Virtual terminal card payments are a convenient payment solution for businesses that accept recurring subscription-type payments over the phone. Rather than using a physical credit card reader, they use an online form to input credit card information and submit it to the merchant payment processor for processing.
Some providers also allow a USB credit card swiper to plug directly into the computer for faster data entry. This can also help to lower transaction fees for certain types of commercial cards.
Real-time transaction processing
Virtual terminal card payments allow you to process credit or debit cards through your computer, tablet, or smartphone. You simply log into your payment interface, select the transaction type, and enter a customer’s card information or bank account details. The funds are then deposited directly into your merchant account within 24 hours.
Many virtual terminal providers offer recurring payments, which make it easy for customers to pay on a regular basis. However, it’s important to analyze the different fees and services that each offers before choosing a provider. For instance, low processing fees may mean high per-transaction fees, or visa versa.
A virtual terminal also makes it easier to track your transaction history. It allows you to view and search for all transactions, including recurring, sales, refunds, and e-checks. You can also auto-populate information based on previous transactions, which makes the process more efficient and saves you time. It also offers a hierarchy system that allows you to segregate reporting data by user permissions.
Easy to use
You don’t need special hardware to use virtual terminals to take credit card payments over the phone or via email. All you need is a computer, tablet or smartphone with an internet connection and your preferred browser.
After you manually enter your customer’s payment details, the information is sent to an integrated payment gateway over an encrypted connection for processing. The transaction is then verified by the credit card network and the card’s issuing bank, and approved within seconds. Then, both you and your customer receive an electronic receipt by email.
Some virtual terminal solutions can also provide recurring billing, allowing you to set up a payment schedule for clients that fits their budget and your accounts receivable needs. Just check with your chosen processor to ensure that they offer this feature. Recurring payments can help you improve cash flow and increase client retention. It can also reduce the amount of time you spend chasing payments and reduce your overall processing fees, too.
Integrated customer management
Whether your business takes in payments over the phone or online, virtual terminals offer integrated customer management tools to streamline your payment processes. For instance, some virtual terminals allow you to create a customer profile and store notes, purchase history and other information that will be accessible when processing transactions.
Using a virtual terminal eliminates the need for your team to write down credit card data when taking an order over the phone or in-person. This helps you maintain PCI compliance and minimizes your company’s liability for fraud.
When you process a transaction in the virtual terminal, it sends the payment details to your merchant processor or acquiring bank for authorization. After receiving an approval or decline, the terminal sends the settlement to the ACH network and generates a digital receipt for your customers. Most virtual terminals also support recurring billing, which is ideal for professional services businesses that bill clients monthly or quarterly. Depending on the virtual terminal provider, this feature may be available as an add-on to your account.
Security
Virtual terminal card payments prioritize security by using encryption protocols to protect customer payment information and adhere to industry standards. These features help reduce the risk of data breaches and fraud, building trust with customers and minimizing financial losses for businesses.
Some virtual terminals also enable tokenization, which replaces sensitive card information with a unique code that can only be used for a specific transaction. This eliminates the need for businesses to store sensitive card information in their systems and minimizes their PCI scope.
Other important security measures include requiring a password to log in and limiting login access to authorized users only. Additionally, it is important to log out after each use of the virtual terminal as this prevents unauthorized access to data and reduces liability for fraudulent transactions. In addition to the security benefits, virtual terminals can help streamline business operations and provide more flexibility for customers. These features can improve a customer’s check-out experience, which in turn can increase sales.