A Guide to the Virtual Terminal: How it Works, the Benefits, and Best Options

What is a Virtual Terminal?

A virtual terminal payment is a secure online payment processing platform that allows businesses to process payments electronically without using a physical point of sale (POS) terminal. It plays a critical role in the payments ecosystem, enabling businesses to accept customer payments and process sales at any time and anywhere, regardless of whether a traditional payment terminal is available. Whether you’re shopping for the best virtual terminal for your business, or just browsing, leveraging a payment consultant is the best way to find the solution for your unique business.

Virtual terminals offer an alternative way to process customer transactions from a range of sources. This flexibility is particularly valuable for businesses that operate in environments where in-person transactions are not always feasible. Another example from our support team: Sometimes we get support calls from merchants on vacation, and while away from the office they quickly need to run a transaction. Swipesum’s support team quickly sets up a virtual terminal for them, and that cash hits they bank account the following day. Since virtual terminals can be accessed from any device with an internet connection, they present a convenient and efficient option for businesses of all sizes and industries.

How Does a Virtual Terminal Work?

Businesses can use virtual terminals to accept payments from customers via telephone, email, fax, or even in person through an Internet-equipped device. The flexibility of these terminals allows businesses to process payments from almost any location, making them an indispensable tool for many operations.

Most virtual terminals accept a variety of payment methods, including credit and debit cards, as well as ACH payments. Virtual terminal payment processing involves the user manually inputting transaction and payment information into the terminal. Unlike in-person transactions made with a card reader, virtual terminals do not require a physical device, streamlining the process and making it accessible even in remote or impromptu situations.

Benefits of Using a Virtual Terminal

The benefits of using virtual terminals are numerous, with one of the most significant being the ability to process credit card payments at any time, from anywhere. This flexibility is invaluable for businesses that accept payments from a variety of sources and need to ensure they can always process a payment, regardless of the circumstances.

Virtual terminals are particularly well-suited for day-to-day operations in various industries. For instance, restaurants can use virtual terminals to process phone orders, retailers can handle remote customer payments, and freelancers or consultants can easily manage client transactions. Essentially, virtual terminals allow businesses to be versatile in how and where they process payments, which is increasingly important in today’s dynamic business environment.

Best Virtual Terminal Solutions

At Swipesum, we specialize in helping businesses discover the best virtual terminal solutions tailored to their unique needs—at the best price. Whether you’re a small business, a large enterprise, or somewhere in between, we’re here to guide you through selecting the perfect virtual terminal. To find the best solution for your business, book a consultation with us today.

Here are some of the top virtual terminal solutions available in the market:

1. Elavon Virtual Terminal

Overview:
Elavon is a leading global payment processing provider, offering a comprehensive virtual terminal solution that caters to businesses of all sizes. Known for its reliability and robust security features, Elavon’s virtual terminal is a top choice for companies that require secure and efficient payment processing.

Key Features:

• Multi-currency support for international transactions.
• Advanced security features, including PCI compliance and encryption.
• Easy integration with existing business systems.
• Recurring billing and invoicing capabilities.
• 24/7 customer support.

Best For:
Businesses that require a trusted, global payment processor with strong security and multi-currency capabilities.

2. Worldpay Virtual Terminal

Overview:Worldpay, part of FIS, is a global leader in payment processing. Its virtual terminal solution is designed for businesses that need a flexible, scalable, and secure way to process payments. Worldpay’s extensive network and advanced features make it an excellent choice for businesses with diverse payment needs.

Key Features:

• Supports a wide range of payment methods, including credit/debit cards, debit card payments, and ACH.
• Scalable solutions for businesses of all sizes.
• Comprehensive fraud management tools.
• Detailed reporting and analytics.
• Integration with Worldpay’s broader suite of payment solutions.

Best For:Businesses looking for a scalable and secure payment processing solution with comprehensive fraud management and global support.

