Understanding virtual terminals: The best way to accept credit card payments online

In today’s digital world, almost everything we do has moved online — from booking flights to ordering food, and even making dinner reservations. So why should accepting payments be any different?

For many businesses, especially those that operate remotely or handle transactions over the phone, the challenge of finding the right online payment solution can be daunting. This is where virtual terminals come into play as a versatile and essential tool to accept credit card payments.

In this blog, we'll take a closer look at virtual terminals as one of the best online payment solutions. We’ll learn how they work, and why they might just be the most effective way for your business to accept payments online. We’ll also explore how virtual terminals compare to other payment methods like physical terminals, POS systems, and payment gateways.

What is the challenge of accepting credit card payments online?

Accepting credit card payments online involves more than just processing a transaction. Businesses need an online payment solution that ensures the payment is secure, efficient, and user-friendly—all while maintaining a seamless customer experience. For businesses that don’t operate in a traditional e-commerce setup, or that handle transactions via phone or email, finding the right way to accept payments online can be tricky. Fortunately, this is where virtual terminals shine as the reliable and flexible solution for your payment needs..

Understanding virtual terminals

What is a virtual terminal?

A virtual terminal is a web-based application that turns your computer, smartphone, or tablet into a powerful tool to accept credit, debit card,and even ACH bank payments. Unlike a physical terminal that requires hardware, a virtual terminal allows you to manually enter your customer’s payment information into an online interface to process transactions. This makes it an ideal online payment solution for businesses that need to accept payments online or remotely, without requiring a physical point-of-sale (POS) system.

How does a virtual terminal work?

Using a virtual terminal as your online payment solution is straightforward:

• Manual entry: You log into your virtual terminal, enter your customer’s payment details—such as credit card number, expiration date, and security code—and submit the payment.
  
• Payment authorization: The virtual terminal communicates with your payment processor to authorize the transaction, ensuring the funds are available and the payment is secure.
  
• Receipt generation: Once the payment is a pproved, the virtual terminal generates an electronic receipt that can be printed or emailed to your customer.
  
• Record keeping: Virtual terminals often include features for tracking transactions, managing customer data, and generating reports, making it easier to keep accurate records.

Security features of virtual terminals

Security is a top priority when using any online payment solution. Virtual terminals come equipped with various security features such as encryption, tokenization, and PCI compliance, ensuring that your customer’s payment information is protected from unauthorized access and fraud.

Benefits of using a virtual terminal

1. Convenience and flexibility

One of the biggest advantages of using a virtual terminal as your online payment solution is convenience. You can accept payments online from anywhere, at any time, without the need for additional hardware. This flexibility makes it perfect for businesses that operate remotely or handle transactions over the phone or via email.

2. Cost-effectiveness

Unlike physical terminals that often require upfront costs for hardware, virtual terminals are entirely software-based. This means you can avoid the additional expenses associated with purchasing and maintaining physical payment equipment, making it a cost-effective online payment solution.

3. Improved customer experience

By using a virtual terminal, you can offer your customers a seamless and hassle-free experience when they pay online. Whether they’re making a purchase over the phone, via email, or through an invoice, the process is quick and straightforward.

4. Security advantages

With built-in security features, virtual terminals help protect your business and your customers from fraud. By ensuring that all transactions are securely processed, you can build trust with your customers and reduce the risk of chargebacks or data breaches.

Who can benefit from a virtual terminal?

Picture this: Sarah, a freelance graphic designer, just wrapped up a project for a client across the country. To accept payment for her services, she sends a secure email to the client, requesting their payment details. The client quickly responds with the necessary information, which Sarah then enters into her virtual terminal. With a few clicks, she quickly processes the payment, ensuring her hard work is rewarded without delays. For freelancers like Sarah, a virtual terminal offers the flexibility to accept payments from anywhere, whether you're gathering payment details via email or processing them on the spot.

Now, imagine Tom, who owns a thriving omnichannel retail business, selling products both in-store and online. Some customers browse his website and call in to place their orders, while others prefer to visit his physical store. Tom uses a virtual terminal to process payments for phone orders and in-person pickups seamlessly. This way, he keeps all his transactions under one roof, providing a consistent payment experience across channels. For omnichannel retailers like Tom, a virtual terminal is the perfect online payment solution, bridging the gap between in-store and online sales.

Finally, consider Jessica, a lawyer who juggles dozens of clients and barely has time for administrative work. After a busy day filled with consultations, she processes payments immediately using her virtual terminal. Since she already has her clients' payment information securely stored from previous engagements, she can quickly charge their cards directly from the virtual terminal, ensuring that her retainer clients are billed accurately and on time. For professional service providers like Jessica—whether in law, medical services, accounting, or consulting—a virtual terminal simplifies the payment process, making it easy to manage transactions securely and promptly, especially when handling repeat billing for ongoing client relationships.

Whether you’re a freelancer, an omnichannel retailer, or a professional service provider, a virtual terminal adapts to your business needs, offering a seamless way to accept payments online.

Virtual terminals vs. other payment methods

Choosing the right virtual terminal

When selecting a virtual terminal as your online payment solution, consider the following tips:

• Assess your needs: Consider the types of transactions you’ll be processing and how often you’ll need to use the virtual terminal. If you typically process high-value transactions, using a provider like Helcim would be beneficial due to their interchange-plus pricing model, which helps you save on each transaction.

• Compare fees: Look for a provider with transparent pricing and no hidden fees.

• Check for security features: Ensure that the virtual terminal is PCI compliant and offers robust security features to protect your transactions.

Luckily, Helcim’s Virtual Terminal ticks all these boxes—and more. Our virtual terminal is designed to be easy to use, with no need for any hardware, making it accessible for businesses of all sizes. Plus, our software is completely free—you only pay the processing fees, which are lower with our transparent pricing.

Having the option of a virtual terminal can transform the way you handle payments, giving your business the flexibility and expansion it needs.

Ready to experience the difference? Get started with Helcim today and see how our virtual terminal can transform your payment processing.