Whether you conduct sales over the phone or through mail, virtual terminal credit card processing gives your customers the payment options they want. Find a processor that offers it with our comparison shopping tools and compare fees with the best virtual terminal providers.
All virtual terminal transactions take place through a payment gateway and may include tokenization for security. Find out how much transaction fees, monthly service fees and other charges can add up.
Cost
Virtual terminal credit card processing is a great solution for merchants that don’t need point-of-sale equipment or those whose customers aren’t present at the time of payment. It uses a secure web connection to allow you to manually input credit card information, which is then sent online to a payment processor. Once the transaction is completed, you’ll be notified of it in real time and your customer will receive an email receipt.
The cost of virtual terminal credit card processing depends on the provider and type of plan you select, as well as your business’s transaction volume. On average, fees are around 3.5% of the transaction value. Additionally, you may also pay a per-typed-in transaction fee and monthly fees. To minimize costs, consider using a virtual terminal for recurring digital payments and other card-not-present transactions, such as fax or mail orders. Ensure that your credit card processing company offers tokenization and end-to-end encryption to help protect sensitive data within your system and during transmission.
Security
Many virtual terminals support the use of optional card reader and printer accessories to facilitate faster data entry and receipt generation. E-commerce businesses and mail order/telephone order (MOTO) merchants can benefit from this option as it allows them to accept credit cards over the phone or through email without having to invest in a physical card machine or point-of-sale (POS) system. These devices also offer more secure processing than traditional card machines, as they utilize extra fraud tools like address verification service and zip code comparisons to verify customers’ identities.
In addition, PCI-compliant virtual terminals can encrypt customer payment data to prevent cybercriminals from accessing sensitive information and using it for illicit purposes. They can also replace sensitive data with a non-sensitive placeholder, known as a token, to enable repeat purchases and reduce the risk of unauthorized access to payment information in the event of a data breach. This enables recurring payments and reduces the overall cost of credit card processing.
Convenience
Virtual terminals allow customers to pay for their purchases through a secure internet connection. They can be used by businesses that sell products or services over the phone, via mail, or through an online store. They also can be used by small businesses that don’t meet their customers in person. Examples include catalog-based businesses, telemarketing companies, and small businesses that use home-run organizations or remote workers.
Once the transaction information has been entered into a virtual terminal, it is encrypted and sent to the payment processor. The payment processor then sends the data to the bank for authorization.
Many virtual terminals also support recurring billing, which can be beneficial for business models that require a consistent flow of payments. When choosing a virtual terminal, look for one that supports multiple currencies and has advanced security features. It should also offer excellent customer support.
Flexibility
Many small businesses receive orders over the phone, in email, or by traditional mail and need to process payments quickly, efficiently, and securely. Virtual terminal credit card processing allows them to do so without needing hardware or a storefront, providing flexibility and convenience.
Once the customer has entered all of their information, they can click a button to submit the transaction. In most cases, the merchant will then be notified if the transaction has been approved or declined by the payment processor or acquiring bank.
If the transaction is approved, a digital receipt can be sent to the customer via email or text message. Alternatively, the business can choose to print a receipt for customers. These measures help to take as many human errors and fraudulent activities out of the process as possible, improving efficiency and strengthening security.