A business that accepts a phone credit card transaction needs to be aware of the inherent insecurity of accepting the information via this method. The risk of fraud exists with the required information to verify the card. The main problem that arises with accepting cards over the phone is securing the card information provided by the customer. There must be a way to guarantee to the customer that the credit card number will not get into the wrong hands and be used illegally. Another issue to take into account is there may be an extra cost to manually key in a credit card number for a bank card transaction. This is due to the added risk involved, especially if an address for verification is not provided.
A series of actions takes place during a phone credit card transaction. The customer calls a place of business to place their order with a credit card. Someone on the business end picks up the phone to take the order. The customer gives and the business receives the information, writing it down on a piece of paper or a card slip. Right at this point is where a potential security breach can occur. Can the business trust the person who is taking the card number? The answer a majority of the time is yes as most individuals do not want to risk jail time.
The thief is now in the possession of all of the vital information required to use the card in illicit transactions. All they have to do is to find items they desire and go online or call to make a purchase. Unfortunately, the human element is the biggest security risk in these types of transactions.
Bank card transaction fees may rise when a card number is manually punched in on a machine. It depends on the policy of the merchant account provider. Usually the fee is higher when there is no address information for verification entered. This only applies to transactions that are keyed in on a machine. Rates for a virtual terminal are the same as a physical card swipe.
The safest method for a business to accept bank card transactions over the phone is to use a virtual terminal. It avoids the need to write down information with direct entry into a secured web application. A designated order taker types in the information directly into the form, confirms it with the customer, then hits submit. There is no further trace of the information.
Securing phone credit card transactions as much as possible earns the trust of your customers and boosts your business’ reputation. Keeping your customers happy means they return to make purchases repeatedly.