Online credit card processing solutions

Virtual terminal is a secure and cost-effective solution for authorizing and managing payment transactions over the Internet.

Today credit card terminals are commonly used in various types of organizations. Along with traditional credit card terminals, wireless and virtual credit card processing solutions are becoming ever more popular.

A virtual terminal is used for processing credit card transactions over the Internet. It is a convenient solution which helps reduce the complexity and expense usually associated with authorizing and processing credit card transactions. Besides, it can be used by organizations of all sizes.

The customer can access the virtual terminal in any part of the world using a browser-based interface. The virtual terminal accepts credit card payments and transactions by phone, fax or e-mail. It is secure and does not require a physical credit card terminal. The transaction is processed on a secure web site, where the customer has to enter her credit card data.

The virtual credit card terminal is a particularly cost-effective solution. Such terminals are most often used by utility companies, call centers, currier businesses, insurance companies, newspapers and magazines, charity organizations, various types of facilities, etc. For instance, virtual terminals are a handy solution for mail and phone order sales and auto recurring billing. Virtual terminals allow the customers to check the status of each transaction, refund the money to a credit card if necessary, or view and analyze previous transaction data.

Virtual credit card terminals are software-based solutions. The underlying software technology provides real-time transaction processing capabilities, as well as transaction history and reports functionality. Most small and middle-sized businesses use third-party providers to process credit card sales and service payments online.

Prior to selecting the credit card processing solution, the company should analyze the costs and expenses associated with this solution. Different type of costs should be considered, from the initial cost of equipment, transaction fees, and monthly minimum payments, to voice verification charges, address verification fees, monthly statement fees, and other charges. Some companies also require the businesses to maintain an account in their bank in order to process credit cards payments.

The amount of fees and discounts rates may be different in various credit card processing solutions. Typically, they are influenced by the following factors: the age and the size of the business, the percentage of transactions that are made over the Internet, the type of services provided by the business, the credit rating, the average dollar amount of each transaction, and the total dollar amount of transactions per month. In general, the discounts rates range from 2.25 to 3 percent for small businesses operating mail and phone sales.

There are several online gateway services to process credit card payments. However, not all shopping cart software is compatible with all gateways. Therefore it is crucial to use the shopping cart which is able to interface with the preferred gateway service. The following factors should be considered when selecting the payment gateway service: the cost (startup plus recurrent costs), level of security, ease of use, and integration capabilities.

Virtual credit card terminals are very popular among all merchants and are an ultimate solution for manual controlling credit card transactions.