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How to Accept Card Payments Over the Phone in the UK

Everything you need to know about MOTO (Mail Order Telephone Order) payments

Updated: January 2025•8 min read

Taking card payments by telephone is essential for many UK businesses—from hotels accepting bookings to tradespeople taking deposits. This guide explains how to accept phone payments legally, securely, and affordably.

What Are MOTO Payments?

MOTO stands for Mail Order Telephone Order. These are card transactions where the customer is not physically present with their card. Instead of inserting or tapping their card, they provide the details verbally (phone) or in writing (mail/email).

Common Uses for Phone Payments:

  • • Hotel and restaurant reservations
  • • Service deposits (plumbers, electricians, builders)
  • • Subscription renewals
  • • Catalogue orders
  • • Balance payments for orders
  • • Repeat customer orders

Legal Requirements for Phone Payments UK

PCI DSS compliance (secure card data handling)
Record customer consent to charge
Verify customer identity (AVS checks)
Do not store full card numbers
Use secure, encrypted systems
Follow FCA guidelines for vulnerable customers

Important Warning

Never write down full card numbers or CVV codes on paper. Never store card details in unencrypted emails or spreadsheets. Violations can result in fines up to £17.5 million under GDPR and PCI DSS penalties.

How to Take Phone Payments: Step-by-Step

1

Set Up MOTO Payment Facility

Contact your payment provider to enable MOTO transactions. Not all card machines support phone payments—you need a virtual terminal or MOTO-enabled account.

2

Log Into Your Virtual Terminal

Access your secure payment portal via browser. Most providers offer web-based dashboards where you can manually enter card details.

3

Verify Customer Identity

Confirm their name matches the cardholder name. Ask for their billing address to enable Address Verification Service (AVS) checks.

4

Collect Card Details Securely

Ask for: Card number, expiry date, CVV code, cardholder name, and billing postcode. Enter directly into your payment system—never write them down.

5

Process the Payment

Submit the transaction through your virtual terminal. Most process instantly (within 3-5 seconds) with immediate authorization.

6

Send Confirmation

Email or SMS the customer a receipt immediately. Include transaction reference, amount charged, and your contact details for queries.

MOTO Payment Costs

Phone payments typically cost more than in-person transactions due to higher fraud risk. Expect to pay:

Fee TypeTypical Cost
MOTO Transaction Fee1.5-2.5% (higher than card-present)
Virtual Terminal Access£5-15/month
Authorization FeeIncluded or 5-10p per transaction
Chargeback Fee£15-25 (higher for MOTO due to fraud risk)

Best Providers for Phone Payments

Worldpay

MOTO Rate:

1.75-2.25%

Monthly Fee:

£19.99

Industry standard, reliable virtual terminal, 24/7 support

Barclaycard

MOTO Rate:

1.8-2.3%

Monthly Fee:

£25

Bank-backed security, excellent fraud prevention, UK-based support

Elavon

MOTO Rate:

1.6-2.2%

Monthly Fee:

£15

Competitive pricing, simple virtual terminal, good for small volumes

Security Best Practices

Never store CVV codes (illegal under PCI DSS)
Use Address Verification System (AVS) on every transaction
Implement 3D Secure for additional protection
Keep detailed records of verbal consent
Train staff on fraud warning signs
Use only PCI-compliant virtual terminals
Enable transaction velocity limits
Review unusual orders manually before processing

Common Mistakes to Avoid

❌ Writing card numbers on paper

Major PCI DSS violation. Paper can be stolen, seen by unauthorized staff, or disposed of insecurely.

❌ Emailing card details

Email is not secure. Never send or receive card details via email, even encrypted.

❌ Using personal devices

Home computers or personal phones may not meet PCI compliance standards. Use business-grade systems only.

❌ Skipping AVS checks

Address verification dramatically reduces fraud. Always collect and verify billing addresses.

Reducing Fraud Risk

Phone payments carry higher fraud risk than card-present transactions. Protect your business with these strategies:

  • Use AVS matching for every transaction (address and postcode verification)
  • Enable CVV verification (proves customer has physical card)
  • Set transaction limits (e.g., flag purchases over £500 for manual review)
  • Call customers back on their registered phone number for large orders
  • Request email confirmation before dispatching goods
  • Use delivery addresses that match billing addresses when possible

Virtual Terminal vs Payment Gateway

Virtual Terminal

  • Best for: Phone orders, mail orders
  • How it works: Manually type card details into web portal
  • Cost: £10-20/month + per-transaction fees
  • Speed: 30-60 seconds per transaction
  • Example: Taking hotel phone bookings

Payment Gateway

  • Best for: Website payments, automated billing
  • How it works: Customer enters own card details online
  • Cost: Lower rates (1.2-1.8%) due to reduced fraud risk
  • Speed: Instant automated processing
  • Example: E-commerce checkout

Conclusion

Taking card payments by phone is straightforward with the right setup. Prioritize security, follow PCI DSS guidelines, and choose a provider with a user-friendly virtual terminal. While MOTO transactions cost slightly more than card-present payments, the convenience and sales opportunities make them essential for many businesses.

Need MOTO payment facilities? We can compare providers and find you the best rates for phone and mail order transactions. Most businesses save 15-25% on MOTO fees when they switch through us.

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