A virtual terminal is an credit card terminal that is fully electronic. Merchants are able to use a virtual terminal for credit, debit or ACH transactions depending on the needs of the business. Most payment processors and payment gateways offer a form of virtual terminal when a business is set up with a merchant account.
Businesses that use a virtual terminal system have the flexibility of being able to process transactions from remote locations. Merchants using a virtual terminal do not have to worry about purchasing or leasing expensive hardware nor do they incur maintenance fees to keep equipment compliant and functional. For a business to utilize a virtual terminal all that is needed is a computer, an internet connection and web browser. The virtual terminal will allow merchants to remain fully PCI compliant by encrypting all card account information and storing any card information in a PCI compliant environment.
The virtual terminal works by having the merchant log in and input the cardholders information that is collected from either a website or a phone order. Once the information is placed in the terminal, the authorizations will be sent out for approval. Similar to a retail swiped transaction, the merchant’s computer will act as their credit card machine. Virtual terminals are commonly used with recurring billing business models where payments are made at the same time every week, month or year. With a wide range of features, including automatically emailing or texting credit card receipts to both merchants and customers, a virtual terminal provide a vast amount of sales features for businesses of all sizes.
Merchants operating businesses that require flexibility along with simple reporting have found virtual terminals to be an ideal solution. For more information on the Allied Payments virtual terminal or to set up service, please contact one of our representatives.