Mail order is an alternative payment system primarily used when a payment needs to be made by credit card but the card is not physically available at the business location. This method is particularly beneficial for businesses involved in remote or distance sales, as it allows them to process transactions securely without the customer being present. The system enables businesses to manually collect credit card information using a payment form, which includes essential details such as the cardholder’s name, card number, expiration date, CVV code, and signature. Once completed—either in written or digital format—the business manually enters this data into the POS device to finalize the transaction.

This payment system is typically utilized in situations where online payment systems are inaccessible due to the absence of an internet connection, during power interruptions when POS devices are offline, or when a POS device is malfunctioning or unavailable. It is also commonly used by businesses that sell via phone or catalog, providing customers with a convenient way to make payments without needing to physically visit the business location.

How Does Mail Order Work?

The mail order system enables businesses to collect payments when the cardholder is not physically present at the point of sale. This method generally operates in two main ways, depending on the situation and the customer’s needs.

Manual Entry at a Physical Business Location

In certain cases, customers visit a store or business but may encounter issues such as a damaged magnetic stripe or a malfunctioning chip on their credit or debit card. When a card cannot be physically swiped or tapped, the business can process the payment manually. The representative manually enters the customer’s card details—including the card number, expiration date, and CVV—into the POS device to complete the transaction. This method serves as a practical alternative when modern payment methods like contactless or chip transactions are unavailable.

Remote Payment via a Form

For remote transactions, customers do not need to be physically present at the business location. The business sends a mail order payment form to the customer, requesting specific information such as:

• Cardholder’s name
• Card number
• Expiration date
• CVV (security code)
• Billing and identification details
• Payment amount and transaction information

The customer completes, signs, and returns the form—typically by email, fax, mail, or over the phone. Once received, the business reviews the details and manually enters the information into the POS device to complete the transaction securely.

What Information is Needed to Make a Mail Order Payment?

For mail order transactions, the payment form must be filled out with specific details to ensure successful processing. The required information typically includes:

• Cardholder’s name
• Credit card number
• Expiration date
• CVV (security) code
• Payment amount and date
• Recipient company name
• Address and contact information
• Cardholder’s signature

This information allows the business to verify the authenticity of the transaction and process the payment accurately, even in the absence of physical card presentation.

Main Advantages of Mail Order

Convenience and Accessibility

Mail order provides customers with a convenient way to make purchases from any location. Transactions can be processed without the need for a POS device or an active internet connection. This flexibility makes it a valuable option for businesses that handle orders remotely.

Flexible Payment Options

This system allows for flexible payment arrangements, including installment options and promotional offers. Customers can choose payment structures that suit their financial needs, giving them greater control and convenience during transactions.

Time Savings

Mail order eliminates the need for customers to physically visit a store to complete their purchases. This saves time for both buyers and sellers, allowing transactions to be processed quickly and efficiently.

Access to Product Variety

Customers can explore a wider range of products, regardless of their location, without being limited to what is available in a physical store. Orders can be placed with different branches or suppliers effortlessly.

Privacy

Mail order offers enhanced privacy for customers who prefer not to engage in face-to-face transactions. It ensures that personal information remains confidential throughout the payment process.

Order Tracking and Easy Returns

Transactions conducted through mail order are typically recorded in online systems, allowing for easy order tracking. Returns can also be managed transparently and efficiently, making it easier for both parties to handle refunds or exchanges.

Virtual POS and E-commerce Integration

Modern mail order systems can integrate seamlessly with virtual POS solutions, enabling automated and fast payment processing. Instead of manually entering customer data, card details are securely transmitted through the virtual POS infrastructure, completing the transaction within seconds and depositing the payment directly into the business’s account.

Who is the Mail Order System Suitable For?

The mail order payment system can serve a wide range of industries and business models. It is particularly beneficial for companies that lack a physical storefront or have not yet developed a full e-commerce platform.

Businesses Without a Physical Store

For businesses operating exclusively through phone or online communication, mail order provides a secure way to collect payments. It allows transactions to be completed remotely, ensuring business continuity even without in-person interactions.

Businesses with Developing E-commerce Infrastructure

Small or developing businesses that have not yet established a full online payment system can benefit greatly from mail order. It provides a low-cost solution for processing payments while protecting sensitive customer data during transactions.

Brands with Wholesale Sales to Remote Customers

Companies that sell products to customers across different cities or countries can use mail order to simplify payment collection. This approach saves time and reduces transaction costs, especially for bulk orders handled through phone or email.

Freelancers and Service Professionals

Independent professionals such as consultants, therapists, or coaches can also benefit from this payment method. They can use mail order to collect payments for services rendered, whether upfront or in installments, ensuring both flexibility and payment security for their clients.

Virtual POS and Mail Order

Usage Methods

Virtual POS: This system allows customers to input their payment details directly through an online platform, processing the transaction digitally just like a physical POS machine.
Mail Order: In contrast, mail order payments are conducted through phone or email communication, with the business manually entering the provided card details into the payment system.

Payment Method

Virtual POS: Customers enter their payment details on an online form, and the system automatically processes the payment approval.
Mail Order: Customers share their card details with the business representative, who then manually enters them into the system to complete the payment.

Security

Virtual POS: Offers advanced security measures such as encryption, SSL certification, and fraud detection systems to ensure safe transactions.
Mail Order: While convenient, this method involves a higher risk due to manual data handling, which can make it more vulnerable to errors and potential fraud.

Transaction Time

Virtual POS: Payments are processed instantly, with immediate approval from the payment system.
Mail Order: Since card details must be entered manually, processing times are slightly longer, and approvals may be delayed.

Integration

Virtual POS: Requires integration with a website or e-commerce system, typically through an agreement with a payment service provider.
Mail Order: Does not require any technical setup; transactions are handled manually by the business representative.

Conclusion

The mail order payment system remains a valuable solution for businesses that lack a physical storefront or have not yet completed their e-commerce infrastructure. It offers key benefits such as convenience, flexibility, and privacy, making it especially effective for remote sales operations. Businesses can cater to a wider customer base and maintain smooth payment processes even when standard online or in-person payment methods are unavailable.

However, it is essential to consider the potential drawbacks of manual processing and the security risks associated with data handling. With proper safeguards and responsible usage, the mail order system can provide a secure and efficient method for managing remote transactions. It continues to serve as a reliable payment option, particularly for small businesses, service providers, and companies engaging in distance-based commerce.