What Are IVR Payments? A Guide for Businesses

IVR payments, or Interactive Voice Response payments, allow businesses to accept payments by phone through an automated system, eliminating the need to speak with a staff member.

Callers listen to spoken prompts and enter their details using the keypad or speech recognition, while the payment is processed securely in the background.

In this guide, we look at who uses IVR payments and how the IVR payment processing works step by step, security considerations, the main benefits for organisations, typical use cases, the features to look for in a solution, and how to decide whether IVR payments are right for your business.

IVR payments suit any organisation that collects regular payments and receives many calls.

Utility companies, telecoms providers, local authorities, transport and parking operators, healthcare organisations, insurers, schools, membership bodies, and charities all use IVR to take payments quickly without staff.

Customer expectations are already aligned with this type of service. Zendesk Research has cited other studies suggesting that up to 67% of customers prefer self-service to speaking to an agent for simple enquiries.

This shift is crucial and makes IVR payments a natural extension of the way people already manage everyday tasks, allowing them to process payments easily. They can pay a bill on the way home with ease or donate while reading a campaign leaflet without waiting in a queue.

For contact centres that still handle high volumes of payment calls, IVR payments provide a way to keep a phone channel open while easing pressure on agents. 

Debt collection, arrears management, and subscription renewals are all examples where callers often know exactly why they are calling and simply need a fast way to pay.

The IVR payment process includes steps such as call initiation, identity verification, payment details input, secure processing, confirmation, and reconciliation.

1. The Customer Calls the Payment Number

The customer dials a dedicated payment line or selects the payment option in your main call menu. This can be advertised on bills, reminder letters, emails, or text messages.

2. The IVR System Identifies the Customer

The system uses details such as account number, telephone number or postcode to find the correct record.

Some solutions use automatic number recognition, so the caller is located as soon as they connect. Others may ask for the reference printed on the bill.

3. The Customer Selects a Payment Option

The caller then hears a list of simple choices. They might choose to pay the full balance, a custom amount, or a particular invoice.

For a charity line, the options could be fixed donation amounts, including the choice between a one-off gift and a regular payment.

4. The Customer Enters Their Payment Information

At this stage, the caller enters their card details or bank information. They can do this using the keypad or by verbally communicating the numbers to a speech recognition system.

Modern IVR payment platforms usually mask keypad tones so that card details are not exposed to agents or typical call recording systems, reducing the risk that card numbers can be reconstructed.

5. The Payment is Authorised & Processed

The IVR platform passes the payment details to a secure gateway and the acquiring bank. The authorisation response returns in real-time.

The caller hears a clear confirmation message that the payment has been approved or declined, often alongside a payment reference number.

6. The System Updates the Customer Records

Once the payment is successful, the IVR solution sends a message to your billing, CRM, or case management system.

The balance is updated, the item is marked as paid, and a receipt is sent to the customer via email or text. This keeps your records in line with what the customer has just heard on the call.

From the caller’s point of view, it is simple. They call, identify themselves, choose what to pay, enter details, hear the result, and receive a payment confirmation.

Security is often the first question organisations ask about IVR payments.

When implemented so that card data does not enter the organisation’s telephony or recording environment, IVR payments can reduce exposure compared with agents taking card details verbally.

The Payment Card Industry Data Security Standard, often referred to as PCI DSS, sets the rules for how card data must be handled.

The PCI Security Standards Council publishes specific guidance on telephone-based payments, which stresses that organisations should minimise the number of systems that see or store card data and, where possible, move that responsibility to specialised providers.

IVR payments support this approach. Card numbers and security codes can be captured inside a controlled environment that is already certified against PCI DSS, rather than passing through your own telephony platform or call recordings.

Many systems use DTMF masking so that key presses are converted into meaningless tones before they reach your equipment. This helps to remove your contact centre from PCI scope and reduces the risk of a data breach.

When supplied by a provider that is PCI DSS Level 1 certified and follows wider information security standards, IVR payments give you the benefit of those controls without requiring you to build and maintain them yourself.

IVR payments offer a surplus of benefits to you, the business, and your customers. Let's take a look at some of them.

H3 - 24/7 Payment Availability

An IVR payment line does not keep office hours.

Customers can pay in the evening, at weekends or during public holidays. For many people, that is the only time they are free to deal with bills or fines.

Providing IVR payments meets that expectation for the phone channel and gives customers a way to resolve their obligations on the first attempt.

H3 - Enhanced Security & Compliance

Because IVR payments keep card data away from your agents and from most of your internal systems, they simplify PCI DSS compliance.

Call recordings do not need to be paused while card details are read out, microphones do not pick up sensitive numbers, and fewer systems have to be included in PCI assessments.

