How to accept credit card payments over the phone

On our last blog, we discussed a guide on Card-present & Card-not-present transactions. Taking payments over the phone fall under card-not-present (CNP) transactions which, simply put, means that the card and the cardholder are not present during the transaction. To accept credit card payments over the phone, you’ll need either a merchant account or a payment service provider, which will give you access to a virtual terminal or a POS system that offers virtual terminal functionality and can process card-not-present transactions.

Although the process is decades old, there’s some unease surrounding how to accept credit cards via phone. Still, over-the-phone payments hold incredible potential for all businesses, so let’s clear up some of the biggest questions and worries that merchants have.

By accepting credit card payments over the phone, you’re taking the risk that the person on the other end of the line is not the cardholder or an authorized user of the card. For example, you can’t check photo ID like you and your staff should be doing for all in-person card transactions. The banks that issue credit and debit cards are likely to hold businesses responsible for fraud that occurs if they aren’t following security protocols such as those best practices related to phone orders.

So, what are good ways to ensure better security when processing payments over the phone? Here are five useful tips:

• This may sound obvious to some, but do not use pen and paper or spreadsheets to record sensitive customer information. Instead, choose a PCI certified system that can securely store recurring customers’ credentials and credit card information.

Accepta offers a variety of reliable, PCI certified, POS terminals and online or mobile platforms that can help you quickly and securely process card-not present transactions.

• Requiring your customer to provide detailed payment information has been shown to decrease the risk of fraud, so always ask for the following:
  • Complete card number
  • Expiration date
  • Security code /CVV code
  • ZIP code

• Make note of any suspicious behavior or discrepancies in the information you’re given. Asking why billing and shipping ZIP codes don’t match or requiring delivery signatures when dealing with physical products are good additional preventive measures.

• On the signature line of the printed receipt for the order, instruct your staff members to write “Phone order.” Keep the paper receipt filed with the rest of your receipts and invoices.

Phone orders can be incredibly useful for businesses. It’s convenient for customers, offers the reliability of human-to-human interaction, and it’s an easy way for you to accept payments instantly.

Save effort and money and simplify your payment processing process by implementing Accepta’s simple, secure, and reliable payment solutions into your business. Contact us for more information: (787) 774-1555 or acceptapayments.com.