Ask Customers For All Of The Appropriate Information
The next security measure you can take is to ensure you get all necessary information from your customer and confirm with the individual to make sure theyre correct.
Youll want to make sure that you ask for the persons credit card number, security code, name on the card and billing ZIP code at the very least. If youre shipping the order to the customer, you may want to check the billing ZIP code to the shipping ZIP code, and if they dont match, ask the customer why theyre different. If the customer doesnt have a clear and appropriate answer, you may consider asking for another type of payment to ensure that the transaction isnt fraudulent.
Another prudent action to take in this regard is to review the cardholder guidelines for card-not-present transactions to ensure youre complying with the rules laid out by the respective networks.
Cost To Accept Credit Card Payments Over The Phone
The actual process of accepting credit card payments over the phone is fairly simple, but you may be wondering about cost.
One of the reasons the merchant account or payment service provider you choose is so important is because the provider you work with will dictate how much it costs for you to accept credit card payments over the phone. Therefore, the cost of card-not-present payments will vary based on the provider.
Overall, however, you can expect to pay more to accept credit card payments over the phone than for in-person transactions. As card-not-present transactions are considered riskier , payment solution providers are more likely to charge you more for this transaction type.
Although the specific costs will differ based on provider, you can expect to pay credit card processing fees for these payments, which are typically priced as a percentage or flat fee for every transaction you make. You may also have to pay a monthly fee to work with your payment provider, as well as for access to your virtual terminal. Some providers charge a range of other specific fees for instances like chargebacks, set up, PCI compliance, account maintenance and more.
To get a better idea of what it might cost to accept credit card payments over the phone, here are a couple of examples.
Process Customers Payments And Send Receipts
Each phone-based credit card transaction follows the same sequence. First, enter the customers order details into your system, and calculate the final amount due. This amount should include sales tax and shipping costs .
Next, obtain the customers credit card details. Ensure that you meet the card issuer and merchant services provider information requirements. Enter this data into your virtual terminal, and verify its accuracy with the customer.
When everything is correct, submit the payment. If you receive an approval, thank the customer and send an electronic or paper receipt. If the transaction is declined, explain that theres a discrepancy, and ask the customer to repeat the transaction with another card.
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How To Minimize The Chances Of Fraud:
While you can never be 100 percent immune from being a victim of retail criminals, there are a few things you can do to protect yourself. These include:
- Obtaining the buyers signature when the product is delivered.
- Being diligent about taking down all of the customers information when they make their order, including their card number, CVV code, expiration date, and ZIP code. Dont forget to ask the buyer to specify exactly how their name appears on the credit card.
- Asking the customer to give you contact information that you can use to get in touch with them in case of problems, provided your state allows you to do so.
- Writing phone transaction on the receipt or signature screen for all manual transactions.
How To Use A Portable Card Reader To Accept Payment
With the right mobile reader, youll be able to simply attach the card reader to your mobile device to swipe your customers card. Accepting credit card payments via your phone works in the same way a traditional terminal does, except its flexible and easy to use.
A simple user interface is one of the major perks of this solution. It is easy for new businesses and their customers to use. Since most of our modern lives is spent on our phone anyway, why not accommodate that trend?
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Did You Know We Also Offer A Mobile Payments Solution
Simply Send Payment Links to Mobile Devices and let customers pay by entering their card details on a mobile phone.
Enter the amount in the SumUp app on your iOS or Android device..
Tap charge and select “Mobile Payments”.
The customer enters their card details on a secure payments page to complete payment.
Using A Virtual Terminal
Overall, in order to accept credit card payments over the phone, youre going to need a virtual terminal. In essence, a virtual terminal is a piece of software, hosted online, that allows you to input and process a customers payment information when their card is not present. Therefore, if youre trying to accept credit card payments over the phone, youll use this application to input the information the customer gives you, process the payment to charge their card and eventually, receive the appropriate funds for the sale.
Typically, virtual terminals can be accessed with any internet-enabled device computer, smartphone or tablet and include security measures, the ability to send electronic receipts and sometimes the option to save payment information. You should talk to your merchant account or payment service provider to ensure it offers a virtual terminal and can work with you to accommodate this kind of card-not-present transaction.
