Modern technology enables a customer to pay a merchant from any location where an Internet connection is available via a virtual payment terminal. This technology has dramatically improved the payment process and has eliminated the burden of a heavy accounts receivable log in some cases. Before you take advantage of this technology, you understandably want to know how you can accept a payment virtually.
The Basics of Virtual Payment Terminals
In relation to payments, virtual means that the transfer of funds does not physically exist, but technology enables the transaction to be carried out in a non-physical sense. On a more concrete basis, a virtual payment terminal enables the entire credit card or debit card transaction to be completed via the Internet rather than through the outdated dial-up process associated with physical POS terminals. Because the seller initiates the payment process via the Internet, the payment can be accepted online, via any connected computer or even via a connected smartphone or tablet.
How Virtual Payment Terminals Work
The functionality of a virtual payment terminal is similar to that of a traditional POS terminal. The seller or the buyer enters the credit card information into the virtual terminal. This may be manual, such as by typing in the credit card number, expiration date, CVV and the buyer’s name and address. It also may be completed by simply swiping the credit card or inserting a chipped card into a portable terminal connected to a smartphone or tablet. From this point, the payment is processed, and the sale is finalized.
The Security of Virtual Payment Terminals
Security is critical across all stages of the payment process for the seller and the buyer. The buyer may be concerned about the theft of critical financial information, such as credit card data. The seller understandably does not want to lose business or risk negative publicity because of unsecured payment processing. Through virtual payment terminals, the payment is processed through the website of a virtual payment provider. This means that the third-party provider assumes responsibility for security. Specifically, this provider must comply with PCI DSS requirements, which are also referred to as Payment Card Industry Data Security Standard requirements. Unless the seller stores the customer’s data for future payments, the seller does not need to worry about compliance in this area.
Accepting virtual payments can dramatically alter a business’s processes and may benefit both the business and the consumer. In addition to being more convenient for consumers, it may save money and improve cash flow for businesses. To set up virtual payments, businesses should locate a reputable virtual payment provide