3. NMI Virtual Terminal

Overview:
NMI is a leading payment gateway provider that offers a highly customizable virtual terminal solution. It’s particularly well-suited for businesses that need a tailored payment processing solution with the flexibility to integrate with various platforms.

Key Features:

• Customizable API for seamless integration with business systems.
• Support for multiple payment types, including credit cards, ACH, and e-wallets.
• Advanced security features, including tokenization and encryption.
• Recurring billing and customer management tools.
• Real-time transaction monitoring and reporting.

Best For:
Businesses that require a highly customizable and flexible virtual terminal solution that can be tailored to specific needs.

4. Cybersource Virtual Terminal

Overview:
Cybersource, a Visa solution, is known for its enterprise-grade payment processing capabilities. Its virtual terminal is ideal for businesses that require a robust, secure, and scalable payment solution that can handle high transaction volumes.

Key Features:

• Global reach with support for multiple currencies and payment methods.
• Comprehensive fraud detection and prevention tools.
• Easy integration with existing e-commerce platforms.
• Advanced analytics and reporting features.
• PCI DSS compliance for secure transactions.

Best For:
Large enterprises and businesses that need a secure, scalable, and globally recognized payment processing solution.

5. Mastercard Payment Gateway Services (MPGS) Virtual Terminal

Overview:
MPGS, powered by Mastercard, offers a secure and efficient virtual terminal solution that is well-suited for businesses that require a reliable global payment gateway. MPGS combines the strength of Mastercard’s network with advanced payment processing capabilities.

Key Features:

• Seamless integration with Mastercard’s global payment network.
• Multi-currency support for international transactions.
• Advanced fraud protection and tokenization.
• Recurring billing and customer management features.
• Comprehensive reporting and analytics tools.

Best For:
Businesses that prioritize global reach and security, particularly those operating in multiple countries or regions.

Virtual Terminal Solutions and Features

There are numerous virtual terminal solutions available on the market, each offering a unique set of features designed to meet the needs of different businesses. Virtual terminal payments enhance payment acceptance flexibility for businesses using platforms like Stripe. Some virtual terminals go beyond basic payment processing to offer additional capabilities such as recurring payments, tokenization, and end-to-end encryption, making them powerful tools in the payment processing landscape.

Tokenization and End-to-End Encryption

Virtual terminal transactions often take place within a payment gateway that supports tokenization technology and end-to-end encryption. Tokenization enhances security by replacing sensitive payment data with a randomly generated alphanumeric ID, which is meaningless if intercepted. End-to-end encryption ensures that all sensitive data is fully protected during transmission, significantly reducing the risk of data breaches and unauthorized access.

Recurring Billing Payments

Recurring payments are a powerful feature offered by many virtual terminal solutions, providing benefits such as increased cash flow and improved customer retention. This functionality is particularly useful for businesses that offer subscription-based services or regular billing cycles. However, it’s important for businesses to research this capability, as not all virtual terminal solutions include it.

Fraud Management Tools

Fraud management is a crucial aspect of virtual terminal usage, especially for card-not-present (CNP) transactions, which are more susceptible to fraud. Virtual terminals often come equipped with fraud management tools such as Address Verification Service (AVS), Card Verification Value (CVV), and two-factor authentication (2FA). These tools help ensure that the person making the payment is the actual cardholder, thereby reducing the risk of fraudulent transactions.

How to Process Payments with a Virtual Terminal Payment Processing

To process payments using a virtual terminal, businesses need to first set up a merchant account and select a payment processor. Once these are in place, virtual terminals require businesses to manually enter the customer’s payment details through an internet browser.

The virtual terminal will then process the payment and initiate the transfer of funds from the customer’s account to the business’s designated bank account. This process is straightforward and secure, offering businesses a reliable method to handle transactions in various scenarios.

