How to Take Card Payments by Phone
Rasika Lakshan ·
Last updated:
This is general information, not legal or tax advice.
Who this is for: Service businesses, wholesalers and shops that take phone or mail orders and need to key cards in without a card reader.
In short: A virtual terminal is a web page you log in to, on a computer, tablet or phone, to key in a customer's card. Keyed-in payments cost more than card-present ones: Stripe adds 0.5% to 2.9% + 30¢, Square lists 3.5% + 15¢, and PayPal lists 3.39% + a fixed fee for Virtual Terminal plus a monthly fee. The PCI Council advises not attaching an external card reader to a virtual terminal.
When a customer calls in an order, you need a way to enter their card without a reader. That is usually a virtual terminal. This guide covers what the pages we read say, on 2026-10-16, and the security advice from the PCI Security Standards Council. Rates and features change, so confirm with your provider. This is general information, not financial advice.
What a virtual terminal is
The PCI Council’s Guide to Safe Payments describes a virtual terminal as a web page you access with a computer or tablet, used to enter customer payments. Clover’s FAQ describes its Virtual Terminal as giving you the convenience of processing payments and refunds by logging in to your Clover web dashboard from a smartphone, tablet or computer, and says you can subscribe to Clover without a device. The PCI Guide lists phone, mail and fax as one of the three main ways a customer can give you card details.
What providers charge for keyed-in cards
| Provider | Published rate for keyed-in or virtual terminal payments |
|---|---|
| Stripe | 2.9% + 30¢ for domestic cards, plus 0.5% for manually entered cards |
| Square | Manual entry or card on file: 3.5% + 15¢ (on Free, Plus and Premium) |
| PayPal | Virtual Terminal: 3.39% + a fixed fee (US dollar fixed fee $0.49). The monthly fees table lists a $29.95 set-up fee and $19.95 per month for Virtual Terminal |
| Clover | Says its rates come in pairs, with a slightly higher typed-in rate for card-not-present transactions such as phone orders |
On a $200 phone order: Stripe keyed in costs 3.4% of $200 = $6.80 plus $0.30 = $7.10; Square costs 3.5% of $200 = $7.00 plus $0.15 = $7.15; PayPal’s Virtual Terminal costs 3.39% of $200 = $6.78 plus $0.49 = $7.27, before its monthly fee. Arithmetic from published rates, not quotes. A payment link or invoice that the customer completes themselves uses the online rate instead; see online invoices and payment links.
Security advice from the PCI Council
For virtual terminals, the Guide to Safe Payments says to minimize risk by not attaching an external card reader to it. More generally it advises not using the device or system you take payments with for anything else (such as web browsing, email or social media), using a separate network from the Wi-Fi offered to customers, using a properly configured firewall, and choosing a PCI DSS validated provider. See PCI compliance for small business.
Reducing disputes on phone orders
Visa’s merchant guidelines say to always request authorization for mail order, telephone order, internet and recurring transactions, regardless of the dollar amount, to consider tools like Visa Secure, CVV2 and the Address Verification Service for card-absent sales, and to correctly identify card-present and card-absent transactions. Among the compelling evidence Visa lists for mail or phone orders is a signed order form. See how to prevent chargebacks.
What we did not verify
We did not verify the monthly fee or setup requirements for Stripe’s or Square’s virtual terminals, the exact keyed-in rate for Clover, whether a fixed fee applies per call or per payment, or availability by plan or country. We did not test any virtual terminal. Ask your provider for the full cost before you rely on one.
Frequently asked questions
What is a virtual terminal?
The PCI Council's Guide to Safe Payments calls it a web page you access with a computer or tablet to enter customer payments. Clover describes its Virtual Terminal as processing payments and refunds by logging in to a web dashboard from a smartphone, tablet or computer, with no device required.
What does it cost?
On the pages we read on 2026-10-16: Stripe lists 2.9% + 30¢ for domestic cards plus 0.5% for manually entered cards; Square lists manual entry or card on file at 3.5% + 15¢; PayPal lists Virtual Terminal at 3.39% + a fixed fee and, in its monthly fees table, a $29.95 set-up fee and $19.95 a month; Clover says its keyed-in rate is higher than its in-person rate.
Why is keyed-in more expensive?
Providers charge more when the card is not physically present; Clover describes a slightly higher typed-in fee for card-not-present transactions such as phone orders.
Is it secure?
The PCI Council advises that if you enter payments through a virtual terminal you minimize risk by not attaching an external card reader to it, not using the payment device for other things like email or browsing, and keeping payment systems off the Wi-Fi offered to customers.
What does Visa advise for phone orders?
Visa's guidelines say to always request authorization for mail order, telephone order, internet and recurring transactions regardless of amount, to consider tools such as CVV2 and AVS for card-absent sales, and to correctly identify card-present and card-absent transactions.
Do I need a virtual terminal if I invoice?
Not necessarily. A payment link or invoice lets the customer enter their own card details, which avoids keying them in. See our guide to invoices and payment links.
Keep reading
Sources
- PCI SSC: Guide to Safe Payments (Version 3.0, April 2024) (checked 2026-10-16)
- Clover: Pricing and FAQs (checked 2026-10-16)
- Stripe: Pricing (checked 2026-10-16)
- Square: Pricing (checked 2026-10-16)
- PayPal: Business fees (US) (checked 2026-10-16)
- Visa: Dispute Management Guidelines for Visa Merchants (June 2024) (checked 2026-10-16)