How to Take Card Payments Over the Phone: A Comprehensive Guide
Taking card payments over the phone can be a secure and efficient way to handle transactions for your business. This comprehensive guide will walk you through the steps, ensuring you meet all compliance requirements and choose the best method for your needs.
Step-by-Step Process for Accepting Payments Over the Phone
Setting Up a Merchant Account
Before you can start accepting card payments, whether in person, online, or over the phone, you need to set up a merchant account. This account is provided by a Merchant Acquirer or an Independent Sales Organisation (ISO), which will issue a Merchant ID (MID) to identify your business. The Merchant Acquirer processes transactions on your behalf, transferring funds from the customer's bank to your business account, and charges a fee known as the Merchant Service Charge. These fees can vary depending on the type of card and transaction.
Ensuring PCI Compliance for Phone Transactions
If you already have a merchant account, you can start accepting payments over the phone by ensuring PCI DSS (Payment Card Industry Data Security Standard) compliance. Non-compliance can lead to fines and increased transaction fees, so it's crucial to follow the guidelines.
Taking Payments Over the Phone
Phone payments are classified as MOTO (Mail Order/Telephone Order) transactions, also known as Cardholder Not Present (CNP) transactions. Here are three options for processing these payments:
Option 1: Using a Card Terminal (Non-Secure Process)
You can use your card terminal to process phone payments, but this method is considered non-secure. The customer reads their card details to you, which you then enter into the terminal. Be aware of the risks and costs associated with this method, as authorizations do not guarantee payment. Fraudulent transactions are a concern, and you may be liable for chargebacks if the transaction is disputed. Additionally, this method increases your PCI DSS compliance burden.
Option 2: Using a Virtual Terminal (Non-Secure Process)
A Virtual Terminal is a web-based portal accessible via desktop, tablet, or mobile device, designed for processing MOTO transactions. While often marketed as secure, these transactions are typically charged at a non-secure rate by your merchant provider. You are still liable for chargebacks, and PCI DSS compliance is required.
Option 3: Using SOTpay Technology (Secure Process)
SOTpay offers a secure and compliant solution for processing phone payments. This cloud-based technology requires no additional hardware and can integrate with your existing systems. SOTpay authenticates MOTO transactions, converting them into secure, compliant transactions. This reduces fraud-related chargebacks and can significantly lower your Merchant Service Charges. SOTpay also allows payments to be taken via email, SMS, WhatsApp, live web chat, social media, or SOTsync Pro accounting package, which automates invoice and reconciliation, providing efficiency for your business.
Ensuring Security and Compliance in Telephone Transactions
To protect your business and customers, it's essential to follow best practices for security and compliance:
- Authenticate Transactions: Use technologies like SOTpay to ensure transactions are authenticated and secure.
- PCI DSS Compliance: Regularly review and update your processes to maintain compliance with PCI DSS standards.
- Educate Your Staff: Train your team on secure payment practices and how to handle sensitive card information.
Conclusion
Accepting card payments over the phone can be a valuable option for your business, offering convenience for your customers. By choosing the right method and ensuring compliance, you can minimise risks and maximise the benefits. For more information and advice on setting up your merchant account, contact Gala Technology today.
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