If you are new to virtual terminals or just curious about the recent developments in the payments space, here’s a guide to help you understand this as a potential solution for your needs.
Well, this may sound more complex than a wireless terminal. In fact, virtual terminals are a payment option that turns your computer into a payment processing device. Just make sure you have an Internet access and you can begin using it to your advantage.
Virtual terminals as payment processing option
A virtual terminal can help merchants process a transaction after collecting customer information through the phone, mail, Web, or in person. Since virtual terminals process payments with customer information online, a successful transaction can take place even without the customer and the card.
Basic concept of a virtual terminal
The virtual terminal can be used by logging into a secure website. Payment information can be entered after getting access into that site. It is just like a merchant selling homemade dresses online and the customer sends credit card information through email.
All the pertinent information of the customer will be received by the merchant and will be entered into the intended field. The process will begin after clicking a button to proceed. You will know if the transaction has been accepted or declined, while the customer gets the product if the credit card is accepted.
The virtual terminal explained further
If you want to know more about how it really works, then here is how virtual terminals operate. After the customer information has been entered into the webpage, it will be sent to the merchant processing bank electronically.
The issuer’s bank will then make a decision to approve it if the account has money to cover it. The decision will then be sent back through the channels with either approved or denied result that you can see on your screen. There will no longer be any transactions when it is denied.
So, when the transaction is accepted, then the merchant will need to run the batch as what the process is known. This process is usually done at night and is the only way for money from the transaction to enter to your merchant account. Usually, the money will reach your merchant account after a day or two.
How virtual terminals benefit merchants
Payment processing solutions have unique characteristics and needs just as your business does. This will define the right payment solution that should work best for you. Since payment processing depends on your needs, you have to talk to a preferred payment processor about it.
In fact, it can benefit merchants that are:
- In need to process or customize bulk orders without itemizing the payment
- Are looking to use their computer for processing of payment without a physical terminal
- Accepting lots of telephone or mail orders, and wanting to process online payments without an ecommerce site set up
Overall, if you like to take advantage of the online payment gateway for your business, you can accept payments in a real-time environment through credit cards, debit cards, or ACH payments.
Thus, you can transform your website into a virtual cash machine to be able to accept multiple payment options from your customers in real-time.