Rules governing the acceptance of card-based transactions via telephone are a set of standards and guidelines established to protect consumers and businesses. These rules dictate how merchants must handle sensitive cardholder data when processing payments initiated verbally, ensuring data security and preventing fraud. For example, these regulations often mandate the use of secure payment systems and prohibit the storage of sensitive information post-transaction.
Adherence to these rules is crucial for maintaining trust between businesses and their customers, reducing the risk of data breaches, and avoiding hefty penalties. Historically, the lack of standardized procedures led to increased instances of fraud and identity theft, prompting the creation and enforcement of these protections. The implementation of these safeguards benefits both merchants and customers by fostering a safer transaction environment and promoting confidence in remote payment methods.
