the difficult financing procedure for MOT business easy
account could be of 3 types internet merchants, retail merchants or
MOTO merchants. Each of them comes with a different type of
transaction fee structure. Tapping the benefits of each of the type
of merchant account, most businesses have more than one type of
merchant account. For all the “card present” transactions, the
retail account comes with a low transaction fee and more flexible
rules to comply with. This is more suitable for all those businesses
which have physical stores where an actual card swipe marks the
in the case of Internet merchant accounts and MOTO (Mail Order/
Telephone Order) merchant accounts, there is no physical card swipe
transaction happening. In these cases, card details are keyed in to
the payment terminal and the payment is processed virtually. These
digital payment channels are more prone to credit card frauds and
failed transactions than the conventional retail accounts. This is
one main reason that puts MOTO business in the high-risk category.
do businesses need MOTO accounts?
businesses get more competitive, having a strong online presence is
requisite to obtain an edge over the competitors. To establish a
business online and to be able to take up order via phone, you should
have some form of digital payment in place. Any business that
involves home delivery of service or product, like e-commerce, hotel
or accommodation, travel industry and others might all need MOTO
payment accounts as they receive most of their orders over the phone
or through the website.
involved in MOTO merchant accounts:
MOTO accounts, the payments occur mainly through credit card or debit
card transaction through payment portals or through bank transfers.
This is what makes them risky for the merchant account providers.
Because any online transaction comes with some refund or cancellation
policies. This puts the merchant account provider more at risks of
retracted payments. This makes the MOTO accounts high risk and this
is one reason why conventional banks and merchant account providers
might hesitate in opening MOTO merchant accounts. This also makes the
MOTO merchant account provider impose higher transaction fees. This
would reduce their chargeback burdens to some extent.
choose Merchant cash advance for MOTO businesses?
banks as well as most of the popular merchant account providers,
considering the risks in the MOTO accounts back out from creation of
these accounts. Sometimes the application would be held up and the
process would be prolonged for verification, stricter underwriting
processes and more. In the end, after the long wait, you might
finally get a rejection or even if there is an approval, there might
be higher transaction charges imposed or you might have to adhere to
very strict policies which might not be the case with other
businesses. This makes the conventional channels a bad choice for
business funding and merchant account opening for a MOTO business. In
this case, you would need a merchant cash advance from a company that
specializes in high-risk merchants. Merchant cash advance, as bank
loan alternatives are delivered much easily than a normal bank loan
and small business cash advances given by lenders. Choosing a
high-risk merchant account provider would ensure that you are relying
on the right channel. This would give you better approval rates. The
processing times would be much quicker. These are the type of
companies that might handle all the Bad credit cases as well as
businesses with non-sufficient funds. Bad credit cases might be
common for MOTO businesses in the situations where there are too many
refund requests which cannot be avoided.
equipment purchase and office setup:
account might not necessarily be your sole merchant account. You
could simply use it to handle all your online orders and telephone
orders. You would, however, need an office setup. To purchase
equipment for the office as well as for the employee payroll
management, merchant cash advance offered by high-risk merchant
account providers come in handy.
could also get merchant cash advance from a different source than
from your merchant account provider. In case you merchant provider’s
cash advance terms aren’t suitable, in case you wish to rely on a
different company for the business cash advance, you can even do this
without having to switch your merchant accounts. This makes the
process of transition smoother and you would be able to proceed with
the existing system without doing extra paperwork.
merchant provider also makes it easy to apply for a loan or advance
positions. This way you would be able to tally the gap and balance
your finances no matter how the cash flow is in your business. You
need not have to wait for the invoices to be cashed. You would still
have a steady source of cash advance to plan for building your
business, planning expansions and marketing as well.