As businesses continue to evolve their infrastructure and business systems in a digital age, so do the methods of taking payments from customers. One of the classic yet still widely used ways is taking credit card payments over the phone.
However, as much as it can be a convenient method for customers, it poses security risks and challenges for businesses when it comes to complying with data protection regulations.
In this blog, we'll explore the various aspects of taking credit card payments over the phone, from insecure methods like traditional virtual terminals to secure alternatives like Secure Virtual Terminals. We'll delve into compliance requirements, focusing on the critical PCI-DSS and GDPR standards. Moreover, we'll discuss how adopting secure methods not only ensures compliance but also enhances the customer experience, building trust in the process as well as preventing fraud.
Insecure Methods - Traditional Virtual Terminals
Taking credit card payments over the phone using traditional virtual terminals has been a common practice for many businesses. However, this method comes with inherent risks, primarily related to the security of sensitive cardholder data. Here's a closer look at the issues associated with traditional virtual terminals:
Data Exposure: In traditional phone transactions, customers need to read out their card details to the agent on the other end. This exposes the card data to potential eavesdropping, whether intentional or accidental. Any breach or mishandling of this information can result in financial losses and damage to the business's reputation.
Agent Training: Agents handling these payments often require extensive training to ensure they handle card data securely. This can be time-consuming and costly for businesses, particularly those with high staff turnover rates.
Compliance Challenges: Meeting regulatory standards like PCI-DSS (Payment Card Industry Data Security Standard) and GDPR (General Data Protection Regulation) becomes a significant challenge with traditional methods. Non-compliance can lead to hefty fines and legal consequences.
Secure Methods - Secure Virtual Terminals
To address the security and compliance issues associated with traditional phone payments, businesses are turning to Secure Virtual Terminals (SVT). SVTs offer a secure and streamlined way to accept credit card payments over the phone. Here's how they work:
Encrypted Data Transmission: Secure Virtual Terminal use advanced encryption techniques to secure the transmission of cardholder data. This ensures that sensitive information remains confidential throughout the payment process, reducing the risk of data breaches.
Channel Separation: With Secure Virtual Terminal, there's no need for customers to read out their card details. Instead, they enter the information directly into a secure online payment form. This channel separation eliminates the risk of accidental exposure during the call.
Agent and Customer-Friendly: Secure Virtual Terminals are designed with both agents and customers in mind. They include built-in instructions to guide staff and callers through the payment process, reducing the need for extensive training.
Watch a demo of Paytia's Secure Virtual Terminal below. To find out more, please visit our product page.
Compliance: PCI-DSS and GDPR
Achieving and maintaining compliance with data protection regulations is a top priority for businesses handling credit card payments over the phone. Let's explore how Secure Virtual Terminal assists in meeting these critical compliance standards:
PCI-DSS Compliance: The Payment Card Industry Data Security Standard (PCI-DSS) outlines strict security requirements for handling cardholder data. SVTs are built with PCI-DSS in mind, providing robust security measures like encryption, tokenization, and secure data storage.
GDPR Compliance: The General Data Protection Regulation (GDPR) requires businesses to protect the personal data of EU citizens. Secure Virtual Terminal helps meet GDPR requirements by ensuring that customer data is handled securely and transparently. Customers have greater control over their information, enhancing their privacy.
Better Customer Experience and Building Trust
Beyond security and compliance, adopting Secure Virtual Terminal for phone payments offers several advantages that contribute to a better customer experience and help build trust:
Convenience: Secure Virtual Terminal simplifies the payment process for customers. They can complete transactions online without the need to share card details verbally, making the process more efficient and less error-prone.
Consistency: Secure Virtual Terminal provides a consistent payment experience for customers. They receive the same set of clear instructions during each payment call, reducing confusion and enhancing trust.
Data Protection: Customers value their data privacy. By using Secure Virtual Terminal, businesses demonstrate their commitment to protecting customer information, fostering trust and loyalty.
Efficiency: Secure Virtual Terminal streamlines payment processing, reducing the time and effort required for both agents and customers. This efficiency contributes to a positive experience.
Taking credit card payments over the phone remains a valuable option for businesses, but it must be done securely and in compliance with data protection regulations. While traditional methods present challenges, Secure Virtual Terminals (SVTs) offer a secure, efficient, and compliant solution. By using Secure Virtual Terminal, businesses not only protect sensitive data but also enhance the customer experience, ultimately building trust and credibility in a competitive marketplace. As the world of payments continues to evolve, businesses that prioritize security and customer trust will thrive in the digital landscape.