Virtual Terminal Payments

Virtual terminal payments are perfect for businesses that sell products or services over the phone. These card-not-present (CNP) transactions typically cost less than countertop credit card terminals and point-of-purchase systems.

They also provide an alternative to e-commerce gateways for high volume merchants. Regardless of your sales method, there are several important things to consider before making the decision to use a virtual terminal.
Recurring Payments

While a virtual terminal is not for every business, it can be an excellent tool for mail and phone order businesses, or if you need to make in-person credit card payments. Virtual terminals work by allowing you to hand-key in customers’ credit or debit card details and then click a button for processing. They also allow you to enter customer billing information and order notes, if needed.

After a payment is entered, the virtual terminal will send that information to a payment gateway for authorization. The payment gateway will then communicate with the credit card network and the card issuer to confirm that the card is valid and has available funds.

Many virtual terminal providers offer features that can help you protect your business from fraud. These include address verification service, which verifies a customer’s billing address against the one on file with their card issuer. Some also offer tokenization technology, which replaces a customer’s personal account number (PAN) with an alphanumeric ID that is meaningless to everyone except the payment processor.
Ease of Use

Virtual terminals let businesses accept credit card payments remotely without the need for extra hardware. This makes it easy for businesses to get paid quickly and securely when their customers aren’t in person. They can also use recurring payments to improve cash flow and customer retention.

Simply log in to a business’s online portal or B2B payment gateway, and select the terminal option. Then, select the payment type (credit/debit or ACH/echeck), sales amount and order notes. Enter the customer’s card number or bank account details into the internet form, and click a button to submit the transaction.

Virtual terminals are ideal for businesses that sell by mail, phone or fax such as catalogue-based and telemarketing businesses. These types of businesses typically face higher processing rates because they are card-not-present (CNP) transactions, so the virtual terminal helps them to lower their processing fees. This saves them money and allows them to reach a larger audience. It’s also great for small businesses that attend tradeshows or flea markets and need to take credit card payments on the go.
Security

Virtual terminals prioritize security by using encryption protocols to protect sensitive customer information during transactions. They also adhere to PCI data security standards to ensure that customers’ credit card information is safe. This provides peace of mind for both businesses and consumers.

Virtual terminal payment solutions enable businesses to accept payments online and in person. They are easy to use and require only a computer or mobile device and an internet connection. They offer a convenient and secure way to process payments while keeping costs low.

When a customer enters their payment details into the virtual terminal, it is sent to the acquiring bank for authorization. The bank will then send back a message indicating whether the transaction is approved or rejected. If the transaction is approved, funds are transferred to the merchant’s account. Many virtual terminals allow businesses to set up recurring payments for their clients. This helps them increase cash flow and improve customer loyalty.
Cost

Virtual terminals allow customers to pay via secure invoice links or by logging in and entering their credit card information themselves. They also support recurring payments, allowing you to automatically charge your repeat clients. Most virtual terminals come with a USB swiper to make the process even faster and more reliable.

These terminals typically charge a percentage processing fee and a per-typed-in transaction cost. They may also charge monthly fees, but these aren’t as common as the other two. You should compare providers carefully to find the best deal for your business.

The ideal candidates for a virtual terminal include small businesses, delivery-based businesses, mobile businesses and professional services such as accountants and lawyers who take payment over the phone or by mail for their services. They are also a good choice for ecommerce businesses that have already invested in a point-of-sale system. In these cases, the virtual terminal can serve as a cheaper alternative to a physical POS and an online payment gateway.