Mobile and online credit card transactions have made over-the-phone payments somewhat rare. Still, there are instances where it might make sense for you to pay this way — when ordering takeout, for example, or paying a bill from a small-business owner.
But the level of risk with over-the-phone payments can be somewhat higher than when using your credit card online or in person, as remote transactions can make it difficult to verify a merchant’s identity.
Here's what to know to limit your susceptibility to fraud when making payments this way.
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What are the risks of over-the-phone credit card transactions?
Any credit card transaction is potentially vulnerable to fraud. But unlike payments made in person or even online, cardholders and vendors alike aren't necessarily able to verify whether the person at the other end of the line is, in fact, who they say they are.
When you make a transaction by phone, you're typically required to provide the vendor with sensitive information because your card can’t be swiped:
With remote transactions, it can be difficult to confirm that you're giving out such sensitive information to the intended merchant and not to a fraudster. And protections that could otherwise lessen this risk won't be of much use in an over-the-phone transaction.
A signature, photograph or encrypted card chip, for example, can't be physically verified in these types of scenarios. Even the CVV, or "card verification value," won't be a fail-safe.
If you find yourself a victim of fraud — whether from a transaction over the phone, in person or online — know that you're better protected when you use a credit card than you would be with a debit card.
That's because federal law limits consumers’ liability for credit card fraud to a maximum of $50, and most credit card issuers have $0 liability policies. So while the credit card issuer and/or the merchant may take a loss, it’s unlikely you'll be out any actual money, as you could be if your debit card were compromised.
But reporting the fraud to your issuer, freezing an existing card, ordering a new one and then changing all of your autopay accounts to an updated card number? Those are headaches you can do without. And there are ways to avoid them.
There are steps you can take to mitigate the risks of fraud from over-the-phone credit card transactions.
You call them, not the other way around. Never provide your credit card information to representatives who call you unexpectedly. Criminals can claim to be from your card issuer or bank and ask for your personal information. To this end, provide necessary card information only to merchants you've called directly. And before making any transactions, confirm that you've dialed the vendor’s correct phone number.
Double-check the charge before hanging up. When making purchases over the phone, you can't physically see the products you're buying. So after you’ve placed your order, ask the merchant to confirm what you’re being charged for and the exact amount of the transaction. You can also ask for an order confirmation number.
Monitor your account. Review your credit card statement often to check for any fraudulent or suspicious activity and to make sure your transactions are being charged correctly. You might even want to log in to your card account immediately after placing an order to ensure the correct charge appears as "pending."
Use your card's prevention tools. Take advantage of your card's additional security settings. Features like virtual card numbers and account alerts can help ward off fraud, and card lock can help if you find you've been victimized.
Never make a credit card payment over the phone if a company calls you unexpectedly. Scammers attempt to steal your personal information by calling you and posing as a legitimate business. Once you're ready to make a purchase, be sure that you call the company directly.
Many people ask whether taking credit card payments over the phone is safe. The answer is – yes, as long as you follow the correct protocols. The most significant phone payment risks are failing to follow PCI DSS compliance.
Taking card payments over the phone can be a safe process if appropriate measures are in place. The cornerstone of these measures is compliance with the Payment Card Industry Data Security Standard (PCI DSS).
A digital wallet — is even more secure than a chip card because it doesn't use your actual card number for the transaction. As a security measure, your card information is only used in the initial setup of the wallet, helping increase mobile payment protection.
Sharing your CVV and debit card number over the phone is risky, even with legitimate businesses—because there is no way of confirming if the caller representing the company will expose the information provided.
Taking card payments over the phone is as simple as asking for the 16-digit card number and expiration date and popping them into your virtual terminal. But any decent virtual terminal or card machine will request additional security information, adding another layer of safety for you and your customers.
Hold your Android device near the card reader and wait for the checkmark. Pay with your default card or select another. Google Pay will handle the rest. Order free stickers for your business to let customers know you accept Google Pay.
Payments made through mobile wallets, like Apple Pay® and Google Pay™, on smartphones or wearable technologies can benefit from the most fraud protection. Because legacy, contactless, and EMV credit cards can all be linked to NFC-enabled devices, this may be the safest strategy.
This harmful software can steal sensitive data from your devices and share it with hackers. One common type of criminal software — called a keylogger — records everything you type. This includes credit card numbers, passwords, emails, and more, and sends them to the hacker.
Should I share my CVV in person? Never give out your CVV when using your credit or debit card in person. Anyone asking for your CVV during an in-person transaction could be trying to steal your information. It's only safe to give your CVV number over the phone or on a secure site.
It's generally considered safe to give out your account number and sort code, but you should always use common sense and avoid sharing your bank details with people you don't know or expect payments from.
If you ever need to take credit card details remotely, do so through a secure payment gateway. If you're processing a single payment on a manual machine, get the details over the phone and plug them straight in. Don't write them down, and don't ask for them over email.
Card details – card number, card holder name, date of birth and address –- are stolen, often from online databases or through email scams, then sold and used on the internet, or over the phone.
It's generally safe to enter a debit card number and CVV online on reputable and trustworthy websites. However, it's good practice to exercise caution when online shopping — there's always a risk of financial information being compromised.
In general, it is safe to give out your credit card number online or by phone. Never give out your card number if: You have any doubts about the security of the transaction. You did not initiate the transaction.
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