Hand Keyed (or manual entry) refers to the process of entering credit card information manually for processing a transaction, as opposed to using a card reader or chip reader. Hand keyed methods are typically employed in situations where the credit card is not physically present, such as in telephone or mail order transactions.
While offering flexibility in payment acceptance, hand keyed transactions are generally considered higher risk due to the increased potential for fraud and human error. This method may result in higher processing costs and fees, and can lead to inaccuracies in transaction details.
Although occasionally used in retail settings when card readers malfunction, it is advised to minimize its use due to the associated risks and costs.