Electronic Payment Solution for Telephone Orders


With shopping online becoming more and more common, many people think telephone orders are a thing of the past. But many companies still offer this type of payment for their customers. If you want to take orders over the phone, then you will need an electronic payment solution for those telephone orders. Learn more about these payment solutions and how they work.

Why Take Telephone Orders?
Security of credit card information is still an issue for many people shopping online. Some customers just feel more secure giving that information directly to another person over the phone. Also, in many service industries, such as the hotel industry, it is still very commonplace to take a reservation and credit card information from a customer on the phone. If you don’t offer this type of payment to your customers, you could lose a substantial amount of business to another company that does. But to take that telephone order, you do need a way to process the payment that is different from a typical card-present transaction.

How an Electronic Payment Works
When you think of a telephone order, you’re probably not thinking about electronic payments. However, even though you are taking the order over the phone, you still need to process the credit card information electronically to get the information to your merchant account provider.

Using a Virtual Terminal
If you take credit card payments over the internet, then you may already be familiar with a virtual terminal. A virtual terminal is computer software that allows you to process credit card payments without having to swipe the actual card. Once you’ve taken all of the information from the customer, you then enter it into the virtual terminal. The virtual terminal sends that information via an internet connection to your merchant account provider. Because the card isn’t being swiped in these types of electronic payments, they are also sometimes referred to as card-not-present transactions.

Your Merchant Account
A merchant account is always necessary for any type of credit card processing, but if you already have one for card-present transactions, you won’t necessarily be able to use that account for other electronic transactions. Many merchant account providers treat the risk of card-not-present transactions differently, therefore increasing some of the fees involved. To get the best rates for all of your payment solutions, be sure to compare various merchant account providers.

If telephone orders are an important part of your business, then make sure you have the right solution for processing those payments. A proper virtual terminal and a good merchant account provider will make the process easier for you and your company.