What are some of the means that a customer can provide their credit card information, and what is the difference?
Most credit card transactions can be broken down into two types : e-commerce transactions and card present transactions. The fees associated with credit card transactions are dependant on the type of transaction, so it is important to note the differences between the two. An e-commerce transaction or a mail-order-telephone-order (MOTO) transaction is a transaction where the credit card is not present. These transactions are usually either online transactions or phone transactions where the credit card number, expiration date and billing information are taken from the customer. Because transactions where the credit card is not physically present are more prone to fraud or theft, the fees associated with these types of transactions are typically higher than then when the credit card is present for verification to allow for the costs associated with chargeback fraud. A card present transaction is one where the credit card being charged is physically present and swiped through a terminal.
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