Phone Payments: How to Accept Card Payments by Phone & Mobile Tap to Pay: A Complete Guide To Both (2026)

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Taking card payments over the phone or wanting to do so with your mobile? This guide will tell you all you need to know and help your business grow.

Updated: April 2026

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Introduction: Tap To Pay & Phone Payments

Taking card payments has become far more flexible, with many UK businesses now using their phone instead of relying on a traditional card machine. This shift has made it easier to accept payments in a wider range of situations, whether you are dealing with customers face to face, taking bookings remotely, or working on the move. For many businesses, it is no longer just about having a payment terminal at the counter, but having a setup that fits how they actually operate day to day.

Whether you are taking payments over the phone by entering card details manually, or accepting contactless payments using Tap to Pay, both options offer a straightforward way to get paid without extra hardware. However, they are designed for very different scenarios. One is built for remote transactions where the customer is not present, while the other is designed for in-person payments where speed and convenience matter most.

The way you take payments can have a direct impact on how smoothly your business runs. It affects how quickly you can complete transactions, how secure the process is, and how easy it is for customers to pay you. Understanding how each method works, and where it fits best, will help you choose a setup that is practical, reliable, and suited to your business rather than relying on a one size approach.

 

Phone payments vs Tap To Pay

Although both methods allow you to take card payments using a phone, they are designed for completely different situations and should not be treated as interchangeable. Taking payments over the phone is typically used for remote transactions, where the customer shares their card details and the payment is processed through a secure virtual terminal. This is common for bookings, deposits, or situations where the customer is not physically present. Tap to Pay, on the other hand, is used face to face and works like a standard contactless transaction, allowing customers to tap their card or mobile wallet directly against your device. Understanding the difference between these two approaches is important, as it affects how you take payments, the level of security required, and the overall experience for both you and your customer.

What is Tap to Pay?

Tap to Pay allows businesses to accept contactless card payments directly on a smartphone, removing the need for a separate card machine. Instead of using a physical terminal, your phone acts as the payment device, enabling customers to tap their card, phone, or smartwatch to complete a transaction. This makes it a convenient option for businesses that want a more flexible setup without additional hardware. It uses the same contactless technology found in shops and retail environments, so the process is familiar to most customers and quick to use. For businesses that need to take payments on the go or away from a fixed counter, Tap to Pay can provide a simple and efficient solution.

When Tap to Pay Makes Sense

Tap to Pay works best for businesses that need flexibility and want to take payments without being tied to a fixed terminal. It is particularly useful for mobile businesses, trades, pop-up shops, and smaller retailers where space and portability matter. Because there is no additional hardware required, it can be set up quickly and used as needed without extra cost or maintenance. It is also helpful for businesses that want staff to take payments anywhere, rather than bringing customers to a single till point. For lower to moderate transaction volumes, it offers a straightforward way to accept contactless payments without overcomplicating the setup.

When Tap to Pay May Not Be Suitable

While Tap to Pay offers flexibility, it is not always the best fit for every business. For higher volume environments, relying on a phone can become less practical, especially during busy periods where speed and consistency are important. Businesses that need a full point of sale system, detailed reporting, or integrations with stock management may find it limiting compared to a dedicated setup. It can also be less suitable where multiple staff need shared access, or where devices are not centrally managed. In these cases, a traditional card machine or a more integrated system is often a more reliable long-term option.

How Tap To Pay Works

Using Tap to Pay is straightforward once it has been set up. You open your payment app, enter the amount you want to charge, and present your phone to the customer. The customer then taps their contactless card or mobile wallet against your device, and the payment is processed instantly, just like a standard contactless transaction. The technology behind it is the same as a traditional card machine, using secure near-field communication to complete the payment. Once approved, the funds are sent to your account in line with your provider’s settlement times, and you can issue a digital receipt if needed.

What You Need to Get Started

Getting started with Tap to Pay is relatively simple and does not require much beyond what most businesses already have. You will need a compatible smartphone with NFC capability, a payment provider that supports Tap to Pay, and a business account to receive funds. Once your account is set up and approved, you can usually start accepting payments through an app within a short period of time. It is also important to have a stable internet or mobile data connection, as payments are processed in real time. For most businesses, the setup process is quick and does not involve any hardware installation or complex configuration.

Typical Fees for Tap to Pay

Tap to Pay is usually priced in line with standard in-person card transactions, which makes it relatively straightforward to understand. Most providers charge a fixed fee per transaction of around 0.3%-1.75% depending on the provider and your business type. One of the main advantages is that there are typically no upfront hardware costs, as you are using your existing device instead of a card machine. However, fees can vary based on factors such as transaction volume and provider terms, so it is worth comparing options to ensure you are getting a competitive rate.

