If you’re considering accepting credit card payments over the phone, you need to be aware of some of the risks. One of these risks is the risk of not recognizing the cardholder. The person on the other end of the line might not have a photo ID, and your business may be held responsible for fraud if this happens.
Requirements for credit card authorization over the phone
If you want to accept credit card payments over the phone, there are many requirements to meet. First, you need to ensure that your customers are actually the ones who placed the order. While accepting credit cards over the phone may be convenient, it is not as secure as accepting payments in person. Moreover, credit card processors charge higher rates for card-not-present transactions and keying-in card information. If you do accept credit card payments over the phone, you must ensure that you adhere to PCI compliance rules.
The best way to ensure that your customers do not see their account numbers on your call recording is to make sure that your agents are using PIN pads when taking credit card payments. It is important to have a secure phone line and secure call center infrastructure to avoid fraud and data breaches.
To accept credit card payments over the phone, you need a merchant account with a payment service provider. A payment service provider will provide you with a virtual terminal or a point-of-sale system that is equipped with virtual terminal functionality. A merchant account provider will also provide you with a dedicated merchant account, software tools, and additional services. However, this option may require extensive fees, and you must be prepared to enter into a contract.
The benefits of accepting credit card payments over the phone are numerous, but the risks are also high. If you are not sure if you can comply with the PCI DSS, consider investing in a secure POS system. It is also critical to train your employees and ensure that they are following proper procedures.
Address verification and card security identification
Address verification is an essential part of protecting cardholders from fraud. This process works by checking the billing address provided by the cardholder with the one on file with the card issuer. This step increases the likelihood of a successful transaction and minimizes the risk of chargebacks. Merchants can use this service to help protect themselves from fraudulent transactions.
Address verification has become a standard process in identity verification. It involves submitting a customer’s information to a verification service, which matches the information against database records from several sources. Address validation ensures the data is correct and hierarchically aligned. This process will either produce a match or no-match signal, depending on how well the addresses are verified. Address validation is critical to successful verification and depends on up-to-date information.
Address verification can also help you obtain certain financial services that are restricted to residents of certain jurisdictions. For example, cryptocurrency exchanges in Europe might not accept customers from the U.S. due to SEC sanctions, so Proof of Address will help them ensure proper due diligence procedures have been followed. Address verification can also help companies avoid exposing their clients to fraud.
Address verification and card security identification over the phone has been made simpler thanks to modern technologies. It’s possible to use your phone’s location data as proof of address. By analyzing this information, the phone operator can verify the customer’s address and provide the appropriate products or services.
PCI DSS is a set of regulations that require companies to protect cardholder data. This includes encryption of data and encryption of encryption keys. Cardholder data includes the primary account number, 16-digit security code, cardholder’s name, and expiration date. This information is typically located on the front of the card. Card companies must also make sure that their processes are secure and that they do not store this data after it has been authorized.
For companies that accept credit cards over the phone, it’s imperative to follow PCI regulations. First, employees must be properly trained to handle credit card data. In addition to training, businesses should also follow best practices to remain PCI compliant. PCI compliance is an ongoing process of adhering to the standards and regulations set forth by the PCI Security Standards Council.
Second, businesses must make sure that they don’t record phone calls where the customer enters their credit card information. This is a violation of PCI regulations because any recording of phone calls that contain credit card information is considered data storage. This means that businesses cannot record phone calls containing credit card information, such as the customer’s CVV. Additionally, they must use a PCI compliant phone system and integrate it with an order entry system. This ensures that the recording is paused when the agent reaches the payment page, and resumed when the card is entered.
If a company doesn’t meet PCI DSS requirements, it may be required to pay a huge fine, which can range from $5,000 to $500,000, depending on the number of transactions. Not only that, but non-compliance can cause major business interruptions and even death.
PCI compliance is a long-term process, and requires ongoing updates as data flows and customer touchpoints evolve. In addition, some credit card brands may require annual on-site assessments and quarterly reports. Businesses that process more than 6 million transactions per year may need these yearly assessments and reports. The Chief Security Officer must also ensure that the organization is making adequate investments in data security and data protection.
A PCI-compliant company also monitors their files and logs to identify vulnerabilities. Then, they must provide evidence of the security measures implemented, as well as submit them to their acquirer. Additionally, the PCI DSS requires companies to create an information security policy and implement it. This policy must be reviewed at least annually, and must be available to all employees, vendors, and contractors.