Virtual terminal payment processing allows merchants to accept credit cards and debit cards over the phone. In addition, it can help them expand their business by accepting e-commerce payments online. This type of system turns a computer, tablet, or smartphone into a point-of-sale (POS) system.
The card information is entered into a PCI-compliant virtual terminal via an encrypted connection and then sent to the payment processor for authorization. The payment processor then communicates with the card issuer to verify that the card is valid and has enough available credit to complete the transaction. If the card is not valid or has expired, the merchant can ask the customer to try another card.
Some virtual terminals also allow a merchant to split the transaction total into multiple payments using different types of cards or even cash. This allows a business to offer customers more flexible payment options that may help increase sales and customer loyalty.
For businesses that rely on a recurring billing model, a virtual terminal can be used to set up automated recurring payments. This will save a business time by automating the process and making it easy for clients to pay their bill, resulting in less paperwork and improved cash flow.
There are many providers that offer virtual terminals. They can vary significantly in their pricing and features, so it is important to carefully analyze a range of them before selecting one. Typically, they will have a base processing fee as well as a per-transaction or per-month charge. virtual terminal payment processing