Guide on taking business payments over the phone (2026)

Taking payments over the phone from a customer remotely is a practical way to get paid for many small businesses in Australia. When done right, it’s fast and convenient. But it can increase exposure to fraud and chargebacks, and often comes with higher processing fees, so it’s worthwhile to have a full picture of the challenges involved.

In this guide, we’ll explore in-depth how to complete payments over the phone, looking at what it means, the pros and cons, different payment methods, and a step-by-step guide to getting it set up for your business.

We’ll also look at how multi-currency accounts like Wise Business can facilitate phone-based payments in different currencies at low fees.

What does it mean to accept payments over phone

Taking payments over the phone is a type of card-not-present (CNP) transaction, where the cardholder isn’t physically present, and instead the payment details are shared verbally during a phone call and processed manually by the business.

In practice, the customer will provide their card details (card number, expiry date, CVV, etc.) and the business then enters them into a secure system. This makes it fundamentally different to payments via an online checkout or in-person terminal, where the customer thumbs in all the relevant info or uses a chip and pin.

These phone payments can help businesses to complete transactions quickly and reach new customers.

However, because the card isn’t physically there at the point of sale, phone payments are often treated as a higher risk by banks and card networks.

Benefits of taking payments over the phone

Businesses focused mainly on online card payments, might be unaware of the upsides of using what might appear to be an ‘old school’ method over the phone.

It can be very useful in certain situations, though. Here’s why:

• Convenience - for customers that either can’t venture to a physical store or don’t have an internet service (or struggle with online gateways), completing phone payments is a simple and accessible alternative.
• Personalised service - businesses can use phone calls to talk to customers directly, which provides the opportunity to clarify details, build trust, and offer additional products and services during the conversation. This can deepen relationships, especially for local companies.
• Faster payments - there’s no invoicing or waiting for bank transfers. Phone payments let you capture sales immediately.
• Broader audience - phone payments help you reach and engage with customers who might otherwise be missed due to a reluctance to buy online or a preference for speaking to a real person.

Types of businesses that can benefit from phone payments

Taking phone payments might be deemed a necessity for businesses in specific industries. For example, tour operators in Australia would likely lose out on lots of custom if they didn’t take bookings or deposits over the phone. For other industries, it might be optional but still beneficial.

Here are some other examples.

• Trades and home services - useful for call-out fees or settling invoices after the work is confirmed.
• Medical and health practices - commonly used at chemists for prescription orders or to pay for telehealth consultations.
• Professional services - practical for taking retainers or collecting payments during client calls.
• Local restaurants - often used for delivery and takeaways, or specific catering requests.
• Small retailers - helpful for special orders or remote sales outside of an online checkout.
• Hospitality businesses - used to take deposits for reservations or event bookings.

Challenges involved with taking payments over the phone

There are a few drawbacks or challenges to consider when taking phone payments. These include:

• Human error - when manually inputting details into a card reader, even minor errors due to misreading or mistyping details can result in the transaction failing.
• Fraud - stolen card details are often used by fraudsters for mail order/telephone order (MOTO) transactions.
• Chargebacks - as it’s more difficult to fully verify the identity of cardholders, there is a greater risk of disputes after the fact, which can leave much-needed funds in stasis until the case is resolved. Disputes are also harder to contest.
• High processing fees - The greater risks involved translate to higher fees for payment processing, so you’ll usually give up a larger percentage of each transaction compared to ‘safer’ methods like bank transfers or direct debits.

Different ways to take payments over the phone

There are a couple of popular methods for accepting payments over the phone in Australia.

Taking card payments over the phone via a virtual terminal

A virtual terminal is a web-based payment interface provided by a payment processor such as Stripe. To complete a phone payment, staff can enter the customer’s card details directly into the system using any secure computer, such as a laptop or smartphone.

A big benefit here is that no physical hardware is required, and the virtual system usually supports receipts and reporting. However, it does require strong internal security practices to safeguard sensitive customer details.

Taking payment over the phone using on a card machine/EFTPOS

EFTPOS, an acronym for Electronic Funds Transfer at Point of Sale, is a term used interchangeably for both in-store card terminals and Australia’s card scheme and network.

