How To Take Card Payments Over the Phone

Whether it’s requesting a deposit or chasing an invoice, taking payments over the phone (a card-not-present transaction) can save you valuable time. People are busy, but that doesn’t stop you from needing things to move fast.

Although the process is decades old, there’s some unease surrounding how to accept credit cards by phone. Still, over-the-phone payments hold incredible potential for all businesses, so let’s clear up some of the biggest questions and worries that sellers have.

Is it possible to take card payments over the phone?

Yes, and many people actually prefer it. Over-the-phone payments are especially good for business when:

• You have a remote, delivery-based or service-based business where the customer doesn’t visit you or your shop in person.
• You work on the go, leaving no time to take immediate payments or visit customers at a later date.
• You and the customer would both prefer a quick, convenient payment process on the spot.
• You don’t want to keep cash on your person or at your premises.
• You want to create safeguards for your business by taking upfront deposits from customers.
• The customer feels more comfortable providing payment details over the phone instead of online or through a form.

For customers, many simply prefer the human interaction before parting with their cash. If they’ve called up to ask about your products, it’s also easier for them to just pay there and then. Plus, if paying over the phone means they’ll get their items faster, that’s a huge bonus.

Over-the-phone payments done properly require a virtual terminal. This feature allows you to manage transactions without a card reader wherever you are, whatever time of day.

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Is it safe to take payments over the phone?

Yes, when you follow the right process.

As a business, the biggest risks associated with phone payment processing come from not following PCI DSS compliance. In short, this refers to your consent to safely and securely accept, store, process and transmit cardholder data during card transactions.

Non-compliance can result in fines for your business, so it’s always worth ensuring you’re doing things properly. The easy solution? Choose a payment provider, complete with a virtual terminal, who will do the compliance legwork for you. Square does it all, ensuring that simple errors, honest mistakes and disputes are resolved equitably.

How to take payments over the phone

Taking payments over the phone is simple and secure when you follow these steps:

Square Virtual Terminal

1. Sign up for your free Square account.
2. From your online Square Dashboard, select Virtual Terminal > Take a Payment.
3. Call the customer and ask them to provide their card details.
4. Complete all payment fields.
5. Double-check the information with the customer.
6. Select Charge.
7. The sale is complete.

The payment will then be transferred into your bank account the next day (or you can transfer it instantly for a small fee).

Keyed-in payments in POS app

If you’re running a brick-and-mortar shop, you might receive an over-the-phone payment request while you’re at the till. Or you might need to manually key in someone’s card details while they’re in-store, for example, if they’ve left their card at home. Just like with Virtual Terminal, you can use the Square Point of Sale app to process keyed-in credit card transactions:

Square POS app

1. Key in the amount or add the items that the customer is purchasing.
2. Tap Charge > Manual Card Entry.
3. Key in the customer’s card details, then tap Charge.

With Square POS, you can also easily accept card payments, gain powerful sales insights and manage your team efficiently in an all-in-one solution. Learn more about Square POS.

How much does it cost to take card payments over the phone?

It’s worth noting that manually entered card transactions carry a higher risk than those when the cardholder is present to complete the information themselves. As a result, credit card networks put protection measures in place, resulting in slightly higher fees from your payment provider.

At Square, we charge 2.2% per transaction for manual card entry payments made through our Virtual Terminal or keyed in via the POS app – with no extra or hidden fees. Learn more about Square payment processing fees.

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Benefits of accepting phone payments for businesses

Taking payments over the phone makes life easier for both you and your customers. It’s ideal for remote businesses or those often on the move, where in-person payments aren’t always possible. It also means you can get paid on the spot rather than waiting for invoices to be settled.

It’s also a handy backup if your usual checkout system goes down or a customer is having trouble paying another way. Instead of losing a sale, you can simply take their details over the phone and process the payment instantly.

Plus, it gives customers more flexibility in how and when they pay. In the Square 2025 Future of Commerce report, one in three Aussies said they’re unlikely to return to a business that doesn’t provide a convenient payment option. Offering more ways to pay means happier customers who’ll keep coming back.

Best practices for secure phone payments

Following some simple precautions can help keep your phone payments secure. Always verify the customer’s identity by asking for details like their billing address or the security code on their card. This helps ensure the person paying is actually the cardholder.

Next, be careful with how you handle card details. Don’t write them down or store them anywhere, even for a short time – enter them directly into a secure payment system. This protects both you and your customers, reduces the risk of fraud and helps you stay compliant with security standards.

Using a PCI-compliant payment solution like Square Virtual Terminal for phone payments adds extra protection. With encrypted transactions, fraud monitoring tools and dispute management support, Square has you covered so you can process payments worry-free.

Faster payments, on-the-go flexibility and quicker deliveries for your customers are all great reasons to accept over-the-phone payments. Though it may feel a little unnatural when you’re so used to one-click ordering online, the more flexible you can be as a business, the better.

Rest assured that with Square Virtual Terminal, you can provide that flexibility safely and securely.
And remember, if your customers prefer not to pay over the phone, Square Invoices or Square Payment Links are great alternatives, allowing them to pay from their own device.