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The so-called "virtual terminal" involves a credit card processing software system that provides an excellent secure solution for businesses who wish to manually input orders into their computer, so they can accept credit cards by phone, email, mail or fax.
Virtual terminals for mail or telephone credit card processing have taken over the market from the former desktop authorization terminals, as they reduce the complications and expense otherwise involved with credit card processing online.
Transactions to accept a credit card over the phone, or to accept mail orders, are usually processed as follows.
Customers provide you with their credit card information. You then log-in to your account on your computer, fill out a form that includes the data required to process the transaction. This data is securely encrypted and sent through the processing system to the bank that issued the credit card to your customer.
The issuing bank will confirm that the card is valid and that the amount requested for the purchase is available on the card.
Then, in mere seconds, you receive an authorization approval number and can print a receipt for your records or an invoice for your customer. Transactions are 'settled' daily and you can expect to receive the funds in your business checking account within 2 or 3 business days.
Most online credit card processing software systems will allow you a wide range of options for credit card processing online , such as authorizations for purchases, credits and returns. In addition, most permit you to set up 'recurrent billing' for payment plans and monthly subscriptions.
You can submit a number of customer orders together in a 'batch'. This saves you the trouble of having to input orders individually several times daily. You can review your transactions and run a wide array of reports from your computer.
Remember, in order to accept credit cards by phone or mail, you will require a merchant account, in addition to the credit card processing software. The software system can either be purchased outright or leased - and recently some companies offer free credit card processing software when you obtain a merchant account from them.
For information on the various costs you may incur when credit card processing online your phone or mail orders, see our Credit Card Processing Fees discussion. |
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