MO/TO (Mail-Order/Telephone-Order)

MO/TO, standing for Mail-Order/Telephone-Order, refers to a type of business transaction where goods or services are sold and payments are processed without the physical presence of the credit card used to make the purchase. These transactions typically occur when a customer places an order by mailing in a form (not email), or by providing payment details over the phone. In recent times, this also extends to orders received via fax or through internet-based forms where the card information is manually entered by the merchant.

MO/TO transactions are particularly important for businesses that operate remotely, such as those selling through catalogs, telemarketing, or online stores without direct cardholder interaction. This model allows businesses to reach a broader market by accepting orders and processing payments from customers who may not be able to physically visit a store or who prefer the convenience of shopping from home.

However, with the rise of e-commerce, the distinction between MO/TO and other forms of online transactions can sometimes blur, especially as many businesses that traditionally relied on mail or phone orders now accept orders over the internet. Regardless of the channel, the principles of securing payment information and ensuring the integrity of transactions remain paramount, requiring robust security measures and compliance with payment industry standards such as PCI DSS (Payment Card Industry Data Security Standard) to protect against potential fraud.