Would My Business Benefit From Using A Contactless Virtual Terminal?

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. 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 contactless 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 contactless 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. 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 Contactless Virtual Terminal?

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 contactless virtual terminal is fit for (eCommerce) 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 contactless 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.

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 Contactless Virtual Terminal Work?

Powered by a payment gateway, a contactless virtual terminal provides payment processing and authorization services through an online platform. Without any required hardware you can get paid faster and more conveniently while still offering you the flexibility to accepting 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 contactless 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 Contactless 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.

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Is the Contactless Virtual Terminal Secure?

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 contactless 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.

What Are the Benefits of Using Stax Contactless Solutions?

With Stax, not only will your business have access to the wholesale card-not-present rates, but you’ll also gain access to the contactless payments tool kit including the Stax Contactless Solutions. 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  Contactless Virtual Terminal:

  • Instant Online Shopping Cart – Add items or services to your catalog, then publish them to your online shop in one click. No domain purchase needed!
  • Text2Pay – 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 Contactless 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. 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. (If you’re curious to learn more about our pricing for our virtual terminal services, click here.)

Would My Business Benefit From Using Contactless Virtual Terminals

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.

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FAQs about Virtual Terminal

Q: What is a virtual terminal?

A virtual terminal is a web-based application that allows merchants to process credit card transactions without the need for a physical card reader or point-of-sale (POS) system. It enables merchants to enter credit card details manually into an online interface to process transactions. Virtual terminals are typically used for phone or mail orders, or in situations where the physical card is not present.

Q: What does a virtual terminal do?

A virtual terminal serves as an online interface for payment processing. It allows merchants to input payment information received from customers via phone, mail, or in person without swiping the card. The terminal connects to a payment processor to handle the transaction, including authorization, settlement, and management of the payments. It can also store transaction records and provide reports.

Q: What is the difference between POS and virtual terminal?

A POS system is a combination of software and hardware designed to facilitate sales transactions at a physical location. It often includes a physical card reader, barcode scanner, cash register, and a computer or tablet to run the POS software. Unlike a POS system, a virtual terminal is software-based and does not require specific hardware. It is primarily used for transactions where the card is not physically present, such as over the phone or via mail.

Q: What is the difference between a physical terminal and virtual terminal?

A physical terminal is a device that allows for card-present transactions. Customers can swipe, dip, or tap their card to make a payment. These terminals can be standalone devices or part of a more extensive POS system. A virtual terminal, on the other hand, is software that processes card-not-present transactions. It requires manual entry of card details by the merchant. Virtual terminals do not require physical interaction with the customer’s card.

Q: Can I use a virtual card at the point of sale?

Yes, but indirectly. A virtual card is a digital version of a physical card that exists only in a digital wallet or app. At a physical point of sale, you can use a virtual card if the POS system accepts contactless payments (NFC technology), and your virtual card is stored on a device that supports this technology (like a smartphone or smartwatch). However, a virtual card itself cannot be used directly with a traditional card reader that requires swiping or dipping a physical card.

 

Q: Is a virtual terminal a gateway?

They’re closely related, but a virtual terminal isn’t the same as a payment gateway. A payment gateway is the service that authorizes and processes credit card transactions online, securely transmitting data between the merchant and the acquirer. A virtual terminal is a tool or interface that uses a payment gateway to process transactions.