Over the Phone Payment Processing

With the continuous technology development within the industry of merchant service, there are more ways than ever to accept and conduct over-the-phone payment processing. You can process in-person payments using credit card terminals or mobile card readers, you can accept online payments using a customized payment page or a payment integration system, the options are endless. However, there are certain situations that depend on your business and customer base that you might need to take orders, accept and process payments over the phone traditionally. This may not be nearly as popular as it once was, but over the phone payment processing is worth exploring. Together we will explore the benefits, process, and precautionary measures when doing payment over the phone.

Why Accept Payments over the Phone?

In a world full of credit cards and debit cards, almost everyone carries them in their wallet. For most businesses, it is important to accept credit card payments. Many businesses, ranging from restaurants to clothing shops, take orders over the phone. Taking your business over the phone allows you to close sales, accept orders, process deposits, and ship products ordered through the mail just over a phone call. There are tons of advantages when conducting business over the phone. This is thought to provide an added service to help boost customer satisfaction in a society that is card-centric.

Although over the phone payment processing is decades old, there is still some unease in the process of accepting credit cards via phone call. This is understandable because over-the-phone payment processing will mean that you are taking the risk where the person might not be the cardholder or an authorized user of the credit card. Banks that issue credit and debit cards will most likely hold businesses accountable for frauds that occur during a business transaction. To avoid these issues, here are some things you must do and take into consideration when conducting an over-the-phone payment process.

Key in With Payline

 Accepting Credit Card Payments Over the Phone

In the world of merchant service, customer satisfaction is on the top priority list. This means, as a business owner, you must offer multiple ways that are convenient to them. Accepting credit cards over the phone is important to boost customer satisfaction because of its convenience.

A keyed-in transaction is done when credit card information is keyed-in in order to process a business transaction. Here are some ways to conduct a keyed-in transaction over the phone:

  • Keying in card numbers on your credit card terminal

This is one of the most straightforward keyed-in transaction to accept credit card information over the phone where you simply ask your customer to read off the card number, expiration date, and CSV code on their end while you type in the information directly into your credit card terminal at the point of sale.

  • Keying in card numbers on your mobile credit card processing application

Another keyed-in transaction is using your phone and a mobile application to key in the credit card details instead of using a terminal. You can do this by keying in a customer’s credit card information into the application provided by the credit card processor.

  • Keying in card information using a virtual terminal

A virtual terminal is basically a web-based credit card processing application, wherein you are allowed to bring down the number of accepting credit cards over the phone using Level 2 or Level 3 processing. This helps you verify the authenticity of the business transaction by capturing additional information. Level 2 and Level 3 processing can lessen the rate of the charge that your processor does during an over-the-phone transaction. However, this type of terminal comes with an additional monthly cost, so it is commonly used for establishments that accept a huge amount of dollar transactions or go through a significant deal of purchase over the phone.

Always remember that over the phone payment processing is less secure than processing it physically at the point of sale. To take into account the higher risk of fraud, credit card processors will charge a higher rate and transaction fees for a not present card transaction, this includes transactions that are keyed-in.


Invoice Over the Phone

Mobile invoicing is one of the easiest ways to send your customer the bill so that they can pay you fast and securely. When you bill an invoice over the phone, your customer receives an email requesting payment, wherein they can key in their card details and process the payment wherever they are.

Invoicing saves time, gets you paid faster, convenient for both you and your client, and easy to manage, This is also a great option if you don’t want to do an over phone payment processing since you only have to send an invoice and the customer will key in the card information themselves.


The Cost of Accepting Credit Card Information This Way

The exact amount when accepting credit card details over the phone will solely depend on both the credit card processor and the pricing model you opt for. Usually though, processing a credit card payment over the phone will most likely cost you more than accepting a physical card using a credit card reader. Most credit card processors charge 2 to 4 percent of a given transaction. In a card-not-present transaction, however, that number is surely going to be at a higher-end because of the higher risks. With Payline, you can view the pricing here. 


Safely Processing This Way

When a customer opts to pay using a credit or debit card over the phone, there is always an underlying risk that the customer is not an authorized user. This is the main reason why credit card processors hike charges on transactions where the card is not present. To avoid fraudulent issues and charges, here are several steps you can take to secure transactions over the phone.

  • Require complete information.

When conducting a credit card payment over the phone, always key in the complete information. These are the card number, expiration date, CSV code, and the customer’s full name that is placed on the credit card. You should also confirm the customer’s shipping address and billing address, including the ZIP code, and phone number.

  • Use a secure point-of-sale system.

A secured point-of-sale system can help reduce the chance of fraudulent issues. A good and leading POS system often includes a technology that has the capability of verifying an account of the customer.

  • Confirm products that are to be delivered.

It is also an important step to verify and confirm the delivery of the products that are shipped to a customer that is paid over the phone. It will help you confirm the legitimacy of the transaction when you can establish a clear record of payment and delivery.


So, is it safe to take payments over the phone? Yes, if you follow the right procedure and take precautionary measures. Conducting business over the phone may be convenient and sometimes a necessity to keep the customers happy. However, always remember that it comes with an added risk, for you and your customer. So make sure that you take all the necessary steps and precautionary measures when doing an over-the-phone payment because if you do, you can achieve customer satisfaction which is a benefit for your business.

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