After having many conversations with PayPal (who I have to say are the most helpful people I’ve spoken to), here’s the story:
Even though PayPal comes up as a payment option in the Magento admin screen, PayPal do not actually allow card details to be entered that way. You have to use their Virtual Terminal to enter the card details separately. Once the payment has been processed there, you can complete the transaction in Magento. Ah, but how do we tell Magento that payment has been made without adding a new payment method that could be used via the frontend by customers?
We’re using Simple Admin Payment:
At the time of posting, it is still in Beta, but after testing on a development site we were happy to install on a live site - it works a treat. So now when customers call or send mail order, the orders are added via the backend ‘Add Order’ facility, card details processed on PayPal Virtual Terminal, then the order entry in completed by selecting the Simple Admin Payment which we label “Paid by credit/debit card”.
If you go for a PayPal Payments Pro UK account, this would be the kind of scenario you’d need to follow. You also need to go through PCI compliance checks, with any PCs, laptops, etc. being used to access Virtual Terminal being scanned for key loggers, etc.
Hope that’s of help to anyone following.