Virtual terminals: a guide for merchants

In today’s fast paced digital world, it’s essential for merchants to offer flexible payment solutions that cater to the needs of their customers. Businesses of all sizes must process payments securely, enabling transactions without the need for traditional point-of-sale (POS) systems.

This guide explores what virtual terminals are, discussing how they work and their benefits, helping you leverage this technology to enhance your merchant payment processing capabilities. 

What is a virtual terminal?

A virtual terminal is a type of web application allowing merchants to accept card payments remotely, providing an alternative to traditional payment methods. Unlike physical card readers, virtual terminals process transactions manually, with merchants initiating each transaction.

Differences between virtual terminals and traditional payment methods

Flexibility

Virtual terminals allow you to process payments from anywhere, while traditional card present methods require a physical presence.

Manual entry

Transactions can be entered manually without the need for a physical terminal.

Example of business usage

Ideal for businesses that take payments over the phone, or in person with a POS system.

How do virtual terminals work?

Virtual terminals operate via a secure payment processor, which allows merchants to handle transactions with ease. Here’s a step-by-step process for using a virtual terminal:

1. Login to access the virtual terminal. Access the virtual terminal via a NAB product (i.e., NAB Gateway or NAB Transact) on a computer, tablet, or other device.
2. Enter your customer’s information. Input the customer’s card details, including card number, expiration date and CCV.
3. Process the payment. Click to process the transaction, it will then be securely transmitted to the payment processor.
4. Await confirmation. A confirmation message detailing the success of the transaction will be generated, and a receipt can then be sent to your customer.

Hardware and software required

• Hardware – a computer or tablet with internet access.
• Software – a compatible web browser and access to the product with the virtual terminal feature.

Virtual terminals vs. eCommerce website payments

It’s important to note the differences between virtual terminals and eCommerce website payments to help you select the right solution for your business needs. Below is a comparison table outlining the key differences, similarities, advantages, and disadvantages.

Who uses virtual terminals?

Virtual terminals benefit a wide range of businesses, especially those requiring flexible payment solutions. Below is a table illustrating some examples of the types of businesses and common use case scenarios.

Key features of virtual terminals

Useful to a range of businesses, virtual terminals are especially suited to businesses focusing on security and operational efficiency.

Security features and compliance

Virtual terminals are designed to meet industry security standards, such as PCI DSS compliance (PDF, 296KB), making sure that sensitive cardholder information is always handled securely.

Complete customisation

You can integrate virtual terminals with your website to take additional payments, determine roles and responsibilities, and create custom reports. This helps you build a cohesive payment processing system to streamline the efficiency of your business’s operations.

Remote payment processing

Taking a payment with virtual terminal is easy. It allows you to accept payments from anywhere, whether you operate your business at home, in the office, or on the road.

Transaction tracking and invoice automation

Easily manage and track sales transactions through a user-friendly dashboard for simplified billing and payment collection.

Improve your paying processing capabilities

NAB Gateway offers simple integration with virtual terminal options, providing you with a comprehensive solution for managing transactions effortlessly. Experience secure payments, convenient reporting that saves time, and the flexibility to accept payments from anywhere.

Learn more about NAB Gateway