Things That You Did Not Know About Virtual Payment Terminals
A virtual payment terminal is a web-based card reader: any laptop or computer becomes a payment device with no hardware or software installation. The merchant receives card details by phone, email, fax, or mail, enters them into the secure web interface, and the processor completes the payment — with support for lower rates, recurring billing, and stored customer details.
Scope: For businesses without face-to-face checkout — freelancers, professionals, and remote sellers — exploring how virtual payment terminals work.
Why Businesses Look Beyond Physical Terminals
There are different businesses; each business has its own uniqueness and specific needs. It does not matter whether it is a large enterprise business, or freelancing, or a restaurant or professional service provider — one thing is common in almost every business in this modern era. They all accept online payments such as credit card payments, debit card payments, and wallet payments. For accepting online payments, a point of sale system or POS system and portable credit card terminals can be useful. But, there are certain businesses where these physical payment terminals will not give you the desired convenience. This is where the virtual payment terminal comes into play.
You are probably doing a business where physical payment terminals are not giving you the desired advantages, and you are looking for an alternative. Suppose your business does not require face-to-face interactions with the consumers, and you are also not interested in investing money in purchasing physical payment equipment. What will you do in such a situation? The virtual payment terminal is designed in such a way that any business can use this payment tool. It has many flexibilities and this is why businesses are approaching it. It allows the merchant to process payments without having physical payment equipment or a card reader.
The Basics of a Virtual Payment Terminal
Before covering the actual benefits, you must understand the basics of this payment tool. It is a kind of advanced online checkout page. In other words, we can say that it is a web-based card reader. The entire thing works virtually and the merchant can process payments from anywhere without carrying a credit card terminal. You just need to have the credit card information of the customer. As a merchant, you can get this information over email, telephone, fax, and mail order.
If you go for a virtual payment tool, you do not have to buy any extra hardware to process the payments. You can easily turn any laptop or computer into a virtual payment tool. You do not even need to install any software as it is completely web-based. If your business receives in-person payments occasionally, you can connect a card reader to your PC via USB — but it is not completely necessary. Even in the case of in-person payment, this payment tool will be useful; you just need to manually input the credit card details to process the payments. As long as you are registered with a merchant processor, you can accept payments through this virtual payment equipment. After becoming a merchant, you will have access to a secure online payment gateway. Apart from an online payment gateway, you need a web browser and internet access.
How a Virtual Terminal Transaction Works
Here is how the process works from start to finish:
• First, your consumer will provide the debit card or credit card details over phone or email, or in person.
• After this, you will log into your virtual payment equipment account. You will get the login details from your merchant processor. After logging into your account, you will have to provide the necessary details.
• The virtual terminal will process the payment. After completion of payment, both parties will receive a confirmation message regarding the successful transaction.
The Major Benefits of a Virtual Payment Terminal
Here are the major benefits of the virtual payment terminal:
• Process All Payments at a Lower Rate: Processing payment through a virtual payment terminal is super easy and another interesting thing is that you can process payments at a very low rate. Merchants need to pay higher payment rates for the payments that are processed through physical payment terminals.
• Setting Up Recurring Payments: If you are doing a business where you need to set up a recurring payment system, you can do this with a virtual terminal. It supports a recurring payment system and so, you do not have to worry about receiving payments from customers.
• Store Customer Information for Future Transactions: As a merchant, you do not have to repeatedly ask the customers to provide credit card or debit card information. After doing the first transaction, the virtual payment tool will store the information.
Are you planning to set up a virtual terminal for your business? RapidCents is a reliable merchant processor solution with 24/7 support.
Frequently asked questions
What is a virtual payment terminal?
It is a web-based card reader — an advanced online checkout page where the merchant manually enters a customer's card details to process a payment. It works entirely in the browser, so no physical card terminal is required.
Do I need to install software or buy hardware for a virtual terminal?
No. A virtual terminal is completely web-based, so any laptop or computer with a browser and internet access works. If you occasionally take in-person payments, you can optionally connect a USB card reader, but it is not necessary.
How does a virtual terminal transaction work?
The customer provides their card details over the phone, by email, or in person. The merchant logs into the virtual terminal, enters the details, and the processor completes the payment — after which both parties receive a confirmation of the successful transaction.
Can a virtual terminal store customer card details for repeat billing?
Yes. After the first transaction, the virtual payment tool stores the customer's information securely, so returning customers do not have to share card details again, and recurring payment schedules can run automatically.