Accepting Card Payments Using an Apple iPhone or Samsung Mobile Phone

With the steady decline of cash usage in the UK and the continued rise in contactless payments, having the ability to accept card payments on your mobile phone is now a necessity for many businesses. Whether you are a mobile hairdresser, personal trainer, tradesperson or market stallholder, using your Apple iPhone or Samsung mobile phone to accept payments offers flexibility, convenience and professionalism without the need for traditional card machines.

Apple has made this possible through its Tap to Pay on iPhone feature. Available on iPhone XS and newer models, this function turns the device into a contactless card reader using supported payment apps such as Stripe or Square. There is no need for additional hardware or accessories. Your customers simply tap their contactless card, another iPhone or device with Apple Pay, and the payment is processed directly through your iPhone. Every transaction is encrypted and uses Apple’s built-in security features, making it both seamless and secure.

Samsung mobile phones offer a Samsung Pay for Android users. With NFC technology included in many models such as the Galaxy S21, S22 and S23, Samsung phones can also be used to take card payments when paired with supported apps such as SumUp, Square or Zettle by PayPal. These solutions are ideal for businesses that need to process payments on the go without carrying extra equipment.

Accepting payments directly on your phone reduces setup costs and avoids the complexity of managing separate card readers. It also supports fast and flexible payments, which improves the customer experience. Whether a customer pays by debit card, credit card, Apple Pay or Google Pay, your mobile device becomes the all in one tool for taking payments, tracking transactions and issuing receipts.

Security and compliance are maintained to a high standard. Transactions are processed via PCI-compliant apps, meaning customer payment data is encrypted and protected at all times. Many payment apps also offer fraud detection features and allow for transaction history to be reviewed instantly from your phone.

With the UK increasingly embracing digital payments, using your iPhone or Samsung mobile as a payment terminal gives you an edge in convenience, speed and mobility. For small business owners, tradespeople, service providers and even side hustlers, it is an ideal solution that saves time and money.

Taking Card Payments Over The Phone (MO/TO)

MOTO stands for Mail Order/Telephone Order. And whilst it is used less it is very common in hospitality for things like bookings and deposits. Taking card payments over the phone works differently from Tap to Pay, as the customer is not physically present. Instead of tapping their card, the customer provides their card details, which you then enter into a secure virtual terminal to process the payment. This method is commonly used for bookings, deposits, or situations where payments need to be taken remotely. Because the card is not present, there is typically a higher level of risk involved, which can lead to slightly higher transaction fees and stricter security requirements. It is important to use a PCI-compliant system to ensure customer data is handled safely and to reduce the risk of fraud or chargebacks.

When Taking Payments Over the Phone Makes Sense

Taking card payments over the phone is useful for businesses that regularly deal with customers remotely. It works well for taking deposits, confirming bookings, or handling payments where the customer cannot pay in person. This is common in industries such as hospitality, services, and trades, where work may be arranged in advance or carried out off-site. It also provides a simple way to collect payments without needing a website or online checkout, making it a practical option for businesses that rely on direct communication with customers.

When Taking Payments Over the Phone May Not Be Suitable

While taking payments over the phone can be convenient, it is not always the most efficient or secure option for every business. It can become time-consuming if you are handling a high volume of transactions, as each payment needs to be entered manually. There is also a greater risk of errors when typing in card details, which can lead to failed transactions or delays. In addition, because the card is not physically present, this method can carry a higher risk of fraud and chargebacks. For businesses taking frequent payments or larger volumes, an online checkout or in-person contactless option is often a more reliable and scalable solution.

its also worth noting that there is a higher chance of fraudulent transactions with over the phone payments, be aware of “friendly fraud” which is costing British businesses over £550m per year.

Choosing the Right Option for Your Business

Deciding between Tap to Pay and taking payments over the phone comes down to how your business operates and how your customers prefer to pay. If most of your transactions happen in person and you want a simple, portable solution, Tap to Pay can be a practical choice. If you regularly take payments remotely, such as deposits or advance bookings, then a virtual terminal is likely to be more suitable. Some businesses use both methods alongside each other to cover different situations. Taking the time to match the payment method to your day-to-day operations can help improve efficiency and create a smoother experience for your customers.

How Card Payments By Phone Work, Step By Step:

A customer contacts your business by phone and agrees to purchase or service.

