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Accepting payment over the phone

Discussion in 'Making Money' started by Pixel Pirate, Mar 1, 2013.

  1. Pixel Pirate

    Pixel Pirate Junior Member

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    I'm starting a company which will preferably be accepting payments over the phone. Merchants don't like it when the card is not physically present because there's more of a risk, therefore getting approved for virtual terminals so you can charge in this manner is less likely. However, online self-serve checkout options such as paypal, 2co, etc are very common.

    That said, what's to stop me from using the online self serve checkout with the customer's information that was provided to me over the phone? In other words: I will take the customers financial information over the phone, then follow the paypal/2co checkout process as if I were the actual customer.

    Obviously they can see that all transactions are coming from the same IP but would this be an immediate red flag? What if customers were coming to my place of business and filling out their information on my computer?
     
  2. We Go

    We Go Junior Member

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    You should either read the TOS for PP, or, call their support for real answers. And have them send you an email confirmation if they say you can do it, for your own protection.
     
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  3. Pixel Pirate

    Pixel Pirate Junior Member

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    This is good advice. I wouldn't be surprised if merchants have a problem with it. I guess I'm looking for people who have experience operating this way.
     
  4. ExCluSiveG

    ExCluSiveG Junior Member

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    Not possible. You are opening yourself up to all sorts of legal hassles here.

    One thing is that you can never be sure that they are actually placing the order with their own details. Even if they have all the details. So when the rightful owner notices it and complains, you'll be the one who'll be in trouble.

    This is the biggest reason why I would never do that amongst other reasons. I would ALWAYS let the customer do it themselves.

    Having that said, there's nothing against letting customers do it while you are on the phone so you can instantly verify the payment and then send the product. That IS a way of doing it and there's no merchant who will have something against it.

    There are also more complicated and expensive ways to do this. But I can't look inside your wallet and don't assume you'll have the tens of thousands to spend on investment for that.

    Hope this helps.
     
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  5. twistedtrick

    twistedtrick Power Member

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    I recommend signing up for Quickbooks Merchant Services. I have used them for over a year now and am extremely happy, and at $20/mo (not 100% sure on that price but it's something like that) I am amazed at the quality of service and support.

    *We take customer payments over the phone all the time with this service and it works very well.
     
  6. Pixel Pirate

    Pixel Pirate Junior Member

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    Thanks for the advice. If others are curious, here is 2cos policy on this:

     
  7. Pixel Pirate

    Pixel Pirate Junior Member

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    This looks brilliant actually. The only reason I don't do the virtual terminal with paypal is because they are notorious for screwing people over, holding funds, etc. I wonder how ituit is in these aspects?