How to accept credit card payments over the phone

Last Updated on April 17, 2025

Not every sale happens in person or online. For many businesses, especially those offering services or custom orders, taking payments over the phone is still part of daily operations. The good news is, it’s easier than ever to take credit card payments over the phone. You don’t need a card reader or credit card terminal. You don’t need a complicated setup.

In this article, you’ll learn exactly how to process phone payments, which businesses use them most, and how much it costs.

Can you take credit card payments on a phone?

Yes, you can accept card payments on a phone using a virtual terminal. A virtual terminal is a secure online tool that lets you enter a customer’s credit card details—or use a saved card on file—to process a payment from anywhere.

Pro tip: The best credit card processors include a virtual terminal as part of their merchant services. It’s what allows you to accept card-not-present transactions, like phone orders. Just make sure to double-check if there are any extra fees for using this feature, as some providers may charge more than you expect.

How to accept credit card payments over the phone

To accept payments over the phone, you’ll need access to a virtual terminal from your payment processor. Once you're set up, here’s how the process works:

• Enter the payment amount: This is the total you’re charging the customer, including products or services.
• Enter the credit card details: Type in the credit card number, expiration date, CVV, and the cardholder’s name exactly as it appears on the card.
• Input the billing address: This helps verify the transaction and reduce the risk of fraud.
• Add tax, if applicable: Include any sales tax based on your location or the customer’s location.
• Include a note (optional): Add a short note for your records—such as the order number or a description of the service.
• Process repeating transactions: After the first transaction, the payment details are saved in the system so that you can retrieve them to process future repeating transactions (card-on-file payment collection) fasters

Once all the details are filled in, submit the payment. If the transaction is approved, both you and the customer will get a confirmation. It’s that easy.

Once you have access to a virtual terminal, your computer—or any device with an internet connection—becomes your payment hub. Just open the tool, and you’re ready to key in payments.

Imagine this: You’ve just finished a job for a client, and they call asking to pay over the phone instead of dropping by in person. All you need to do is ask for their credit or debit card details and enter them into the virtual terminal. This is known as a keyed-in transaction—no card reader required.

What type of businesses should process credit cards over the phone?

Based on Helcim’s data, businesses in the Professional Services industry are the top users of phone payments, accounting for 25% of virtual terminal usage. Healthcare follows closely at 21%, with Wholesale and Contractors & Home Services each making up 11%. Retail also benefits from phone orders, representing 9% of usage. The tool is used less frequently in industries like Automotive (5%) and Platform Apps or SaaS (3%), where payments are typically handled online or in person.

Virtual terminals are especially useful for businesses that take remote orders, collect upfront deposits, provide mobile services, or bill customers after the work is done. Here are some examples:

• Service-based professionals: Think consultants, accountants, or legal advisors who collect payments after a consultation session or project.
• Home service businesses: Contractors, plumbers, cleaning services, and other mobile professionals who collect payment after completing a job.
• Medical and dental offices: Clinics that call patients to collect co-pays or balances due.
• Nonprofits and charities: Organizations that accept donations over the phone from supporters.
• Boutiques and specialty shops: Retailers who take custom orders or offer personal shopping over the phone.
• Food businesses: Restaurants or catering companies that handle call-in orders or last-minute bookings.

Real World Example: Think of an accountant in a rural town who just finished preparing a client’s tax return. The documents were emailed, the work is done, and now it’s time to get paid. Rather than sending an invoice and waiting—or making the client drive in—she simply takes the payment over the phone while the client is on the line.

Is taking credit card information over the phone PCI compliant?

Yes, it is PCI compliant as long as your merchant service provider is PCI compliant and your business passes the annual PCI assessment. When you take credit card payments over the phone, you're handling sensitive card data. That means your business must comply with PCI DSS, which stands for Payment Card Industry Data Security Standard. These rules are designed to help protect your customers’ payment information and reduce the risk of fraud or data breaches.

Some payment processors charge extra PCI fees or offer general coverage for potential liabilities. But the best approach is to work with a provider like Helcim that helps you stay compliant for free.

Can businesses store customers' credit card details?

After processing the payment for the first time over the phone, the payment processor will encrypt and store the credit card information in a secure credit card vault. It’s fully PCI compliant, and it means your customers only have to provide their card number once. If your customers are repeat clients, they only need to call in once to give you their card info, and you can bill them thereafter using the details you have on file.

One of the most common PCI compliance violations is writing down customer credit card information. Whether it’s on a physical piece of paper or in a spreadsheet, this is a serious no-no. It not only compromises your customers' data security but also puts your business at risk of a data breach.

How much does it cost to accept payment over the phone?

Accepting credit cards over the phone cost more than in person transactions, so the convenience does come at a cost. Below are the online credit card fees offered by popular credit card processors.

A keyed-in transaction—where you manually enter a customer’s credit card details—is considered riskier than an in-person payment. That’s because it’s harder to verify if the person giving you the information is actually the cardholder.

These are known as card-not-present (CNP) transactions, and credit card companies view them as higher risk. Without the physical card, there’s a greater chance the payment could be made with stolen information.

Save 25% on over the phone payments with Helcim

With Helcim, you get a PCI-compliant virtual terminal built right into your merchant account—no extra hardware, no contracts, and no monthly fees.

You can process one-time payments, store cards on file for repeat customers, and email receipts or invoices in just a few clicks. Need to collect on an outstanding bill? Simply attach an existing invoice and process the payment on the spot.

And because Helcim uses interchange-plus pricing, you get transparent rates that help you save. On average, merchants who switch to Helcim save 25% on credit card processing fees.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

FAQ

Is it okay to give credit card details over the phone?

Yes, it’s okay to give your credit card details over the phone, but only if you trust the business and know they’re using secure payment systems. Ask if they’re PCI compliant and using a secure virtual terminal to process payments. Avoid giving card information if the person records card details manually because it’s illegal. Always get a confirmation or receipt after the transaction.

Is it safe to accept credit card payments over the phone?

It can be safe—as long as you follow PCI compliance standards. Using a secure virtual terminal and avoiding handwritten or manual storage of card details is key. The more your system limits exposure to sensitive data, the lower your risk. A reputable payment processor can help keep both your business and your customers protected.

Are there any regulations businesses need to follow when accepting phone transactions?

Yes, businesses must follow PCI DSS (Payment Card Industry Data Security Standard) when accepting credit cards over the phone. These rules outline how to securely handle, process, and store cardholder data. Violating them can lead to penalties and increase the risk of a data breach. Working with a PCI-compliant processor helps ensure you’re covered.