How to Take Payments by Phone with a Virtual Terminal (UK)
To take payments by phone, log in to a virtual terminal and key in the customer's card details while they read them out. Square's costs 2.5% a payment with no monthly fee, the cheapest way to start if phone orders are occasional. Above about £2,500 a month by phone, a merchant account rate such as Paymentsense's 1.40% + 50p on UK debit cards costs less, even after its monthly charges.
A virtual terminal turns any browser into a card machine. No hardware, no integration. Here is who offers one, what it costs at £5,000 a month and why the rates run higher than in-person payments.
Compare Phone Payment ProvidersHow to take a card payment over the phone, step by step
- Switch on phone payments. On Square the virtual terminal is in the dashboard from day one; SumUp grants it after a separate application and approval; merchant account providers add it to your account.
- Open the virtual terminal in a browser while the customer is on the line, and enter the amount and a short description of the order.
- Type the card details straight in: long card number, expiry date, the three-digit security code and the billing postcode and house number. Do not write them down first.
- Check the AVS and CVV results before you confirm the order. A postcode or security code mismatch is the moment to stop and ask again.
- Charge, then send the receipt by email so the customer has a record that matches their statement.
- Keep the evidence: call date and time, what was ordered, and the check results. If the payment is disputed later, this is your defence (see our chargebacks guide).
Searching for how to take payments on your phone instead, with the phone as the card reader? That is Tap to Pay, an in-person payment priced at the normal rate; our portable card machines guide covers it.
What a Virtual Terminal Is
A virtual terminal is a secure page inside your payment provider's dashboard where you type card details in manually: card number, expiry, CVV, and usually the billing postcode. The customer never touches a machine. You log in, key the payment, and the money settles into your account the same way an in-person transaction would.
Card schemes call these MOTO transactions, short for mail order, telephone order. They sit in a different risk category from chip and PIN or contactless because the card is not physically present, and that single fact drives almost everything about how virtual terminals are priced and secured.
For a step-by-step walkthrough of taking a phone payment compliantly, see our guide to taking card payments by phone in the UK.
What phone payments cost at £5,000 a month
The house example: a business taking £5,000 a month by phone, as 50 payments of £100 (a B&B taking deposits, or a trade supplier taking account orders).
| Provider | Sum | Per month |
|---|---|---|
| Square virtual terminal | 2.5% × £5,000 | £125.00 |
| SumUp virtual terminal | 2.95% × £5,000 = £147.50, plus 50 × 25p = £12.50 | £160.00 |
| Paymentsense, all UK debit cards | 1.40% × £5,000 = £70.00, plus 50 × 50p = £25.00 | £95.00 + monthly charges |
| Paymentsense, all UK credit cards | 1.90% × £5,000 | £95.00 + monthly charges |
| Same £5,000 in person on Square | 1.75% × £5,000 | £87.50 |
Taking the money by phone instead of in person costs this business £37.50 a month more on Square. Paymentsense's rate is lower, but its account carries monthly charges Square does not: a PCI service fee of £4.95 + VAT, a minimum monthly service charge of £24.95 (the minimum you pay each month in transaction charges; it does not apply once your transaction charges are higher) and a gateway from £9.95 a month or £99.45 a year (online payments; higher charges may apply depending on card turnover). Add those before you compare.
The verdict at this volume: on all-debit phone takings, Paymentsense costs £95.00 + £4.95 PCI + £9.95 gateway = £109.90 (ex VAT on the fixed fees) against £125.00 on Square, a £15.10 a month saving. The break-even is about £2,500 a month by phone. At £500 a month, Square costs £12.50 while Paymentsense's minimum monthly service charge alone is £24.95, so a small phone business should stay on Square and not switch.
