Virtual terminal is such an application that allows you to process transactions without POS terminals. The merchant only needs to enter card details to identify themselves.
- Check the Internet connection. After that, log in to your personal account. The profile will be available after you make an agreement with a payment provider.
- Enter the payment details.
- In the end – approve the payment.
The virtual terminal’s area of usage:
- Delivery services.
- Process payments for remote work.
- Booking services
- For local payments.
Advantages of using virtual terminals
- As a merchant, you don’t need a customer to be present. If there is a card-present transaction, you need to go through all the verification steps to avoid fraud.
- ATMs or POS terminals are not necessary anymore. So that you can save some money that is especially essential for startups.
- Virtual card payments bring flexibility: everyone can provide transactions from anywhere. The only need is Internet connection.
Disadvantages of using virtual terminals
- When one makes a card-not-present transaction they may need additional security layers. Chargebacks can occur and harm your business. Not to mention chargeback fees.
- When using POS terminals you need only to swipe the card, without entering card numbers.
- For card-not-present transactions, fees are typically higher.