In today's world, businesses must be equipped to accept customer payments from anywhere. A virtual terminal is a simple, secure, and flexible way to process credit card payments without a physical card reader or in-person customer interaction.

This technology allows businesses to manually enter credit and debit card information through an online portal, enabling remote phone, mail, and subscription-based payments. If you’ve ever given your credit card details to a business over the phone, they likely used a virtual terminal to process your payment.

What is a Virtual Terminal?

A virtual terminal is a web-based software application allowing businesses to accept payments manually entering customer payment information. Unlike traditional in-person card readers or point-of-sale (POS) systems, a virtual terminal requires only an internet connection and a merchant account.

Instead of swiping or tapping a physical card, businesses use the virtual terminal to enter customer payment details such as the cardholder's name, billing address, card number, expiration date, and CVV (card verification value). The payment is processed in real time, and funds are deposited into the business’s merchant account.

This system makes it possible to process payments for card-not-present (CNP) transactions, which are essential for businesses handling orders over the phone, mail, or online.

How Does a Virtual Terminal Work?

Using a virtual terminal is straightforward and intuitive. Here’s the step-by-step process:

1. Log in to the Virtual TerminalThe merchant logs into the virtual terminal through a secure web portal on an internet-connected device.
2. Enter Payment DetailsThe merchant inputs the customer’s information, including their credit card details (card number, CVV, expiration date), billing address, and the amount to be charged.
3. Payment VerificationThe virtual terminal checks for accuracy and security using fraud prevention tools like AVS (Address Verification Service) and CVV verification.
4. Payment ProcessingThe payment is processed, and the customer’s bank or credit card issuer approves or declines the transaction.
5. Payment ConfirmationIf approved, the payment is complete, and funds are sent to the business’s merchant account. The merchant can provide the customer with a digital receipt for the transaction.

This process typically takes a few seconds to complete, making it fast and secure for businesses to accept payments from customers regardless of their location.

Benefits of Using a Virtual Terminal

Virtual terminals are valuable for any business that processes remote payments, especially in high-risk industries. Here’s why businesses turn to virtual terminals for their payment needs:

1. Accept Payments Anywhere

Unlike a traditional payment terminal, a virtual terminal allows businesses to accept payments from customers anywhere in the world. No in-person interaction is required, making it ideal for phone orders, mail orders, and online services.

2. Handle Card-Not-Present (CNP) Transactions

For many businesses, CNP transactions are essential. A virtual terminal allows companies to accept payments without swiping or tapping a card, perfect for phone or mail orders.

3. Simplify Recurring Payments

Subscription-based businesses often rely on recurring payments. Virtual terminals make setting up and managing automated billing cycles easy, ensuring consistent cash flow and less administrative work.

4. Increase Security and Prevent Fraud

A virtual terminal includes fraud management tools like CVV verification and AVS to reduce the risk of fraudulent payments. These tools verify the cardholder’s identity, adding an extra layer of security to each transaction.

5. Save Money on Hardware Costs

A virtual terminal requires no specialized hardware like card readers or POS systems. All you need is a device with internet access, significantly lowering upfront costs.

Who Should Use a Virtual Terminal?

A virtual terminal is beneficial for businesses of all types, but it’s especially useful for those who process remote payments or operate in high-risk industries. Here are a few examples:

• Consultants and Coaches: Accept payments for sessions over the phone or via video calls.
• Subscription Services: Set up automated, recurring payments for memberships and subscriptions.
• High-Risk Merchants: Industries like CBD, travel, tech support, and adult services benefit from secure and reliable payment processing.
• Service-Based Businesses: Businesses that provide remote services, like tech support or marketing agencies, can take payments over the phone.
• Nonprofits and Charities: Accept donations remotely to support fundraising efforts.

If your business fits any of these categories, a virtual terminal can simplify your payment process, reduce overhead, and make it easier for customers to pay.

What Does a Virtual Terminal Cost?

While pricing varies from one provider to another, a few standard costs are associated with using a virtual terminal. Here’s what you can expect:

1. Monthly Fee: Some providers charge a flat monthly fee to access the virtual terminal.
2. Transaction Fees: The payment processor charges a percentage-based fee (interchange fee) for every transaction processed.
3. Gateway Fees: Virtual terminals are connected to payment gateways, which may also have small usage fees.

With Zen Payments, fees are clear and transparent. There are no hidden costs, and you get access to a virtual terminal, fraud protection, secure payment processing, and the ability to manage recurring billing.

Choosing a Virtual Terminal Provider

Selecting the right virtual terminal provider is critical for your business. Here’s what to look for when choosing a provider:

1. Fraud Protection: Features like CVV verification, AVS, and tools to prevent chargebacks.
2. Recurring Payments: Options to set up subscriptions, membership payments, or installment plans.
3. Custom Invoicing: Send invoices directly to customers for manual payments.
4. Simple Integration: Providers like Zen Payments offer seamless integrations, so you can manage payments from one secure dashboard.
5. Fast Funding: Look for same-day or next-day funding to improve your cash flow.
6. High Approval Rates: Providers like Zen Payments have a 98% approval rate for high-risk merchants.

Zen Payments provides all of these features and more, making it one of the top choices for businesses in high-risk categories.

Why Zen Payments is the Best Choice for Virtual Terminals

Zen Payments offers one of the market's most reliable, secure, and feature-rich virtual terminal solutions. Here’s why it stands out from other providers:

• High Approval Rates: Zen Payments has a 98% approval rate and accepts businesses from all industries, including those considered high-risk.
• Comprehensive Fraud Protection: Built-in CVV verification, AVS, and chargeback prevention tools keep your business safe.
• No Hidden Fees: All fees are clear and transparent, so you know what you pay for.
• Same-Day Funding: Receive your funds faster, helping you maintain better cash flow.
• Expert Support: Zen Payments offers end-to-end customer support to help you set up and optimize your virtual terminal.

With more than 15 years of experience helping high-risk merchants, Zen Payments is the perfect partner to help you process payments securely, quickly, and without stress.

How to Get Started with a Virtual Terminal

Getting started with a virtual terminal from Zen Payments is simple. Here’s what you need to do:

1. Apply for a Merchant AccountVisit Zen Payments and fill out an application for a merchant account. The process is simple, and approval rates are high — even for businesses in high-risk industries.
2. Set Up Your Virtual TerminalOnce your account is approved, you can access the Zen Payments dashboard. From there, you can log in and start processing payments.
3. Start Accepting PaymentsAccept credit and debit card payments from customers worldwide — no hardware required.

Final Thoughts

A virtual terminal is a must-have tool for businesses that handle remote payments or operate in high-risk industries. Virtual terminals provide a simple, cost-effective solution to meet the growing demands of a cashless payments ecosystem by allowing companies to process payments securely and without a physical card reader.

If you’re ready to improve your payment process, look no further than Zen Payments. With fast approval times, fraud protection, and same-day funding, Zen Payments makes it easy for your business to accept payments anytime, anywhere.