04 Oct Processing Credit Card Payments Over the Phone
Processing credit card payments by phone allows a business to have many more customers. Not only does it allow customers a convenient method of paying for orders, but it also allows the business an easy way to grow its profits and customer base. However, in order for everything to go smoothly certain guidelines must be followed.
To have an effective system for payment processing, the business must be legally established. This is a requirement for accepting credit card payments, and can be structured as a sole proprietorship or corporation. The next step is having a business checking account. Credit card funds must be deposited into an account, and having a business checking account allows for a business name to appear on a customer’s credit card statement.
Selecting a phone number to use for payment processing is important. Having a toll-free number for this is best, because it gives customers peace of mind that their payment information is secure. Next, the business must either have advertising materials or a website showing the products or services to be offered. To accept credit cards, the underwriter that approves the merchant accounts must be able to review the product or service offered. By having these materials, a business increases its chances of being approved for credit card processing.
The next step is to apply for the merchant account. Merchant accounts accept the credit card payment in return for a percentage of each sale, and may have a different percentage rate for credit card payments taken over the telephone. Therefore, when applying for the account it’s important for a business to disclose it will be accepting payments by phone.
Because identity theft can be such a problem in today’s world, it’s vital to know what security feature are available for both customers and the business. If the personal information of customers is compromised, the business can be sued. Finally, making sure the merchant accounts processor is PCI compliant is necessary. Also known as Payment Card Industry compliant, it’s a regulated method of ensuring the private information of customers is safe from hackers or a system failure or malfunction.
A business that follows these steps and takes its responsibility to customers seriously will be well on its way to being prepared for credit card payments by phone. By choosing the right processor for the payments, both the business and its customers can sit back and relax.