What is a virtual terminal and how do you use it?
Date: 03/07/26
As more businesses embrace flexible ways to accept payments, a virtual terminal has become an essential tool for taking card payments without needing a physical card machine.
A virtual terminal is a secure web-based payment system that allows businesses to manually enter a customer’s card details to process a payment. Unlike a physical card machine, there’s no need for a customer to physically be there to present, tap, insert or swipe their card.
Instead, a business can log into their virtual terminal on their laptop, tablet or mobile phone and simply enter the customers card details and the transaction amount, and the payment is processed securely through your payment provider.
These virtual terminals are particularly useful for businesses that will regularly take over the phone payments.
Key Features
A virtual terminal can offer more than just processing payments, depending on the provider, a business can often benefit from features such as:
- Remotely accepting card payments – this removes the need for the customer to be present at the time of payment
- Secure payment processing – using encrypted connections that comply with industry standards protect sensitive information at time of purchase
- Payment history and reporting – can be accessed through the accompanying online dashboard, helping make reconciliation easier
- Multiple user access – Some virtual terminals allow multiple members of staff to process payments simultaneously with user permissions and activity tracking enabled throughout
How to accept payments using a virtual terminal
A virtual terminal is pretty straight forward to use. Although the exact process will vary depending on it’s provider, generally these are the steps to follow:
- Log into your secure virtual terminal portal.
- Enter the payment amount.
- Collect the customer's card details, including card number, expiry date, and security code.
- Enter the customer's billing information if required.
- Review the transaction details.
- Submit the payment for authorisation.
- Provide the customer with a receipt by email or other preferred method.
Virtual terminals vs traditional card machines
Both virtual and traditional machines allow businesses to accept card payments, but they’re design for different situations:
Virtual Terminal
- Accepts remote payments
- Customers don't need to be present
- Works through a web browser
- Ideal for phone and mail orders
- Requires manual entry of card details
Traditional Card Machine
- Accepts in-person payments
- Customers present their card physically
- Requires a physical payment device
- Ideal for shops, cafés, restaurants, and face-to-face businesses
- Card details are read automatically by tap, chip and PIN, or swipe
Many businesses choose to use both solutions, allowing them to accept payments both in person and remotely.
How much do Virtual terminals cost?
The cost of a virtual terminal depends on the payment provider and the services included. Typical costs may originate from: monthly transaction fees, merchant account fees, payment processing fees and setup fees. When comparing providers, it’s worth looking beyond headline pricing and start to consider other factors and their effects on your business. You should consider factors as security features, available customer support, reporting tools, integration with existing system, and contract flexibility.
Choosing the right provider for your business means balancing the costs with reliability, services and the features your business needs.
Virtual Terminal FAQs
Yes. Reputable providers use encrypted payment technology and comply with PCI DSS security standards to protect payment data. Businesses should also follow security best practices when collecting and processing customer information.
No. Customers simply provide their payment details over the phone or through another agreed communication method. The business processes the payment through the virtual terminal.
Most modern virtual terminals are browser-based and can be accessed from smartphones and tablets with an internet connection.
Some virtual terminal providers offer recurring payment functionality, allowing businesses to collect regular payments from customers who have given permission.
Not necessarily. If your business only accepts remote payments, a virtual terminal may be enough. However, businesses that also serve customers face to face often benefit from having both a virtual terminal and a traditional card machine.
