Every business operates differently, but the one thing they all have in common is that every business accepts payments. New payment tools like NFC contactless payments that help your business grow and provide a high-quality customer experience are in high demand, especially for processing customer payments. And while solutions like POS systems are perfect for in-person payments, what about when you need to offer remote billing or refunds, or if you need to process a customer’s credit card over the phone? With a virtual terminal, this functionality allows your business to accept credit and debit card payments with nothing more than a computer and an internet connection.
Although it’s not a necessary tool in every small business owner’s arsenal, the virtual terminal is a smart solution for some types of businesses, like those that take payments online or over the phone. But what exactly is a virtual terminal, and can your business benefit from adding it to your payment solutions? In this article, we’ll dive into everything you need to know about virtual terminals and how to pick the best virtual terminal on the market.
TL;DR
- Basically, a virtual terminal is a web-based application that allows you to enter credit card details manually via the internet. Virtual terminal payments are particularly useful for businesses that process manually entered transactions, which inherently carry a higher fraud risk. This solution mitigates risk by utilizing enhanced security protocols like AVS and CVV checks during data entry. This solution allows you to accept payments over the phone or in person from your computer, all without needing a physical card reader or point-of-sales terminal.
- A virtual terminal is fit primarily for businesses such as food delivery services, professional services, freelancers, and healthcare providers. These businesses often conduct most of their business over the phone, submit electronic invoices, or have recurring monthly membership services fees.
- Virtual credit card processing terminals provide several up-to-the-minute security features, keeping your customers’ financial information safe. Because the transaction takes place through a payment gateway that utilizes data encryption or tokenization to secure sensitive information during transmission, accepting payments using a virtual terminal from Stax (which is PCI compliant) is secure.
What is a virtual terminal?
Definition and explanation of a virtual terminal
A virtual terminal is a web-based application that allows businesses to process electronic payments from customers remotely, without the need for a physical point-of-sale (POS) terminal. This secure and convenient tool enables businesses to accept credit and debit card payments over the internet, phone, or fax. Virtual terminals are particularly beneficial for businesses that conduct mail order/telephone order (MOTO), send electronic invoices, or need a manual backup system for their online store. By using a virtual terminal, businesses can streamline their payment processes and offer a flexible payment solution to their customers.
The Stax platform offers a virtual terminal and a suite of contactless solutions.
How a virtual terminal works
Basically, a virtual terminal is a web-based application that allows you to enter credit card details manually via the internet. It allows you to accept payments over the phone or in person from your computer, all without needing a physical card reader or point-of-sales terminal.
Built for recurring billing and online invoicing, a virtual terminal is fit for businesses that primarily operate over the phone and take mail orders, handle online invoicing, or have recurring monthly memberships. An added benefit of using a virtual terminal is the increased flexibility in accepting payments over the phone, online, and in person, all without ever having to use a physical card.
A virtual terminal works by allowing businesses to manually input payment details, such as credit or debit card information, into a secure online portal. Once the payment details are entered, the payment processor verifies the information and processes the transaction. Virtual terminals typically require a secure relationship with a payment processor, often involving a dedicated merchant account and payment gateway to function. They can process credit card payments, debit card payments, and ACH/eCheck payments. Additionally, most virtual terminals offer features such as recurring billing, customer management tools, and fraud detection, making them a versatile solution for various business needs.
Still confused about how a virtual terminal works? Think of it as a digital credit card reader, which means you need no extra equipment besides a secure wifi connection to process card-not present transactions and payments.
How does a virtual terminal process payments?
Powered by a payment gateway, a virtual terminal provides payment processing and authorization services through an online platform. To enhance security, many virtual terminals also incorporate an address verification service (AVS) to confirm the identity of the customer and ensure the transaction is secure. Without any required hardware, you can get paid faster and more conveniently while still offering you the flexibility to accept credit cards, debit cards, and ACH payments. All you need to do is log into your virtual terminal through a computer or mobile device, enter payment information into a form, and with the click of a button, the system processes the payment.
