I have a client who is wanting an ecommerce website they are wanting to collect the credit card information from the website and than process the card manually. Is there any legal issues with this?
One issue will be the CVV2 number- Visa and Mastercard prohibit storing this information. Then there may be other issues, for example typically this requires the merchant to open a seperate account, specifically for web transactions.
You might search for PCI Compliance (in your favorite search engine) for some information. Plus it might go against their contract. If they have a brick and mortar account, their provider expects them to swipe the card, see the card, verify the card. Keying in numbers, this is usually riskier because now the provider and card associations have no proof the merchant is actually verifying the card. So some providers will downgrade the transaction.