What Types of Stores Manually Enter Credit Cards?

Manual credit card entry refers to the process where a merchant physically types a customer’s credit card information into a payment system instead of using a physical card reader. This method bypasses the typical actions of swiping, inserting, or tapping a card. It is often employed when traditional card processing methods are unavailable or impractical.

How Manual Entry Occurs

Manual credit card entry involves a merchant inputting specific details from a customer’s payment card directly into a payment system. The information typically required includes the full card number, the expiration date, and the card verification value (CVV/CVC). Merchants may also request the cardholder’s billing address, including the postal code, for Address Verification Service (AVS) checks.

Merchants use various interfaces for this manual process. Physical point-of-sale (POS) terminals often have a key-in option for card details. Virtual terminals are commonly used for transactions initiated over the phone or via mail. Many mobile payment applications and devices also include a manual entry feature.

This method becomes necessary in several situations, such as when a customer’s card chip or magnetic stripe is damaged and cannot be read by a traditional terminal. Manual entry is also common for “card-not-present” transactions, which include orders placed over the phone, through mail, or some online purchases where card details are provided through alternative channels.

Common Business Contexts

Manual credit card entry is frequently utilized in specific business environments where traditional card processing might be challenging or less efficient. Small businesses and sole proprietors, who may not always have advanced or portable point-of-sale systems, often rely on this method. It provides a practical solution for accepting payments without significant upfront investment in specialized hardware.

Mobile service providers, such as plumbers, electricians, or landscapers, often process payments on-site using manual entry when a card reader is not readily available or practical. Businesses that regularly take orders over the phone or via mail, like certain retail shops or specialty boutiques, also commonly use this approach. Manual entry serves as a flexible option for securing payments remotely.

Manual entry also acts as a backup payment method when a primary card reader experiences technical issues or is temporarily out of service. This ensures business continuity and prevents lost sales due to equipment failure. While it offers convenience, merchants should note that manually entered transactions generally incur higher processing fees due to the increased risk of fraud associated with card-not-present scenarios.

Customer Interaction and Transaction Flow

During a manual credit card entry transaction, the customer’s role involves verbally providing their card details to the merchant. This typically includes the full credit card number, its expiration date, and the CVV/CVC security code. For enhanced security and fraud prevention, the customer may also be asked to provide their billing address, including the postal code.

The merchant then inputs these details into their payment system. Before finalizing the transaction, the customer should verify the entered amount to ensure accuracy. Upon successful processing, the customer usually receives a receipt, which can be physical or digital, confirming the payment, similar to other transaction types.

A common verification step involves the Address Verification Service (AVS). When a billing address is provided, the AVS system checks if it matches the address on file with the card-issuing bank. This helps confirm the cardholder’s identity and reduces the risk of fraudulent transactions, particularly in card-not-present situations.