Businesses that accept credit card payments often use a physical credit card terminal or a
POS machine. Virtual terminals are the web version of these credit card processing
terminals. The Virtual terminals use a software application that is hosted on the service
provider’s server although it can be accessed from any browser that is connected to the
internet. You can use the virtual terminal to put up customer credit information to process
Features of virtual terminals
Virtual credit card processing terminals have quite a number of features. With a virtual
terminal, you can:
- Process swiped credit card transactions from card readers
- Check the statuses of your transactions
- Enter mail order or telephone order transactions manually
- Receive responses for authorization
- Produce customer and merchant receipt copies
- Refund customer credit cards for transactions that need reversal
- Capture and store records of previously authorized transaction
- Store customer credit card information in a virtual wallet so you do not have toenter the same information again
- Set up an automatic billing schedule for recurring charges such as subscriptions
- Save a variety of standard reports for business transactions that you can accesslater.
Advantages of using Virtual credit card-processing terminals
You can use Virtual terminals to reduce merchant service costs because these terminals
offer the following benefits.
Process mid-qualified and non-qualified payments at lower rates
Mid-qualified and non-qualified payments are often the most expensive when it comes to
credit card processing. Using physical credit cards is the cheapest options for processing
credit cards. Virtual terminal transactions are made cheaper because the merchant
account is set to “card not present” and charged at a qualified rate and this can save you
hundreds of dollars every month.
The virtual terminal also allows you to make quick transactions because processed funds
can be deposited in your account as soon as 2-3 days.
Convenient recurring payments
The biggest advantage of online virtual terminals to business owners compared to physical
card terminals is you can conveniently set up recurring payments. You can enter credit
card information and set the recurring date whether weekly or monthly and the virtual
terminal will do the rest. This reduces the hassle of tracking down customers at the end of
every month to get their credit card information in order to make the payments. This
ensures seamless cash flow for your business and equally better business operations.
Store customer data
The virtual terminal has a secure storage database where you can create customer wallets
for future transactions. Physically storing customer credit card information is a violation of
PCI regulations. However, virtual terminals are compliant with PCI rules and it can securely
store customer formation without putting your business at risk. The customer information
is stored in the cloud and you can access it at any time when the customer needs to make a
transaction. The data is stored in an encrypted and protected format for maximum security.
Loosing customer credit card information to the wrong hands can destroy your business
reputation and lead to huge losses.