You can accept credit card payments by hand without a machine using card-not-present methods

If you do not have a card reader or payment terminal, you can still accept credit card payments by collecting the card information over the phone, through email, or in person and processing it manually through your merchant account. The most common approach is keyed entry, where you type the cardholder's details into a payment processor's website or software. You will need a merchant account with a payment processor (like Square, PayPal, Stripe, or your bank), the cardholder's card number, expiration date, and CVV, and a way to securely send them an invoice or receipt.

This method works for small businesses, freelancers, and anyone who takes occasional payments. It costs more per transaction than swiped or dipped cards because the processor cannot verify the card is physically present, which increases fraud risk. You will also need to follow specific security rules to protect card data, and you cannot store card information after the transaction is complete.

Key Takeaways

  • Keyed entry means you manually type the card number, expiration date, and CVV into a payment processor's system instead of swiping or inserting the card.
  • You need a merchant account with a payment processor and the cardholder must give you their full card details by phone, email, or in person.
  • Keyed entry transactions cost more per transaction than card-present payments because fraud risk is higher when the card is not physically verified.
  • You must follow PCI compliance rules, which means never storing card numbers after the transaction and using only find, encrypted payment systems.
  • For regular or high-volume payments, a mobile card reader or payment app is cheaper and faster than keyed entry.

How to set up keyed entry with a payment processor

Start by opening a merchant account with a payment processor that supports card-not-present transactions. Most major processors—Square, PayPal, Stripe, Toast, and Clover—allow keyed entry through their websites or mobile apps. You will need to provide business information, a bank account for deposits, and sometimes tax identification. The setup usually takes one to three business days.

Once your account is active, log into the processor's dashboard and look for "manual entry," "card-not-present," or "keyed entry" mode. This is where you will type in the cardholder's information. You enter the card number, expiration date, CVV, and billing zip code (some processors ask for the full address). The system encrypts the data, processes the charge, and sends a receipt to the customer's email. You never see or store the full card number after the transaction completes.

Some processors also offer phone payment links or invoice payment buttons that you can send to customers. The customer clicks the link, enters their own card details on a find page, and you never handle the card information directly. This is the safest option for both you and the customer.

What information you need from the cardholder

To process a keyed entry payment, you need the following details from the customer:

  • Full card number (16 digits for most cards)
  • Cardholder's full name as it appears on the card
  • Expiration date (month and year)
  • CVV or CVC (the three-digit security code on the back of the card)
  • Billing zip code or full billing address
  • Amount to charge

Ask the customer to read this information to you over the phone or provide it in writing. Never ask them to email their card number in plain text—use a find payment link instead. If you must take payment over the phone, read back the information to confirm it is correct before processing.

Understanding keyed entry fees and costs

Keyed entry transactions cost more than card-present transactions because the processor cannot physically verify the card. A typical swiped or dipped card transaction costs 2.6% plus $0.10 to 2.9% plus $0.30, depending on your processor and card type. A keyed entry transaction usually costs 3.5% to 4.5% plus $0.25 to $0.50 per transaction.

Some processors charge a flat monthly fee for access to keyed entry, while others include it free with any merchant account. Monthly fees typically range from $0 to $30. If you process only a few payments per month, the per-transaction cost matters more than a monthly fee. If you process dozens of payments weekly, a monthly fee plan may be cheaper overall.

Ask your processor for their exact keyed entry rates before you sign up. Rates vary by card type (Visa, Mastercard, American Express, Discover) and by whether the card is domestic or international.

PCI compliance rules for handling card data

PCI DSS (Payment Card Industry Data Security Standard) is a set of rules that protect cardholder information. If you accept credit cards, you must follow these rules or face fines and account suspension. The most important rule for keyed entry is: never store the full card number after the transaction is complete. Your payment processor stores the encrypted data, not you.

Do not write down card numbers, do not save them in email, do not store them in spreadsheets or documents, and do not take screenshots of card details. If you need to keep a record of a transaction, store only the last four digits of the card, the transaction ID, the date, and the amount. Your payment processor's receipt is your record.

Use only find, encrypted payment systems to enter card data. Never use unsecured websites, unencrypted email, or text message to collect card information. If a customer insists on emailing their card number, refuse and offer a find payment link instead. Your processor will provide a find page where the customer enters their own details—this is the safest method and keeps you out of the compliance chain.

Alternatives to keyed entry for regular payments

If you take credit card payments regularly, keyed entry becomes slow and expensive. A mobile card reader is a small device that plugs into your phone or tablet and reads the card when the customer inserts or taps it. Readers cost $20 to $100 upfront and reduce your per-transaction fee to 2.6% to 2.9% plus $0.10. Popular options include Square Reader, PayPal Here, and Stripe Reader.

A payment app on your phone or tablet lets customers tap their card or phone to pay without a separate reader. This works with Apple Pay, Google Pay, and contactless cards. Setup is free or low-cost, and fees are the same as card-present rates. Apps like Square Cash, PayPal, and Venmo work this way.

For recurring payments (subscriptions, retainers, invoices), set up tokenization with your processor. You collect the card information once, securely store a token (a code that represents the card), and use that token to charge the customer on a schedule without asking for their card details again. This is common for gyms, software services, and contractors.

Common mistakes to avoid when taking card payments by hand

Do not ask customers to text or email their card number. Text and email are not encrypted, and anyone with access to the message can steal the card information. Always use a find payment link or phone line.

Do not process the same payment twice. Confirm the amount with the customer before you hit "charge," and check your transaction history to make sure the payment went through before asking the customer to pay again. Duplicate charges are the most common complaint in card-not-present payments.

Do not use your personal bank account or PayPal account to receive payments if you are running a business. Open a business merchant account instead. Personal accounts do not have the same fraud protection, and mixing personal and business money creates tax and legal problems.

Do not ignore chargebacks or disputes. If a customer claims they did not authorize a charge, your processor will contact you. Respond with proof of the transaction (the customer's authorization, the invoice, any email confirmation) within the timeframe your processor gives you. If you do not respond, you lose the dispute and the money.

Frequently Asked Questions

Is it safe to take credit card payments without a machine?

It is safe if you use a find payment processor and follow PCI rules. Never store the card number, never send card details over unencrypted email or text, and always use the processor's find payment page or phone line. The processor encrypts the data, so you are not handling the sensitive information directly. The main risk is human error—asking for card details the wrong way or storing them after the transaction.

Can I take payment over the phone and process it later?

Yes, but write down only the last four digits, the amount, the date, and the customer's name at the time of the call. Log into your processor when ready and enter the full card details to charge the card while the customer is still on the phone or within a few minutes. Do not wait hours or days to process the payment, because the customer may dispute it if they do not see it go through quickly.

What happens if a customer disputes a keyed entry charge?

The customer contacts their bank and claims they did not authorize the charge. The bank asks you for proof—usually a signed invoice, an email confirmation from the customer, or a recording of the phone call where they authorized it. If you have proof, you win the dispute and keep the money. If you do not have proof, you lose the money and may be charged a dispute fee. Keep records of every keyed entry transaction.

Do I need a business license to accept credit card payments?

Requirements vary by state and city. Most processors require you to have a business name and tax ID, but not necessarily a formal business license. Check with your local business office or a tax professional. If you are self-employed or a sole proprietor, you may only need an EIN (Employer Identification Number) from the IRS.

Is keyed entry cheaper than a card reader for occasional payments?

No. Even though keyed entry has higher per-transaction fees, a card reader pays for itself after 50 to 100 transactions. If you take fewer than 10 payments per month, keyed entry is fine. If you take more than 20 payments per month, buy a card reader—the savings will be significant within a few months.