  • You safely collect the card details such as card number, expiry date, billing address, CVV  please be aware of pause and resume if you are taking all credit & debit card details over the phone on a recorded line.
  • Using a virtual terminal  you input the details, select the amount and initiate the payment.
  • The payment is authorised via your acquiring bank & card network.
  • Once approved you confirm payment with the customer, issue a receipt and the settlement follows typical merchant terms.

    Requirements for Setup.

  • Merchant account with a provider supporting card not present or MOTO (mail order/telephone order) transactions.

  • Virtual terminal or gateway that supports manual card entry.

  • Secure handling of card data, compliant with PCI DSS (Payment Card Industry Data Security Standard).
  • Staff training to collect and process details securely.
  • Clear billing descriptor so the customer recognises the charge and is less likely to dispute it.

How Payments World Can Help

Payments World supports UK businesses in deploying phone payments and mobile tap to pay solutions with tailored guidance and expert support. Whether you are using an Apple iPhone or Samsung mobile phone, we help you take full advantage of the latest mobile payment technologies.

Our team compares a wide range of acquiring banks and payment providers to ensure you secure competitive rates, particularly for mobile and remote sales channels. We also assist in choosing the most suitable tap to pay app or virtual terminal for your business, ensuring that your solution is both cost effective and reliable.

We offer practical support with your application, documentation and setup, helping you to go live quickly and with minimal hassle. Our experts provide guidance on compliance and security best practices, so you stay protected whether you are accepting payments face to face using your phone, or taking card details over the phone for remote transactions.

As your business grows, we conduct regular reviews of your payment setup to help reduce fees, manage chargeback risks and align your payment strategy with your goals. Whether you operate on the go, serve customers on site, or handle remote sales, we ensure your payments infrastructure supports growth and keeps your costs under control.

At Payments World, we make mobile card acceptance simple, secure and affordable. Speak to our team today to explore your options and find the best way to take payments using your iPhone or Samsung phone.

Final Thoughts

Accepting card payments by phone & through mobile tap to pay gives you a powerful opportunity for businesses of all sizes. Whether you are a tradesperson taking payments remotely, a retail operator processing sales in person, or a mobile professional working on the move, offering these flexible payment methods allows you to meet modern customer expectations and stay ahead of the competition.

By enabling both remote & face to face card payments, you give your customers greater freedom and convenience while reducing friction at the point of sale. It also expands your sales channels, allowing you to take payments in real time, whether over the phone or directly via a mobile device such as an Apple iPhone or Samsung phone. While there may be slightly higher costs & risk considerations compared to traditional card terminals, the benefits in terms of customer satisfaction, operational flexibility and potential sales uplift often outweigh the downsides.

With the right setup, secure technology and reliable payment provider, your business can take full advantage of these mobile solutions. Partnering with Payments World gives you expert support at every stage. From choosing the best virtual terminal or tap to pay solution to negotiating fair rates, ensuring compliance and future proofing your payment infrastructure, we make the process simple and cost effective.

Embracing mobile and phone based card payments is not just about keeping up with the latest technology. It is about giving your customers more choice, increasing your ability to trade anywhere, and building a payment system that grows with your business. Let Payments World help you turn payment flexibility into a strategic advantage.

Like this article? check out the rest of our blog here. 

Frequently Asked Questions

Yes, provided your system is PCI‑DSS compliant, you use tokenisation/encryption for tap payments and key entry is done through a secure virtual terminal. Mobile tap payments also benefit from biometric verification, tokenisation and the customer simply taps their card or device.

Yes, Apple offers Tap to Pay on iPhone, which allows UK businesses to accept contactless card payments, Apple Pay and other digital wallets directly on a compatible iPhone, without the need for extra hardware. You’ll need an iPhone XS or newer, the latest iOS, and a participating payment app that supports Apple’s NFC technology. This is ideal for sole traders, pop up shops and mobile service providers looking to simplify their payment process.

Most recent Samsung Galaxy phones that come with built-in NFC technology can support tap-to-pay when paired with a compatible payment app. Models like the Samsung Galaxy S21, S22, and S23 series, as well as many A-series devices, are suitable for use as mobile card readers. This makes Samsung phones a great option for small businesses wanting to accept contactless payments on the go without investing in traditional card machines.

Because the risk is higher when the cardholder is not present, and there is a greater chance of fraud or chargebacks. Key entry transactions therefore carry higher fees to offset that risk. Ensuring strong verification and customer authentication helps reduce costs.

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