Tuesday, October 4, 2022

How To Process Credit Card Payments Over The Phone

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Know The Rules For Card

Accept credit card payments over the phone

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
  • Visa

What Are The Best Ways To Accept Credit Card Payments Over The Phone

When you think of taking a credit card payment over the phone, you probably think of a client reading the whole credit card number to you through the phone while you punch it in on your end to process the payment. While thats a way to take a payment over the phone, thats not the only way. A few other ways include:

  • Mobile wallets like Apple Pay .
  • Payment and ordering apps like PayPal, Venmo, and even DoorDash, Postmates, or Caviar, where all transactions occur within the app.

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.

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What Is The Best Way To Accept Credit Card Payments

The most convenient and affordable way to accept credit card payments for your business depends on several factors, including what you sell, where you sell it, your sales volume and how your customers prefer to pay. Flat-rate payment service providers are best for businesses that do less than $5,000 per month in sales, while more complex models could be better for larger businesses.

Quick Financial Insights For Tracking On The Go

smartSD Cards Archives

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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Learn About Deposit Times For Customer Payments

After you process payments, QuickBooks puts the money in your bank account. It uses the bank account you picked when you signed up for QuickBooks Payments.The time it takes to get the money into your bank account depends on your product and payments plan. Learn more about deposit times for QuickBooks Payments.Note: If you’re new to payments, your first payments may take a bit longer while we set up your accounts. Going forward, customer payments process much faster.

See Which Products Are Right For Your Business

Each QuickBooks product offers unique payment features and options. Keep in mind, you don’t need QuickBooks Payments to do your accounting in QuickBooks. Payment processing is an add-on feature.

If you already use an external payment processing service, like Square, we have apps that sync your data with QuickBooks. However, the easiest way to process payments and track the accounting is with QuickBooks Payments. Learn more about compatible external payment options.

QuickBooks Online and QuickBooks Desktop: Email invoices to your customers so they can pay you online. You can also take in-person payments. Each time you process a payment, QuickBooks handles the accounting and categorizes it for you on your chart of accounts.

QuickBooks Online and QuickBooks Desktop are great for online invoicing and some in-person payments. However, theyre mainly focused on accounting. They arent designed to be complete point of sale systems.

If you do a lot of in-person transactions, recommend you use QuickBooks Point of Sale or another point of sale system.

QuickBooks GoPayments: The QuickBooks GoPayments app lets you take payments on the go. Invoices you send and payments you process in the app sync with QuickBooks Online automatically. Note: GoPayments doesn’t sync with QuickBooks Desktop.

Keep in mind, you don’t need QuickBooks Payments to use QuickBooks Point of Sale.

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Decide How Youll Accept Credit Card Payments

The first step is determining when and how to accept credit card payments. For example, you can take credit card payments:

  • Online
  • Using a mobile card reader
  • Over the phone

The option that you choose may depend on the type of business that you run. For example, if you have a brick-and-mortar retail store, you may accept credit cards in person at checkout or online if youve set up an ecommerce store. But if you run a mobile business, using a mobile card reader may be the best option.

What Is A Virtual Terminal

Process a Keyed Entry (card-not-present) Credit Card Transaction on an Ingenico iWL220 Terminal

A virtual terminal is a web-based portal that allows businesses to accept card payments remotely. Its a quick, handy alternative to a physical card machine and you wont need a website, either.

A virtual terminal is essentially a secure webpage into which you enter your customers card details. Theres nothing to download or install, and nothing complicated about the process.

All youll need is a phone, an internet connection, and a merchant account to accept the funds.

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Is A Virtual Terminal Right For My Business

This option is a great solution for businesses that have very little or no face-to-face interaction with their customers. If the product requires explanation or needs personalization of any kind, a sales call would be a welcome way to take customer payments. Additionally, speaking to someone over the phone to make a payment may reassure your customer their transaction is legitimate.

With a virtual terminal, you can accept transactions by simply inputting the customers card information into a secure payment terminal and submitting it for instant approval to your bank. It takes only seconds and allows you to troubleshoot card issues as you have your customers on the phone.

This process requires a sales team to input information and can be time consuming. Its not always the best fit for every business type but is a lifesaver for those that properly utilize it.

Set Up Payment Terminals

The final thing you have to do to accept credit card payments is set up payment terminals across your business.

If you have a brick-and-mortar shop, this step involves ordering and setting up hardware, like a card reader and a POS, if you dont have one already. There are many card readers on the market: ones that let you accept payments via a swipe, an inserted chip or a contactless tap.

If you do any sales online, youll need to set up online payments. If youre using an e-commerce platform like Shopify, their payments portal will come with their e-commerce platform. If youve built your own website, you may need technical support from your card processing provider or website developer to add credit card processing for small business on your website.

Dont forget to look for training resources from the payments processing provider to understand how to make the most of your hardware and software.

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Accepting Credit Cards Can Give Small Businesses A Boost

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas’ experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

Running a small business means keeping a tight handle on cash flow. One way to facilitate the movement of money in and out of your business is to expand your payment options to include .

Allowing customers to pay via credit card can make managing cash flow less stressful and eliminate the delays associated with waiting for check payments. If your business isnt yet accepting credit card payments, changing that may be easier than you think.

How To Take A Card Payment Over The Phone

Mobile Credit Card Payment Service Square Goes Live

So, back to the process. Taking a card payment over the phone is actually pretty simple. Heres a step-by-step guide to a typical transaction:

  • Open the virtual terminal interface from your web browser, and log in.
  • Enter the price of the sale, and hit manual card entry .
  • Have the customer read out their card details, and enter them straightinto the portal .
  • Key in the address associated with the card to verify transactions).
  • Hit confirm, and hey, presto! Youve just made some money, all while complying with social distancing guidelines.
  • Read more: How to take payment online

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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.

