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A Beginners Guide to Phone Payment Systems

Man pays over the phone

When it comes to running a business, there are a variety of factors that need to be taken into account.

From staff salaries and benefits to marketing and taxes, running an effective business is not easy. That’s why businesses often look for payment systems that reduce manual processes, streamline financial operations and optimise financial resources. Payment systems can help you run your business more efficiently by automating bills, invoices and payments. In this blog post, we explore the various phone payment system services available and how they can help streamline your business practices so you have more time to focus on other areas of your company.

What is a Phone Payment System?

In the modern business world, a phone payment system (or phone billing system) is a software system that allows your clients to make payments over the phone. In other words, it allows customers to make payments over the phone by providing them with a phone number to call. 

This lets you avoid the need to take credit card payments manually and also lets you avoid having to deal with payment security issues. If you are currently asking your customers to read their card details out loud on a phone call, then you could be liable in the event that card data is stolen or used fraudulently.

Phone payments systems that require the customer to read out their card details are also known as Virtual Terminals and are usually mis-sold as a totally secure option for credit card payments. A Secure Virtual Terminal enables businesses to collect customer card information by using keypad data entry. 

Phone billing systems are designed to let you bill clients and receive payments over the phone. They come in various configurations but the most common features include automated billing and payments, remote administration, user authentication, transaction reconciliation and recurring payment types.

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How can phone payment systems help your business?

If your business relies on collecting payments or making bill payments, then a phone payment system can make your life easier. 

Phone payment systems are easy to use, provide customers with the convenience of paying bills over the phone and allow you to keep track of daily activities. 

Due to their ease of use and the fact that most customers are used to paying by phone, phone payment systems are a great option for businesses that need a more efficient way to collect payments. Moreover, these systems allow you to track the amount collected from each customer and the amount due from each client on a day-to-day basis. You can also track phone calls made, payments made and funds collected on an ongoing basis.

However it is important to note that if you are currently asking customers to read their card details out loud then you are putting them unnecessarily at risk.

The most secure phone payments systems

Phone payments systems come in a variety of forms, each of which has its own set of advantages and disadvantages. Secure Virtual Terminal systems are an incredibly popular choice for businesses looking to integrate a phone payment system into their operations. 

In fact, according to a survey conducted by the National Retail Federation, credit card payments are the most popular form of payment in the United States. However, there are strict rules and regulations around credit card payments, which makes compliance with security protocols a must. 

Phone payment systems that use debit cards are usually cheaper than credit card systems. They also offer a little more protection against fraudulent activity because they’re attached to a bank account rather than a credit card. However, the consumer protection provided by debit cards is not as high as it is with credit cards.

PCI-DSS and GDPR compliance for phone payments systems

If your business uses phone payment systems, you must be compliant with PCI-DSS. PCI, or the Payment Card Industry Data Security Standard, is a standard for protecting credit card data. It also includes guidelines for protecting debit card data and other sensitive data. 

If you use a payment system that is not compliant with PCI-DSS, then you could be liable for fines. GDPR compliance is also a requirement for phone payment systems. If your payment or business systems store sensitive data from customers, then GDPR compliance is necessary to protect that data. 

The good news is that there are phone payment systems that are totally compliant with PCI-DSS and GDPR, usually a Secure Virtual Terminal. If a payment system is PCI-DSS compliant, then you can rest assured that it has undergone rigorous testing to ensure that it is secure. GDPR compliance ensures that your phone payment system is protecting the data of your customers.

The bad news is that many small businesses still use a Virtual Terminal to collect customer card data. This means they must prove how that cardholder data was stored, creating a headache when it comes to proving your PCI-DSS compliance. A Secure Virtual Terminal takes 96% of responsibility on behalf of a business when it comes to PCI-DSS compliance.

Summing up


Payment systems are essential for every business, but they don’t all work in the same way. Credit card payment systems are the most popular, but they come with a whole host of rules and regulations that must be followed to the letter. Ultimately, the most important thing to remember is that the best phone payment system for your business is the one that is most compatible with your needs and provides superior cutting edge security for your customers.


Could your business benefit from taking SECURE PCI-DSS compliant payments over the phone. Provide a superior and secure payment experience for your customers. 


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