In contrast, virtual payment terminals are a cloud-based technology. This presents a certain amount of security, but it does not prevent the system from being hacked. Everything runs on a closed internal network and under normal conditions, cannot be accessed from outside the network. Information from local (legacy) POS systems is all contained on the merchant’s local server. The authorization process proceeds as normal from there, though.Īnother immediate difference between VPOS and conventional point of sale is where and how the data is stored.

The buyer will be asked to provide their card number, billing address, and shipping address at checkout. The most obvious difference is that, without a card being present, the customer must key in their payment information manually. How is a VPOS Different From a Physical System? Some providers offer straightforward programs, while others have more sophisticated tools that can generate complex reports and connect other systems like a CMS or loyalty enrollment. How one approaches this may depend, at least in part, on how integrated the system will be. There are different ways to implement a VPOS. A card reader and a web browser are also required printed receipts, if needed, can be sent to a receipt printer or a normal desktop printer. The “terminal” is either a laptop or some type of mobile device, such as a smartphone or tablet. With a virtual payment terminal, all information is processed online and stored in the cloud.

Interface with the merchant’s payment gateway.

Collect the customer’s payment information.

Just like a physical POS machine, the virtual payment terminal performs a few key functions: The operation of the system will also vary depending on the provider, but the general process for an online purchase is identical to that of a traditional POS.

In short: a virtual terminal allows a merchant to conduct payments without the need for a buyer to physically insert a credit card into a card terminal. This enables retailers to accept cards for internet orders or process payments made through mail or phone. Rather, it allows customers to enter their information, or merchants to key in data on the customer’s behalf. Unlike card-present terminals, however, a virtual payment terminal does not require interaction with the credit card itself. Just like traditional point-of-sale terminals, VPOS systems can be used to process credit and debit card transactions, refunds, voids, and more. A virtual terminal can deliver all the functionality of the physical readers that merchants are most familiar with. With the rise in eCommerce, VPOS more typically refers to a method of payment used by card-not-present merchants for online sales. In some instances, a virtual terminal describes a process by which merchants can handle remote mail or telephone transactions by manually keying in the cardholder’s information. A virtual payment terminal (also called a virtual point of sale or “VPOS”) is a web-based application used by merchants to accept credit cards without the presence of the physical card.Ī VPOS system is just what it sounds like: an online (or in some cases, desktop-based) platform that enables merchants to authorize a payment card transaction without possessing the physical card.

Virtual payment terminals