Virtual terminal is bringing a positive change in the sphere of online payment. People in the 21st century have become very busy due to their hectic and unstable schedule. Amid this situation, following the traditional payment method has become very outdated. It is also very time-consuming. Therefore, if you consider the present situation, you will get to know that people across the globe are giving more preference to online transactions.
When it comes to online payment modes, you will get various options such as credit card transactions, debit card transactions, wallet transactions, and many more. Well, the merchants must have payment terminals to accept online payment from the customers. Some of the payment terminals are credit card machines, Point Of Sale, debit card machines, and many more. But, these payment terminals support card present transactions. It means that the customers will have to be present in the shop. The customers will have to provide the credit card details to complete the transaction.
A virtual terminal is completely different from those traditional payment terminals. It is basically a web-based platform. The best part of the virtual terminal is that it supports card not present transaction. It means that customers will not have to physically come into your shop to complete the transaction. Another interesting thing is that the merchants will not have to invest to purchase such a payment terminal. However, you need to have a merchant account to get access to the virtual terminal. With the help of this payment capture tool, you will be able to accept transactions from anywhere. If you choose any renowned payment processor for your business, you will get 24×7 support for the virtual terminal. In addition to this, you must have an active internet connection to complete the transaction through a virtual terminal.
How Virtual Terminal Works
Standing in the technologically advanced era, it is very important to pair your business with a virtual terminal. However, if you want to use a virtual terminal to elevate your business to the next level, you must understand how it works. Therefore, we have elaborated the process here. So, don’t miss to go through the following points:
- First of all, the merchant will ask the customers for the credit card details. The customer can send the details via SMS or email. After receiving the required details, the merchant will have to log in to the virtual terminal account.
- After logging in to the virtual terminal account, the merchant will have to put the required card details. Then, the merchant processor will receive it through a secured online payment gateway. After receiving the details, the merchant processor will verify the details.
- After the verification, the merchant processor solution will send it to the credit card issuing company.
- The company will verify the details and pass them to the card-issuing bank. If the consumer has the transaction amount in the card account, the credit card transaction through the virtual terminal will get approved.
- The bank will approve the transaction and then send, the information to the card-issuing company. The card issuing company shares the information with the payment processor.
So, this is how the virtual terminal works. Well, the good thing is that it is a real-time process and therefore, it will complete the transaction instantly. The merchants will have to provide a specific credit card processing fee to the merchant processor. If you are new to online business, you will not have to think much. It does not require enough technical knowledge to complete the transaction through a virtual terminal. The merchant will have to put the card details and the transaction will be completed.
Business That Require Virtual Terminal
Well, if your business does not have a brick and motor store, you should go with this payment terminal. In the case of a brick and motor store, you will have a physical store. Therefore, customers will visit your shop and they will make transactions. But, if your business does not have such a structure, you must enable a virtual terminal in your business. This terminal supports card not present transaction and therefore, you will have to ask the customers to physically come to complete the transactions. You can conduct the entire business including accepting payments from the customers online.
Important Business Structures
We have added certain business structures that require a virtual terminal. You should have a look at this:
- If you are running a business where you are taking orders from your customers over email or phone, you must enable virtual terminal in your business. In such a case, you can ask for the credit card details from the customers. Then, you can complete the transaction through virtual terminal. You can also send your customers invoices online.
- Well, if you are running any service-oriented business such as lawn care, pet grooming and many more, you must have virtual terminal. A virtual terminal is a portable payment terminal. You can accept payments from your customers using the mobile. So, after providing the service, you can ask for the card details. Then, you can complete the transaction.
- The virtual terminal is also used in many professional businesses such as accounting, legal and medical. In such a case, you can accept the payment from the customers from anywhere. The virtual terminal also supports multi-login and therefore, your staff can also accept credit card payments through this terminal on behalf of you.
- If you are running a business from home, you can go with this payment terminal. In order to enable the professional payment setup in your business, you will have to spend a lot. If your business is completely new and if you have a tight budget, virtual terminal will be the ideal option for you.
Advantage Of Using Virtual Terminal
Well, after the arrival of COVID-19, the entire ecosystem of online payment gets changed. Yes, before the arrival of the virus, consumers used to visit the store and there, they used to make an online transaction through physical payment terminals. But, after this pandemic, businessmen following the brick and motor business strategy closed their stores. Therefore, consumers are shopping online. In such a case, if you have virtual terminal, you will have endless benefits. We have added some of them below:
Keep Your Business Ahead Of Others
The virtual terminal supports card not present transaction. Therefore, if the customer purchases anything from your business, he or she will not have to come to your store to make the payment. The customers can make the payment sitting from their home. As a merchant, you will have to ask for the credit card details. After that, you can complete the transaction sitting from anywhere. Thus, you can maintain the cash flow in your business. Ultimately, you can keep your business ahead of others.
No Heavy Investment On Payment Terminals
Well, a virtual terminal is basically web-based payment equipment. Therefore, you will not have to spend money on purchasing physical payment terminals such as credit card machines, debit card machines and many more. However, you will have to make a decent setup for your business. In such a case, you must have a computer or laptop and a strong internet connection. Well, you can also log in to your virtual terminal account using mobile and tablet. Ultimately, you can save a lot of money on the payment terminals. You can utilize this amount to grow your business. You can also offer attractive discounts to make the customer base stronger.
Never Miss Payments
Well, a virtual terminal supports recurring payment and therefore, it enhances the flexibilities. If the customers have budget issues, they can purchase products from your business using the recurring payment option. In such a case, you will get the payment on a monthly basis. Moreover, if you are offering any repeat service, a recurring payment option will be ideal for your business. So, with a virtual terminal, you can accept recurring payments. Moreover, the advanced user interface will help you to track each and every transaction. As a result, you will never miss a single payment. It also sends payment reminders to the customers.
Increase The Customer Base
You can store the important information of the customers such as their preference, date of birth, and many more on the virtual terminal. Depending on this, you can make customized offers for your customers. You can provide a special discount offer on their birthdays. Thus, you will be able to create a solid impression on your customers. If your customers get satisfactory outcomes from your business, they will also promote your business in their personal circle. Ultimately, it will increase the customer base of your business.
Important Aspects Related To Virtual Terminal
Well, choosing the virtual terminal from a renowned processor is also important. You can go with International Payment Solutions that offers 24×7 support and an affordable credit card processing rate. However, there are some aspects that are related to virtual terminals. These are:
- Easy setup option
- The merchants can accept all forms of payments
- The virtual terminal supports various platforms.
By now, you have probably understood how virtual terminal is bringing small businesses on the right track. So, if you have not yet enabled this terminal in your business, do it as early as possible.