What is a virtual Terminal?

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Simply put, a virtual terminal is a secure web page in your internet browser where you can process card payments online.

 

It is called “virtual” because it functions like a credit card terminal, but through a non-physical software application rather than physical terminal.

Usually, the virtual terminal is embedded on a page you can access when you’re logged in to your payment provider’s account online. You process the payment by manually entering the customer’s card details – which you may be given over the phone, a mail order form or through an online chat – and submitting it for processing. The customer’s card will then be charged, and the money transferred to your payment provider account or bank account, minus applicable processing fees.

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Manual payments are usually completed without the cardholder present, for example if you take a booking, reservation or order for a product over the telephone. In order to take a manual payment, you need to have three things – a virtual terminal, computer or mobile device, and an internet connection.

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PDQ Today provide Virtual terminals from several of our banks (the payment providers). If you need to take remote payments from the following list, then you need a virtual terminal:-

 

• If you have customers who phone you to make a payment 

• If you phone your customers to take payment

• If your customers pay on your website (ecommerce)

• If you send a link to your customers for payment in an invoice, or by text or email.

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Advantages of virtual terminals

• You can take payments quickly and easily without your customer being present. But if the customer is present, you will need a card reader that can perform a chip and PIN or contactless transaction instead, for security and verification reasons.

• You don’t need to invest in expensive point-of-sale software or traditionally expensive credit card machines. If you don’t sell anything in person, you don’t even need to invest in a cash drawer.

• There is more freedom and flexibility – transactions can be carried out anywhere, from any device and at any time, as long as you have an internet connection.

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Disadvantages of virtual terminals

• You need extra security measures in place to take card-not-present payments to avoid chargeback fees.

• Keyed-in payments require more effort (typing needs attention to detail) than a card machine transaction that automatically processes a contactless or chip and PIN card.

• Fees are typically higher for transactions where the card/customer is not present than for card machine payments.