Virtual Terminal: How It Works & Best Practices

Who Benefits from a Virtual Terminal Merchant Account?

A virtual terminal solution may help any type of business, but it is typically suited to:

• Freelancers – Graphic designers, content writers, and other creative services professionals who may work remotely and do not deal with their customers in-person
• Restaurants – Take-out restaurants, DQSRs, and dine-in places that take orders by phone for delivery or curbside pickup
• Professional services – Accountants, doctors, and attorneys who may see clients in their office but also take payments over the phone for medical expenses, tax preparation, legal services, etc.
• Retailers – Individual brick-and-mortar stores that don't require a credit card reader or complete POS system

Enable Recurring Payments

You can also add recurring payments using a virtual credit card terminal. While you only need a virtual terminal to accept one-time payments, you may be able to set up recurring billing as well.

For example, if you run a landscape company that provides weekly lawn care services or deal with business accounts that bill monthly, you may use recurring payment solutions for your clients within the virtual terminal that fits their budget and your accounts receivable requirements.

Issue Refunds & View History

In addition to executing payments within the virtual terminal, you can also issue refunds and view your transaction history.

When conducting a card-not-present (CNP) transaction, it's important to keep in mind that phone and mail orders, for example, often cost more because of the additional security risks. You must trust that the individual providing the account information is indeed the cardholder.

In a CNP transaction, whether you key in data yourself or let the customer do it manually, the sale is considered a card-not-present transaction, even if the client is standing in front of you.

Consider accepting ACH payments or eCheck as well as credit and debit cards to minimize your transaction processing costs when using a virtual payment processing terminal. This form of electronic payment usually costs less than traditional card transactions. For all in-person sales, use a USB card reader to reduce your processing fees.