More card payment solutions are available than ever before for businesses accepting credit or debit cards. In certain situations, customers can place orders or pay by phone rather than using a card machine for business. In addition, many people prefer to pay over the phone for goods and services. So, if someone phones you with an inquiry about your products, it makes sense for your business for them to be able to pay immediately. Despite this, many people still consider phone payments outdated, with some unsure whether credit cards or debit cards can be used over the phone. It is still possible for businesses to benefit from over-the-phone payments.
Payment service providers or merchant account providers are needed to accept credit card and debit card payments over the phone. Using your chosen provider, you can enter card information into a virtual terminal to accept phone payments. Input and processing customer payment information when their card is not present is possible through online software provided by your merchant account or payment services provider. You may be able to use your point-of-sale system as a virtual terminal as well as accept payments over the phone.
The purpose of this post is to discuss the best ways to take credit card or debit card payments over the phone. Here are some tips and things to keep in mind when taking credit card payments over the phone.
Phone-based credit card acceptance
The ability to accept credit cards over the phone has become more common in recent years. Here are some options:
- Using your POS system or mobile payments device, manually enter the customer’s credit card information.
- A virtual terminal can be used to accept credit card payments during phone orders.
- The invoice can be emailed to the customer so that he or she can pay online.
You can secure your credit card payment over the phone by following these tips:
- You should invest in a very secure point-of-sale system that is equipped with the latest security technology.
- Select a payment processor and hardware vendor with a high reputation and experience working with mail-order merchants and your industry.
Every time you accept card payment over the phone, you should require the following information:
- Complete card number
- Expiration date
- Security code / CVV code
- Billing Post Code
You should instruct your staff members to write to pay over the phone with a credit card on the signature line of the printed receipt. Keep the paper receipt with your other receipts and invoices.
You can take some additional steps to ensure the legitimacy of a credit card payment placed over the phone with your company that will be delivered.
Confirmation of delivery: Especially if you’re shipping a large amount, it’s a good idea to purchase tracking for your shipment. A signature by an adult may be required for large orders when they are delivered. There is much less chance of a customer claiming “goods not received” or that the transaction was fraudulent when there is a clear paper trail of the shipment and delivery.
The Post Code matches: If the Post Codes for the billing and shipping addresses are different, ask the customer why this is the case. When placing the order over the phone, they should do this. Their response should be logical-such as asking for the package to be sent to her office during business hours so someone can sign for it. Consider asking for another payment method or having the package sent to the billing address if there is no quick, logical explanation for the Post code mismatch.
Over-the-phone credit card payment regulations
Over-the-phone credit card payments are often questioned for safety reasons. It is safe if you follow the correct protocol. Those who fail to follow PCI DSS compliance are most at risk from paying over the phone with a credit card. A cardholder gives consent for their cardholder information to be collected, stored, processed, and transmitted when they use a debit or credit card.
Complying with the rules can prevent fines, so getting things done correctly is crucial. Therefore, it is wise to choose a secure payment provider (and corresponding virtual terminal) to handle the hard work on your behalf. It is their responsibility to make sure that all errors, mistakes, and disputes are resolved as efficiently as possible. It’s your responsibility to ensure that your card payment solutions include PCI compliance even if your provider doesn’t handle it for you.
How much does it cost to accept credit cards over the phone?
Phone credit card acceptance is less secure than in-person credit card acceptance. Card-not-present transactions, including keying in card information over the phone, will be charged higher rates and per-transaction fees.
Depending on your payment processor and pricing model, you will pay different amounts per transaction. It is common for payment processors to charge one bundled rate for all transactions, regardless of how they are processed. The cost of accepting credit cards over the phone is generally higher than when they are accepted in person.
How safe are phone payments?
Every credit card transaction has the potential to be a victim of fraud. Credit card payments made over the phone can be more difficult to verify than payments made in person or online because cardholders and vendors can’t confirm whether the person on the other end is who they claim to be.
Since customers cannot swipe their cards over the phone, they must provide sensitive information to the vendor. In remote transactions, it is difficult to verify that the customer is providing the sensitive information to the intended merchant rather than to a fraudster. Moreover, protections that might reduce this risk may not be effective in over-the-phone transactions.
It can be a challenge for business owners to meet customer demands while also ensuring secure payment methods. It is unfortunate that not every transaction is flawless. However, your customers expect you to accept their preferred payment method. You can accomplish this by ensuring that your employees always follow your policies.