How to Take Card Payments by Phone with Virtual Terminals

Card payments over the phone remain a vital part of doing business in the UK. Whether you run a small service-based business, a call centre, or simply need the flexibility of accepting payments without a card machine present, virtual terminals provide an easy and secure solution.

In this guide, we'll explore exactly what virtual terminals are, how they work, and how to take card payments by phone step by step. We'll also cover security, compliance, and common FAQs so you can confidently start accepting payments from your customers.

What Is a Virtual Terminal?

A virtual terminal is an online payment system that allows businesses to process card payments without the customer being physically present. Instead of swiping, tapping, or inserting a card into a machine, you log into a secure web portal and enter the customer's details manually.

This makes it possible to take payments:

Over the phone
By email order
For remote customers

Essentially, the virtual terminal acts as a digital card machine that you can access from any internet-connected device such as a laptop, tablet, or even smartphone.

Why Use a Virtual Terminal for Phone Payments?

There are several reasons businesses rely on virtual terminals:

Flexibility: Take payments anywhere with internet access.
No hardware costs: No need to invest in a card reader or POS system.
Fast setup: Most providers let you start accepting payments in hours.
Professional image: Customers expect to be able to pay by card easily.
Security: Reputable providers are PCI DSS compliant, protecting cardholder data.

How Do Virtual Terminals Work?

The process is straightforward:

Customer calls to make a payment.
You log into your virtual terminal via a secure website.
You enter the customer's card number, expiry date, CVV code, and billing address.
The payment is processed instantly, with approval or decline displayed.
Customer receives confirmation via email or SMS.

Funds are typically settled into your business bank account within 1–3 working days.

How to Take Card Payments by Phone Step by Step

Here's how you can start taking card payments by phone using a virtual terminal.

Step 1: Choose a Virtual Terminal Provider

Look for a trusted payment processor in the UK that offers virtual terminal services. Popular choices include Stripe, Square, Worldpay, and PayPal. Compare:

Transaction fees
Monthly subscription costs
Security compliance
Customer support availability

You'll need to provide business information, proof of identity, and a linked bank account. This ensures payments can be deposited securely.

Step 3: Access Your Virtual Terminal

Once approved, you'll be given login credentials to access your virtual terminal dashboard from any device.

Step 4: Collect Payment Details

When a customer calls, request their:

Card number
Expiry date
CVV (security code)
Billing address
Payment amount

Always explain why you're asking for each detail and reassure them it's secure.

Step 5: Enter and Confirm Payment

Input details into the terminal, confirm the amount, and submit. If successful, provide the customer with a confirmation reference.

Step 6: Send Receipt

Email or SMS a digital receipt for transparency and professionalism.

Are Virtual Terminals Safe for Phone Payments?

Yes - when you use a PCI DSS compliant provider. PCI DSS (Payment Card Industry Data Security Standard) ensures strict protection of cardholder data. Key security measures include:

Encrypted connections (HTTPS)
Tokenisation to replace sensitive card details with unique identifiers
Fraud detection and monitoring tools

Tip: Never write down card details. Enter them directly into the virtual terminal during the call.

What Devices Can Be Used to Take Payments by Phone?

One of the biggest advantages of virtual terminals is device flexibility. Here's how they work across different platforms:

Taking Payments via Android Devices

Open your provider's web portal in Chrome or their app if available.
Log in securely.
Enter the card details during the customer call.
Confirm and send receipt.

Taking Payments via iOS (iPhone or iPad)

Access Safari (or the provider's app).
Use Face ID/Touch ID for secure login if supported.
Enter payment details.
Generate and send a digital receipt.

Taking Payments via Desktop or Laptop (Windows/Mac)

Log into the provider's online dashboard.
Use a secure internet connection, ideally not public Wi-Fi.
Enter payment details and complete the transaction.

Taking Payments via WhatsApp Web Calls

If you take customer enquiries through WhatsApp Business, you can process their payments while on a web call. Keep your virtual terminal tab open and input details as they provide them.

What Types of Businesses Benefit Most from Virtual Terminals?

Virtual terminals are ideal for:

Tradespeople and service providers (plumbers, electricians, cleaners) taking bookings over the phone.
Call centres processing multiple payments daily.
Professional services (solicitors, accountants) needing remote payment options.
Hospitality and events businesses accepting deposits.
E-commerce retailers handling phone orders for customers who prefer not to shop online.

What Are the Costs of Using a Virtual Terminal?

Costs vary by provider, but you should expect:

Transaction fee: 1.4% – 3.5% per transaction.
Monthly fee: Some providers charge £10–£25 per month, others offer pay-as-you-go.
Chargeback fees: If a customer disputes a payment, fees may apply.

Always read the fine print before signing up.

Is Taking Card Payments by Phone Legal in the UK?

Yes. It is fully legal to take card payments by phone using a PCI-compliant virtual terminal. What you must ensure is:

Customers give informed consent.
You do not record or store sensitive card data.
Your payment provider meets compliance standards.

What Are the Alternatives to Virtual Terminals?

If you don't want to rely solely on a virtual terminal, alternatives include:

Card readers (POS terminals): For face-to-face transactions.
Payment links: Send secure payment requests by SMS or email.
Direct bank transfers: Slower but sometimes fee-free.
Mobile payment apps: Apple Pay, Google Pay, and PayPal.

However, for true phone-based flexibility, virtual terminals remain the best choice.

FAQ's About Taking Card Payments by Phone

Can I Use My Mobile to Take Payments Without a Card Reader?

Yes. With a virtual terminal, your mobile becomes the payment gateway. Simply log into the provider's secure portal.

Do Customers Need an App?

No. Customers only need their card details. The payment is processed entirely on your side.

How Long Do Payments Take to Reach My Account?

Typically 1–3 working days, depending on the provider.

What Happens If a Payment Is Declined?

The virtual terminal will notify you instantly. Ask the customer to check their card details or try another card.

Can I Accept International Cards?

Most providers allow Visa and Mastercard worldwide. Some also accept American Express.

Best Practices for Phone Payments

Reassure customers by explaining you're using a secure system.
Never record card details in writing or audio.
Verify billing address to reduce fraud.
Offer receipts by email or SMS.
Train staff to handle sensitive information properly.

Why Virtual Terminals Are the Future of Phone Payments

Virtual terminals provide UK businesses with a secure, flexible, and cost-effective way to take card payments by phone. With no hardware costs, quick setup, and multi-device compatibility, they're the perfect solution for modern businesses that value customer convenience.

If you're looking for a professional way to handle payments alongside your WhatsApp Business communications, gosimless can provide you with a UK virtual mobile number to keep your business and personal life separate while you manage payments and customer service seamlessly.