High Risk Virtual Terminal
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If you’re a business owner and want to accept credit cards, one of the easiest ways is through a virtual terminal. A virtual terminal is like an online version of the terminal you might use at a point-of-sale (POS) register in your retail store or restaurant. It allows you to enter credit card information manually—either through an application on your computer or tablet or by using an automated phone system—and submit it electronically to process payments.
High-risk virtual terminals allow you to process payments for phone orders, mail orders, and direct response.
A virtual terminal is a web-based payment method that allows you to enter credit card information manually. You can then process payments through the terminal and take credit card payments over the internet or over the phone.
Virtual terminals are useful for businesses that do not have an established merchant account and cannot use a traditional POS system for credit card processing, such as a restaurant or bar that only accepts cash, but still wants to offer customers the option of paying by credit card. The most common type of virtual terminal is one that has been pre-approved by your bank or processor and does not require any additional fees for software or hardware costs.
There are two types of virtual terminals
Your merchant service provider (processor) will likely have a hosted option and you might need to also have a standalone interface for your website.
A virtual terminal is a software program that allows you to accept credit card payments online. There are two types of virtual terminals: your merchant service provider (processor) will likely have a hosted option and you might need to also have a standalone interface for your website.
- A hosted virtual terminal is software that runs on the processor’s server and sends data back and forth between your web browser and the processor’s server to allow you to process payments in real-time. The host processor acts as an intermediary between the customer’s computer and their bank or credit union in order to process payment transactions.
- A standalone interface usually connects directly with their bank or credit union, but can also connect with other third-party processors for additional functionality like fraud prevention services or PCI compliance features (more on this later).
Mail Order/Telephone Order (MOTO).
Using a virtual terminal to accept telephone, fax, email or mail orders are called MOTO transactions. Virtual terminals can be used for MOTO transactions, which are typically high risk transactions. A virtual terminal is a secure application that allows your customers to place orders over the phone, fax, email or mail.
When you’re processing MOTO payments, make sure you’re using a virtual terminal and not just a regular credit card reader. The difference between these two types of devices is that it’s easier to process fraudulent transactions with them since they don’t require any personal information from the customer at all!
How a Virtual Terminal works
The customer tells you the card number, expiration date and the CVV code from their card. You enter this information into the virtual terminal on your computer’s web browser. The transaction is processed through your gateway.
How it works: the customer tells you the card number, expiration date and the CVV code from their card. You enter this information into the virtual terminal on your computer’s web browser. The transaction is processed through your gateway and sent to the payment processor for approval.
Hosted vs. Standalone
With a hosted solution, you can typically accept payments almost immediately and avoid the costs associated with setting up your own solution. But for any type of recurring billing functionality, you’ll likely need to use a standalone solution that can be integrated with your website.
- Standalone vs. hosted: With a hosted solution, you can typically accept payments almost immediately and avoid the costs associated with setting up your own solution. But for any type of recurring billing functionality, you’ll likely need to use a standalone solution that can be integrated with your website.
- More secure: Standalone solutions are always more secure than hosted ones because the information never leaves your control. The downside is that it’s difficult to scale because it requires more technical resources (both human and financial). If you’re trying to scale quickly or if security isn’t an issue for your business model (e.g., if there aren’t sensitive customer data involved), then a hosted option might be better suited for your needs.
Virtual terminals are a quick and easy way to get set up if you want to accept credit card payments, but they aren’t really secure enough if you want to protect against fraud, which could lead to chargebacks and fees. You’ll want to use a third-party payment processor that provides tokenization or encryption capabilities so that sensitive data isn’t stored locally in case it gets hacked or stolen in transit.
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