Virtual terminals also verify the purchase, issue customer receipts, and report all transactions within the dashboard. The business dashboard shows sales trends in a simple view, making you aware of growth or areas of concern for your business.
A virtual terminal can also serve as a backup to your point-of-sale (POS) system. Having a virtual credit card processing terminal on standby adds additional flexibility and simplicity to your business.
Can my business use a virtual terminal?
A virtual terminal is fit primarily for businesses such as food delivery services, professional services, freelancers, and healthcare providers. These businesses often conduct most of their business over the phone, submit electronic invoices, or have recurring monthly membership services fees.
Having the ability to take payments by phone or online by adding a virtual terminal to your payment offerings allows increased flexibility and accessibility. For example, if you’re a restaurant that requires a deposit when booking, a virtual terminal can be a great solution that’ll allow customers to quickly and securely book using their credit card info.
Plus, by providing a more seamless and streamlined payment option, you can easily improve your customer’s check-out experience. Faster, more secure, and effortless transactions provide opportunities for more sales in less time and less abandoned sales due to a hassle-free shopping experience.
Is the virtual terminal secure for payment processing?
As a business owner, you must safeguard your customers’ payment details. Not doing so could create distrust among your customers and seriously impact your business. Virtual credit card processing terminals provide several up-to-the-minute security features, keeping your customers’ financial information safe. That’s why all payment data submitted via the virtual terminal has to go through PCI Compliant procedures, since it helps make sure that your customers’ sensitive information is always safe.
Because the transaction takes place through a payment gateway that utilizes data encryption or tokenization to secure sensitive information during transmission, accepting payments with the use of a virtual terminal is secure. Despite these built-in safeguards, it’s important to be cautious. After all, human error is still a factor. To help mitigate these risks, make sure your employees never write down credit card information on a piece of paper or store it in any way outside of your virtual terminal.
Choosing the right virtual terminal
Essential features to consider
When choosing a virtual terminal, there are several essential features to consider to ensure it meets your business needs:
- Security: Look for a virtual terminal that offers secure payment processing, such as encryption and tokenization, to protect sensitive customer data. This ensures that your customers’ payment details are safe and reduces the risk of fraud.
- Ease of use: Choose a virtual terminal that is easy to use and navigate, with a user-friendly interface and clear instructions. This will help you and your staff process payments efficiently and reduce the likelihood of errors.
- Payment methods: Consider a virtual terminal that offers multiple payment methods, including credit and debit cards, as well as ACH/eCheck payments. This flexibility allows you to cater to a wider range of customer preferences.
- Integration: Look for a virtual terminal that integrates with your existing accounting or CRM software to streamline your business operations. This can save time and reduce the need for manual data entry.
- Customer support: Choose a virtual terminal provider that offers reliable customer support, such as phone, email, or live chat support. This ensures that you can get help quickly if you encounter any issues.
- Fees: Meticulously evaluate the cost structure. The best value often comes from providers offering a subscription or interchange-plus-zero model (like Stax), which eliminates the percentage markup on key-in transactions, maximizing cost savings for your business.
- Scalability: Choose a virtual terminal that can grow with your business, with flexible pricing plans and scalable solutions. This ensures that the virtual terminal can continue to meet your needs as your business expands.
By considering these essential features, you can choose a virtual terminal that provides a secure and convenient way to accept payments from your customers, helping your business operate more efficiently and effectively.
What are the benefits of using Stax’s virtual terminal and contactless solutions for multiple payment methods?
With Stax, your business gains access to the wholesale (interchange) rate with zero percentage markup on your card-not-present transactions, ensuring the maximum cost savings, combined with access to our full omnichannel payments toolkit. In addition to a full-featured invoicing and billing platform, you’ll have the option of creating an online shopping cart for your business and the ability to communicate with your customers quickly and efficiently through 2-way text messaging.
Here are just some of the perks of our virtual terminal:
- Instant online shopping cart – Add items or services to your catalog, then publish them to a secure, branded checkout page in one click. No complex coding or separate gateway integration needed!
- Text-to-pay – Text message requests have a 97% open rate with an average customer response within 90 seconds. With 2-way text messaging, merchants and customers can talk back and forth, make changes, and even make payments.