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Taking Mobile Payments Through A Mobile App
While it is possible to accept card payments with the help of additional hardware, this can become cumbersome and impractical especially if your business doesnt have a physical location.
Instead, consider taking mobile payments through the SimplyPayMe mobile app, which uses specialist software to improve transaction efficiency. The steps involved in aPOS mobile credit card processing couldnt be simpler:
S To Credit Card Processing
Regardless of whether you receive card payments in person or online, the transaction process typically involves these basic steps:
- The customer swipes, inserts or taps their credit card or mobile device, or enters their credit card number, to input their information into the payment processor.
- The payment processor communicates with the cards issuing bank to ensure available funds or credit limit, and detect potential fraud.
- If the bank approves the transaction, the payment processor debits the customers account and credits your merchant account with the transaction amount.
The difference among various ways to accept credit card payments is mainly in how you input card information on the front end.
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The Best Mobile Credit Card App Features
Its important to work with a mobile payment processing partner that meets your needs. While this depends on the nature of your business, there are always a few important features to look for.
First, you need robust software that connects seamlessly between mobile and website payments. You shouldnt have to chase down and reconcile financial information on two separate platforms. This will guarantee efficient use of your time, as well as consistent financial tracking.
Furthermore, you should always have access to an integrated swiper. From the customers perspective, its a seamless experience: they choose a product or service and pay on the spot, rather than waiting for you to invoice them later. For you, all you have to do is attach your mobile credit card reader to your smartphone or tablet and swipe, tap, or dip your customers credit card! No need to manually enter card information. This saves time and reduces the risk of errors.
Its also important to make sure the app you choose has both Android and iPhone capabilities. That way, you will always have access to the same software regardless of whether you get a new phone. If you have employees, this versatility is even more crucial.
Finally, the best mobile credit card app will come with a stellar customer service team. As you get started, youll probably have questions! Make sure you can get in touch with someone quickly if you encounter any issues getting your new software up and running.
Quick Financial Insights For Tracking On The Go
Secure mobile credit card processing tools allow you to quickly view your financial progress.
It will only take a minute to find out how much revenue youve generated in a given day, week, or month. Plus, this information is readily available wherever you are, as long as you have access to your mobile device or tablet. Youll never have to wonder about the status of your revenue or payments again.
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Why Should Businesses Accept Credit Cards
Heres the biggest reason: Because theyre the most common type of customer payment.
Credit cards were the most prevalent payment method in the United States in 2020, with 38% of point-of-sale payments being made by credit card.
Most customers will expect that your business is able to accept credit cards, and cash-only businesses could lose out on those customers altogether. Only 41% of Americans say they regularly carry cash. And those that do typically only have $25 in their wallets at a time.
Know The Rules For Card
As a first step, check out the merchant guidelines that card issuers give you.
These are not gripping page-turners, but its important to read the rules for card-not-present or card absent transactions. So, treat yourself to a latte to get through them.
Also, make sure your entire team is familiar with the guidelines for card acceptance for each of the major credit cards and is trained to follow them to the letter.
It is possible that the people whove placed fraudulent orders by phone were not the actual cardholders, even though you thought they were.
According to Forters most recent Fraud Attack Index, attacks against online food and beverage businesses have shown an increase in fraud for the second year in a row. The numbers from Q4 2018 show there was an increase of 79 percent.
Factors such as increased use of online ordering have contributed, but phone orders are part of the problem, as well. Rigorous verification can help you identify fraudsters before you process a transaction so youre not just another statistic.
Here are the merchant guidelines:
- American Express
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Is It Safe To Accept Credit Card Payments Over The Phone
Short answer: yes.
Long answer: yes, with the right payment processing systems. PCI Compliance standards are in place to protect clients information, and when those are followed, you can ensure the safety of the information.
Schedulicity is one of the companies that promises to stay up to date with the PCI Compliance standards, so with our payment processors, you can feel confident that all information is safely processed.
