How to Take Credit Card Payments Over the Phone
Businesses that accept credit card payments over the phone have a competitive advantage over competitors that do not. Before accepting credit card payments of any kind, you must buy or lease a point-of-sale machine to process the transactions. Additionally, you cannot process transactions through a POS machine until you establish processing agreements with credit card processing firms. Visa and MasterCard agreements are combined as one contract, but you must set up separate processing contracts with Discover and American Express.
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Instructions
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Position your telephone close to the POS machine. If you use a computerized cash register to input POS transactions, place the phone close to the cash register. Keep a supply of pens by the phone. You should keep the customer service numbers for Visa, MasterCard, Discover, American Express and your bank by the cash register in case your terminal goes offline during a transaction.
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Answer the phone. Take the order of the person on the phone. Find out the name, phone number and address of the caller. Enter the caller's name, phone number and address into the computer terminal. If you do not have a computerized system, write down the caller's name, phone number and address on a piece of paper. Ask the caller to tell you the type of credit card she has and the card number. Most credit card numbers have 16 digits, while American Express cards have 15. Ask the caller to give you the three- or four-digit card verification value (CVV) number listed on the back of the card. American Express cards have the CVV number on the front.
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Type the card number into the keypad of your POS terminal and press "Enter." Enter the amount of the transaction and press "Enter." Follow the onscreen prompts; some POS machines do not require the CVV number. Write down the account number and CVV number on the same note where you wrote the caller's name, phone number and address. If you have a computer-based system, enter the card number, type and CVV number into the relevant fields on your computer screen.
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Write down your approval number. This number should appear on the display area of the POS machine or onscreen if you use a computer-based system. The POS machine or computer printer should print two copies of the receipt. Staple the copies together with the note that contains the caller's name, address, phone number and card details, and place everything in the cash register. Confirm the transaction with the caller and thank him for his business before hanging up.
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Tips & Warnings
In fraud cases, vendors who accept phone payments are often held liable for charges related to fraudulent transactions. If you suspect fraud, you do not have to accept the phone order. Many small businesses limit phone sales to small dollar amounts or to clients who live within the same town as the merchant.
