In short: A virtual terminal lets you take card payments by typing the customer's card details into a secure web page, with no physical card present. It suits phone, mail and remote orders. Because the card is not present, these payments carry a slightly higher fee and a greater fraud and chargeback risk.
A virtual terminal lets you take a payment without the card being present - handy for phone orders and remote sales.
What it is
It's a secure web form where you key in a customer's card details to take payment - no physical card machine required. You log in, enter the amount and card number, and process the sale.
Who uses it
Tradespeople taking deposits over the phone, B2B sellers, and anyone with remote or mail/telephone-order sales. Note that card-not-present rates are usually a little higher.
FAQs
Is a virtual terminal safe for taking card payments?
Used properly, yes. Reputable virtual terminals are PCI DSS compliant and encrypt card data. The main risk is fraud, as you cannot check the physical card. Verify the cardholder's details, keep records, and never store full card numbers yourself to reduce chargeback risk.
What is the difference between a virtual terminal and a payment link?
With a virtual terminal, you key in the customer's card details yourself, usually over the phone. With a payment link, you send the customer a secure link and they enter their own details. Payment links shift data entry to the customer, lowering your handling risk.
Do I need a website to use a virtual terminal?
No. A virtual terminal runs in your provider's secure web portal, so you only need an internet connection and a browser. It is designed for businesses taking phone or mail orders, not for adding a checkout to your own website, which needs a payment gateway.
Reviewed by Nathan Keeble - Founder, The POS
Independent UK payments research. We research the pricing, read the small print and write it up in plain English.