Who Actually Needs One
Hotels & B&Bs
Booking deposits and no-show charges taken at reservation, not check-in
Tradespeople
Job deposits from customers before you buy materials or book the work in
Restaurants
Large-party deposits and pre-orders taken over the phone
Professional services
Solicitors, accountants and consultants invoicing clients who prefer to pay by phone
Wholesale & trade suppliers
Repeat telephone orders from account customers
Clinics & practices
Treatment deposits and outstanding balances settled without a visit
Why Phone Payments Cost More Than In-Person
Every provider charges more for keyed card-not-present payments than for tap or chip and PIN. Square's published UK rate is 1.75% in person but 2.5% through its virtual terminal. SumUp charges 1.69% in person and 2.95% + 25p by phone. That pattern holds across the market.
The reason is structural rather than opportunistic. When the card is not present, the fraud risk is higher, the chargeback rate is higher, and the interchange fee the card schemes set for the transaction is higher. The provider passes that risk premium on. We explain how interchange drives the underlying cost of every card payment in our guide to UK interchange fees.
The practical takeaway: if most of your takings are face to face and phone orders are occasional, judge providers on their in-person rate and treat the virtual terminal as an add-on. If phone orders are your core business, the MOTO rate is the number to negotiate on.
Which UK Providers Offer a Virtual Terminal
Verified against each provider's own published pricing or documentation, on the date shown in each row.
| Provider | Virtual terminal | Published pricing | Monthly fee | Source |
|---|---|---|---|---|
| Square | Yes: Square Virtual Terminal | 2.5% per keyed transaction | £0 | squareup.com/gb/en/pricing, checked 1 November 2026 |
| SumUp | Yes, after a separate application and approval | 2.95% + 25p per transaction | £0 | sumup.com, checked August 2026 |
| Paymentsense | Yes: phone payments on the standard rate card | UK debit 1.40% + 50p, credit 1.90%, business cards 2.49% | Gateway from £9.95 a month or £99.45 a year (online payments; higher charges may apply depending on card turnover) | paymentsense.com/uk/pricing, checked 1 November 2026 |
| myPOS | Yes: MOTO payments | online payment fee + 0.5% (online UK consumer cards 1.30% + £0.15) | £0 | mypos.com/en-gb pricing, checked 1 November 2026 |
| Dojo | Yes: virtual terminal with AVS checks | Follows your Dojo account pricing (1.2% all-in blended rate under £100k a year, custom quote above) | Not published separately | dojo.tech, checked November 2026 |
| Worldpay | Yes, including as a standalone plan | Transaction rate quoted per business | from £9.95/month | worldpay.com, checked August 2026 |
| Lloyds Cardnet | Yes, with payment links by email, SMS or WhatsApp | 1.75% pay as you go, £49 one-off joining fee | Not published | lloydsbank.com, checked August 2026 |
| Barclaycard Payments | Yes: virtual terminal in the ePDQ back office, up to 5 users | Extra cost, quoted per business | Not published | support.epdq.co.uk, checked August 2026 |
| Tyl by NatWest | Yes: browser based, with payment links and pre-authorisations | Quoted per business | Not published | tylbynatwest.com, checked August 2026 |
| Elavon | Yes: Converge virtual terminal with MOTO fraud rules | Quoted per business | Not published | elavon.co.uk, checked August 2026 |
| Zettle by PayPal | No: the reader and app take in-person payments only | Not applicable | Not applicable | zettle.com/gb, checked August 2026 |
Rates checked: 27 August 2026 (Square, Paymentsense and myPOS re-read 1 November 2026; Dojo pricing November 2026). Where a provider prices bespoke or has not published a rate, confirm current pricing directly or through a quote. Paymentsense and Dojo are both trading names of Paymentsense Limited.
Security: SCA, AVS and What You Must Never Do
How MOTO fits the rules
MOTO transactions sit outside Strong Customer Authentication (SCA), which is why the customer does not approve them in a banking app. That exemption is also why they carry more risk: providers lean on AVS postcode matching and CVV checks instead. Use both on every transaction; they materially cut fraud and chargebacks.
Handling card details
Type card details straight into the virtual terminal while the customer is on the line. Never write them down, never accept them by email or text, and never store them in a spreadsheet. PCI DSS puts the compliance burden on you the moment card data touches anything outside the provider's system.
