An essential aspect of building a business is having a variety of payment options for your customers. Whether it’s in-store, online, in-app or over the phone, you want to open up as many opportunities as possible for customers to purchase your products or services.
This is where virtual terminals come into play, especially when accepting phone payments.
So, what is a virtual terminal and how can it help with taking payments over the phone? Continue reading to find out.
What is a virtual terminal?
A virtual terminal is a piece of software that gives a business the ability to process payments electronically, and without using a point of sale (POS) terminal, like a card machine. A virtual terminal offers another way of processing transactions with customers, including over the phone.
How does a virtual terminal work?
A business can use a virtual terminal to accept payments from customers over the phone, via email, fax or in person. They do this with a device that’s connected to the internet – usually a computer, laptop, tablet or smartphone.
The majority of virtual terminals accept credit and debit cards, as well as CHAPS payments. The terminal requires the user to manually input all transaction and payment information which can cause issues.
What are the benefits of using virtual terminals?
There are a range of benefits associated with using a virtual terminal, especially when taking payment via telephone. They are:
- Convenience – You can access the virtual terminal from any device that has an internet connection, meaning there is a wide range of options available.
- Flexibility – You don’t have to be at your desk or in the shop to take a payment or complete a transaction over the phone. Because the virtual terminal can be accessed anywhere, you can use your tablet at home, your smartphone on the go or your laptop at work.
- Make sales that may have been lost otherwise – Arguably the main benefit of using virtual terminals to accept payments over the phone is the power to easily accommodate a customer, even if they’re away from the business’ physical card payment terminal. This means you won’t miss out on sales because you’re able to take their payment there and then, wherever they, and you, are.
Are there any negatives to using a virtual terminal for telephone payments?
While there are a handful of positives to using a virtual terminal to take payments from customers, there is one downside.
This is a potential security concern. With in-person card payments using a card reader – portable or countertop – the card machine securely transmits card information to the business’ POS and onto their payment processor. This information is encrypted and none of it is entered manually.
When using a virtual terminal for payment over the phone or online, all card details are entered manually, thus making it slightly less secure than its counterpart.
However, in a way, you’re putting your trust in a business to keep your data secure whenever you purchase from them, even from an in-store card reader.
Take your business to the next level
So, it’s clear that using a virtual terminal allows a business to enhance its sales figures. It enables them to make sales both online and over the phone, ensuring they don’t need a customer to physically come into their store.
If you’d like to increase the number of ways you can sell to a customer, consider a virtual terminal and you, too, could start accepting phone payments for your services and goods.