Best Virtual Terminals for Small Businesses In 2023

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Written By Obaid Ur Rehman

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For a long time, cash has ruled, but that could be changing. The typical American now carries three credit cards and 2.3 shop cards. Consumers can’t afford to ignore credit cards because of all the perks they provide.

Accepting credit card payments is something that all businesses will need to set up. Creating a merchant account with a bank or working with a third-party payment processor is the first step. Installing POS software and a credit card reader is the next logical step.

Using a virtual terminal is one of the most straightforward methods of doing both.

What is a virtual terminal?

With the use of a virtual payment terminal, companies may collect credit card payments over the phone. All that is required is a reliable internet connection, since no further hardware or dedicated phone line is necessary. From the perspective of the company, a virtual terminal seems like a simplified website. Customers’ payment card information is entered directly into the website for processing when you request it.

How does a virtual terminal work?

When equipped with the proper program, using a virtual terminal is a breeze. You’ll have to input the customer’s credit card details manually or using a card reader, and then submit the transaction for processing. The money should be in your bank account within three business days after you pay the nominal processing charge.

What is the going rate for a virtual POS terminal?

What is the going rate for a virtual POS terminal?
What is the going rate for a virtual POS terminal?

Fees for a virtual terminal may include, but are not limited to, the following, depending on the processor’s chosen pricing plan.

  • Monthly fee.
  • Terminal fee.
  • Processing fees.
  • Interchange fees.
  • Margin fees.
  • Assessment fees.

Keep in mind that the processing costs for card-not-present transactions are higher because of the heightened risk of fraud associated with them.

The monthly fee will be based on the processor you choose and the number of credit card transactions processed. A $25 monthly fee and 2% plus 10 cents every transaction may be charged by one processor, whereas 2.5% plus 20 cents per transaction may be charged by another processor who does not need a monthly fee.

What are the best virtual terminals available? 

When it comes to accepting payments, your choices are not limited. While several options exist, only few support virtual terminals. In 2023, the following are the top six virtual terminals on the market:

1. Square 

For a long time, small company owners have trusted Square as a reliable payment processing solution. Square’s in-person payment processing is a major selling point for many businesses. Their virtual terminal, on the other hand, has made significant improvements throughout the years. Due to its recent advancements, we’ll kick off our list with Square.

2. Helcim

Helcim comes in second place, missing out on first place by a hair. But it’s a great substitute for Square. When it comes to transaction volume, Helcim’s virtual terminal shines. The reason for this is because Helcim provides automatic volume savings and does not charge a monthly fee.

3. PayPal

Adding the PayPal virtual terminal might make sense if you currently use PayPal to process payments for your business. Most consumers are already familiar with PayPal and have faith in its ability to safely conduct their financial transactions. This service also includes extras like activity monitoring and detailed reporting on your account’s performance. There are no hidden or monthly fees, and the transaction costs are straightforward. However, companies with a worldwide clientele should be aware that making foreign payments and converting currencies incurs extra fees.

4. WorldPay

Your small firm may eventually need a virtual terminal with the capacity to handle increased transaction traffic. If you want extra services like as customer assistance and fraud control tools, WorldPay is a viable solution. However, unlike the previously suggested alternatives, this one requires a minimum commitment of time and money in the form of a recurring payment processing cost. Support for mobile wallet payments and round-the-clock service are included at the pro level.

5. Opayo

Opayo (formerly Sage Pay) is our number five pick. Built-in fraud detection, live reporting, and round-the-clock assistance are just a few of the typical features of this virtual POS system. It’s perfect for companies with international clients since it allows them to accept credit card payments over the phone in more than 25 different currencies.

6. PaymentCloud

As one of the few processors that will deal with high-risk organizations, PaymentCloud makes the cut.

Example: CBD project sellers may have trouble finding a processing partner owing to concerns about chargebacks. For a little higher fee, PaymentCloud is ready to take on these risks.

Because of its reliance on a third-party connection, PaymentCloud does not host its own virtual terminal. Virtual terminals and other customizations may be set up with ease thanks to the helpful customer service staff.

7. Durango Merchant Services

When it comes to high-risk e-commerce firms, go no further than Durango Merchant Services. When running a company in a specialized field, it might be difficult to find a reliable payment processor. When it comes to Durango merchant services, there is no competition.

8. GoCardless

GoCardless also facilitates online Direct Debit payments for companies. Direct Debit payments are preferred over virtual terminals since clients only need to enter their payment information once. It’s more convenient for both parties if the company can collect payments when they come due.


What is a virtual terminal?

Your company may accept credit card payments over the phone using a virtual terminal, and you won’t even need a dedicated phone line or expensive equipment to do it. Log in to a protected website where customers may submit their credit card or debit card information.

Do I need a merchant account to use a virtual terminal?

That’s correct. To begin accepting MOTO payments over a virtual terminal, a merchant account is required. Merchant account providers often provide virtual terminals as part of a bundled set of services.

How do virtual terminals work?

A payment gateway processes any MOTO transactions processed via a virtual terminal. This verifies the transaction and initiates the transfer of funds from the client to your merchant account. When the transaction is completed, the money will be deposited into your company’s bank account.

Who are virtual terminals suitable for?

Any company with a retail component might benefit from using virtual terminals. So… it’s all about business!

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