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The Remarkable Benefits of Virtual Payment Terminal for SMEs

If you are unable to decide whether or not to employ a virtual payment terminal for your business, well, you’ve come to the right place.

Brayden Mccoy
2 years, 9 months ago

If you are unable to decide whether or not to employ a virtual payment terminal for your business, well, you’ve come to the right place. In this article, you will become familiar with the benefits of virtual payments over traditional credit cards or cash payments. The payment acceptance process is a critical decision because a major part of a customer’s decision to return to your store rides on the features the payment processing provider gives you. Virtual payment terminals are the latest entry to the payment processing industry, which helps businesses manage transactions without the need for a card. As a result, retailers and restaurants can enjoy accepting payments over the phone or by email. Additionally, virtual payment solutions bring many other benefits from cost saving to environmental friendliness, and more. 

The Simplicity of a Virtual Payment Terminal 

Businesses with physical stores utilize cash or credit card processing to get their payments. These options are cost-efficient without a doubt. Nonetheless, not all businesses are customer facing. Some businesses, like delivery services, might require a deposit payment through phone or by email. This is where virtual payment terminals come to the rescue. 

With the help of virtual payment terminals, customers can make payments without the need for a card. Businesses only need to connect to the internet to accept payments. A virtual terminal exists in an online environment. Therefore, it is enough to open a web browser and enter the website of the terminal. 

Cost-Effective Solution

There is no need to purchase additional equipment hardware such as a card reader, which makes it budget-friendly. On average, obtaining a terminal can cost your business more than $1000. There are also additional costs, such as maintenance or set-up fees. However, virtual terminals usually require small amounts ($20 in some cases) of payments every month. As a result, small businesses do not face the trouble of upfront costs and use the saved capital in other operations. 

Back-up Operations

Businesses can choose to operate solely based on virtual merchant services or join it with traditional point-of-sale systems. Yet, using both types of payment processing is more secure. In case a technical problem arises in a POS system, businesses can back-up operations with the help of a virtual payment terminal. In this way, small businesses will resume managing transactions smoothly without facing negative consequences, such as delays. 

Additionally, businesses can take advantage of NFC-enabled payments. They need to connect their virtual terminals with NFC active gadgets such as smartphones or tablets. This way, they can accept NFC payments without incurring additional costs. However, if they want to do the same with traditional POS solutions, they would have to purchase additional hardware.

Recurring Payments

virtual payment terminal

Virtual payment terminals also allow managing recurring payments effectively. Business owners and managers easily streamline and schedule payments with the help of this payment method. By automating recurring payments, businesses will fasten payment collection, get funds on time, and have effective cash flow management. They can also utilize this function to collect payments from their repeat customers quickly. 

Portable Terminal

As it does not require any physical card or card reader, the virtual payment terminal is highly mobile. Regardless of location, businesses can accept transactions on the phone or face-to-face. Therefore, this type of payment processing is extremely suitable for companies that do not have a permanent location or manages operations remotely. For instance, if you establish a food delivery business, virtual merchant services will be helpful as customers can pay over the phone before they get their food. Freelance works such as remote designers or writers can also enjoy this terminal. They can get their bills without being present in the same location.

Secure Transactions

Another advantage of a virtual payment terminal is that it secures sensitive information. Businesses should not worry about the card details of customers. Virtual terminals are PCI compliant. The operations of paying and accepting happen in a gateway that uses different methods to protect data. These methods can be encryption of data or tokenization of card details to ensure no fraudster (evil man) can access or misuse your information. Processing service providers can also require address verification to authenticate operations. 

Avoid Storing 

The payment gateway doesn’t just secure transactions. It also stores credit card data. As a result, you need not invest money in your network to be able to save this data. However, businesses should be careful when they partner with a service provider. They should make sure that their gateway complies with PCI Self-Assessment Questionnaire D (SAQ-D). SAQ-D is required from businesses that deal with electronic cards. By filling out this SAQ, businesses prove that they can store and transmit sensitive card data.

Convenient for Customers and Sellers

Usually, buyers have concerns about the product or service a business provides. In most of these cases, they contact the provider to ask questions. As virtual terminals allow companies to accept payments over the phone, it is an excellent opportunity for them to push potential customers down the purchase funnel. While answering their questions and motivating people to buy products, businesses can offer a quick and straightforward way to make payments over the phone. Finalizing transactions over the phone without being physically present in the store location is a great convenience for customers. Also, both parties can verify transactions in a few seconds. Therefore, virtual payment also allows the closing of deals instantly. In this way, they ensure customer retention as their customers are satisfied with the speed and security of operations. 

Real-time Reporting

When it comes to reporting, a virtual credit card terminal is similar to the in-store point-of-sale mechanism that businesses use. Business owners and managers can take advantage of instant, live reporting to view their transaction activity. Plus, they can search and report previous transactions as all of them are stored. Managing reports requires only a few clicks, which also reduces time wasted on administration or reconciliation. 

Also, there is no limit to user numbers in the virtual terminal. It means, many people in your organization can view and manage reports at the same time without facing errors. 

Environmentally Friendly

virtual payment terminal

As the concerns on the environmental impacts of businesses raise, it is good news that virtual payments leave very little impact on the environment. With concerns over the environment constantly on the rise. This is an excellent opportunity for individuals sensitive about the topic of environmental sustainability, thanks to zero paper receipts. Businesses generally send email receipts to clients to verify their purchases. 

Data Collection

Virtual terminals also enable businesses to collect data from their customers. As mentioned earlier, companies store this data in a gateway, and they do not need to use their network for that purpose. They can collect information like the customer’s name and their card details. In this way, transactions will be much faster for returning customers.

Final Words

Small businesses face a host of challenges when it comes to choosing reliable and budget-friendly payment processing services. This article explains the benefits of using a virtual terminal for small businesses to help them make the right decisions. This type of payment processing allows businesses to enjoy a low-cost, simple, secure, and environmentally friendly solution to manage transactions. Additionally, virtual payment terminal backs-up operations, streamline payments, stores data, and enables reporting. In general, it is a convenient payment processing method both for customers and businesses. For all these reasons and more, virtual credit card terminals are worth considering for businesses of all sizes.