Web Hosting Talk : Web Hosting Main Forums : Ecommerce Hosting & Discussion : Accept payment by phone & fax - How it works?

[eachone]

How do you accept credit card payment by phone & fax? Do you just type in the credit card into your website and purchase for them? or use the retail machine where you type in the number?

Thanks
from, YEE

[cdgcommerce]

There are several ways this can be done. The best solution depends on each merchant's needs and whether or not phone/fax sales will comprise ALL of their sales or just PART.

One way to do it is to key enter the info through a virtual terminal.

This is really the best way and the most convenient as well as the most flexible.

It is also possible to have a properly configured terminal machine setup for MOTO processing and key it in that way but... this is not usually recommended due to the unnecessary cost of the equipment for a MOTO merchant.

A third way is to use a PhonePay or Dial-Pay option. This option is sometimes not listed or downplayed by processors since it doesn't let them get an equipment or gateway sale but it is available on almost every processing network.

It is not as convenient - in fact it can be a PITA to use sometimes and takes longer to process. It is only recommended for merchants that run through a few trans per month. For instance, you might have a MOTO (mail-order/phone order) merchant that does big sales but only a few per month.

Those are good candidates for a phone pay service but I'd suggest a gateway implementation w/ virtual terminal for the majority of these merchants as they will be a LOT happier with it.

[pjs]

How do you accept credit card payment by phone & fax? Do you just type in the credit card into your website and purchase for them?

If you have your own merchant account you an do this. However, the third party cc processors will not permit you to enter orders on your customer's behalf. Part of their anti-fraud screening measures is to collect the customer's IP address etc.

[cdgcommerce]

Very true. That is another disadvantage of third party processors.
(i.e. lack of a true "virtual terminal" function)

[Corey Bryant]

Before you start keying in those transactions on your terminal - be careful. You might be charged 1% more than a qualified (swiped) transaction. This would mean you might be paying 2.55% for that transaction. Plus on your anniversary for them to renew your contract, your discount rate might be raised because of the non-qualified (keyed) transactions you are accepting.

If you have a MOTO (Mail Order / Telephone Order) & if your processor offers a virtual terminal - then you can use that.

[cdgcommerce]

A mail-order merchant who has an existing credit card terminal that they want to use should definitely have their terminal configured for MOTO processing... not retail processing.

That way they can avoid the downgrade costs if it is setup properly at the onset. The only downgraded transactions would be the normal types - corporate cards, foreign cards, etc.

Of course... a virtual terminal offers numerous advantages over a terminal and typically the small monthly cost of a virtual terminal is well worth it for most mail order & Internet merchants.