What Is A Virtual Terminal For Credit Card Processing?
A virtual terminal is a method of accepting credit and debit card payments using your computer. Businesses enter the card details on behalf of a customer into a secure online form. Card information can be manually entered (keyed) or swiped if an optional card swiper is used.
Virtual terminals are internet-based, meaning there’s no software to download, and the terminal can be accessed from any internet-connected computer. With a virtual terminal, you can log in to your account to process payments and view reports from the terminal “dashboard” or menu. Virtual terminals are frequently used in one location, such as a home office, but they can be used in different locations. For example, a virtual terminal that is usually used at the office could be brought on the road for a tradeshow.
What's The Difference Between A Virtual Terminal And A Payment Gateway?
A virtual terminal allows you as the business to enter payment details to process a transaction on behalf of a customer. A payment gateway functions as the “equipment” for processing a card. You can think of it as the credit card processing machine of electronic card payments. After you enter information about a transaction into the virtual terminal, the transaction is processed through a payment gateway.
Additionally, while virtual terminals are used by the business, a payment gateway can be used by a customer, allowing them to enter payment details themselves. Payment gateways are used on e-commerce shopping websites when a customer pays for items they have put into an online shopping cart.
You can use a payment gateway without a virtual terminal, but you cannot use a virtual terminal without a payment gateway.
What Payment Types Can I Accept?
Specific payment types may vary by processor, but most virtual terminals can accept major credit and debit cards (such as Visa, MasterCard, Discover, and American Express) and some can accept additional forms of payment, such as PayPal or electronic checks. Some payment gateways may also support recurring billing for easy processing of scheduled payments. Additionally, many virtual terminals will allow you to process refunds or returns.
What Type Of Businesses Could Benefit From A Virtual Terminal?
There are a number of businesses that could benefit from using a virtual terminal for credit card processing. The most common are businesses that want to accept credit or debit card payments for goods or services purchased by phone, mail, or fax such as catalogue-based businesses, telemarketing businesses, or small businesses that don’t sell through their website.
Additionally, businesses that need to accept payments on-the-go but prefer to use a computer instead of a mobile device could benefit from a virtual terminal. Examples include artists, flea market or craft fair sellers, and businesses who attend tradeshows.
Businesses that take credit cards in office or classroom settings (such as doctor's offices, flight schools, etc.) may also prefer a virtual terminal.
Virtual terminals usually offer the ability to create and view reports for a number of different factors regarding your card transactions. Specific reporting abilities vary by processor/virtual terminal, but may include options such as individual transaction report details, refund reports, sales reports by date or card type, and more.
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