Simple and Secure Credit Card Processing

Virtual terminals provide a simple and secure way to process credit card payments. With just a few clicks, businesses can accept credit cards without the need for additional hardware. The use of advanced security measures, such as data encryption and tokenization, ensures that sensitive payment information is protected throughout the transaction process.

Lower Your Payment Processing Rates

One of the significant advantages of using a virtual terminal is the potential to lower payment processing rates. By opting for a virtual terminal, businesses can avoid the high costs associated with purchasing and maintaining traditional hardware. Additionally, virtual terminals can help businesses optimize their interchange costs, making them particularly advantageous for B2B and B2G clients who process large or frequent transactions.

Easily Design Receipts

Another feature of virtual terminals is the ability to easily design and customize receipts. Businesses can use a receipt builder to control aspects such as colors, logos, and layout. This personalization helps reinforce branding and provides a professional touch to customer interactions. Furthermore, virtual terminals allow businesses to email receipts directly to customers or to the finance department for reconciliation.

How to Get a Virtual Terminal

Setting up a virtual terminal for your business is a straightforward process, but selecting the right solution requires careful consideration. Here's how you can get started:

1. Assess Your Needs: Begin by evaluating your business’s payment processing needs. Consider factors such as transaction volume, types of payments you need to accept (e.g., credit cards, ACH), and any specific features you require (e.g., recurring billing, fraud prevention tools).
2. Research Providers: Once you have a clear understanding of your needs, research virtual terminal providers. The best options are outlined above.
3. Leverage Swipesum: To ensure you select the best virtual terminal for your business, consider leveraging Swipesum’s expertise. Swipesum can help you compare different providers, negotiate the best rates, and find a solution that integrates seamlessly with your existing systems. For example, a small retail business recently contacted Swipesum when they needed to quickly set up a virtual terminal for a special event. Swipesum helped them find a cost-effective solution that not only met their immediate needs but also offered features for future growth.
4. Set Up Your Account: After choosing a provider, you’ll need to set up your merchant account. This typically involves submitting business and banking information, as well as selecting your preferred payment methods.
5. Integrate and Test: Once your account is set up, integrate the virtual terminal with your business systems, if applicable. Make sure to test the terminal by processing a few transactions to ensure everything works smoothly.
6. Train Your Team: If others in your business will be using the virtual terminal, provide them with training on how to use the system, including how to process payments, issue refunds, and generate reports.

By following these steps and leveraging Swipesum’s industry expertise, you can ensure that your business is set up with a virtual terminal that meets your needs and provides a seamless payment processing experience.

Advanced Security Features

Security is a top priority in payment processing, and virtual terminals are no exception. They offer advanced security features like tokenization and end-to-end encryption, ensuring that sensitive data is protected during both transmission and storage. Additionally, virtual terminals include fraud management tools to help prevent unauthorized transactions, providing businesses with peace of mind.

Conduct Refunds or Scheduled Recurring Payments

Virtual terminals provide businesses with the capability to conduct refunds or schedule recurring payments. This functionality is essential for managing customer relationships and maintaining consistent cash flow. Businesses can easily process credit card authorizations, issue refunds, and set up scheduled recurring billing payments or installments directly through the virtual terminal interface.

Funds Get Deposited Directly into Your Bank Account

One of the key benefits of using a virtual terminal is the speed at which funds are deposited into your bank account. Typically, funds are transferred within 24 hours, offering fast and secure payment processing. This quick turnaround helps businesses improve their cash flow and maintain financial stability.

Swipe Credit Cards with an Optional USB Credit Card Swiper

For businesses that prefer the speed and convenience of swiping cards, many virtual terminals offer the option to use a USB credit card swiper. By plugging the swiper directly into a computer, businesses can enjoy faster payment processing and secure data entry without the need to manually input credit card numbers. This option combines the flexibility of a virtual terminal with the efficiency of traditional card swiping.

If you have any further questions about virtual terminals, don't hesitate to reach out to the payments experts at Swipesum. We're happy to help any business find their best payments solution, totally free of charge.

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