For the most part, when people think of paying with their credit cards or debit cards, they picture inputting the cards into physical terminals, punching in PIN codes and receiving receipts. But not all businesses that accept credit cards necessarily do so in that exact way. In many cases, payments need to be accepted over the phone, online or even in the mail. And in cases like these, virtual terminals make for an ideal choice.
What are virtual terminals? Essentially, this is when you turn your computer into a payment terminal. In other words, you can go online to take payments quickly and securely, anywhere and at any time using this hosted payment solution. At Canadian POS Corporation, we offer Converge (formerly VirtualMerchant) which instantly transforms your computer into a “virtual” payment terminal that accepts credit cards, debit cards and even gift cards.
Why are virtual terminals viable options for business owners? As we mentioned earlier, not all business owners are prone to having Countertop or Wireless terminals to receive payments from their clients. This is especially true for such professionals as graphic designers, accountants, lawyers, chiropractors, gym owners, contractors, consultants and many others who may offer services rather than products and operate their businesses in remote locations.
Traditional terminals allow customers to insert their cards in order to process payments. They are predominantly used by retailers because they work perfectly for their business model. But sometimes, business owners don’t necessarily process their payments in person. The above mentioned professionals make the perfect examples of those who provide services when not necessarily in the presence of their clients. Instead, they need to collect information from their clients in order to process payments in other ways.
Can standard POS terminals be used for “card not present” transactions? Yes, they can. However, keyed-in transactions on credit card reading terminals usually yield higher “non-qualified” rates. This occurrence is to help prevent fraud, but can also cause inconveniences to both the business owner and his/her client. Not to mention, it can sometimes result in higher costs for the business.
Why are virtual terminals excellent alternatives? They allow business owners to process “card not present” transactions with ease. Mailed-in or called-in payments are able to be processed at much higher “qualified” rates which help to save merchants significant amounts of money on a monthly basis. Canadian POS Corporation’s Converge program has helped many a business owner to maximize his/her ability to profit from payments made when they don’t have their customers’ physical methods of payment in front of them.
How are payments processed using virtual terminals? All merchants need to do is log into their online accounts and begin typing away the credit card information given to them. Once payments are submitted, the transactions are processed and the funds are deposited into their bank accounts within two to three business days. As mentioned, processing payments in this fashion is especially beneficial for business owners who operate their businesses in remote locations.