A virtual terminal is a web-based tool that allows businesses to process credit and debit card payments remotely. It is a software (aka virtual) alternative to physical card terminals commonly found in brick-and-mortar stores. With a virtual terminal, businesses can accept payments from customers without the need for face-to-face interactions or the use of physical card-reading devices.
Using a virtual terminal, businesses can manually enter payment information, such as the customer’s card number, expiration date, CVV (Card Verification Value) code, and billing address, into an online interface. This information is securely transmitted to a payment gateway, which then communicates with the payment processor and the customer’s bank to authorize and process the payment.
Virtual terminals are particularly useful for businesses that operate online, conduct phone or mail order transactions, or provide services remotely. However, they are also popular for in-person transactions. They offer flexibility and convenience by enabling businesses to accept payments from customers wherever they are located, as long as there is an internet connection.