Accepting Card Payments By Phone Is Secure And Handy
Accepting card payments by phone holds incredible potential to every business in the fast-paced revolutionary world. In today’s technology-driven world with a lot of enhancement in the payment industry, card payments have become ubiquitous. Every now and then people are using it most often. Accepting credit card payments by phone, online or in your brick and mortar store can increase your sales up to 40% compared to that of the cash payment system. The advance in technology let the merchant accept credit/debit cards payments on the go. They can keep track of each and every transaction through their mobile phone. There are a number of ways a merchant can accept card payments over the phone. After reading this article, you will be more confident to accept payments by phone.
What Are The Ways A Merchant Can Accept Card Payments By Phone?
Are you a merchant looking to accept card payments over the phone? Fortunately, there are a number of ways to do so. However, the vital thing to consider to accept phone payments is to make sure that your merchant service provider(MSP) can accommodate card-not-present(CNP) transactions, and more especially, offers all the merchant services under one roof.
- Phone Card Reader: Phone Card Reader is the portable hardware solution which can plug into your mobile phone easily. A merchant can plug in the terminal into the mobile port and process the transaction smoothly. The type of transaction is called card-present transaction or in-person payments because the cardholder is present at the type of payment.
- Wireless Card Reader: Wireless card reader is also a portable hardware device, but instead of the plug-in the device with the phone, it communicates with the phone wirelessly. The wireless card reader sends the transactional data wirelessly into the phone to proceed with the transaction.
- Virtual Terminal: It is another great tool or software that helps to accept card payments online. Typically a virtual terminal is an application which works on your web browser with an active internet connection. It is usually used to accept payments over the phone, mail or fax. The type of transaction is usually card-not-present. It works well in laptops and desktops as well as big-screen mobile phones.
- Point Of Sale Systems: It is a type of manual card entry transaction. The merchant takes the card information over the phone and key in the card details into the POS terminal.
- Email Invoice: A merchant can also accept payments by sending an invoice to customers. The customer then pays you by filling the necessary card details into the invoice and submitting.
Is It Safe To Accept Card Payments By Phone?
Yes. Accepting card payments by phone is safe and secure until you follow the right process. While accepting payments over the phone, a merchant has to take care of extra steps to secure the transaction from fraudulent.
- Always choose a merchant service provider who is following PCI DSS Compliance strictly.
- Always ask complete information from your customer if you are accepting card-not-present transaction or over the telephonic call. There always may be a risk in a card-not-present transaction that the end-user is the authorized cardholder. A merchant should ask for a card number, CVV, expiration, customer’s full name, and also the shipping and billing address including zip code. This helps to avoid online fraud to a large extent.
- A merchant should always send an email receipt to the cardholder to confirm the purchase. Sending the invoice and delivery details confirms that the purchase made was legitimate.
Credit Card Processing Terminology That A Merchant Should Know.
- Merchant Account: An online merchant account is a temporary holding account which withholds all the funds for a temporary period usually 2-3 days to get process. After the holding period, the funds get a transfer into the merchant’s bank account.
- Payment Gateway: The payment gateway is an online service which helps you to accept card payments online. The payment gateway integrates with your eCommerce website and authorizes each and every transaction.
- POS System: POS stands for point-of-sale. It is a hardware device which is used in retail or brick and mortar shops to accept card payments.
- Processing Fees: It is the fees that are charged with every transaction. It is the fees that a merchant has to pay to accept every card transaction.
- Effective Rate: The effective rate is the total processing fees divided by total sales volume on your credit card processing statement.
- Chargebacks: Chargeback is the return of money to the customer by the merchant. The customer raises the chargeback dispute to his card issuer bank. The issuer bank then ordered the chargeback request to the payment processor. Chargebacks usually occur on credit cards or debit cards.
The Bottom Line To Accept Card Payments By Phone
Accepting card payments by phone is a good idea for your business. It streamlines your cash flow and makes your business operation easy and smooth. We at Quadrapay help businesses with the merchant services that help them to streamline their payment flow. Get in touch with us, and we will let you know what payment solutions best fit your business needs.
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