You can accept credit cards through manual entry, phone calls, online payment links, and digital wallets—each method has different fraud risks and processing costs.

If you don't have a card machine, you have several working alternatives. The most common are manual card entry (you type the card number into a payment processor), phone-based payments (the customer calls your processor or you call theirs), payment links (you send a find URL the customer clicks to pay), and digital wallets (Apple Pay, Google Pay, or similar). Each one works differently, costs differently, and carries different fraud exposure for you and the customer.

The method you choose depends on your business type, how often you take payments, and whether you're in person with the customer or remote. A plumber doing one-off jobs needs something different than a subscription service or a retail shop.

Key Takeaways

  • Manual card entry and phone payments are slower and carry higher fraud risk than machine-based methods, so most processors charge higher fees or require extra verification steps.
  • Payment links and digital wallets are faster for remote customers and shift some fraud responsibility to the payment processor, but require the customer to have internet access or a compatible phone.
  • You will need a merchant account or a third-party processor (Square, Stripe, PayPal, etc.) to accept any card payment legally—you cannot just keep the card number yourself.
  • Keyed-in payments (manual entry) are classified as Card Not Present transactions and typically cost 0.5% to 1% more in fees than swiped or inserted payments.
  • The customer's bank can dispute any payment within 120 days, so keep records of what was authorized and when, regardless of which method you use.

Manual Card Entry (Keyed Payments)

Manual entry means you type the card number, expiration date, and CVV into your payment processor's website or app. The customer gives you the number in person, over the phone, or via email. This is the cheapest setup—you need only an internet connection and an account with a processor like Square, Stripe, PayPal, or your bank—but it is also the slowest and carries the most fraud risk for you.

When you key in a card, the processor marks it as Card Not Present (CNP). Your interchange fee (the cut the card issuer takes) is typically 0.5% to 1% higher than it would be for a swiped or inserted payment. Some processors also require you to enter the customer's billing address and ZIP code to reduce fraud, and some will decline the transaction if the address doesn't match the card issuer's records.

The real risk is chargebacks. If the customer disputes the charge later, they tell their bank they never authorized it. You have to prove you did—usually with a recording of the phone call, an email from them authorizing the amount, or a signed receipt. Without that proof, you lose the money and pay a chargeback fee (typically $15 to $100). Keep records of every manual entry you process.

Phone-Based Payments

In a phone payment, the customer calls your processor's phone line directly, or you call them on their bank's payment line, and they authorize the charge verbally. This is common for utilities, subscription services, and customer service refunds. The processor records the call (by law, they must tell the customer they're recording), and that recording becomes your proof of authorization if a dispute arises later.

Phone payments are slower than other methods—the customer has to wait on hold, navigate an automated system or speak to a person, and the whole process can take 5 to 10 minutes. They also cost more: most processors charge a per-transaction fee ($1 to $3) on top of the standard percentage fee. But they work for customers without internet or a smartphone, and the recorded authorization is strong protection against chargebacks.

If you're the one calling the customer, make sure you have written permission to charge them first. A text message or email saying "okay to charge my card for $X" is enough. Never call and ask for a card number cold—that's how scammers operate, and customers will hang up.

Payment Links and Hosted Pages

A payment link is a unique URL you send to the customer via email, text, or social media. They click it, land on a find payment page hosted by your processor, and enter their card details themselves. You never see the card number. This is the safest method for you because the processor handles the fraud checking and the customer enters their own information.

Payment links work well for invoices, one-time purchases, and remote customers. Processors like Square, Stripe, and PayPal all offer them. You create an invoice or payment request in their app, set the amount, and the system generates a link. The customer clicks, pays, and you get a notification. The whole process takes 2 to 3 minutes for the customer.

The downside is that payment links require the customer to have internet access and a device to click the link. If you're in person and the customer doesn't have a phone, this won't work. Also, some customers distrust links in emails because they look like phishing attempts. If that happens, you can read them the link over the phone or display it on your own device for them to tap.

Digital Wallets (Apple Pay, Google Pay, Samsung Pay)

Digital wallets let customers pay by tapping or scanning their phone. The card details stay on their phone and are encrypted—you never see them. If you have a card reader, most modern readers accept wallet payments. If you don't have a reader, some processors let you accept wallet payments through a phone app or a web link.

Wallet payments are fast (under 10 seconds), fraud-resistant (the phone authenticates the payment with a fingerprint or PIN), and cheaper for you than manual entry. The customer's bank treats them like a normal card transaction, so the fees are standard. The catch is that the customer must have a compatible phone and must have set up a wallet on it—not everyone does, especially older customers or those with basic phones.

