Hand-Keyed Transaction

What a hand-keyed transaction is

A hand-keyed transaction is a card payment where you or an employee types card details into a payment terminal, point-of-sale system, or virtual terminal. The details can include the card number, expiration date, and transaction amount. A reader instead captures card data electronically from a chip, contactless signal, or magnetic stripe.

You might key a payment after a reader fails, or take card details for an order by phone or mail. Those situations are not the same for processing: a keyed sale at your counter with the card present remains card-present, while a phone or mail order is card-not-present. Mail order and telephone order, or MOTO, are one use of keyed entry, not another name for every keyed transaction.

Keying a card is sometimes necessary, but every avoidable keyed sale adds cost and leaves you with less protection against disputes.

How it affects processing

The card network assigns interchange based on factors including how the card was entered. A keyed transaction can land in a higher-cost category than an equivalent electronically read payment. Your processor may also charge a different price for manual entry. Interchange, network fees, and processor markup are separate parts of your bill, so a higher keyed rate is not automatically all processor profit.

For example, as of 2026, Visa's US interchange for a typical retail sale on a regulation-exempt bank debit card is 0.80% + $0.15 when read and 1.65% + $0.15 when keyed. On a $100 sale, that is $0.95 versus $1.80 in interchange, a difference of $0.85. These figures are interchange only, not your full processing cost.

Visa debit interchange on a $100 retail sale

Visa US interchange for a typical retail sale on a regulation-exempt bank debit card, as of 2026. Interchange only, not total processing cost.

Where the risk comes from

Typing card data removes the chip or contactless reader's electronic card checks, and a mistyped number or amount can cause a decline or charge the wrong account. Phone and mail orders also lack an in-person card check, which makes fraud disputes harder to defend.

For phone orders, use Address Verification Service (AVS) and collect the card security code during authorization. Never retain that code after authorization. Visa has prohibited collecting CVV2 for US card-present keyed sales since April 2018. For an in-person fallback, follow the network and acquirer procedures for documenting the sale, including an imprint and signed, dated receipt when required.

Where it appears on your statement

Transaction reports may label these payments “keyed,” “manually keyed,” or “manual entry.” The label may appear in a transaction-level report rather than as a separate fee line on your monthly statement. Compare keyed transaction counts and rates by store or terminal, then check whether your processor charges a distinct manual-entry price.

If your statement uses interchange-plus pricing, look for the interchange category on keyed payments and compare it with electronically read sales using the same card type and sale conditions. With bundled or tiered pricing, the interchange difference can be hidden inside the rate, so compare your processor's keyed price with its reader-based price.

What you can actually change

1. 01
   Use the reader first. Try chip or contactless payment before keying a card at the counter. Keep terminals clean and working, and train staff on the fallback process.
2. 02
   Secure phone orders. Run AVS and collect the card security code during authorization. Keep order forms and delivery records, but never store the security code after authorization.
3. 03
   Track keyed sales. Review keyed counts and rates by location, terminal, and employee each month. Compare processor prices for keyed and reader-based payments, and identify avoidable manual entry.

Frequently asked questions