You have probably used an IVR payment system without even thinking about it. Here is how it works in simple terms:
- You call a number
- An automated voice guides you
- You press a few buttons
- Your bill is paid
That is IVR payment in action. But how does the technology actually work in a real business setting? That’s what we are going to discuss in this blog.
We will explain about the key technologies behind the system as well as the entire working mechanism.
Fun fact
According to Straits Research, the global market for voice-based payments is worth $9.74 billion in 2025 and will reach $24.26 billion by 2033. The growth rate is about 12% each year from 2025 to 2033.
Why are IVR payments important for your business?
IVR payments help your business grow without needing more staff. Customers can pay anytime, even at night or on weekends. No one has to answer the phone. This means faster payment, fewer support calls, and a smoother experience. The system keeps card details safe, so you stay PCI compliant and avoid mistakes or fraud.
A good example is Leeds Building Society in the UK. They added IVR payments so customers could pay their mortgage over the phone. In just nine months, more than 8000 payments went through the system. This took pressure off their staff and meant fewer customers had to wait on hold. It made paying easier and faster for everyone.
Did you know?
Businesses across the UK are turning to IVR payments to cut costs, improve customer service and stay PCI-compliant.
Note: Make sure you only use PCI-compliant IVR solutions to maintain security and build trust.
The technology behind IVR payment systems
IVR is basically a system that lets people make payments over the phone without speaking to a human. Here is a simple explanation of its working mechanism.
Telephony platform
At the core is a telephony server. This is what answers the call and plays the voice prompts. It connects through either a traditional phone network or cloud-based VoIP services.
This platform uses tools like SIP (Session Initiation Protocol) to manage call flow and routing.
IVR software
This is where logic lives. The software does the following things,
- Plays the right voice prompts
- Waits for keypad or voice input
- Validates entries
- Handles error prompts
Note: Some IVRs use text-to-speech and automatic speech recognition to turn written text into voice and speech into usable data.
Application server and CRM
Once your customer enters something, the IVR connects to a back-end system. It is usually a CRM or billing platform. This checks the following things:
- Who the customer is
- What they owe
- If the account is eligible for payment
Then it hands off the info to the payment processor.
Payment gateway integration
This is the main technology that processes the payment. The IVR system passes card data to a payment gateway like Stripe or Worldpay. This gateway talks to the bank and confirms if the payment is successful.
Security layers
The whole system includes security measures to keep the process safe. Here are the important layers,
- TLS encryption for all data in transit
- Tokenisation to replace real card info with dummy codes
- DTMF suppression so tones cannot be decoded
- Call flow isolation. This means the payment step is handled separately
This is how IVR payments manage to be both automated and secure.
Quick fact
Companies using IVR payment systems have seen live agent payment calls drop by up to 70%, according to CSG Forte.
How payment IVR actually works
Thinking about offering payments over the phone? Here is how the process actually works. Now, let’s say you call your utility provider to pay your electricity bill. This is how the process will go.
1. You call the IVR payment number
You dial a dedicated number set up by the business. This number will route you to their payment IVR system and you will hear a pre-recorded voice greeting. It will be something like this:
“Welcome to ABC Electric. To make a payment, press 1.”
2. The system identifies you
After that you will be asked to enter something to identify yourself. It can be your customer ID or mobile number. The system will check this against the company’s database to pull up your account information.
3. You enter payment details
Next, the system asks for your card or bank information. You can enter it using your keypad. In some advanced systems, you might speak the numbers out loud.
Here is the best part: Good IVR payment systems use speech recognition filters. This means the agent cannot hear your card details. The call recording pauses or blocks that section. This is how secure payment options are built into the process.
4. The system processes your payment instantly
Once you enter the details, the system connects with a payment gateway. This gateway checks your card or bank information and confirms the transaction. It only takes a few seconds.
You will hear a message like this:
“Your payment of £120 has been successful. Thank you.”
Wrapping up
IVR payment works by guiding users through a voice-driven process where they enter card details securely using their phone. With the right technology and PCI practices, it is one of the most secure payment options available for businesses.
Ready to offer secure phone payments?
Learn how RevoPCI can help.
FAQs
What types of businesses can use IVR payments?
Any business that takes recurring payments or handles high call volumes can benefit. Utilities, telecoms, healthcare, insurance and even local councils use IVR payment systems to reduce agent load and speed up collections.
Can I customise the payment IVR prompts?
Yes. You can customise the call flow, prompts and language to match your brand. Good IVR platforms like RevoPCI let you tailor everything from greetings to payment confirmations to create a smooth and secure payment experience.
How does IVR payment help with PCI compliance?
IVR payments reduce the risk of PCI non-compliance by keeping sensitive card data away from agents and internal systems. With features like DTMF masking and call recording suppression, a PCI-compliant solution helps businesses stay audit-ready without extra effort.
Is IVR payment available 24/7?
Yes. One of the biggest benefits of a payment IVR system is that it is always on. Customers can make payments anytime: after hours, weekends, even holidays. All without needing to speak to a live agent.
