It is possible to accept credit card payments on the phone. However, to be able to accept credit card payments, there are a few things to consider. For example, you must have a payment service provider or a merchant account associated with your phone. To better understand how these payments work, we will explain them to you in a simple and comprehensible way.
Please note that there is no single formula for these payments. Usually, all we have to do is to associate a payment method with our phone. For example, associate a credit or debit card with a payment application.
That is to say, by default, the phone does not have the utility of allowing users to pay by card. It is necessary to associate the cards with payment gateways or applications.
How card payments work on cell phones
It is necessary to have a payment service provider to operate a credit card payment on a phone. If not, then a merchant account.
The reason for this is that you must be able to choose payment systems or virtual terminals. This can also be done through a POS that allows the creation of virtual terminals that facilitate the processing of transactions without the direct use of the card. Although, in both cases, there must be an associated card.
Let’s see the difference between the two concepts:
- Merchant account providers provide a hardware and software tool to accept credit card payments. These can also be associated with mobile devices. Typically, these providers will ask for a payment or fee and a contract. This is considered the most secure model.
- Payment services are geared toward transferring funds to business accounts. They will not receive funds from a single merchant account. Such a provider usually charges a lower fee. Also, these providers provide instant service upon registration. However, one thing to remember is that they may have problems with account closure or even some freezing of funds.
What are virtual terminals?
Virtual terminals are tools that will allow card transactions. They are different models that, in addition to facilitating payment, will enable the expansion of security tools and electronic remittance of funds. On other occasions, they will also provide the storage of payment information.
Although not in all cases, some POS systems also function as virtual terminals without a card.
Step-by-step procedure for accepting credit card payments on your phone
There are several steps to be taken into account when accepting credit card payments on your phone.
Logically, the first of these is to have access to virtual terminals or POS systems. This access is necessary to accept these payments.
The next step would be to determine what credit card information you will include. Here it is necessary to understand that providers can request different details about the card. Not all providers ask for the same information. In any case, there are some basic pieces of information, such as:
- Credit card number
- Expiration date
- Security code or CVV
- Customer’s name
- Billing zip code
In addition to this data, they may request other extra info such as card type and issuer, address, and email or phone number of the user.
On the other hand, when orders are to be shipped, the customer’s shipping information is usually requested. In this case, contact information would also be added for sending receipts, which can be provided via text messages or SMS.
Subsequently, in the second step, we should integrate customer orders into the system. That implies while keeping the customer on the phone, we can enter the details of his order and calculate the amount in the system. Subsequently, we have to communicate the sales total to the user.
In the next step, we process the payment. At this point, the virtual terminal notifies whether the transaction is approved. If the transaction is approved, no further tasks are required apart from sending the receipt to the customer and completing the order. Receipt submissions are usually automatic; ending the declaration is part of the sales process (which should also be automated).
In case of a declined transaction, it is normal to try to pay again with the first card. Otherwise, it would be possible to do it through another card or payment method. If this cannot be completed, the transaction will be rejected.
Anti-fraud measures can be taken when accepting credit card payments on cell phones
However, it should bear in mind that this payment type is more expensive and more susceptible to fraud.
Therefore, if this type of payment is to be made more or less regularly, it is necessary to consider some security measures.
The first would be to keep records of transactions and make notes. That is important: a constant form of payment is usually maintained, which can be combined with specific notes on each customer, date of payment, time, or aspects that are considered relevant. We can use this information in a counter-dispute.
The second, also very important, is to have secure tracking of shipments. This can be applied to any purchase, but it is especially important for higher-cost purchases. It seeks to add protection in the case of claims for lost shipments or chargebacks.
Some different services incorporate everything from insurance to mitigate non-payment or claims to address verification systems. An address verification system can be very useful to compare the billing address with the shipping address.