Some EFTPOS providers allow manual card entry on physical terminals. Like the previous method, staff manually key in a customer’s card details instead of inserting or tapping a physical card. This is a convenient option as it uses existing EFTPOS hardware and follows a familiar workflow for staff.

Steps on how to take payments over the phone

To complete phone payments, you’ll need to put some basic (yet essential) building blocks in place first to support fast and secure transactions. Here’s what to prepare and how to get things up and running.

What is required before getting started

Before you start accepting phone payments, you’ll need:

• An eligible payment provider - one that supports MOTO transactions or manual card entry. Popular providers include Stripe and Square.

• PCI DSS compliance measures - PCI DSS is the payment card industry data security standard with a set of rules that you must follow to handle all the card data give to you by customers¹. A failure to comply can lead to costly data breaches and big fines and penalties.

• Secure systems and staff training - always use trusted payment systems, and restrict access to trained staff only, while avoiding storing or recording card details after transactions are completed.

• Clear internal processes - make sure to document clear protocols for when phone payments are allowed, how details are entered, and the way disputes or chargebacks are handled.

Steps to set up phone payments for your business

Here’s a general overview of the steps to get phone payments set up. The main logistical requirements are selecting a relevant payment provider and enabling a secure way to process payments during calls.

1. Choose a payment provider - select a provider that supports phone payments, such as MOTO or manual card entry, and review the fees and dispute terms.
2. Enable manual or virtual terminal payments - activate phone payments in your account and confirm where transactions are processed.
3. Verify customer details - double-check the cardholder’s name and billing address during the call to reduce the chances of error and support your case if disputes arise.
4. Process the payment - complete the payment while the customer is on the line, so you can confirm whether it’s gone through and resolve any issues.
5. Send a receipt or confirmation - provide written confirmation by email or SMS with full transaction details.

Now, let’s look at an alternative phone payment option using Wise Business.

Wise Business: Simplify cross border business payments

Wise Business doesn’t offer an online card terminal or card machine, but it does support a bank transfer-based approach where a payment is agreed over the phone and completed securely by the customer.

This might be preferable for businesses that want to avoid handling card details altogether, which makes the process safer.

How to accept a payment over the phone with Wise Business

To take payments over the phone with Wise, all you need to do is:

1. Confirm the payment details by phone - agree on the amount, currency, and when payment is due.
2. Share Wise account details or a payment link - provide local bank details, such as your BSB code and account number (if AUD), or send a secure payment link during the call.
3. Customer completes the payment themselves - they pay via their bank or online checkout, without sharing details over the phone
4. Receive funds into your Wise account - payments arrive in the selected currency and can be held or converted at a time that’s convenient for your business.

Start receiving business payments across borders

Expanding a business globally opens up exciting opportunities, but also new challenges like receiving payments across borders. Hidden foreign transaction fees and hefty currency conversions involved with international payments can eat into your profits and time.

Wise Business serves as a cost-effective solution where you can receive money from around the world at the speed and price of local payments.

Transform the way you receive payments with Wise Business:

• One-time fee of 65 AUD for local account details in 8+ currencies, including AUD, NZD, USD, and more—no recurring fees
• One account to hold, send, and convert money with no hidden fees or exchange rate markups
• Create and send professional invoices directly to your customers through Wise Business
• Create payment links to request money in specific currencies
• Seamlessly receive payments from customers, online sales, or PSPs like Stripe and Amazon.
• Wise is safe and secure - Trusted by 13 million people and counting

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

Payment over phone FAQs

1. Is it safe to take payments over the phone?
It can be safe to take payments over the phone when done correctly. But they are inherently more risky than in-person or online payments. That’s why it’s vital to follow strict PCI DSS compliance protocols like using secure systems and not storing card details afterwards.

2. Who bears the fees when taking phone payments?
There are processing fees when taking phone payments, and these are typically charged to the business, not the customer. As phone payments involve higher fees due to the increased risk of fraud, you might want to factor this into pricing for specific products and services.

Sources:

1. NAB - Payment Card Industry Data Security Standards