Understanding Credit Card Transaction Types
One question we’ve received is how different types of credit card transactions are classified, particularly when a customer’s credit card has been securely saved for future purchases. Whether you’re using Stripe or OpenEdge, the basic rules are the same. And they’re actually pretty straightforward once you understand one key concept: The transaction type is determined by how the payment is processed at that moment, not by how the card was originally collected or saved.
Here’s how it works.
Card Present
A Card Present transaction occurs when the customer is physically present and taps, inserts, or swipes their card using a payment terminal.
Common Examples
- A customer makes a purchase in the tasting room and presents their card at the payment device
- A customer joins the wine club in the tasting room and their card is processed using the payment device
What Happens if You Save the Card?
- The initial transaction is Card Present because the physical card was presented at the terminal.
- If that card is then securely saved and tokenized for future use, subsequent charges using the saved payment method are Card Not Present, because the physical card is no longer being presented for those transactions.
- Card Present today does not mean Card Present forever. The classification changes based on how each individual transaction is processed.
MOTO: Mail Order / Telephone Order
A MOTO transaction occurs when a staff member manually enters a customer’s credit card information while speaking with the customer over the phone or using payment information provided through an order form.
Common Examples
- A customer calls to place an order and provides their credit card information
- A customer calls to use a different credit card for an order
- A customer calls to update the payment information for an existing unpaid order
- A customer provides payment information on an order form that is later manually entered by a staff member
As long as a staff member is manually entering the card information and processing the payment, the transaction is considered MOTO. Security Note: Manual credit card entry is considered a higher risk method of accepting payment and can expose the winery to greater fraud and chargeback liability. Whenever possible, more secure payment methods should be used.
What Happens if You Save the Card?
The initial manually entered transaction is MOTO. If that card is securely saved and tokenized for future use, subsequent charges using the saved payment method are Card Not Present, not MOTO.
Card Not Present (CNP)
A Card Not Present transaction occurs when the physical credit card is not being presented for the transaction. For eCELLAR, this includes payments processed using a previously saved, tokenized card on file.
Common Examples
- Wine club processing
- Allocation processing
- Charging a saved card for an
- Processing another order using a customer’s saved payment method
It doesn’t matter how the card was originally collected.
The card may have originally been:
- Presented in the tasting room as a Card Present transaction
- Manually entered by staff as a MOTO transaction
Once you are processing a new transaction using the saved, tokenized payment method, that transaction is classified as Card Not Present.
The Easy Rule to Remember
Physical card tapped, inserted, or swiped at the payment terminal?
→ Card Present
Staff manually enters a new card while speaking with the customer or from an order form?
→ MOTO
Using an existing saved, tokenized card for a new transaction?
→ Card Not Present
One Card Can Have Different Transaction Types
Think of the transaction type as belonging to the transaction, not the credit card. The same customer and the same credit card could have all three transaction types over the course of their relationship with your winery:
Phone order using new card information → MOTO
Tasting room purchase with physical card → Card Present
Future wine club shipment using the saved card → Card Not Present
Each transaction is classified based on how that specific payment is processed.