A virtual terminal is a web browser-based payment processing interface that allows merchants to manually enter credit card information to process transactions without a physical card reader. Think of it as a software-based card swipe machine that runs in any web browser.
Virtual terminals are ideal for: - **Phone orders (MOTO)**: Mail order/telephone order businesses where customers provide card info over the phone - **Service businesses**: Contractors, consultants who invoice clients and take payment remotely - **B2B transactions**: Businesses that accept card payments via email or purchase order - **Backup processing**: When physical terminals are down - **Remote teams**: Sales representatives who need to process payments from customer sites
How virtual terminals work: 1. Merchant logs into their secure virtual terminal portal 2. Enters customer's card number, expiration, CVV, billing address 3. Submits for authorization 4. Receives approval or decline 5. Can print, email, or save the receipt
Key limitations and cost considerations: - **Security**: Card details are keyed in, not encrypted at the point of entry like chip readers. Tokenization and secure entry pages help mitigate risk. - **Higher interchange rates**: Keyed (card-not-present) transactions carry higher interchange rates than card-present (chip/tap). The interchange rate premium is typically 0.50%–1.0% higher for keyed vs. swiped. - **Fraud risk**: Card-not-present transactions have higher fraud rates since the card isn't physically verified.
Virtual terminals are convenient but cost more per transaction. If most of your business is phone orders, budget for higher interchange rates compared to card-present transactions.
To minimize costs with virtual terminal payments, always collect AVS (address verification) and CVV data — failure to collect these can result in even higher interchange rates and reduced chargeback protection.
A plumber accepts a phone payment: - Customer calls to pay $450 invoice by credit card over the phone - Plumber logs into virtual terminal on laptop - Enters: card number, expiration, CVV, billing address, amount - Transaction approved; email receipt sent to customer - Cost: interchange (keyed, card-not-present) + processor markup - ~2.30% effective rate vs. 1.85% for in-person tap
Yes, when properly configured. Virtual terminals should use HTTPS (SSL/TLS), tokenize stored card data, and enforce strong login security. Using a PCI-compliant virtual terminal provider and not writing down card numbers are key security practices.
Virtual terminals typically have a monthly fee ($10–$30/month) plus per-transaction fees. Your processor may include virtual terminal access as part of your account. Interchange rates are higher for keyed transactions than card-present.
Yes. Most virtual terminals support recurring billing — saving a card on file and automatically billing on a schedule. This requires additional PCI compliance for stored card data.
Liberty Bancard provides virtual terminal access to all merchants at no additional monthly fee. Our virtual terminal supports recurring billing, stored cards with tokenization, and level 2/3 data entry for B2B transactions.
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