Taking Credit Card Payments Over the Phone (2024)

FAQs

Should I take credit card payments over the phone? ›

Benefits of accepting payments over the phone

By allowing immediate payment, over-the-phone transactions can help to capture sales that might not take place otherwise. Businesses can quickly secure bookings, orders, or services, reducing the risk of unpaid invoices.

Many people ask whether taking credit card payments over the phone is safe. The answer is – yes, as long as you follow the correct protocols.

Key in card numbers on your credit card terminal: One of the most straightforward ways to accept a credit card over the phone is to ask your customer to read off the card number, expiration date and Card Verification Value (CVV) code while you type the information into the credit card terminal of your POS system.

While most of today's transactions are processed via a payment kiosk or online portal, it's not uncommon for an organization to take credit card information over the phone. However, those transactions must still respect PCI compliance standards.

Is allowing your customers to pay over the phone safe? Yes, it is safe to accept credit cards over the phone, assuming you implement robust security measures. However, if you allow your security to lapse or you aren't following standard security procedures, then issues could arise.

Although debit cards offer some protections (depending on when you report the fraud), you will likely still be liable for some — if not all — of the fraudulent charges made on your debit card. Most credit cards offer “zero liability” protection, which makes them safer for payments made over the phone.

Use reputable websites when shopping online. Don't provide your CVV when using your credit or debit card in person. Don't make payments over the phone with your credit card, unless you make the call directly and know it's a trusted vendor. Scammers have been known to cold-call victims to perpetrate financial fraud.

To accept credit card payments, your business needs a payment processor, POS hardware (if you're accepting in-person payments), online payment gateway (if you're accepting e-commerce payments) and a merchant account. Usually, you can get all of these components from the same provider.

If you want to accept credit card payments, you can do it in one of two ways: merchant accounts or payment service providers. A merchant account is an account that you open with a bank to accept credit card payments.

But you may also be able to pay in person or by calling the phone number on the back of your credit card. You'll likely need to provide your credit card account, bank account and routing numbers.

How do I accept card payments from customers? ›

The four main steps to taking card payments are:

Set up a merchant account in which your business can receive the payments. Choose a POS system and payment gateway that are compatible. Set up your card reader, payment gateway, and/or virtual terminal.

To accept credit card payments of any type, your business needs to comply with the Payment Card Industry (PCI) Data Security Standards. PCI compliance is all about keeping customers' credit card data secure from theft, and it applies no matter what types of payments you accept – in person, online, or over the phone.

When taking payments, it's wise to ask for extra details beyond the card number, such as the CV2 number, expiration date, full cardholder name or billing address. Ask for phone number and billing address. Consider calling back the cardholder to confirm the purchase.

If a credit card provider finds your organization is non-compliant, you can expect fines of $5,000 to $100,000 per month, which can increase over time if an organization remains out of compliance. Additionally, these companies can impose additional fines due to data breaches, even if an organization is in compliance.

Unless you initiated the phone call, never give out your credit card number: This may seem like common sense, but it can happen all too easily and quickly.

Many people finance their phones these days, as they have become very expensive. While financing a phone seems like a good idea, it can encourage you to upgrade more often than you should. Financing phones can also make it harder to know what you're actually paying for them.

Never give your PIN to anyone on the phone, the internet or in the post. The only numbers you should need to give out are the card number on the front of your card and any security code (this is usually a 3-digit code on the signature strip of your card).

Unlike your mortgage or car payments, paying your cellphone bill regularly each month alone may not help increase your credit score. Typically, cellphone providers don't report your payments to the bureaus — though newer services like Experian Boost can help you manually add your cellphone account.