A Guide to Taking Credit Card Payments Over the Phone Regulations

To take credit card payments over the phone, you'll need to comply with the Payment Card Industry Data Security Standard (PCI-DSS). This standard requires merchants to have a secure way to store and transmit cardholder data.

You'll also need to verify card details with the cardholder, which includes asking for the card's expiration date and the card verification value (CVV). This is a crucial step to prevent unauthorized transactions.

In the US, the Fair Credit Billing Act (FCBA) requires merchants to obtain the cardholder's consent before charging their card. This means you'll need to clearly state the amount being charged and obtain a verbal confirmation from the cardholder.

Merchants must also provide a receipt or a confirmation of the transaction to the cardholder, which can be done via email or phone.

You might enjoy: Card Data Covered by Pci Dss Includes

Data security and compliance are crucial when taking credit card payments over the phone. To ensure PCI DSS compliance, you must follow 12 requirements designed to protect cardholders' data from theft via data breaches. These requirements include installing and maintaining a firewall configuration, protecting stored data, and encrypting the transmission of cardholder data.

A fresh viewpoint: Amex Black Card Minimum Spend

You must also restrict access to cardholder data on a business need-to-know basis, assign a unique ID to each person with computer access, and restrict physical access to cardholder data. Additionally, you must track and monitor all access to network resources and cardholder data, regularly test security systems and processes, and maintain, publish, and enforce a policy that addresses information security for all personnel.

There are four levels of PCI compliance based on your company's annual volume of credit card payments. Level 1 applies to businesses that process more than 6 million credit card transactions annually, requiring an annual report on compliance by a Qualified Security Assessor or internal auditor, a quarterly network scan by an Approved Scanning Vendor, and an Attestation of Compliance form.

Here's a breakdown of the four levels of PCI compliance:

It's essential to note that you may be thinking that you can't possibly do all that, but the good news is that you have another option to stay compliant. The best credit card payment processors are entirely PCI compliant, and there is usually an additional fee for this, which averages $100 per year.

Curious to learn more? Check out: Pci Compliant Credit Card Authorization Form

Credit card processors and networks play a crucial role in taking credit card payments over the phone. The Card Association Network, comprising major credit card brands like Visa, Mastercard, Discover, and American Express, sets interchange rates that are passed down to merchants via their credit card processing companies.

Merchant One and Helcim include PCI compliance in their monthly fees, making it a convenient option for merchants. National Processing, on the other hand, charges a separate PCI compliance fee of $10 per month. Payment Depot, however, includes PCI compliance at no extra charge.

The Card Association Network's interchange fees are a significant cost involved in credit card processing. These fees are in addition to the costs set by credit card processing companies, merchant account providers, and payment gateway providers.

You might like: Bofa Wire Transfer Fees

Taking credit card payments over the phone requires compliance with various laws and regulations. Some states have specific requirements that merchants must follow.

In Connecticut, Massachusetts, and Puerto Rico, charging consumers a surcharge to pay for credit card processing fees is not allowed. This means merchants in these areas cannot pass on the processing fee to customers.

California has its own set of rules, requiring merchants to inform customers about price differences between credit card, debit card, and cash transactions. This includes clearly disclosing any surcharges at the point of sale.

Some states have stricter regulations than others, so it's essential to familiarize yourself with the laws in your area. This will help you avoid any potential fines or penalties.

Here's a summary of the states mentioned above:

Taking credit card payments over the phone requires careful attention to payment processing and security regulations.

You'll want to choose a payment processor that's PCI-compliant, like Merchant One or Helcim, which include PCI compliance in their monthly fees. National Processing, on the other hand, charges a separate PCI compliance fee of $10 per month. Payment Depot is a great option as well, as they include PCI compliance at no extra charge.

Tokenization is a great way to secure credit card information, especially for phone orders. It allows customers to store their card information on your system, making it easier for them to place future orders without having to re-enter their card details. This also helps you meet PCI regulations for storing primary account numbers.

To stay compliant, you'll want to isolate your payment processing solutions from the rest of your network. This can help reduce your reporting requirements and make it easier to meet PCI regulations.

One thing to keep in mind is that you should never write down credit card information, including the CVV. This is against PCI regulations and puts your business at risk for non-compliance. Instead, enter the customer's credit card information directly into your terminal or POS system.