What Rates Or Fees Do You Charge When I Swipe Credit Cards Enter Them Manually Or Accept Them Online
To compensate for the risk of fraud, processors charge different rates depending on how you process a payment. Because there is less fraud associated with cards that are physically swiped in a terminal , there is usually a lower rate. If someone calls you to buy something and gives you their number over the phone, the chance of foul play goes up a bit, as does the processing fee.
Online purchases have the highest incidence of fraud, so payment processors cover their risk by charging a higher rate. Make sure you know what those rates are and then figure out how much of each type of processing youll do to get a rough blended rate.
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Option : Accept Credit Card Payments Via Your Phone
Similar to utilizing a virtual terminal, using a mobile card reader can offer the same convenience. Whether youre set up at a flea market, kiosk, hair salon, etc., you need a payment option that satisfies the needs of your business.
There are two main subsets of accepting credit card payments via your mobile phone:
- A physical, portable card reader that allows you to swipe or tap customer cards to take their payment
- A completely contactless solution that foregoes the use of physical hardware and credit cards, and instead allows customers to type in their own payment information on their phone
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How To Safely Accept Credit Card Payments Over The Phone
There may be times when a customer wants to purchase an item or service from you by giving their credit card information over the phone. Allowing for this type of card-not-present transaction provides the buyer with their preferred way to pay, which can definitely be a plus for your business.
However, before you accept telephone payments, you should know the risks they come with as well as how to mitigate them.
When I Refund A Transaction Do I Get Back Any Of The Initial Fees
Most credit card processors keep all of the fees for return transactions, and will most likely even charge an additional fee to process the refund. That means you can lose money every time a customer returns something. Be sure you are clear on how this process works, as it should inform your return policy. Many merchants sidestep this cost by issuing store credit for a returned item, rather than a refund.
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Why Restaurants Need To Let Customers Order Online
The coronavirus pandemic simply wont let up. Sadly, over the course of our holiday break, the Omicron variant made it so that COVID-19 cases skyrocketed to never-before-seen numbers. As a result, many restrictions have been resurrected. Here in Ontario, where Unity Payments is headquartered, these restrictions were implemented, as of January 5th.
Not surprisingly, restaurants were hit hard. For the time being, indoor dining at restaurants, bars and other food or drink establishments will not be permitted. Outdoor dining with restrictions, takeout, drive through and delivery is permitted. Therefore, it is practically imperative that restaurants everywhere allow their customers to order their meals online. Its the best way to ensure that revenue is continuously generated while these restrictions are in place.
Follow Employee Procedures And Conduct Refresher Courses
Refresher courses can aid in the retention of rules that apply to people who work on phones. Its also important to double-check that procedures are being followed regularly. They are less prone to lapse into poor yet suitable habits when routinely reminded.
You should have a procedure for dealing with employees who engage in risky behavior. The combination of retraining and disciplinary action should be written into employee handbooks and implemented as needed to keep all data safe.
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Fraudulent Card Purchase: What To Do
If you are worried that, despite these measures, there is fraud going on, put the customer on hold and call the number on the back of the card ask the customer for it and ask for a Code 10 authorization. The operators at that number will guide you through what you should do.
Do these steps take extra time? Yes, but its worth taking an extra minute or two to process transactions, so you dont end up giving your product away to crooks.
One fraudulent transaction can wipe out a whole days profits if your business is small or a transaction is unusually large.
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Is It Legal To Take Credit Card Payments Over The Phone
To accept credit card payments of any type, your business needs to comply with the Payment Card Industry 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.
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Making The Right Choice
Now, youve learned the distinction between a merchant account provider and a payment service provider. Youve gotten an overview of the equipment and costs involved in processing phone-based purchase transactions.
Finding a provider thats compatible with your business characteristics and goals is important. When you make the right choice, youve set the stage for secure, reliable phone-based credit card payments.
Determine what services your business needs from a merchant services provider. Carefully consider your business stage and financial condition. Then, choose the provider whos best positioned to help you accept the phone-based card payments that will help your business grow.
And if you need help finding the best payments partner, get in touch with Payment Depot. Our membership-based pricing model saves merchants an average of $400 per month. Get in touch and well help accept credit cards over the phone, behind counter, online, and anywhere else that your customers like to pay.
Want to save 40% on payment processing? Let’s Talk!