    How To Accept Credit Card Payments On Android Vs Iphone

    If youre choosing add-on hardware to accept credit card payments, its important to first check whether it integrates with your mobile device most top card readers are compatible with both Android and iOS platforms, but some providers only cater to one operating system. Alternatively, for a straightforward, mobile-only solution, SimplyPayMe is available on both the Apple and Android app stores.

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    How Much Does It Cost To Accept Payments Online

    There are interchange fees and processing fees for credit card payments, as well as processing fees for PayPal, Square, etc. When processing payments with a credit card, they will include interchange fees. From 1 to 4% of the sale price, interchange fees are typically charged, while 0 cents to 4 cents is usually applied to processing fees. 10 to $0. Each transaction will cost you $30.

    Regulations For Taking Credit Card Payments Over The Phone

    Ivrnet Safepay – Secure Credit Card Processing Online & Over-the-Phone

    Many people ask whether taking credit card payments over the phone is safe. The answer is yes, as long as you follow the right protocols. The biggest risks associated with phone payments comes from failing to follow PCI DSS compliance. This refers to the consent to safely accept, store, process and transmit cardholder data during card transactions.

    Not being compliant with the rules can lead to fines, so its essential to do things properly. This means its wise to choose asecure payment provider to do the hard work for you. They should ensure that all errors, mistakes, and disputes are resolved in the best way. If your provider cannot handle PCI compliance for you, youll need to find a way to ensure that compliance is still part of your payment solution.

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    What Are Credit Card Transaction Fees

    To receive a credit card payment at your business, you will need to understand what credit card fees in Canada are attached to payment processing. Meaning, every time a customer pays you with a credit card, your business will be charged a transaction fee to process these electronic payments and receive the money in your business account for your goods or services.

    As they are called, these pre-transaction fees or merchant fees will vary depending on the service provider you use to accept payments. Typically, merchants will pay fees from 0.5% to 5% of the total transaction per customer. Additionally, certain fixed fees will also need to be paid periodically, whether monthly or yearly.

    Further processing fees could apply when dealing with chargebacks on a card. This is when a customer purchases something from your store and then seeks to return it, having the original charge rescinded on their card. Learn more about payment processing for chargebacks.

    Can A Business Take A Credit Card Over The Phone

    The right process can lead to the greatest outcome. The biggest risks businesses face with phone payment processing are related to not adhering to PCI DSS. Cardholders accept, store, process and transmit their cards data while they use them as long as their consent is given to securely and safely do so.

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    Why Accept Credit Card Payments

    Canada has a very high credit card issuance rate, meaning nearly nine out of ten Canadians possess one. Many of these Canadians will use their credit cards to pay for over 50%of their monthly bills and payments. With so many people using credit cards, you appeal to a wide-ranging customer base while providing a sought after service when you accept and receive these payment types.

    Why Use A Virtual Terminal

    Intuit GoPayment iPhone Credit Card Processing Service

    Take payments from anywhere

    Take remote payments from your customers no matter where they are in the UK. All they need to do is call with their card details at hand.

    Easy to set-up

    Theyre straightforward to use and you dont need to be a technical whizz to get started.

    It’s quick and simple

    Youll give your customers a quicker way to pay. No more long waits for an invoice or until they can see you in person.

    Connect with more customers

    Reach out to people outside your local area by giving them a way to pay remotely. They can simply call up to make their order and pay.

    Real time reporting

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    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.

    Determine The Required Credit Card Information

    Your merchant services provider will tell you what information you need to collect from each customer. In addition, each major credit card issuer may have information requirements that specifically relate to card-not-present transactions. Your virtual terminal may also require specific customer details.

    In all cases, youll need the customers credit card number and type, its expiration date, and its CVV code. You should also confirm the customers name exactly as it appears on the card. In certain cases, you may need their phone number and email. If youll ship the order, youll need a valid shipping address.

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    Accepting Credit Cards Over The Phone

    Telephone transactions do have some logistical issues and inherent risks. In this post, youll get details on security precautions that will increase phone-based transactions safety factor.

    Youll also about two methods of accepting over-the-phone payments, and view a step-by-step transaction tutorial. By the end of this guide youll be able to confidently choose a telephone-based payment processing model that best meets your business needs.

    When I Refund A Transaction Do I Get Back Any Of The Initial Fees

    Credit Card Processing Sales Over the Phone 2

    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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    How Much Does It Cost To Take Payments Over The Phone

    Virtual terminal fee structures and exact pricing varies across different suppliers. Some merchant services providers offer their virtual terminal service at no monthly cost, with just a flat percentage-based fee applied to each transaction you accept through it.

    This pricing style is more common with payment facilitators. Square, for instance, charges just 2.5% of each transaction, while SumUps fee is 2.95% + 25p per sale.

    Other suppliers typically traditional merchant account providers charge a monthly fee, with transaction fees on top of that. Worldpays service, for instance, is £9.95 per month, while Sage Pay’s virtual terminal incurs a monthly fee of £15 .

    Sometimes, that monthly charge includes a set amount of free transactions with Handepay for instance, youll pay £9.99 per month, which gets you 200 transactions during that period. Any sales you make over that limit are charged at a flat rate of 10p per occurrence.

    Other providers, such as PayPal, operate a noticeably different sliding pricing scale. On top of a fixed monthly fee of £20, PayPals per transaction rates are based on your business overall sales volume.

    If that volume is less than £1,500 in card payments per month, youll pay 3.4% + 20p per transaction. Up to £6,000, that fee drops to 2.9% + 20p, while businesses taking between £6,000 and £15,000 in card volume will pay 2.4% + 20p.

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