MO/TO Payments, MO/TO Virtual Terminal & Rolling reserve
What does MO/TO mean?
MO/TO stands for Mail Order/Telephone Order. It’s a type of card-not-present payment which means that a customer may phone/email the merchant, place an order and pay by providing the payment card details over the phone or by email.
I want to accept MO/TO payments. What should I do?
1. Login in your:
A. myPOS account, navigate to the Take Payments menu and select MO/TO Virtual Terminal, or
B. myPOS App (for iOS or Android), navigate to MO/TO Virtual Terminal.
2. Fill in the application form. A team of experts will review whether your request is eligible for the service.
3. You will be notified of the outcome in the next few days. If approved, you will be able to accept MO/TO transactions via your myPOS account, myPOS mobile app (iOS and Android) and all your myPOS devices.
Why is a review necessary for accepting MO/TO transactions?
MO/TO transactions are considered high-risk transactions because of the way card details are sent - via email or phone. Prior to approval, we make sure this option is the best fit for your business case.
How is my business protected when accepting MO/TO transactions?
MO/TO transactions, as all other transactions in myPOS, have certain limits. Due to their nature, MO/TO limits are lower than any other myPOS limits, as the risk of fraud is considered higher.
In case you would like to increase your MO/TO limits, be sure to let us know by emailing firstname.lastname@example.org and we will try to accommodate your needs.
Where can I find the limits for MO/TO transactions?
The limits can be viewed in your myPOS account under section Fees.
Do these limits apply to all MO/TO transactions?
Yes. Тhese are joint limits covering the MO/TO transactions processed through the MO/TO Virtual Terminal in your myPOS web account, via the myPOS mobile app and on your myPOS devices taken in total.
How can processing МО/ТО payments with fraudulent card details affect my business?
You will be held liable for financial losses as a result of the eventual disputes that follow. You should therefore always undertake thorough research of your clients and the source of the card information. It is crucial that you always check the source of the card information before processing MO/TO payments.
What can I do to avoid fraudulent transactions?
Here are some handy tips to consider when processing card-not-present transactions:
- Determine a reliable channel for obtaining the card details
- Always be aware when receiving such details through email
- Research your source of information
- Make sure to verify that the email you receive the card information from is not present in any scam lists
- Do not process cards with a suspicious origin
Am I required to provide proof for each MO/TO transaction?
In some cases, yes. As MO/TO transactions are considered non-secured operations, you are required to provide evidence in case of disputes, which supports the particular transaction.
I have been approved and am using the MO/TO service. Can I be restricted from using it at some point?
Yes. It is possible that your access to the functionality is restricted, based on a performed risk assessment. In those cases, the MO/TO service will be suspended in your account, mobile app and device. You will be notified about the change via email.
What is it?
Rolling Reserve is a security measure applied by myPOS on all MO/TO transactions as they are considered “risky transactions”. Risky transactions are typically transactions that are executed without the physical card being present. The transactions are, therefore, more likely to be fraudulent, can be disputed by the card holder and lead to charge backs.
How it works?
10% of the amount of each of MO/TO transaction is reserved as a precaution (minimum amount is EUR 1). The amount is held for the period of 180 days. This period allows enough time for any potential chargebacks, transaction reversals and/or fraud claims.
If such events occur, the amount in the Rolling Reserve will be used to cover the due payments. The rolling reserve amount accumulates with each following MO/TO transaction.
In case of no claims, the amounts are released back to the merchant in the order in which they have been collected. This means that the amount withheld 180 days ago will be released tomorrow and the amount withheld 179 days ago will be released the day after tomorrow.
If the merchant has accounts in various currencies, a separate rolling reserve account is created for each currency and the withheld funds are accumulated there.
Those accounts are called Reserve accounts and can be reviewed in the myPOS account, under the Account tab, in section Reserve Accounts. There is a separate section under Reserve Accounts called Future Releases where the merchant can see the amounts due to be released first. The funds held in the Reserve Accounts will be released on the specified date. In case of an emergency or if there are unusual circumstances, the myPOS Customer Support can make an exception and release the funds prior to the specified date. Do note that this is conditioned on the circumstances of the request.
Moving funds between Reserve Accounts is possible in the same or in a different currency. Transfers between Reserve Accounts in different currencies is handled through the basic accounts they’re tied to. For example, if a merchant has two accounts, one in EUR and one in USD, and would like to transfer EUR 10 from the EUR Reserve Account to the USD Reserve Account, the amount will be transferred from the EUR Reserve Account to the EUR Basic account, then exchanged to USD at the Exchange rate in the moment of transaction, and afterwards the sum will be transferred from the USD Basic Account to the USD Reserve Account.