This article lets you learn how to take card payments over the phone. Credit and debit cards are widely used. They’re found in almost everyone’s pocket, and cash payments have decreased considerably. For most firms, taking credit cards is critical. Entrepreneurs frequently take on the obligation of partnering with a credit card processor and setting up a point-of-sale (POS) card reader as part of their operations. But what happens when a client wishes to use their credit or debit card away from the POS?
Over the phone, businesses take orders from a variety of clients. It’s typically regarded as a supplementary service to improve client satisfaction in an increasingly card-centric culture. Accepting credit cards over the phone may help firms close sales quickly and minimize collection times by providing customers with another payment method.
Here are some of the most common types of companies that now accept credit card payments over the phone:
- Retailers offering curbside pickup and delivery options
- Professional firms such as doctor’s offices
- Freelancers and consultants
- Home services companies
- Construction and renovation contractors
This article can assist if you’ve ever wondered how to take credit card payments over the phone. We’ll go through the benefits and drawbacks of taking credit cards over the phone and how to keep your consumers’ data safe.
How to take card payments over the phone?
Accepting credit cards over the phone is an important method to improve customer happiness. It gives your consumers another way to pay that may be more convenient for them, giving you additional incentive to sell. Fortunately, there are various options for making payments by phone using a credit card.
- Keying in card numbers on your credit card terminal.
- Keying in card numbers on your smartphone.
- Using a virtual terminal to input card information.
It’s crucial to remember that accepting credit cards over the phone is less safe than carrying out a transaction at a POS. Credit card processors typically demand higher fees and per-transaction costs for non-face-to-face transactions, such as key in card information over the phone, to account for this increased fraud risk.
What does it cost?
Your credit card processor and pricing model determine the cost of taking credit cards over the phone. Taking credit cards over the phone generally costs more than accepting a physical card with a credit card reader.
2% to 4% of each transaction is typical for credit card processors. Because of the enhanced risk of accepting payment without a tangible credit card, the fee is more likely to be higher for card-not-present transactions. In addition, credit card processors are frequently permitted to bill a per-transaction fee on top of the percentage rate for higher
Is it safe to pay over the phone with a credit card?
When a client uses a credit or debit card over the phone, there’s always the possibility that he or she isn’t the actual card owner. Credit card processors increase fees on card-not-present transactions, such as keyed-in card numbers accepted via phone, resulting from this danger. To prevent fraudulent charges, you should follow these:
- Require complete information
- Use a secure POS system
- Confirm delivery of products
- Match the customer’s ZIP code
Accepting payments by credit card over the phone is typically convenient and sometimes required to satisfy clients, but it comes with its own set of dangers. Still, if you take the proper precautions, allowing payment by card over the phone may benefit your organization. Make sure you follow best practices at all times to avoid becoming a victim of fraudulent transactions.
Top credit card processing virtual terminals for phone payments and their rates
|Processor||Transaction rate||Monthly charge|
|Square||3.5% + $0.15||$0|
|PayPal||3.09% + $0.49||$30|
|Payline Data||General: Interchange + 0.4% + $0.20|
Medical: Interchange + 0.2% + $0.10
Nonprofit/educational: Interchange + 0.1% + $0.10
|$20, plus $10 for virtual terminal|
|Payment Depot||Starter plan: $0.15|
Most popular plan: $0.10
|$29-$199 with virtual terminal included|
|Shopify||Varies: 2.9% + $0.30 to 2.4% + $0.30||$29-$299 with virtual terminal included|