You do not require a signature for invoices and/or credit card receipts when payments are made over the phone. Instead, write “Phone Order,” in the space where you are supposed to have the customer’s signature.
- How to Accept Credit Cards via Phone without a Signature
- How to Securely Process Phone Transactions without a Signature
- Delivering the Orders made on the Phone
- Conclusion
How to Accept Credit Cards via Phone without a Signature
You can manually enter the credit card information on your point of sale (POS), or on your payment device that accepts credit cards.
You may also accept phone orders using a virtual terminal. They are mostly provided by payment processors, and they allow the customer to enter the card details from their end.
You can also email the invoice to the customer so that they can pay using an online payment system.
For large orders, you need to follow the Know Your Customer (KYC) guidelines. You need to ask the customer to create an account with your store and verify their ID and billing address.
How to Securely Process Phone Transactions without a Signature
POS
You need to invest in a POS, which has the latest customer verification technology. These can include SMS codes sent to the customer’s mobile phone number.
Payment Processor
Use a payment processor that has proven methods of securing processing payments online. Those that have worked with mail-order merchants are among the best.
Customer Information
When accepting payments via phone, request the customer to provide the following pieces of information:
- Complete card number
- Card expiration date
- Security code / CW code
- Billing ZIP Address (Should match cardholder’s address)
Delivering the Orders made on the Phone
There are additional steps you can take with phone orders that require you to deliver a product. These steps can help to determine the legitimacy of the order.
Delivery Confirmation
For high-value orders, you need to buy tracking for the shipment. You can also require an adult signature when a large order shipment has been delivered. The clear paper-trail will make it hard for the customer to deny that they received the goods or did not make the payment.
It also makes it hard for fraudsters to buy your goods with stolen credit card information. Fraudsters like phone orders because they won’t for the cardholder’s signature.
ZIP Code Match
A customer can make a phone order, and submit a shipping address that differs from the billing address. In that case, you must enquire why it is so when they are still placing the phone order.
Often fraudsters will make an order and then submit a shipping address that is in a distant geographical location.
The answer as to why they want the order shipped to a different address should be logical. This could be shipping it to the office or business premises. Still, the shipping address should be within the city.
If the buyer does not come with a quick and logical explanation, consider asking them to use the billing address, and then forward the item themselves.
Conclusion
Making phone orders does not allow you to get signatures from your customer, and banks issuing cards know that. However, you need to follow the guidelines we have outlined above and any other KYC guidelines.
