Virtual terminal credit card processing is a modern solution that allows businesses to process credit card payments without needing a physical credit card terminal or point-of-sale (POS) machine.
Virtual terminal payments cater well to the growing trend of ecommerce and remote transactions, enabling businesses to accept payments over the phone, via mail, or even in situations where the cardholder is not physically present. Let's delve deeper into the intricacies of virtual terminal credit card processing and how it's revolutionizing the way businesses handle transactions.
What is a virtual terminal?
A virtual terminal is an online-based application that allows businesses to enter credit or debit card information on behalf of a customer to process a transaction. It's essentially a digital version of a physical credit card terminal or POS system. This tool is incredibly versatile, as it can be accessed from any device with an internet connection, such as a computer, laptop, or smartphone.
Virtual terminals are particularly advantageous for businesses that operate remotely or offer telephone, mail order, or service-based transactions. They provide a secure and convenient solution for processing card-not-present transactions, without the need for expensive hardware or software.
Examples of virtual terminals
Some virtual terminal credit card processing systems you may be familiar with include:
- PayPal Virtual Terminal: This service offered by PayPal allows businesses to process payments over the phone, mail, or fax. It includes features like recurring payments, multi-user access, and international payment acceptance.
- Square Virtual Terminal: Square's solution allows users to enter card details on behalf of customers. It offers features like customer tracking, invoice generation, and compatibility with various hardware devices.
- Stripe Terminal: Stripe offers a virtual terminal that integrates with its suite of payment processing solutions. It includes features like real-time reporting, fraud prevention, and multi-currency support.
- Authorize.Net Virtual Terminal: This platform from Authorize.Net caters to businesses of all sizes, offering features like recurring billing, customer information management, and advanced fraud detection.
- Clover Virtual Terminal: Clover's virtual terminal not only processes payments but also manages refunds and provides real-time reporting. It offers compatibility with different devices and integration with other Clover solutions.
Virtual terminal credit card processing fees
Just like traditional credit card processing, virtual terminal credit card processing also incurs fees. These fees vary and are set by the payment processing company. Generally, the costs associated with a virtual credit card terminal can be broken down into a few categories:
- Transaction fees: This is a fee charged for every transaction processed through the virtual terminal. It's typically a percentage of the transaction amount, along with a fixed per-transaction fee.
- Monthly fees: Some virtual terminal providers charge a monthly fee for the use of their services. This cost usually covers access to the virtual terminal, customer support, and other features provided by the company.
- Setup fees: While not very common, some providers may ask for a one-time setup fee when you start using their services.
- Chargeback fees: If a customer disputes a transaction, the merchant can be charged a fee, known as a chargeback fee.
It's important to understand the fee structure of a virtual terminal provider before committing to their services. Cost-effectiveness should be balanced with the features and security measures provided by the virtual terminal solution. Remember that the cheapest option is not necessarily the best one, and the ultimate goal should be to provide a seamless and secure payment experience for your customers.
Which businesses benefit most from virtual terminal payment processing?
Businesses that greatly benefit from virtual terminal payment processing are often those that operate remotely or don't have a traditional brick-and-mortar store. These include online retailers, merchant account providers, freelancers, service-based businesses, and non-profit organizations.
Online retailers can seamlessly process card-not-present transactions from customers around the globe, enhancing their reach and boosting sales. Freelancers and service-based businesses such as consultants, therapists, or tutors can easily charge for their services, irrespective of their client's location.
For non-profit organizations, virtual terminal credit and debit card payments processing is a boon. It enables them to accept donations over the phone or via email, expanding their donor base and making the donation process simpler and more convenient.
Businesses that create recurring payments or offer subscription-based or recurring services, like gyms or digital content platforms, can leverage virtual terminal processing to automate payments, ensuring a steady cash flow.
Those seeking to minimize contact during the pandemic, such as restaurants and grocery stores offering delivery services, can leverage virtual terminals to process payments securely and efficiently, promoting a safer transaction environment for both their staff and customers.
Why customers love using a virtual terminal
Easily take online payments
The biggest benefit for customers using a virtual terminal is being able to pay online with credit and debit cards. Transactions at most virtual terminals can be completed quickly and securely, without having to wait in line or visit a physical location.
Convenient payment options
Virtual terminals offer customers a wide range of various payment methods and options, including credit/debit cards, e-wallets, and even cryptocurrency. This gives them greater flexibility and convenience when making payments.
Accept several currencies
Another advantage of using virtual terminal payment processing is its ability to accept multiple currencies. This makes it easier for customers to make international payments and helps businesses expand their reach beyond local markets.
Safe and secure transactions
The security offered by virtual terminals is top-notch. All transactions are protected with data encryption, meaning that sensitive information such as card numbers and PINs remains secure throughout the process. This provides customers with peace of mind knowing their financial and payment details are safe.
How banks can benefit from offering virtual terminal services
Virtual terminals extend the range of payment solutions a bank can offer to its customers, accommodating the trend towards remote, online transactions. Businesses that use the bank's services may appreciate the ability to take card payments over the phone, via mail, or through fax, potentially increasing their customer base and sales.
Plus, with features such as real-time reporting, customer tracking, and multi-currency support, banks can streamline their operations and provide a better user experience. By leveraging virtual terminal credit card processing, banks can stay competitive in today's digital age, meet customer expectations, and drive business growth.
How Episode 6 can help your financial institution
At E6, we utilize a progressive modernization approach so you can go to market faster with new, modern payments solutions without disrupting your current tech stack. With E6 virtual card payments, experience a seamless, secure, and instantly accessible solution.
Contact us today to elevate your payment offerings to the forefront of the 21st-century payment processor, empowering your customers with the ability to make payments effortlessly, without the need for a physical card.