Choosing the Right Route
Occasional phone payments, mostly in person
Square is the simplest add-on: the virtual terminal is included with no monthly fee, and you only pay the 2.5% keyed rate when you use it.
Phone-only, no card machine at all
Worldpay sells its virtual terminal standalone from £9.95 a month, and Square needs no hardware either. You do not have to buy a reader you will never use.
Regular phone volume alongside a busy counter
A merchant account provider such as Dojo, Paymentsense, Elavon, Lloyds Cardnet or Tyl sets up the virtual terminal alongside negotiated in-person rates, so both channels are priced to your turnover rather than at flat PAYG rates.
Already taking phone and card payments? Send us a statement for a free statement review and we will show you what your phone payments cost against the rates above. To read the statement yourself, use our merchant statement guide, or see the Paymentsense review for its full fee list.
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Virtual Terminal FAQs
How do I take payments by phone?▼
Open a virtual terminal in your payment provider's dashboard, type in the card number, expiry date, security code and billing postcode while the customer reads them out, and press charge. The customer gets a receipt by email. Square's virtual terminal costs 2.5% a payment with no monthly fee, so it is the cheapest way to start if phone orders are occasional.
What is a virtual terminal?▼
A virtual terminal is a secure web page where you type in a customer's card details yourself, usually while they read them out over the phone. It turns any browser on a laptop, tablet or phone into a card machine, with no hardware needed. It is the standard way UK businesses take MOTO (mail order, telephone order) payments.
How much does it cost to take card payments over the phone?▼
On £5,000 a month taken by phone: Square 2.5% × £5,000 = £125.00; SumUp 2.95% + 25p on 50 payments = £160.00; Paymentsense on UK debit cards 1.40% + 50p = £95.00 before its monthly charges. The same £5,000 in person on Square costs £87.50.
Why do virtual terminal payments cost more than in-person payments?▼
Because the card is not present, the transaction carries more fraud risk and higher interchange, so providers price it higher. Square charges 1.75% in person but 2.5% for keyed virtual terminal payments; SumUp charges 1.69% in person but 2.95% + 25p through its virtual terminal. The gap reflects card scheme risk pricing, not provider margin alone.
How do I take a payment over the phone on my card machine?▼
Most pay-as-you-go readers cannot: Square, SumUp and Zettle readers only take a card that is physically there. Some merchant account providers can switch on keyed (MOTO) entry on a countertop terminal, but it has to be enabled on your account first and is priced as a card-not-present payment. For most businesses a browser virtual terminal is the simpler route, and it works alongside the card machine you already have.
Can I take payments over the phone without a card machine?▼
Yes. Worldpay sells its virtual terminal as a standalone plan from £9.95/month, and Square's virtual terminal has a £0 monthly fee, so you can take phone payments without ever buying a reader. Acquirers such as Dojo set up the virtual terminal alongside your merchant account.
Is a payment link cheaper than a virtual terminal?▼
Often, yes. With a payment link the customer types their own card details and can complete Strong Customer Authentication, so it is priced as an online payment: Square charges 1.4% + 25p for UK cards online against 2.5% keyed. On a £100 order that is £1.65 against £2.50. Use the virtual terminal when the customer is on the line and wants it done now.
Which UK providers offer a virtual terminal?▼
As of our checks, Square, SumUp, Paymentsense, myPOS, Dojo, Worldpay, Lloyds Cardnet, Barclaycard Payments, Tyl by NatWest, Elavon all publish virtual terminal or phone payment products for UK businesses. Zettle does not: its reader and app are in-person only.
Do phone payments need Strong Customer Authentication (SCA)?▼
MOTO transactions are out of scope for SCA under UK payment regulations, which is partly why they carry higher fraud risk and higher fees. Providers compensate with checks such as AVS (address verification) and CVV matching. You should never write card details down or store them; type them straight into the terminal and let the provider handle the data.
Can a customer reverse a phone payment?▼
Yes, through a chargeback, and a keyed payment is harder to defend than a chip and PIN one because there is no proof the card was present. Keep the call date, the AVS and CVV results and a written order confirmation for every phone sale.
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