Here are some payment processors that offer PCI-compliant phone payment systems:

It's also worth considering using IVR technologies to limit data exposure and reduce your PCI scope. This can help you take your call center out of scope for your reporting requirements.

Don't forget to comply with GDPR regulations as well, which require businesses to handle personal information lawfully, fairly, and transparently. This includes storing only the necessary amount of data for as long as its purpose lasts.

You might enjoy: Digital Wallet Data Cloud

Employee training is crucial to ensure compliance with credit card payment regulations. All employees who accept credit card payments over the phone need to be informed of the proper procedures.

One slip up could put your business at risk of criminal fraud or PCI non-compliance. Make sure everybody knows what they need to do!

Employee training is crucial for any business, and it's especially important when it comes to handling sensitive information like credit card payments. One key aspect of employee training is making sure all employees who accept credit card payments over the phone know the proper procedure.

All employees who handle credit card payments need to be informed of the procedures to avoid putting the business at risk of criminal fraud or PCI non-compliance.

When you're taking a phone order, don't record the call.

Recording phone calls that contain credit card information is a form of data storage not allowed by PCI standards.

Automatic recording systems can be turned off when the customer relays their credit card information.

Writing down credit card information, even on a temporary note, is against PCI regulations.

Entering customer credit card information directly into your terminal or POS system is the safer approach.

If you must write down the customer's CVV, shred the paper immediately after use.

If this caught your attention, see: Paying down Credit Cards

To maximize information, you need to get as much information as possible from the customer when taking a credit card payment over the phone. The more information you obtain, the lower your risk of processing a fraudulent transaction.

At a minimum, you want to get the following information from the customer over the phone: the full credit card number, full name as it appears on the card, expiration date, CVV security code, customer's complete billing address, including ZIP code, and customer's phone number.

For an added layer of protection, you can also ask for the same information you require when accepting payment by check, including the customer's date of birth and driver's license number. If the customer can't supply any of this information, it's a sign that the person making the purchase may not be the legal owner of the card – and you should not accept payment.

Expand your knowledge: Credit Card Payment Not Showing up in Bank Account

It's also a good idea to be on alert for unusual details, such as if the billing address and shipping address are different. Fraudsters using a stolen card registered to a person in one location will ask for the goods to be shipped to their address, typically a much different location. If the addresses don't match, beware.

Here is a summary of the required information:

To process card transactions over the phone, merchants must comply with specific regulations. You'll need to complete an annual PCI Self-Assessment Questionnaire (SAQ) to document your security efforts.

This questionnaire must be submitted directly to your acquirer, along with any necessary documentation, such as a copy of your completed vulnerability scan results. Payment brands like Visa and Mastercard may also request this information.

To ensure compliance, you must meet 12 specific requirements, known as the PCI DSS. These requirements are designed to protect cardholders' data from theft via data breaches.

Here are the 12 requirements you must meet:

Acquirers often charge non-compliance fees to businesses who do not provide this documentation.

Accepting credit card payments over the phone requires careful consideration of security measures to protect sensitive customer information.

To start, all employees who handle credit card data need to undergo a background check or comparable screening. This ensures that only trustworthy individuals have access to sensitive information.

Regular security training is also essential for all employees, regardless of their role or access level. This training helps prevent human error and ensures that everyone understands the importance of protecting customer data.

Access to credit card data should be limited to those who "need to know" and only for specific tasks, such as processing transactions. This helps prevent unauthorized access and reduces the risk of data breaches.

To further secure the environment, only authorized users should have access to hardware, software, and workstations. Remote workers should use multi-factor authentication and a VPN when connecting to the company's systems.

Expand your knowledge: Which Bank Gives Free Access to Airport Lounges

Strong encryption protocols are also crucial for protecting cardholder data when transmitted across public networks. This helps prevent interception and unauthorized access to sensitive information.

Here are some specific security measures to implement:

* Do not store authentication data, such as CVV codes.Use company-approved hardware and ensure that firewalls and virus protection software are installed and up to date.Implement controls to prevent the unauthorized transmission of call recording data.Run regular patches and updates as they become available.Make sure users cannot disable security controls.Complete quarterly vulnerability scans.