A virtual terminal is a merchant-facing web application that lets staff manually enter a customer's credit or debit card details to submit a payment. It is commonly used for telephone and mail orders, which are card-not-present transactions: the card is not read by a payment device during the purchase.
How a Virtual Terminal Works
Staff sign in to an enabled payment-provider account using a compatible, internet-connected computer or other supported device. They enter the payment amount, the required card details and any requested billing information, then submit the transaction. The virtual terminal passes the request through payment-processing infrastructure, including the card network, to the card issuer for approval or decline.
An approval authorizes the transaction; it does not mean settlement is complete. Capture and settlement are separate processing stages, and authorization alone does not mean funds have reached the merchant's account. If the browser loses connection or returns an unclear result, staff should check the recorded transaction status before retrying to avoid charging twice.
Where It Is Used
Businesses accepting orders by telephone or post can use this interface whether or not they have a physical storefront. Manual browser entry does not require a dedicated card reader, but it still requires a supported device, internet access and an account with the service enabled. A virtual terminal can also sit alongside a point-of-sale (POS) system; it is not limited to businesses operating remotely.
The defining distinction is who enters the payment details. Staff operate this interface, whereas customers enter their own information in an online checkout. A broader POS system may combine reader-based payments with inventory, sales reporting and other retail tools, so the two products differ in scope as well as payment entry.
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Get startedCosts and Administrative Features
Using a virtual terminal can reduce the need for dedicated payment hardware, but that does not eliminate processing costs. Charges depend on the provider and transaction type. Manually keyed payments can cost more than reader-based payments, and subscription or monthly account charges may also apply.
Transaction records, receipt delivery and refund handling are useful administrative capabilities to check. Their availability and operation depend on the service; a refund is a separate action, not simply deletion of the original transaction. Recurring billing and connections to order-management or accounting systems are optional extensions, not defining features. Check whether required integrations are supported rather than assuming browser access means compatibility with existing software.
Security and Operational Considerations
A virtual terminal still puts staff in contact with sensitive card information. Secure practices include limiting account access to authorized staff, protecting sign-in credentials and following the provider's instructions for handling card data. Card details should not be copied into ordinary email, chat messages or unsecured notes. Telephone and mail-order processes also need appropriate controls over any records containing payment information.
Encryption protects data in the contexts where it is applied. Verification tools, such as address checks where available, serve a different purpose by helping assess supplied payment information. Neither eliminates fraud, disputes or chargebacks, and issuer approval is not a guarantee against a later reversal.
Internet connectivity and provider availability affect whether staff can submit payments. Support arrangements and procedures for unclear or failed transactions therefore matter alongside pricing and features.
