How Does Virtual Terminal Card Processing Work?

For businesses that don’t see their customers or clients face to face, a virtual terminal allows you to accept credit card payments over the phone, by mail or through an online order form. This payment processing tool transforms your computer, laptop or tablet into a full point of sale (POS) system without the need for additional hardware or software. Unlike a countertop terminal, this solution allows you to accept card-not-present (CNP) transactions.

How does virtual terminal card processing work?
Log into your merchant account dashboard or payment gateway and open up your virtual terminal. Type in your customer’s credit card, debit card or ACH information and submit the payment for processing. This process is typically completed within seconds. Once submitted, the transaction details are sent to your payment processor and the issuing bank of the credit or debit card to be verified. If approved, the funds are then deposited to your business’s bank account.

You can also use a virtual terminal to accept recurring payments, too. For example, if you own a landscape company that offers weekly lawn care services or work with corporate accounts that invoice monthly, you can set up a recurring payment schedule for your clients in the virtual terminal that works within their budgets and your accounts receivable needs. You can email, text or print receipts to your clients after each payment is processed. Most virtual terminals include a Magtek USB swiper that you can plug in to the computer for accepting new card details, but it’s not necessary. virtual terminal card payments