ALL YOU NEED TO KNOW ABOUT PHONE CREDIT CARD PROCESSING SOLUTION

Credit card payments have gained momentum globally. In response, a host of credit card processing solutions have been created. One of the latest innovations is the phone credit card processing solution. It is also referred to as touch tone credit card processing.

Telephone Merchant Account

As usual, you will first have to open up a merchant account before you can start processing credit cards. More specifically, in order to process credit cards via phone, you will need to open up a telephone merchant account. It basically is a card-not-present type of merchant account.

Standard Routine Of Phone Credit Card Processing

The customer confirms the purchase and provides credit card details.

The merchant calls up his or her selected phone credit card processor via mobile phone, cord phone or cordless phone.

The merchant then follows the automated voice commands and enters the merchant ID, transaction information as well as the customer’s credit card details using the keypad of the phone.

The phone credit card processor will process the information and transmit a request to the customer’s credit card company for the card to be charged.

The customer's credit card company will either approve or deny the charge depending on the status of the customer’s credit card account. If approved, the funds will be transferred into the merchant account.

Once the phone credit card processor obtains the above reply, the merchant will be informed of the outcome. If the transaction is approved, the merchant will also be given an authorization number to be recorded onto a receipt. This receipt must be signed by the customer.

While the merchant finishes his part in the transaction, the phone credit card processor will initiate the transfer of funds from the merchant account to the merchant’s regular bank account. This process may take up to two days.

Advantages Of Using Phone Credit Card Processing Solution

• Point-Of-Sale equipments are optional. Therefore, you’ll save anywhere between $150 and $1000.
• No pressure to meet a number of credit cards sales as there are no monthly minimums.
• There are usually no early service termination fees or contracts. So you can switch to a more suitable phone credit card processor anytime.
• You can track your transactions easily by phone or by using the free online transaction reporting. 
• Using mobile phones to process credit card allows you do conduct your business transactions on the go.
• Before signing up for any credit card processor, it is important to calculate and ensure that the revenue generated by accepting credit cards is more than the costs incurred in investing in the processor. However, it is not easy to predict the revenue or costs involved. Using the phone credit card processor, you can experience the credit card purchases for yourself and decide if credit card processing is a profitable solution for your business, at a low cost and with no contracts.

Disadvantages Of Using Phone Credit Card Processing Solution

• As mentioned earlier, phone credit card processing is a card-not-present merchant account. Typically, such merchant accounts involve greater risk of fraud and therefore, the discount rate and transaction fees as higher than normal.

Who Is Phone Credit Card Processing Solution Suitable For?

• The low cost of phone credit card processors make it a suitable solution for new businesses, small-sized businesses or businesses new to credit card processors.
• It is suitable for solo-professionals such as masseurs who want to offer their customers more payment options without the high costs and no troublesome credit card processing equipment.
• The mobility of phone credit card processors make it suitable for the following type of businesses as well:
• Merchants on the move such as taxi drivers or delivery people.
• Merchants who perform sales at various locations such as exhibitions.

If you think you will benefit from a phone credit card processing solution, start with an extensive research on the various telephone merchant accounts available and compare their rates, terms, customer service and technical support. Only when you have done so, proceed to sign up for one that you are most satisfied with. It might just be the boost your business needs.

For more information on phone credit card processing solution and an example of a telephone merchant account, please refer to the following websites:
http://www.articlesnatch.com/Article/4-Advantages-Of-Accepting-Credit-Cards-By-Phone/208299

http://community.dynamics.com/blogs/mhasman/archive/2007/03/25/phone-credit-card-processing-services.aspx

http://www.paynetsystems.com/html/phone-credit-card-processing.htm