Virtual Payment Terminal: How to Get Started

Electronic Transfer Team | Posted on November 7, 2024 |

Taking card payments used to mean buying expensive equipment. Now, virtual payment terminals let you process payments right from your phone or computer, making it simpler to run your business.

This guide explains everything you need to know about using virtual payment processing, from choosing the right system to handling daily transactions. Keep reading to find out more.

What’s a Virtual Payment Terminal, Anyway?

A virtual payment terminal is quite simply your phone’s web browser turned into a credit card payment terminal. It allows you to type in card details and process payments, just like you would with a regular card machine at a store.

Instead of swiping or tapping a card through a machine, you log into a secure website, type in the card details, and hit ‘process’. The money moves from your customer’s card to your bank account, just as it would with a regular card machine.

You don’t even need to buy any fancy equipment – if you’ve got a laptop, tablet, or smartphone with internet, you’re ready to work.

How Does It Work?

The virtual terminal is pretty straightforward to use:

You log into your secure payment portal.
Enter your customer’s payment information.
The system encrypts this data immediately (keeping it safe from hackers).
The payment gets processed through various security checks.
Money moves from your customer’s account to yours.
Both you and your customer get confirmation of the transaction.

The whole process usually takes seconds to go through bank-level security systems.

Choosing the Right Virtual Terminal: Your Options Explained

Not all virtual terminals are created equal. Here’s what you need to know about the main types:

Basic Virtual Terminals

If you’re just getting started and need a simple way to accept card payments, basic terminals are your best bet:

Perfect for small businesses just starting out.
Usually cost between $10-30 monthly.
Include basic features like payment processing and simple reporting.
Examples: Square, PayPal, Stripe.

Advanced Virtual Terminals

When your business starts growing and you need more tools to manage your sales, advanced terminals offer extra features:

Better for growing businesses with more complex needs.
Cost around $30-70 monthly.
Include features like:
- Inventory management
- Customer databases
- Detailed analytics
- Multiple user accounts
Examples: Authorize.net, Chase Payment Solutions.

Enterprise-Level Solutions

For large businesses that process high volumes of payments and need custom solutions, enterprise systems provide the most powerful tools:

Designed for larger businesses with custom needs.
Pricing usually requires custom quotes.
Include features like:
- API Access
- Custom integration options
- Advanced fraud protection
- Multi-location support
Examples: Cybersource, Braintree, WorldPay

Making the Right Choice: What to Consider

When picking your virtual terminal, think about:

Transaction Volume

Low volume (under 100 transactions/month): A basic terminal is fine
Medium volume (100-1000 transactions/month): Consider advanced options
High volume (1000+ transactions/month): Look at enterprise solutions

Transaction Types

Different terminals handle different payment types:

Credit/debit cards (all terminals handle these)
ACH/bank transfers (usually requires advanced terminals)
International payments (needs specialized providers)
Recurring billing (check if this feature is included)

Pricing Structures

You’ll encounter three main pricing models:

Flat-Rate pricing

Example: 2.9% + $0.30 per transaction.
Best for: Small businesses with low average ticket sizes. It’s simple and predictable, which makes it easier to manage costs.
Providers: Square, Stripe, PayPal.

Interchange-Plus pricing

Example: Interchange + 0.3% + $0.10. The “interchange” is the base fee set by the credit card networks (e.g., Visa, MasterCard).
Best for: Medium-sized businesses with steady volume. This model can be more cost-effective as it offers greater transparency into the fees.
Providers: Payment Depot, Dharma Merchant Services.

Tiered pricing

Different rates for different card types (e.g., qualified, mid-qualified, non-qualified rates).
Best for: Businesses with mostly regular credit card payments. It can be complex to understand and manage, but some businesses find it beneficial if they mainly process lower-cost transactions.
Providers: Many traditional merchant services.

Integration Needs

Before choosing a payment terminal, think about the other software you use to run your business. Your payment system needs to work smoothly to save you time and avoid manual data entry. For instance:

Accounting software (QuickBooks, Xero): Makes sure your sales automatically show up in your books, so you don’t have to type them in by hand.
E-commerce platforms (Shopify, WooCommerce): Connects your online store payments with your virtual terminal, keeping all sales in one place.
Point-of-sale systems: Links your in-person sales with your online sales, giving you a complete picture of your business.
Customer relationship management (CRM) tools: This helps you keep track of customer purchases and other information in one place, making it easier to serve them better.

Setting Up Your Virtual Terminal Payment Processing

Getting started with a virtual credit card payment terminal is easier than you might think. Here’s what you need to do, step by step.

Gather Your Documents

Before you start the application process, get all your paperwork ready. This makes the setup much faster and smoother. You’ll need:

Business license or registration
Tax ID number
Bank account information
Processing history (if you have it)
Personal identification

Choose Your Provider

Take time to compare different providers. The right choice can save you money and headaches down the road. Research providers based on:

A pricing structure that matches your needs
Features you’ll actually use
Integration with your existing tools
Customer support quality
Setup fees and contract terms

Application Process

Once you’ve chosen a provider, the setup process is straightforward. Here’s what happens:

Fill out the application (usually online)
Submit your documents
Wait for approval (typically 1-3 business days)
Set up your account settings
Run test transactions

Security Setup

Make sure you set up these important safety measures:

Strong password policies
Two-factor authentication
IP restrictions (if needed)
User access controls
CVV and AVS verification setting

Special Considerations for High-Risk Merchants

When you’re in a high-risk industry, the road to accepting online payments can be a bit bumpy. Specialized solutions are available that cater specifically to the unique challenges faced by high-risk merchants.

Here’s a deeper look at your options and what to expect.

Top High-Risk Payment Processor: Electronic Transfer Inc.

With Electronic Transfer Inc., high-risk merchants can confidently accept payments online, knowing they have a reliable partner equipped to handle their unique challenges.

Specializes in: Electronic Transfer Inc. excels in providing payment solutions for high-risk businesses across a variety of industries. Whether you’re in tech support, CBD, gaming, or another high-risk sector, they have the expertise to handle your specific needs.
Competitive rates: Understanding that high-risk businesses often face higher fees, Electronic Transfer Inc. offers competitive and reasonable rates tailored to your business model. They strive to provide cost-effective solutions without compromising on service quality, thus ensuring you can manage your expenses effectively.
Fraud prevention: Security is a top priority at Electronic Transfer Inc. They’ve implemented advanced security measures to safeguard your transactions from fraud and unauthorized activities. Their state-of-the-art fraud prevention tools secure your business and customer data, reducing the risk of chargebacks and financial loss.
Support: Electronic Transfer Inc. takes pride in their dedicated customer service. From setup to ongoing management, their robust team of experts are always ready to help you navigate the complexities of high-risk payment processing, providing peace of mind and ensuring smooth operations.

Wrap Up

The right virtual payment terminal can transform how you do business. Whether you’re just starting out or looking to upgrade your current system, Electronic Transfer, Inc. is here to help.

Whatever the issue, we can walk you through your options and find the perfect solution for your business.
Got any questions? Give us a call – we’re here to help you not only navigate but succeed in the world of digital payments.