Credit card processing has come a long way over the years and the technology used today makes it even easier for merchants to accept credit cards. Payment processors can handle a wide variety of transactions that previously would not have been possible. For some business owners, a virtual credit card terminal (rather than a merchant account) is essential to process sales that do not require the physical “swiping” of the card to complete. This is a common practice at call centers or for businesses that receive orders and credit card information via phone, email or even by mail. These businesses should have a virtual credit card terminal to process this type of transaction.
What are virtual credit card terminals?
Credit card processing cannot take place if the merchant has no way to transfer credit card information to the processor. Simply having the credit card information will not result in the movement of money from the issuing bank to the merchant’s account, therefore there must be some method of capturing this information and forwarding it to the credit card processor. With a virtual credit card terminal you need a secure Internet connection and a smartphone or processing computer to transfer the data. You do not need to swipe the credit card, therefore no additional equipment should be required.
How to set up a virtual credit card terminal.
You must decide on several things before you begin accepting credit cards via phone, fax, mail or online. You must decide which processing terminal will be used (computer or smartphone) and determine if the software necessary to process credit cards is compatible with that terminal.
Next you must select a credit card processor that provides features important to your business. Again, systems have to be compatible and you will want a credit card processor that offers protection from fraud and 24/7 support. It is important when selecting a processor to research the cost associated with your account. This may include monthly fees, start-up fees, annual fees, statement fees and transaction fees. When selecting a credit card processor, you are looking for the most value at an affordable cost.
If you do not already have a merchant account, the processor will help you create a credit card merchant account number. They will also take you through the steps to set up your virtual terminal including any software that many be required to process credit card payments. Once you have set up your virtual credit card terminal and tried a test run to ensure everything is working properly, you will be ready to process credit card payments that come to you from a variety of sources.
Regardless of how you capture the information for credit card payments, it remains the merchant’s responsibility to understand and operate within the terms of their merchant agreement. There may be different “rules” that apply to credit card transactions that occur without the account holder being present and it is important to not only understand those rules but abide by them least you lose the ability to process credit card payments.
