How to Accept Credit Card Payments Over the Phone in Canada

Running a small business is hard work. You want to sell more and you want your customers to be happy. One of the ways to do this is to offer credit card payment options as many people in Canada like to pay with their cards. It is fast. It is safe. It is very simple for them. But some people want to pay you from the comfort of their  home. They want to call you on the phone so offering this service is a great way to grow your shop.

In this guide, we will show you how to take phone payments. We will talk about tools and safety as well as how to keep proper records.

Why Should You Take Payments Over the Phone?

Talking on the phone is a great way to help your customers because:

1. You get more customers. Some people do not like to shop online and instead prefer to talk to someone directly.
2. It looks professional. Your business appears as a larger company when you can take a credit card over the phone.
3. It’s fast. You can talk to the customer and get paid at the same time. You do not have to wait for a check in the mail.
4. It helps with taxes. When you use a credit card, the bank keeps a record. This makes it easy to show the Government of Canada how much money you made.
5. You use less cash. Bills and coins can get lost. It can also be difficult to track. But credit cards send the payment right into your account.

Steps to Accept Credit Card Payments Over the Phone

Step 1: Choose a Payment Method

Pick one way to take payments:

1. Merchant Account: This is a special bank account just for card payments. The biggest banks in Canada typically provide these.
2. Payment Service Providers (PSPs): Companies like Moneris, Square, or Stripe let you take phone payments without a full merchant account.
3. Virtual Terminal: This is a website where you type in card numbers. You do not need a machine, just your computer.

Step 2: Get the Right Tools

To take phone payments, you need a few items on your desk:

• A secure computer: Make sure you do not share your computer with just anyone.
• A phone: You can use either a landline or a cell phone.
• A headset: This helps you keep your hands free to type and take the order.
• Good Internet: You need a strong connection so the payment goes through.

Step 3: Collect Payment Info

Ask the customer for:

• Cardholder name
• Card number
• Expiry date
• CVV/security code
• Billing address: This is the house address where the card is registered.

Tip: Read the numbers back to prevent mistakes. Strict Security Rule: Never write down or save the CVV (security code). Under current PCI-DSS 4.0 rules, you are prohibited from storing this code. If you must write it down temporarily to type it in, you must shred that paper in a cross-cut shredder immediately after the transaction is approved.

Step 4: Enter the Payment

1. Type in the information carefully.
2. Check the amount with the customer.
3. Confirm the payment is approved.

Some providers can send receipts to your customer by email or text.

Step 5: Keep Records

In Canada, you must tell the government about your sales through your tax reporting. After you file, hold onto those records as the CRA says you should keep them for six years.

Comprehensive records help you:

• Track sales for taxes when filing with the CRA
• Give refunds or handle disputes when necessary
• See how your business is doing

Tip: It is also helpful to use software like QuickBooks for record-keeping.

Step 6: Follow Security Rules

Your customers trust you with their card info, so be sure to keep it secure. If you are unsure how to do so, the FCAC (Financial Consumer Agency of Canada) has many tips on how to use cards safely.

In order to protect credit card information:

• Use secure internet (HTTPS)
• Do not save card numbers on your devices or write them on paper
• Ensure only staff who need to process payments do so
• Use strong passwords

Step 7: Handle Declines

Sometimes a credit card will not work. This can happen for many reasons. The customer might be out of money, for example. Or the bank might be worried about the safety of a transaction.

If a card does get declined:

1. Stay calm and be nice.
2. Tell the customer politely. Say, "I am sorry, the card did not go through."
3. Ask them to check their balance or try another card.
4. Do not share card info.
5. Call your provider to check for errors on your end.

Step 8: Give Receipts

Every customer needs a receipt. This is a paper or a confirmation message that proves they paid. Receipts should show the amount charged and allow the customer to check the payment. They can also help you stay organized when preparing for your taxes.

Send a receipt by email or text when possible. A paper receipt also works. Receipts help both you and your customer if there is ever a payment issue or dispute.

Step 9: Train Your Staff

If you have workers, train them on the new technology. They need to know how to interact with customers while safeguarding private information like credit card numbers. To do so, show them where to type the numbers in your system. Make sure they know to never share card info with anyone. It is also helpful to practice what to say if a customer is unhappy.

Step 10: Know the Fees

Taking credit card payments is not free as banks and PSPs charge money for this service. Look for:

• Transaction Fees: This is a part of every sale. Because phone payments are "manually entered," they carry a higher risk of fraud and therefore a higher fee. In 2026, typical rates for phone payments range from 2.9% to 3.5% per transaction.
• Monthly Fees: Some companies charge you a fee every month.
• Chargeback Fees: If a customer says they didn't buy something, the bank might take the money back and charge you a fee.

Make sure you know how much you are paying in fees, as it can help you to set your prices accordingly.

Advantages of Phone Credit Card Payments

• Fast for customers
• Increases sales without online checkout
• Reduces cash mistakes

Disadvantages of Phone Credit Card Payments

• Needs safe handling
• Slightly higher fees than cash
• Slower than online payments

Tips for Canadian Businesses

• Keep personal and business money separate. Consider using a business bank account for any work-related expenses. Not your personal one.
• Use a virtual terminal with encryption. This is a big word that means "hiding the data" so no one can steal it.
• Keep your records for six years as CRA recommends
• Ask about credit bureaus. Some systems can help your business’ credit score while others may not report to a credit bureau at all.
• Check your statements. Look at your bank report every month. Make sure the numbers match your sales.

Conclusion

Taking credit card payments over the phone is a smart move. It helps you get more work and can aid in tracking your taxes for the CRA.

Remember to:

• Use a safe provider.
• Keep information private.
• Store your records for six years.

With a few simple steps, you can help your business grow.