7 Benefits of Credit Card Processing by Phone

There are a lot of great advantages to processing credit cards by phone. A merchant can process transactions from all over globe and at almost any time, by simply dialing a number. The payment for the sale, like with any other kind of processing, is deposited into the merchant’s checking account from the customer’s issuing bank. It’s just another option for getting it done.

Merchants and customers alike find that the use of a credit card is way more convenient than using older methods like cash and checks. Almost anyone knows that you can’t easily make a purchase over the phone with cash and checks. This is one of the reasons that the credit card was originally developed. Frankly, without the ability to use a simple phone along with credit card payment processing, there would be a lot of merchants out of work.

Real-World Advantages

Phones are the gateway to millions of transactions worldwide, day and night. There are many reasons that credit card processing by phone can be crucial to a merchant. In this article, we will go over seven of those benefits, which are the most important ones despite there being plenty of others you could think up.

Some of the key benefits would be:

  1. Convenience is an obvious benefit, since you can process a transaction from anywhere, almost any time, and in most cases from any part of the globe.
  2. There is a low cost of entry, that is, no terminals to buy or lease. Lower start-up costs with the providers; as well as low monthly rates and fees, make it affordable.
  3. As a merchant, you will have to go though no credit checks, and won’t have to show financial statements as normally required, so you don’t have to “open your books” to everyone and make your business their business.
  4. Simplified security is another benefit, since you only have to protect the phone line transaction and not all the things that come into play with a storefront or an Internet charge. You are in a one-on-one conversation with a representative and usually they will repeat the information back to you as you give it, which allows for fewer mistakes to occur.
  5. Another benefit is easy termination, usually at no cost, and there are usually no long contracts, either. Regular terminal lease contracts can run anywhere from 12 to 48 months and merchants can risk ruining their credit by terminating a contract early and not paying the fees associated with that process.
  6. A phone transaction setup can be used as a “stopgap” or temporary measure when you are starting out, changing providers, etc., so you don’t have to miss any sales during your transition. Many companies offer a convenient, “one trick pony” phone transaction package and if you need an account quickly, it’s the way to go. As most merchants know, time is money, and this option can be a lifesaver.
  7. Finally, there is no equipment to maintain, repair, fix, etc., and all you need is a way to produce receipts for the people who want them.

Take Good Notes

All the merchant must do when accepting credit cards by phone is get the information down correctly. Once the customer has given them the information, an outgoing phone call to the processing center is all there is to do. If a merchant does have a terminal, they can enter the card info into it, get the credit card number processed and then find out electronically if the transaction is approved or denied. If it is approved, a receipt is then printed for the transaction. If not, the merchant will need to notify the customer of the denial.

More and more merchants all across the United States are taking advantage of the beneficial aspects of processing credit cards by phone. Merchants can’t afford to lose all of the revenue that could be captured with this process, from customers you interact with over the phone. With our economy heading for a fall, it’s wise for the average business owner to stay completely in tune with modern forms of payment, of course, without losing touch with some tried and true methods that are not quite “cutting edge” any longer, such as the phone.

Old and New Work Together

There are hundreds of credit card processing companies that operate all over the U.S. and the rest of the world as well. The rates and the types of fees charged by these companies can vary considerably. Merchants should always choose a processing company that does possess an excellent track record and solid reputation. In this way, it becomes possible to minimize the designs of fraudsters.

Merchants should also compare offers from three or more processing companies before making a final choice. A correct and suitable choice can go a long way in helping merchants grow their businesses and their profits. And what merchant doesn’t want that? The fact is, the phone is still one of the fastest and easiest ways for customers and merchants to conduct business, especially when you want to do it without any other hassles involved. Merchants rarely have time for hassles these days. They would agree with the statement, “Thank goodness for the credit card and long live the phone!”