Rethinking How You Handle Payments by Phone

Rethinking Phone Payments: How to Reduce PCI Risk and Hidden Costs

For many businesses, taking credit card payments over the phone is a familiar process. A customer calls, a team member takes the card number and manually enters it into a virtual terminal. Simple, right?

Not quite.

Behind the scenes of this routine transaction lies a web of hidden risks, compliance responsibilities, and operational inefficiencies that can quietly erode security and profitability.

The Hidden Risks of Manual Phone Payments:

Most business managers underestimate how much is at stake when accepting card payments over the phone. While verbal card number collection is permitted under PCI DSS, if you adhere to all the requirements, the method of handling, storing, and entering those details can quickly become a liability.

Some of the key risks include:

• Call Recording Issues: Many businesses record calls for training or quality assurance. But unless the system is designed to automatically mask or pause during the payment portion, it could inadvertently capture sensitive cardholder data.
• Human Error: Digits can be misheard, misunderstood, or—worse—written down on sticky notes, instantly turning a scrap of paper into unsecured card data.
• Shared Logins: If staff share logins to the virtual terminal, tracking activity becomes difficult and violates PCI guidelines around accountability.
• Insecure Workstations: Outdated antivirus software, a lack of firewalls, or using work computers for general web browsing can create vulnerability points for malware that targets card data.
• Unsecured Wi-Fi: Using public or improperly secured wireless networks for processing payments introduces further risk.
• And more…

And even with the best intentions, poor practices like asking customers to leave card details on voicemail, storing CVVs, or failing to properly destroy handwritten notes can result in compliance violations—and serious consequences.

The Operational Cost Most Businesses Miss

Beyond the security concerns, there’s a subtler drain on resources: staff time and inefficiency.

Taking a phone payment isn’t just a 2-minute task. It often involves:

• Verifying the details
• Clarifying billing questions
• Correcting errors
• Following up on failed transactions

Add to that the inability to handle payments outside of business hours, and the result is delayed cash flow and frustrated customers. One healthcare provider received over 250 voicemails from patients trying to pay over a weekend—voicemails that staff had to spend hours sorting through the following Monday.

These are real costs—hidden in payroll, inefficiency, and lost productivity.

A Smarter, Safer Alternative: IVR Payments

PCI Compliant Interactive Voice Response (IVR) systems offer a compelling alternative. Customers call a dedicated number, follow prompts, and enter their credit card details using their phone keypad. The data is securely transmitted directly to the payment processor—bypassing staff entirely.

The benefits of IVR payments:

• Reduced PCI Scope: Because staff don’t handle or hear card data, the number of systems and processes subject to PCI requirements can be significantly reduced.
• Enhanced Security: No more sticky notes, shared logins, or accidental recordings.
• 24/7 Availability: Customers can pay anytime—nights, weekends, holidays—without needing to speak to staff.
• Improved Cash Flow: Faster payments mean fewer accounts in arrears and fewer delays in reconciliation.
• Predictable Costs: Automated systems don’t take sick days, breaks, or holidays. They scale without adding headcount.

Final Thought: Is Your Current Process Still Serving You?

If you’re still relying on staff to take payments over the phone manually, it’s worth asking: Is this really the most secure, efficient, or cost-effective method available?

From PCI compliance simplification to customer convenience, IVR Payment systems offer a smarter path forward—one that protects your business, your customers, and your bottom line.