H3 - Reduced Operational Costs

Live agent calls are expensive, especially when they only involve a simple payment. 

CSG has published benchmark estimates suggesting merchants may spend around $0.50 on an IVR payment call, compared with $5 or more when a payment is taken by a call-centre agent.

For high-volume billers, this difference adds up quickly. Moving even a portion of your payment traffic from live agents to IVR can lower the overall cost per payment and free staff to focus on complex queries, complaints, and vulnerable customers who genuinely need human support.

H3 - Faster Payment Processing

IVR payments connect directly to payment gateways and acquiring banks, so there is no need for manual keying by agents at the end of the call.

Authorisation is immediate, and the result is clear. The users receive confirmation right away, and your internal systems can update in near real time. This reduces the risk of errors and shortens cash collection cycles.

For organisations that rely on prompt settlement to manage cash flow, such as local authorities or subscription businesses, this is a significant benefit.

H3 - Improved User Experience

Well-designed IVR payments give callers a feeling of control. They move through a predictable sequence of steps, can correct mistakes, and can complete the process without explaining their situation to a stranger. People who are dealing with arrears or sensitive issues often appreciate this privacy.

For others, the key attraction is speed. They can pay a bill in a few minutes and get on with their day.

When IVR payments sit alongside other options such as online portals, mobile apps, and pay by link, customers can simply choose the route they find most convenient.

Conducting extensive testing across various phone types ensures that IVR payment systems are reliable and user-friendly.

H3 - Higher Collection Rates

There is growing evidence that IVR payments do more than shift workload. They can also increase the proportion of debt that is actually collected.

IVR Tech Group reports that some companies which add IVR payments to their bill payment options often see a rise of about 10-15% in revenue collected.

Similar patterns appear in digital and conversational IVR for debt collection. In one published case study, customers’ payment promises taken through digital channels, including conversational IVR, increased by up to 58 per cent, while half of collection calls were handled without an agent.

The combination of constant availability, perceived privacy, and clear prompts lowers the barriers to paying on time.

IVR payments are most effective when callers know what they owe and simply want to settle it.

Typical examples include regular bill payments for electricity, gas, water or broadband, council tax, business rates and parking penalties, instalments for insurance premiums or education fees, subscription renewals for media and membership bodies, and one-off or recurring donations to charities.

In each case, the organisation can print a dedicated IVR payment number and a reference onto every bill or notice.

When the customer calls, the system guides them to the correct account without agent involvement. For inbound collections teams, this can reduce call volumes and release agents to deal with those who need tailored arrangements.

When you evaluate IVR payments, pay attention to features that affect security, experience, and long-term flexibility.

Security & PCI DSS Compliance

The provider should operate in a PCI DSS Level 1 certified environment and follow clear controls for telephone-based card data.

Ask how card numbers are handled and how your contact centre can be kept out of PCI scope. 

Flexible Integration

An effective IVR solution should integrate with your billing, CRM, or case management systems.

Real-time updates avoid reconciliation problems and reduce staff time spent matching payments to accounts.

Support for Keypad & Speech Input

Customers have different preferences. Some will happily speak their card details, others want to use the keypad.

A modern system should handle both and should provide clear fallbacks if speech recognition fails.

Configurable Call Flows

You should be able to adjust prompts, menu options and languages without a lengthy development project. This allows you to refine the journey as you learn more about where callers hesitate or drop out.

Scalability & Reliability

Payment lines must cope with peaks in traffic, particularly around billing cycles or enforcement deadlines.

Solutions backed by robust infrastructure and proven uptime records are essential.

IVR System Updates

Regular updates to the IVR system are necessary to reflect new services or promotions and improve user engagement.

IVR payments work best when you collect regular payments for clear amounts with fixed references, and many of your calls are simple payment conversations.

They are also a good fit when you need stronger security for phone payments but want to keep the phone channel open.

They are less suitable when every payment conversation requires detailed advice, complex negotiation, or individual assessment. In those cases, IVR can still play a part by handling the card entry stage while the agent stays on the line and focuses on the conversation rather than the numbers.

For many organisations, the best outcome is a blended model. IVR payments sit alongside online portals and mobile apps or agent-assisted calls. Customers choose the route that suits them on that day, while you keep control of cost and risk.

DECTA is a full-stack payment provider supporting 2,000+ customers and partners, delivering 99.99% uptime, and operating payment infrastructure at a significant transaction scale

With PCI DSS Level 1 certification and robust security accreditations, DECTA’s infrastructure powers both acquiring and gateway services across multiple channels.

Integrating IVR payments into DECTA’s wider platform gives you secure, compliant phone payments with minimal operational lift - and a foundation designed for future growth. Start accepting secure IVR payments with DECTA today.