How to take card payments over the phone

In an era of high-tech payment options, accepting card payments over the phone is still one of the best ways to ensure your business gets paid. Moreover, the ability to take card payments over the phone can help you attract new customers, reach new markets and grow your business.

In fact, the 2024 issue of the Worldpay Global Payments Report found that, “by offering additional payment methods, merchants can set themselves apart from competitors. This can also allow them to target new customer segments.”

Can you take card payments over the phone?

Yes. There are a variety of methods for safely and securely accepting card payments over the phone that can benefit your business and your customers.

An over-the-phone card payment, which is considered a card-not-present (CNP) transaction, is ideal for situations where your customer doesn’t visit your business in person, or when you want to receive a deposit before beginning work. Instead of seeing the debit or credit card physically in front of you, the customer verbally provides card details to you over the phone, and you enter those details into a payment system to complete the transaction.

CNP transactions like payments over the phone give your customers more flexibility in how and when they pay, building customer loyalty and driving repeat visits to your business.

So, what do you need to know to take card payments over the phone?

In this article, you will find:

• The types of businesses that can benefit from accepting card payments over the phone
• The four best processing methods for over-the-phone payments
• Security and compliance considerations

What types of businesses need to accept payments over the phone?

While all businesses may benefit in some way from accepting card payments over the phone, businesses that focus on customer service reap the highest rewards. These businesses include:

• Hospitality and Travel ─ Hotels and travel agencies can benefit when they accept payments over the phone for reservations, group bookings, parties and more. Restaurants benefit from these types of over-the-phone payments, too, and they can leverage phone payments for takeout and delivery.
• Professional Services ─ Attorneys, accountants and other professional service providers who take card payments over the phone make billing easier for themselves and their clients. And in today’s gig economy, freelancers can feel confident securing payments upfront by phone.
• Healthcare Services ─ Credit cards are often the preferred payment method for medical expenses, so those healthcare providers who accept card payments over the phone make these transactions easier for their patients. Additionally, with the rise of telehealth services, CNP transactions like over-the-phone payments are essential to the success of these businesses.
• Service Providers ─ Businesses that provide services, like lawncare or home repair, can get paid quickly and efficiently, even if the homeowner isn’t at home, when they accept card payments over the phone.

How to accept payments over the phone

There are multiple ways to accept card payments over the phone. The following are the four best methods to consider, based on the specific needs of your business and your customers:

• Manual Entry into a Card Machine ─ Using this method, your customer provides their credit or debit card details to you over the phone, including the card number, expiration date and CVV code. Then you manually enter all of those details into a card machine at your location.
• Mobile Payment Apps ─ If you’re already taking payments through a mobile app, you’re in luck! Some mobile payment apps also enable you to accept card payments over the phone. As with manual entry into a card machine, your customer provides their card details over the phone to you, and you enter this data into your mobile payment app to complete the transaction.
• Payment Links ─ Another CNP processing option is payment link, also known as pay by link. In this case, you send your customer a payment link via email or SMS text. Once received, your customer clicks on the link and enters their credit or debit card details themselves through a secure web browser. Creating these payment links is easy.
• Virtual Terminal ─ Rather than using a physical card machine or mobile app to process a transaction, the virtual terminal method leverages a secure, online portal provided by your payment processor for inputting customers’ payment card details. Virtual terminals allow you to process payments anywhere there’s a secure internet connection with no hardware required.

Security considerations for accepting card payments over the phone

Whether you’re accepting card payments in person or remotely, security is a big consideration, and there are specific compliance regulations that must be followed when accepting card payments over the phone.

When you take over-the-phone payments, it is essential to ensure that the following are implemented:

• PCI DSS Compliance ─ The Payment Card Industry Data Security Standard (PCI DSS) is a set of rules meant to protect customer data, and they are especially important when accepting card payments over the phone. When your business is PCI DSS compliant, you agree to safely accept, store, process and transmit cardholder data during card transactions, including those that take place over the phone. Failure to be in compliance can lead to fines, so partnering with a secure payment provider is essential to getting it right. These providers can keep you PCI DSS compliant while also ensuring that any processing errors or payment disputes are resolved on your behalf.
• Secure Communication ─ When taking card payments over the phone, it is important that the sensitive card data your customer is sharing with you cannot be overheard or intercepted. Be sure to take payments over the phone only from a secure, private space.
• Employee Training ─ Be sure to train your employees to use security best practices when taking a card payment over the phone. For example, employees should always enter a customer’s card data directly into the card machine or virtual terminal; never write down the customer’s card details.

Worldpay makes it easy for businesses of all sizes to accept secure card payments over the phone. Through advanced encryption protocols and robust fraud detection mechanisms, Worldpay’s solutions safeguard sensitive payment information from unauthorized access and helps ensure PCI DSS compliance.