Manual Credit Card Processing: How to Charge a Credit Card Manually

In this guide, we’ll break down what manual credit card processing is, when to use it, the steps involved, and how to choose the best credit card processing manual entry solution for your business. 

What Is Manual Credit Card Processing?

Manual credit card processing is the act of entering card details by hand into a payment terminal, point-of-sale (POS) system, or virtual gateway. Instead of swiping a magnetic stripe, dipping a chip, or tapping for contactless payment, you key in the card number, expiration date, CVV code, and billing address.

This process differs from regular card-present transactions, where the card’s chip or stripe is read electronically. Since the card isn’t physically verified by a reader, manually keyed transactions often carry higher risks of fraud and errors.

Still, manual entry remains relevant today, particularly for businesses that handle remote payments, phone orders, or operate in industries where flexibility is essential.

When Should Businesses Use Manual Entry?

There are legitimate scenarios where manually charging a card is the only way to complete a transaction.

• Card reader malfunctions: When terminals are down due to technical glitches.
• Phone orders: Common in restaurants, service providers, and healthcare practices where customers pay remotely.
• Remote sales: Contractors, consultants, or traveling businesses often accept payments over the phone or via virtual terminals.

Industries such as hospitality, healthcare, and service-based businesses frequently rely on manual entry as a backup. However, businesses must avoid overusing it, as higher costs and compliance risks can eat into profits.

Step-by-Step Guide to Charging a Credit Card Manually

If you need to process a card manually, accuracy and security are critical. Here’s how the process works:

Collect Cardholder Information 

Card number, expiration date, CVV, billing ZIP/postal code, and cardholder name.

Enter Details into a Payment System 

This may be a POS terminal, a mobile payment app, or a secure virtual terminal provided by your processor.

Submit for Authorization 

The system checks with the card-issuing bank to approve or decline the transaction.

Confirm the Transaction 

A receipt is generated (digital or paper), confirming approval.

Double-check Accuracy 

Even one wrong digit can lead to declines or chargebacks, so reviewing details is essential.

Security Considerations in Manual Credit Card Processing

Because manual entry involves handling sensitive data, businesses must be extra vigilant.

• PCI DSS compliance: Payment Card Industry Data Security Standards set strict rules on how card data must be processed and stored.
• No written storage: Never jot down card details on paper or unsecured systems.
• Employee training: Staff must understand the risks of fraud, phishing, and human error.
• Fraud and chargebacks: Manually keyed transactions are more prone to disputes, so verification steps (AVS, CVV) are vital.

Following these practices helps prevent breaches and reduces the risk of costly penalties.

Costs and Fees Associated with Manual Processing

Manual transactions typically cost more than card-present ones. Here’s why:

• Higher interchange fees: Card networks see keyed transactions as riskier.
• Processor markups: Many providers add surcharges for manual entry.
• Hidden costs: Incorrect data entry can trigger declines, while chargebacks can lead to extra penalties.

If keeping costs low is a priority, comparing providers and learning how to avoid credit card processing fees where possible is key.

Advantages and Disadvantages of Manual Entry

Like any tool, manual entry has both pros and cons.

Advantages:

• Provides flexibility in emergencies.
• Enables remote and phone-based payments.
• Acts as a reliable backup method when hardware fails.

Disadvantages:

• Higher transaction fees compared to card-present sales.
• Increased risk of fraud and errors.
• Slower transaction processing.

For many businesses, the trade-off comes down to convenience vs. cost.

Choosing the Best Manual Entry Credit Card Processing Option

Not all processors are equal when it comes to manual entry. When evaluating providers, consider:

• Security tools: Built-in fraud protection and PCI compliance.
• Fee structures: Look at interchange rates, surcharges, and chargeback policies.
• Ease of use: Systems should integrate seamlessly with your POS or virtual terminals.

Providers that specialize in secure virtual terminals or hybrid solutions tend to offer the best credit card processing manual entry options.

Cheapest Manual Entry Credit Card Processing Solutions

If you’re cost-conscious, it’s worth researching the cheapest manual entry credit card processing providers. Some offer competitive rates for virtual terminals, while others reduce surcharges for keyed-in payments.

Keep in mind: the cheapest option isn’t always the best. A provider that cuts costs but lacks fraud protection could expose your business to bigger financial risks down the road. The goal is to balance affordability with security and customer trust.

Alternatives to Manual Entry Credit Card Processing

While manual entry serves as a useful fallback, modern alternatives are more secure and cost-effective:

• Mobile card readers: Attach to smartphones for on-the-go transactions.
• Online payment portals: Customers enter their own details securely.
• Contactless payments: Tap-to-pay and digital wallets reduce fraud risks.

Hybrid solutions, where businesses keep manual entry as a backup but rely primarily on modern systems, strike the best balance.

Tips to Reduce Risk When Using Manual Entry

If manual entry is unavoidable, use these best practices to safeguard your business:

• Always verify the customer’s identity.
• Use AVS (Address Verification System) and CVV checks.
• Reconcile transactions daily to detect errors quickly.
• Keep thorough transaction records to resolve disputes.

These steps help businesses reduce fraud exposure while maintaining customer confidence.

Manual credit card processing isn’t going away anytime soon. By choosing the right provider, prioritizing security, and balancing affordability with compliance, businesses can make the most of manual entry without putting their bottom line at risk.

And remember: credit card processing levels matter. The more data you provide, the lower your interchange fees may be. Moreover, knowing what is the TMF or match list can also protect your business from reputational and financial risks in the payment industry. 

For businesses looking for dependable solutions, Vellis offers top-of-the-line payment processing solutions tailored to both manual and modern needs.

Frequently Asked Questions (FAQs)

Is manual entry credit card processing secure?

Manual entry can be secure if businesses follow PCI DSS requirements, but it carries higher fraud risk since card data is keyed in rather than verified by chip or tap.

Why are fees higher for manual entry transactions?

Because they are considered card-not-present transactions, manual entries face higher interchange rates due to increased fraud and chargeback risk.

What information is required to process a credit card manually?

You’ll typically need the card number, expiration date, CVV, and the cardholder’s billing address for verification.

Can small businesses rely on manual entry as their main payment method?

It’s possible, but not ideal. While it offers flexibility and a backup option, relying on manual entry increases costs, slows checkout, and heightens fraud risks.

What is the cheapest manual entry credit card processing option?

Low-cost providers like Square, Stripe, or Helcim generally offer competitive rates, but the best choice depends on balancing transaction volume, features, and support for compliance.

References

Square. (2025, July). Manually entered card payments. Square Help Center. https://squareup.com/help/us/en/article/5068-what-are-square-s-fees 

Stripe. (2025). Manually entered card payments (Dashboard / Terminal MOTO). Stripe Documentation. https://support.stripe.com/questions/manually-entered-card-payments 

Helcim. (2024, September 11). What are the lowest credit card processing fees? Helcim Guides. https://www.helcim.com/guides/processors-with-the-lowest-credit-card-processing-fees/