Credit card payments have gained a lot of ground these days all over the world. Thus, a multitude of credit card processing solutions have been created. One of the newer ideas is the over the phone credit card processing solution, also known as tone card processing.
You must first open a merchant account so that you can start processing credit cards. So, more explicitly, to process cards over the phone, you will need to open a mobile merchant account. Overall, this represents a card-not-present type account.
The Telephone Credit Card Processing Routine
First, the customer must confirm the purchase and provide credit card details. Next, the merchant calls their selected credit card processor on a mobile phone or battery-powered phone. He then follows the voice commands and must enter the merchant ID and the customer’s transaction information and card details through the phone keypad. The telephone credit card workstation will process the information and broadcast a request to the customer’s credit card company and the card will be charged.
The customer’s card company will deny or approve the request regarding the customer’s account status. If accepted, the money will be transferred to the merchant account. Once the calling card processor obtains the above response, the merchant is informed of the result. If the company is authorized, the seller will receive a customs clearance number which will be recorded on proof of payment. The actual customer must sign this receipt.
At the same time as the seller completes their end of the transaction, the phone card processor will begin transferring funds from the seller’s account to the seller’s regular bank account. This procedure can be completed in a few days.
Benefits of Using Calling Card Processing Solution
Point of Sale equipment is not mandatory. So you will save at least $150-$1000. There is no demand to meet a certain number of card sales as there is no monthly minimum. You can track transactions simply over the phone or by using the online transaction report. There are no early termination fees, so you can switch to a suitable calling card processor at any time.
Before signing up with a credit card processor, it is important to analyze and ensure that the revenue generated from the cards is greater than the expenses incurred in the expenses of the processor. On the other hand, it is not easy to predict the revenues or the costs involved. Using a phone card processor, you can practice credit card acquiring yourself and decide if card processing is a lucrative solution for your business, at a low cost and without a contract.
Disadvantages include an increased risk of fraud and therefore the rate of price reduction and transaction fees may be higher than normal.
Credit card processing over the phone is suitable for new or small businesses or new merchant accounts. It is also recommended for solo professionals as massage therapists who want to offer more payment options and avoid high credit card equipment costs. It will also ensure that your customers have plenty of ways to pay.
If you think you’ll benefit from a phone credit card solution, start by thoroughly researching the different phone merchant accounts out there and evaluating their pricing, terms, technical support, and customer service.