Card Payments Over the Phone – How Do They Work?

Table of Contents:

• How Do Phone Card Payments Work?
• What Security Measures Are Needed for Phone Payments?
• Benefits of Phone Payments for Businesses
• Advantages of Accepting Phone Payments for Businesses

How Do Phone Card Payments Work?

Card payments over the phone – also known as Mail Order Telephone Order (MOTO) transactions – allow for over-the-phone card payments without a physical card. But how can payments be taken over the phone? Customers provide their payment details, and merchants manually enter them into a secure payment system.

Step-by-Step Guide: How to Take Payments Over the Phone

The following steps show how to process credit card payments over the phone. These steps also apply to debit cards, enabling merchants to accept payments over the phone.

• Initiate the sale: Open the virtual terminal or point of sale (POS) system that supports MOTO transactions to prepare for over-the-phone payment processing.
• Enter payment details: To take phone payments, manually input the customer’s card number, expiration date and CVV code.
• Verify the billing address: Some systems require Address Verification Service (AVS) for security to process payments over phones.
• Authorise the transaction: The system checks the card details to reject or approve payments over phones.
• Issue a receipt: Taking payments over the phone ends with the merchant providing a digital receipt via email or SMS for customer records.

How to Process Credit Card Payments Over the Phone Efficiently

• Use a PCI DSS-compliant payment gateway for secure transactions.
• Ensure the customer confirms the amount before processing.
• Keep a record of approved transactions to prevent disputes.

Using our MOTO-enabled payment terminals, it’s easy to take card payments over the phone. UK-focused and global businesses will have our support across geographies as we have an international presence.

What Security Measures Are Needed for Phone Payments?

Since card payments by phone are considered "card-not-present" (CNP) transactions, extra security measures help prevent fraud and chargebacks.

Key Security Practices for Over-the-Phone Payments

• PCI DSS compliance: Businesses must follow Payment Card Industry Data Security Standards (PCI DSS) to protect customer data.
• Tokenisation and encryption: Secure systems replace card details with unique tokens, preventing data breaches.
• Address Verification Service (AVS): This confirms that the billing address matches the one on file with the card issuer.
• Card Security Code (CVV): Requires the three or four-digit code on the card for added security.
• AI fraud detection: Machine-learning tools flag suspicious transactions to reduce chargeback risks.

How to Accept Payments Over the Phone Securely

• Use a trusted payment processor like Clover.
• Never store full card details – only keep the last four digits for reference.
• Train staff to spot red flags, such as customers who hesitate to provide billing details.

Use these steps to take card payments over the phone securely.

Benefits of Phone Payments for Businesses

Sectors like retail, food and service providers rely on taking card payments over the phone for:

Increased Revenue

Accept credit cards over the phone to better serve remote customers, experiencing even a 15–20 percent increase in sales.

Faster Invoice Settlements

Over-the-phone transactions process 25 percent faster than traditional bank transfers.

Improved Flexibility

Take phone payments from customers who cannot visit in person.

Better Customer Experience

Offering various options, like over-the-phone payments, enhances convenience and satisfaction.

Learning how to take a payment over the phone helps small and medium-sized businesses (SMBs) stay competitive and increase sales opportunities.

Advantages of Accepting Phone Payments for Businesses

Integrating over-the-phone payment processing into business operations boosts efficiency, security and revenue.

How Card Merchants Can Benefit from MOTO Payments

• Expand customer reach: Take payment over the phone to serve remote customers who prefer using cards.
• Secure transactions: Use PCI-compliant payment systems to take payment over the phone.
• Minimise cash handling: Reduce the risks associated with cash transactions in favour of taking payments over the phone.

Best Practices for Taking Payments Over the Phone

How to take payments over the phone?

• Use a reliable payment processor to accept credit cards over the phone, as well as debit cards.
• Train staff on how to take payments over the phone.
• Ensure all transactions are recorded to prevent chargebacks and disputes.

SMBs often take card payments over the phone. UK companies, using trusted solutions like our MOTO-enabled POS systems, ensure secure payment processing. Join them, as implementing over-the-phone card payments will transform your business. Contact us to start today.