The ability to accept credit card payments over the phone can be a great convenience for businesses. It allows customers to make purchases without having to be physically present and enables businesses to expand their customer base. This guide gives you an insight into the essentials required, the process to accept credit card payments over the phone, and more.
What do you need for accepting credit card payments over the phone?
Accepting credit card payments over the phone involves a few key components. Here's what you need:
Merchant account provider or payment service provider: To accept credit card payments, you will need to set up a merchant account or work with a payment service provider. This will enable you to process payments, receive funds, and protect against payment fraud.
Virtual terminal: A virtual terminal is an online interface that allows businesses to manually enter credit card details for processing. It acts as a digital point-of-sale terminal and is crucial for accepting credit card payments over the phone.
The process to accept credit card payments over the phone
Here are the steps involved in accepting credit card payments over the phone:
Request payment information: The first step is to request the customer's payment information, such as their credit card number, expiration date, and security code.
Enter the payment information: Once you have the payment information, you can enter it into the virtual terminal. The virtual terminal will initiate the payment authorisation request.
Verify the transaction: After the payment information is entered, the virtual terminal will verify that the transaction is authorised by the customer's bank.
Record the sale: After the transaction is verified, you can record the sale and provide the customer with a receipt.
Charges associated with accepting credit card payments over the phone
While accepting credit card payments over the phone offers convenience, businesses should be aware of potential charges associated with this method:
Transaction fees: Merchant account providers or payment service providers may charge transaction fees for processing credit card payments. These fees can vary, so it is essential to understand the cost structure.
Virtual terminal fees: Some providers may impose additional fees for using their virtual terminal services. Be sure to inquire about any associated costs and factor them into your budget.
Security measures: Implementing robust security measures to protect customer data may involve additional expenses. However, investing in a secure payment environment is crucial for maintaining trust and compliance.
Chargeback fees: In the event of a customer dispute or chargeback, there may be associated fees. Ensure that you have a clear understanding of the chargeback process and any fees involved.
Accepting credit card payments over the phone is a convenient option for businesses that want to expand their customer base and provide flexibility to customers. By following the process outlined above, you can ensure that you are accepting payments safely and securely.
If you are interested in accepting credit card payments over the phone, consider working with a reputable merchant account provider or payment service provider. They can help you set up a secure virtual terminal and ensure that you are compliant with the payment card industry standards. Remember to factor in the fees associated with accepting credit card payments over the phone and choose a provider that offers competitive rates and quality services.
