What Is Virtual/Internet Credit Card Processing?
Virtual credit card processing – often known as Internet credit card processing – is a digital method for processing credit card payments just as standard credit card terminals do.
With virtual credit card processing, however, a business receives an online profile, where they can log in to process their customers’ credit card payments on their computer. Virtual terminals provide the same functions as standard card terminals do, but also provide merchants the ability to more efficiently avoid credit card fraud.
Virtual credit card processing is not necessarily a web site, but rather a standalone solution. Virtual processing is especially well suited for situations in which there are multiple operators inputting payments, there’s a need to process payments from different locations, when merchants need to take extra anti-fraud measures, when they need a database of all payments processed, and especially for mail-order or telephone-based transactions.
There are typically two basic methods for acquiring virtual terminal credit card processing. First, you can use merchant software and obtain a merchant number from your bank; this method is generally more suited to low sales volumes or infrequent payment processing. Second, you can open a merchant account with a merchant account provider, resulting in the lowest processing costs. Merchant account providers are typically recommended for virtual credit card processing.