Small businesses may use virtual terminals to accept payments online or offline using a computer and a card reader. A service firm, a shop or restaurant that takes phone orders, or a business that wants to provide its customers more alternatives for paying their bills may benefit from this service. A virtual terminal might be a good option for these and other businesses.
When it comes to using a virtual terminal for credit card processing, we’re here to help. If you have any questions or concerns, please don’t hesitate to contact us. As a result of our investigation of virtual terminal transactions, we want to provide you with the information you need to make sound business choices.
What Is A Virtual Terminal?
A virtual terminal is a piece of software (often web-based these days) that allows you to manually enter credit card information into an internet browser and submit a transaction for processing. You may accept payments from your computer using this method
even without a card reader.
A virtual terminal must have a card reader if you wish to accept in-person payments. Card-present transactions are more secure and less costly than just inputting a customer’s credit card number.
WHAT KINDS OF BUSINESSES NEED VIRTUAL TERMINAL PAYMENT PROCESSING?
What kinds of enterprises may benefit from using a virtual terminal? A virtual terminal is helpful for any firm when a regular countertop terminal or point of sale (POS) system is either infeasible or too expensive for them. The following are only a few:
Food Deliveries: Customers may prepay for their meals by phone before they are delivered to their homes.
Remote Freelancing: Freelancers like web designers, graphic designers, authors, and other professionals can pay their bills over the phone.
Local professionals, such as doctors, lawyers, and accountants: Accept money over the phone to schedule customers, settle an open tab or execute transactions from behind the counter.
Other Delivery Services: Whether you operate a local pharmacy, transport wine, spirits, or any delivery-based business, accepting phone orders is a good alternative.
You may still find a virtual terminal beneficial even if none of the following applies to you because of their limited counter space; several merchants choose not to use physical terminals in favor of virtual ones. While mobile payment processing apps are an option, a virtual terminal makes the most sense for people who depend on PCs for their company. Every store that takes payment through swipe, dip, or tap may have to accept phone payments from time to time. To manually enter the credit card information, there’s usually a virtual terminal somewhere on the dashboard of a credit card processor.
IS A VIRTUAL TERMINAL A PAYMENT GATEWAY?
A virtual terminal may be considered a “virtual” credit card terminal that does not need counter space. You may enter your customer’s credit card number and transaction information on the virtual terminal’s interface screen. If your payment provider’s payment processing network approves the transaction and money is prepared to be transferred, this information is transmitted over the internet. This capability is similar to that of a countertop terminal or mPOS app, except that most countertop terminals may also transfer data through a landline telephone connection. Mobile payment apps for smartphones and tablets are just virtual terminals for taking payments.
Virtual terminals, a payment gateway critical to online commerce, are occasionally mistaken for the real thing. On the other hand, Gateways provide a slew of services in addition to transaction processing. Virtual terminals, on the other hand, rely on the merchant to execute a transaction, while gateways allow customers to sell directly to the merchant. Nowadays, mail order and telephone order (MOTO) companies that don’t have a website or don’t enable online transactions to rely heavily on virtual terminals.
ADVANTAGES OF VIRTUAL TERMINAL CREDIT CARD PROCESSING
Virtual terminals provide all of the security and fraud prevention capabilities of a countertop terminal or point-of-sale system at a fraction of the cost. Here’s a rundown of the primary advantages of utilizing a virtual terminal:
Prevention of Fraud
As E-Commerce has expanded, credit card fraud has become a more significant issue. The most accessible approach to prevent credit card fraud is never to write down your credit card details somewhere else and always to input them into the payment form. Even if security is strong, it will sometimes fall apart. However, if your business uses a virtual terminal that complies with PCI, you won’t be held accountable for any breaches.
Every company, regardless of the kind of payment method they accept, has to be aware of the possibility of chargebacks. Customers have the right to request a chargeback if they forget about a purchase, have a change of heart, or are dissatisfied with the service they received. Chargebacks can cost a company more than the item’s initial purchase price in certain circumstances. In a transaction when the card is not physically present, the store does not record the electronic data that is stored on the chip or the stripe. This makes the possibility of “friendly fraud” much more remarkable. When a consumer calls their credit card company to dispute a transaction they made from your business, this is an example of friendly fraud. The firms can limit the number of chargebacks they experience by maintaining open contact with their customers, following up on customer complaints, and quickly resolving service issues.
Security measures that safeguard your clients’ credit card information throughout the transaction approval process are the same for virtual terminals as for physical terminals. PCI-compliant payment processing equipment and software are also available. It’s important to utilize additional security measures, such as address verification (AVS) and a CVV number, if applicable.
Possible Cost Savings
Using the virtual terminal that most service providers make available with your account is feasible rather than paying hundreds of dollars on an authentic countertop or point-of-sale system. This is because the virtual terminal is provided free of charge. You won’t run into any problems so long as you have an internet-connected device with you at all times. To find your company’s possible cost savings, just go HERE and upload two (2) months of current statements from your current processor.
Check out some of our other articles if you want more information regarding processing credit cards and different contactless methods of payment.
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Also Read: EMV Credit Card Devices