Credit card payments gained a lot of terrain nowadays all over the world. Thus it was created a host of processing solutions for credit cards. One of the newest ideas is the processing solution of the credit card by phone, also called touch tone card processing.
First you need to open a merchant account in order to be able to begin processing credit cards. So, more explicitly, to process cards on phone, you will have to open a mobile merchant account. On the whole, this represents a not present card type of account.
The routine of processing phone credit cards
First, the customer has to confirm the purchase and provide the credit card details. Next, the merchant calls his selected credit card processor on mobile phone or battery-operated phone. He follows then the voice commands and has to enter the merchant ID and the transaction information and customer’s card details by means of the phone’s keypad. The telephone credit card workstation will process information and broadcast a request to credit card company of the customer and the card is charged.
The company of the customer’s card will deny or approve the request regarding on the situation of the customer’s account. If accepted, the money will be transferred in the merchant account. Just the once the telephone card processor gets the above answer, the merchant is informed of the result. If the business is permitted, the vendor will be given a clearance number that would be recorded on a proof of payment. The actual customer needs to sign this recipe.
At the same time as the seller finishes his piece in the deal, the phone card processor will begin the funds transfer from the seller account to the vendor’s usual bank account. This procedure may be completed in a couple of days.
Advantages of the usage of the Phone Card Processing Solution
The equipments for Point of Sale are not compulsory. So you will save at least $150 – $1000. There is no demand to meet certain number of card sales because there are not monthly minimums. You are able to track the transactions simply by phone or using the online report of transactions. There are not such things as early termination fees, so you may switch to a suitable phone card processor at any moment you want.
Prior to signing up for some credit card processor, it’s important to analyze and make certain that the income generated by cards is higher than about the expenditure incurred in spending in the processor. On the other hand, it is not simple to predict the income or costs involved. By means of phone card processor, you may practice the credit card acquisitions for yourself and make your mind up if card-processing is a money-making solution for your commerce, at a small cost and no contracts.
The disadvantages include an increased risk of fraud and consequently, the price cut rate and transaction charges might be higher than normal.
The Phone Credit Card Processing is suitable for new or small businesses or for those new to merchant accounts. Also it is recommended for solo-professionals as masseurs that want to offer more payment options and avoid the high costs of credit card equipment. It will also ensure your customers that they have plenty of payment ways at their disposal.
If you believe you will make profit out of a phone credit card solution, begin off with a wide study on the different telephone merchant accounts existing and evaluate their rates, conditions, technical support and customer service.
