, you can say it as MOTO transaction.
  2. The merchant enters all the customer details in an online terminal.
  3. The merchant sends the details in point ‘2’ to issuer bank.
  4. If funds are available, the issuer Bank approves the transaction.
  5. The merchant receives approval code to process the transaction. The customer receives a receipt. Later the merchant receives money.
  6. Merchant deals directly with issuer bank.

Force Transaction

  • When a customer is facing issues with the credit card, for example, limit exceeded, then, merchant initiates Force transactions.
  • Merchant directly talks to issuer bank and gets a one-time approval code.
  • By using the approval code, the merchant completes the transaction.
  • Merchant bears all the risk if any for Force transaction.
  • Merchant deals directly with issuer bank.

Author: Srini

Experienced software developer. Skills in Development, Coding, Testing and Debugging. Good Data analytic skills (Data Warehousing and BI). Also skills in Mainframe.