Understanding Virtual Terminals

Virtual terminals provide an essential service for high-risk businesses that need to accept payments when a credit card is not physically present. This can include businesses that take phone orders, utilize invoices, or handle B2B payments and deposits. By manually entering card information, merchants can facilitate transactions without requiring customers to be physically present.

How Does Manual Entry Work?

Manual entry is the process where the card details are inputted into the virtual terminal by a merchant, who captures necessary information such as the card number, expiration date, and CVV. This method offers flexibility for businesses that cannot rely on card-present transactions.

Assessing the Fraud Risk

While virtual terminals provide convenience, they also introduce a heightened risk of fraud, as card-not-present transactions are three times more likely to result in chargebacks. To mitigate risks, merchants should implement secure protocols and adopt best practices for manual entry.

The Importance of AVS and CVV

Address Verification Service (AVS) and Card Verification Value (CVV) are critical components in preventing fraud in transactions conducted through virtual terminals. AVS matches the billing address provided by the customer to the address the card issuer has on file. Similar to this, CVV serves as a security feature that ensures the customer is in possession of the card. Both provide an additional layer of security.

Processing Receipts and Refunds

Virtual terminals also allow businesses to easily generate and send receipts to customers, affirming the transaction details. Furthermore, they enable merchants to process refunds for transactions swiftly, improving customer satisfaction.

Setting Permissions for Employees

Employers can also manage permissions among employees enabled to use the virtual terminal, ensuring only trained personnel are responsible for processing sensitive customer information. This reduces the probability of human error and enhances security.

Comprehensive Reporting

With virtual terminals, businesses can track payment history and view comprehensive reports, helping merchants analyze sales and manage finances effectively. This reporting feature is helpful for record-keeping and financial analysis.

When to Use a Full Gateway

While virtual terminals are excellent for high-risk businesses, a full payment gateway may be more suitable for those needing advanced features like automatic billing, recurring payments, or high-volume transactions. Businesses should assess their operational needs before choosing between a virtual terminal and a full payment gateway.