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Online payment industry in 2021

What is a virtual terminal?

Время на прочтение: 3 минут(ы)

Each company has its own specific operating environment, and each company’s needs are unique. However, there is one thing that both small private businesses and large corporations have in common. We are talking about the need to accept payments from their clients.
Installing POS and credit card terminals seems like a universal solution, but that’s only at first glance. In practice, not all firms can afford to purchase expensive equipment and invest in the best software. So what to do in this case? Not accept payments from clients at all?
It is not necessary to go to extreme measures. In this article you will learn what is a virtual terminal for processing credit cards and how to start a virtual terminal merchant account.

The definition of a virtual terminal

Virtual terminal is a simple page in your browser, but this simple solution is surprisingly functional at the same time. You will have enough of this page to accept payment from any customer, no matter where you are, what time it is, or what device you are using to accept the payment. The only requirement is to have internet access.
Any computer or mobile device can become an effective payment acceptance tool. You will not have to purchase expensive equipment and customize anything.

What kind of business is best suited for this solution?

A virtual terminal is a universal solution and can be used by any company regardless of its size and field of activity. However, it will help some businesses much more than others:

  • Restaurants. If your restaurant provides self-checkout services or takes orders over the phone, a virtual terminal will be the right choice.
  • Freelancers. Whether you’re a designer, copywriter, tagger, or provide other services and don’t interact with the client directly, a virtual terminal can help you organize your business and effectively accept payments from clients.
  • Businessmen who provide services in a certain professional field. If customers visit your office only occasionally, consider this solution for accepting payments

In addition, this solution will be a great choice for small stores that do not need a full-fledged POS.

Some nuances

A virtual terminal is a simple and inexpensive solution, but this is not always the case. There are some nuances you should keep in mind:

  • Using this terminal in a card-less environment (CPN), because of the high level of risk, these transactions will cost you more. First of all, you need to make sure that the customer who submits the account information is really the cardholder.
  • Even seeing the client in front of you, but if all the information is entered manually, such a transaction will be conducted without presenting the card, which will consequently lead to higher costs.
  • How to pay less transaction fees? There is a simple and effective solution. It is to add ACH / eCheck as one of the payment options for goods and services. Your customers will gladly accept this solution, and you will be able to reduce the amount of paid commission, and therefore all parties will benefit

A virtual terminal seems like a very simple solution, but in fact, you can always complement it with important and interesting options and special tools that will make payments even easier and efficient.
These tools include:

  • Regular payments.
  • End-to-end encryption
  • Various tools that help prevent fraudulent transactions (for example, two-factor identification)

Should you choose a virtual terminal or complex and comprehensive solution?
It will all depend on the needs of your business and your capabilities. Either way, you can always supplement the virtual terminal with other interesting solutions. Contact PayDo and find out how you can efficiently and inexpensively accept payments.

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What is an internet merchant account?
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