- Customer & catalog management – Track relevant customer information, including tokenized cards. Store catalog items and keep track of inventory and sales against certain goods or services.
- Quick payment for keyed-in phone payments – If a customer orders over the phone for curbside pickup, employees can securely key in sensitive payment information while on the phone.
- Recurring & one-time invoicing – Send professional electronic invoices via email or text and allow customers to pay via email or text. Set up recurring payments or invoices for the customers as needed.
Stax’s contactless solutions and virtual terminal pricing
At Stax, we’re fully committed to offering transparent pricing and transaction fees, no matter which of our products or services you need. The same goes for our virtual terminal: With membership-based pricing, we guarantee access to our wholesale credit card processing rates, as we replace the costly percentage transaction fee with a low, predictable monthly membership. Plus, there are no hidden fees or lengthy contracts, meaning you can cancel your virtual merchant account whenever you want instead of being tied down to a long contract.
Whether it’s invoicing, recurring billing, pay-by-phone, contactless or credit card payments, or a one-click shopping cart, Stax offers multiple virtual payment options that can help your business streamline payments and foster sustainable growth. Start saving on payment processing fees with Stax. Contact us for a demo today.
Quick FAQs about virtual terminal
Q: What is a virtual terminal?
A virtual terminal is a web-based application that allows businesses to manually input credit card details via the internet. This tool enables businesses to accept payments over the phone or in person using a computer, eliminating the need for a physical card reader or point of sales terminal.
Q: How does a virtual terminal work?
A virtual terminal works by leveraging a payment gateway to provide payment processing and authorization services through an online platform. Businesses can log into the virtual terminal through a computer or mobile device, enter payment information into a form, and process the payment with a click of a button.
Q: What type of businesses can benefit from a virtual terminal?
Businesses such as food delivery services, professional services, freelancers, and healthcare providers can significantly benefit from using a virtual terminal. These businesses often conduct most of their operations over the phone, submit electronic invoices, or have recurring monthly membership services fees.
Q: Is a virtual terminal secure?
Yes, virtual credit card processing terminals offer several security features that protect customers’ financial information. Transactions occur through a payment gateway that uses data encryption or tokenization to secure sensitive information during transmission. To ensure safety, all payment data submitted via the virtual terminal has to go through PCI Compliant procedures.
Q: What are the benefits of using Stax contactless solutions?
Stax contactless solutions offer multiple benefits, including access to wholesale card-not-present rates, a full-featured invoicing and billing platform, an option to create an online shopping cart, and efficient 2-way text messaging communication with customers. It also includes features like instant online shopping cart, text-to-pay customer & catalog management, quick payment for keyed-in phone payments, and recurring & one-time invoicing.
Q: What is the pricing for Stax’s virtual terminal?
Stax offers transparent pricing and transaction fees with no hidden charges or lengthy contracts. They provide membership-based pricing and guarantee access to their wholesale credit card processing rates. For detailed pricing information for their virtual terminal services, customers can visit the Stax website.
Q: How can a virtual terminal improve customer experiences?
By offering a more streamlined and seamless payment option, businesses can improve their customers’ check-out experiences. Faster, secure, and effortless transactions provide opportunities for more sales in less time and fewer abandoned sales due to a hassle-free shopping experience.
Q: Is a virtual terminal necessary for every business?
While it’s not a necessary tool for every small business, a virtual terminal is a smart solution for businesses that primarily operate over the phone or online. It provides increased flexibility in accepting payments over the phone, online, and in-person, all without the need for a physical card.
Q: What are the additional features of a virtual terminal?
Beyond payment processing, virtual terminals also verify the purchase, issue customer receipts, and report all transactions within the dashboard. The business dashboard shows sales trends in a simple view, making businesses aware of growth or areas of concern.
Q: How can a virtual terminal serve as a backup to the POS system?
A virtual terminal can serve as a backup to your point-of-sale (POS) system. Having a virtual credit card processing terminal on standby adds additional flexibility and simplicity to your business, ensuring uninterrupted payment processing.
