Can Stores Manually Enter Credit Cards?

Manually entering credit card information involves a merchant typing card details into a payment system instead of using a physical card reader. This process allows for payment processing even when traditional card-reading equipment cannot be used.

How Stores Manually Enter Credit Cards

Stores use several methods to manually enter credit card information. A common approach involves directly keying details into a physical point-of-sale (POS) terminal. A cashier enters the card number, expiration date, and security code (CVV/CVC) using the terminal’s keypad. This method is typically used when a physical card is present but cannot be read by the terminal.

Another method uses virtual terminals, which are software applications, often web-based. A store employee logs into a secure online portal and manually inputs the customer’s credit card details. This system transforms a computer, tablet, or smartphone into a payment terminal, enabling transactions from almost any internet-connected device. Virtual terminals are useful for businesses that process payments remotely or do not have a physical storefront.

Mail Order/Telephone Order (MOTO) processing is a specific application of manual entry for card-not-present transactions. In MOTO scenarios, customers provide their card details over the phone or through mail. The merchant then manually enters this information into a dedicated MOTO payment gateway or a virtual terminal. This allows businesses like call centers or those taking orders via mail to complete sales without the customer or card being physically present.

Security Implications of Manual Entry

Manual credit card entry introduces different security considerations compared to transactions processed via chip or contactless methods. When card data is manually keyed, it bypasses the real-time encryption and authentication features inherent in EMV chip technology. Chip transactions generate a unique, one-time cryptogram for each purchase. Manual entry lacks this dynamic data, making the transaction less secure.

The increased potential for human error is a significant concern with manual entry. Employees might transpose numbers, leading to data entry mistakes or failed payments. Manually handling and inputting sensitive card details can also create opportunities for data compromise if not managed carefully.

From a compliance perspective, manual entry impacts how merchants adhere to data security standards, such as the Payment Card Industry Data Security Standard (PCI DSS). While merchants must remain PCI compliant, manually entered transactions generally carry a higher risk profile for card networks and processors. This increased risk often leads to higher processing fees for merchants, as these transactions are considered “card-not-present.” The liability for fraudulent transactions can also shift back to the merchant in manual entry scenarios.

Situations Prompting Manual Entry

Manual credit card entry becomes necessary for merchants in several common scenarios. One frequent situation involves a damaged or unreadable card where the chip or magnetic stripe fails to process. If a customer’s card is faulty, manually keying in the details allows the transaction to be completed. This ensures customer convenience.

Malfunctioning Point-of-Sale (POS) terminals or card readers also prompt manual entry. If the equipment experiences technical issues, a merchant can type the card information directly into the system. This serves as a backup solution to maintain business operations and customer service during equipment downtime.

Remote sales, such as phone orders and mail orders, are primary instances where manual entry is consistently used. In these card-not-present transactions, the customer provides their card details remotely, making physical card interaction impossible. Businesses like restaurants taking takeout orders or travel agencies processing payments rely on manual entry through virtual terminals or MOTO systems.

Safeguarding Your Card Information

Consumers can take several steps to protect their credit card information when transactions involve manual entry. Verify the legitimacy of the merchant, especially when providing card details over the phone or via mail. Be cautious with unsolicited requests for payment details.

Regularly monitor your bank and credit card statements for unauthorized activity. Reviewing transactions promptly allows for early detection of any suspicious charges. If an unrecognized transaction appears, contact your credit card issuer immediately to dispute the charge. Many card issuers offer fraud alerts that can notify you of unusual account activity.

Understanding your chargeback rights provides a safety net for manually entered transactions. The Fair Credit Billing Act (FCBA) offers protections against fraudulent charges, generally limiting your liability for unauthorized use of your credit card to $50. Should a dispute arise from a manually entered transaction, you have the right to challenge the charge with your credit card company. Merchants are responsible for chargebacks on manually keyed transactions if fraud is proven.