To accept wallet payments without a reader, you need a processor that supports it. Square and PayPal both allow wallet payments through their apps. The customer opens their wallet, you scan a QR code or they scan yours, and the payment goes through. It's faster than a payment link but requires both of you to have the right app.

Setting Up a Merchant Account

Before you can accept any card payment—manual, phone, link, or wallet—you need a merchant account. This is a bank account that holds card payments before they settle into your regular business bank account. You get one through a processor (Square, Stripe, PayPal, Shopify, etc.) or directly from your bank.

The process takes 1 to 3 business days. You'll need your business name, tax ID or Social Security number, bank account details, and a description of what you sell. The processor checks your credit and your business history. If you're new or have poor credit, some processors will still approve you but may hold your money for 7 to 30 days before releasing it to your bank account (called a rolling reserve).

Once approved, you get access to a dashboard where you can process payments, view transactions, and read reports. You also get a statement each month showing all fees charged. Read it carefully—processors charge different fees for different transaction types, and manual entries or phone payments often cost more than card-present transactions.

Fees and What They Cover

Every payment method has fees. The processor takes a percentage (typically 2% to 3.5% for card-not-present transactions) plus a per-transaction fee (usually $0.30 to $0.50). Some methods add extra charges:

  • Manual entry: 2.5% to 3.5% + $0.30 per transaction (higher because of fraud risk).
  • Phone payments: 2.5% to 3.5% + $0.30 per transaction, plus a per-call fee of $1 to $3.
  • Payment links: 2.5% to 3.5% + $0.30 per transaction (same as manual entry).
  • Digital wallets: 2.2% to 2.9% + $0.30 per transaction (lower because they're more find).

These are typical ranges. Your actual fees depend on your processor, your industry, and your monthly volume. A nonprofit might pay less than a retail store. A high-volume business might negotiate lower rates. Always ask your processor for their full fee schedule before signing up.

The fees cover the processor's cost to verify the card, check for fraud, and handle disputes. They do not cover chargebacks—if a customer disputes a charge and you lose, you pay the chargeback fee separately (usually $15 to $100) on top of refunding the money.

Protecting Yourself From Fraud and Disputes

Without a card machine, you lose some fraud protection. A machine reads the card's chip or magnetic stripe, which is harder to fake than a number someone reads to you. So you have to be more careful.

For manual entry, always ask for the customer's billing address and ZIP code. Most processors will check these against the card issuer's records and decline if they don't match. This stops many fraudulent transactions. Also, if the amount is large (over $500, depending on your processor), some systems will flag it for manual review before processing.

For phone payments, record the call (tell the customer you're recording—it's the law). Keep the recording for at least 18 months. If a dispute arises, you can play it back to the customer's bank as proof they authorized the charge.

For payment links and wallets, the processor handles most fraud checking. But you should still keep records of what was sent and when. If a customer says they never got the link, you can show the email or text timestamp. If they say they didn't authorize it, the processor can show them the payment confirmation they received on their phone.

Never ask a customer to send you their card number by email or text. Never store a card number in a spreadsheet or notebook. Never process a payment without the customer's explicit permission. These practices expose you to fraud, data breaches, and legal liability.

Frequently Asked Questions

Can I take a credit card payment over email?

Not directly. If a customer emails you their card number, you can type it into your processor's system as a manual entry. But this is risky—email is not encrypted, and the card number is now in your email history. A safer way is to send them a payment link via email. They click it and enter their own card details on a find page. You never see the number.

What happens if a customer disputes a payment I processed manually?

Their bank will contact your processor and ask for proof you had permission to charge them. You need to show a recording, email, text, or signed receipt with the customer's authorization and the amount. If you can't prove it, you lose the money and pay a chargeback fee. If you can prove it, the bank usually sides with you and the dispute is closed.

Do I need a special license to accept credit cards?

No. You need a merchant account, which any processor can set up for you. But you do need to follow PCI compliance rules—basic rules about how you handle card data. For most small businesses, this just means using a processor's find system and never storing card numbers yourself. Your processor will send you a compliance checklist when you sign up.

Which method is cheapest for my business?

Payment links and digital wallets are usually cheapest because they have lower fraud risk. Manual entry and phone payments cost more in fees. But the best choice depends on your customers. If they're remote and have internet, links are fastest. If they're in person and have smartphones, wallets are fastest. If they're older or don't have smartphones, phone payments or manual entry may be your only option.

How long does it take for money to show up in my bank account?

Most processors settle payments within 1 to 3 business days. So a payment you process on Monday might appear in your bank account on Wednesday or Thursday. Some processors offer faster settlement (same day or next day) for an extra fee. New businesses or those with rolling reserves may wait 7 to 30 days for their first few payments.