In a time where consumers pay more using credit cards than they do with cash, your business can benefit from accepting credit card payments. Many credit card processors are going to tell you that you can start today.
But aside from using a card reader or letting customers key in their credit card information online to make payments, you can also collect credit card payments over the phone, which is especially useful if you’re processing transactions outside the point of sale.
Since processing card payments over the phone can help boost your sales and ensure customer satisfaction, it’s very important to learn these methods::
This is the most commonly used method by a lot of businesses and it’s as simple as letting your customer dictate his credit card number, expiration date, and CSV code over the phone while you key in the information on your credit card terminal.
If you’re purely doing business online, you will need a web-based credit card processing terminal where you can key in the customer’s credit card information in a procedure known as Level 2 or Level 3 processing.
This extended level of authentication means reduces the fees that a processor charges you for phone transactions, but it also comes with an extra monthly charge. Therefore, this option is only ideal if you have a high volume of orders over the phone or if you accept high-value transactions.
You also have the option to accept credit card payments using a mobile credit card processing app on your phone instead of a terminal. You simply need to key in the customer’s credit card information on the application that’s provided by your payment processor.
Is your payment gateway efficient and easy for customers to use and for your employees to use?
These fees are like a tiny drop in a large ocean, but sooner or later they will fill up. And if you haven’t evaluated your fees this year, now would be a good time to start. This could be the simplest, and fastest way to save money on operating costs in 2021.
Without a physical credit card, there is always a higher risk of fraud in this type of payment option. But you can still ensure that all transactions are safe by following these tips:
Finally, the cost that you need to pay for accepting credit card payments over the phone will depend on the pricing model that you chose.
But in general, this form of payment costs more than accepting payments on a credit card reader where your processor can charge you between 2% and 4% of the total transaction. This is due to the higher risk of accepting payments without a physical credit card.