When to Use a Virtual Terminal for Payments

Some of the most important payments happen when the customer is not standing in front of you. Maybe they call to place an order. They might respond to an invoice. In those moments, a virtual terminal becomes your best tool. It lets you enter card details into a secure form. No card reader. No checkout counter. That makes it ideal for phone orders, remote teams, and service-based businesses. In this guide, you will learn where and when virtual terminals work best and how to use them to keep payments simple, secure, and on time.

What Is a Virtual Terminal and How Does It Work?

A virtual terminal is a browser-based tool that allows businesses to manually enter a customer’s payment information into a secure form to complete a transaction. These transactions are considered “card-not-present,” which means the customer and their card are not physically at the point of sale. According to the Payment Card Industry (PCI) Security Standards Council, businesses operating in card-not-present environments must adhere to stricter compliance protocols. All transaction data must be encrypted and securely stored. Virtual terminals are most commonly used in high risk industries, remote operations, and by businesses that accept payments via phone, email, or mail order.

Situations Where a Virtual Terminal Makes Sense

These tools aren’t just convenient; they shine in specific situations where flexibility and remote access are essential. Below are some of the most common use cases where a virtual terminal can make a real difference.

Accepting Payments Without In-Person Interaction

One of the most common use cases is accepting payments remotely. If your business takes orders over the phone or bills clients by email, a virtual terminal allows you to process payments without needing to be face-to-face. This is also helpful in industries that rely on secure phone authorization, post-service billing, or contract-based invoicing.

Serving Customers Without a Physical Storefront

Virtual terminals are ideal for businesses without a traditional retail location. This includes consultants, nonprofit teams, mobile professionals, and field-based vendors. Setting up a full POS system is not always practical or cost-effective for these operations. A report by the Federal Reserve Banks found that 78 percent of microbusinesses, those with fewer than 10 employees, process payments without a physical terminal, often relying on invoicing or online entry tools.

Managing Invoicing and Subscription Payments

Virtual terminals are a strong fit for subscription based businesses that rely on recurring billing or invoice-based payments. Many systems allow secure storage of payment information for future charges authorized by the cardholder. This supports automated billing and steady cash flow for services billed on a regular schedule. Examples include:

• Monthly product subscriptions
• Scheduled service payments
• Program-based or milestone billing

All stored payment data must adhere to PCI compliance standards to minimize risk and ensure security.

Supporting Hybrid Sales Models

Businesses that operate both online and in person benefit from multiple payment options. Virtual terminals offer flexibility when you need to complete transactions outside of a traditional POS system. Examples include:

• Phone orders for in-store items
• Orders are taken on-site at events or service locations.
• Transactions are completed when card readers are unavailable.

These tools serve as a complement to your central system, ensuring payments run smoothly even when you are away from your usual setup.

Operating Within High-Risk or Regulated Industries

If your business is considered high-risk or operates in a regulated industry, a virtual terminal can be handy. Traditional processors may limit or restrict your options, and additional verification or privacy measures may be required. Every day use cases include:

• Phone-based sales of regulated or restricted products
• B2B transactions involving flagged but legal goods
• Secure billing where chargebacks are frequent

While not all processors serve high-risk merchants, specialized platforms often offer advanced fraud prevention, billing controls, and custom transaction logs to meet industry requirements.

Preparing for System Downtime or Backup Needs

Even if you primarily rely on a POS system, having a virtual terminal as a backup adds resilience. If your main hardware fails or you lose internet access, you can still process payments using a mobile device or an alternate connection. Having multiple transaction tools ensures revenue continues to flow during tech issues, service calls, or remote jobs.

Frequently Asked Questions

What is a virtual terminal, and how does it work?

A virtual terminal is a browser-based tool that allows businesses to manually enter a customer’s payment information into a secure online form. This is typically used for card-not-present transactions when the customer is not physically present, such as when placing orders by phone or email.

When should a business use a virtual terminal instead of a physical card reader?

Virtual terminals are ideal for remote payments, including those made by phone, email, or mail. They are also an excellent fit for businesses without a physical location, mobile vendors, consultants, and teams that want to avoid investing in complete point-of-sale hardware.

Are virtual terminals secure for processing payments?

Yes, when used correctly. Virtual terminals must comply with the PCI Data Security Standards, which include the transmission of encrypted data, adherence to secure network practices, and the avoidance of storing cardholder data electronically. Selecting a PCI DSS-validated provider is crucial for safeguarding payment information.

What types of businesses benefit most from using virtual terminals?

Service-based businesses, remote teams, nonprofit organizations, high-risk merchants, and small companies that bill clients or process payments without face-to-face interaction benefit the most. From this solution, Virtual terminals also work well as a backup during system outages or for hybrid sales models.

Can virtual terminals handle recurring or subscription payments?

Yes, many virtual terminal platforms support recurring billing and scheduled payments. They allow secure storage of customer information for future authorized charges, such as monthly services or product subscriptions, in full compliance with PCI standards.

What are the main compliance requirements for using a virtual terminal?

Merchants must use a PCI DSS-compliant provider, process payments on secure browsers and dedicated systems, avoid storing cardholder data, and follow strict handling procedures to ensure compliance. Adhering to these standards helps protect both the business and its customers.

When Virtual Terminals Make Business Sense

Virtual terminals are not a new concept, but they remain instrumental, especially for businesses that value flexibility, mobility, and control over how payments are processed. They are an excellent fit for:

• Card-not-present transactions from remote or mobile setups
• Service businesses use invoices or scheduled billing.
• High-risk operations need more oversight.
• Teams without physical storefronts
• Small businesses aiming to lower hardware and transaction costs

Before you begin, ensure your platform is PCI-compliant. Understand your industry’s risk level and select a virtual terminal that seamlessly integrates with your operations.

Talk to a Payment Specialist About Virtual Terminal Options

Virtual terminals are a wise choice for businesses that need more freedom and control. Whether you’re processing remote orders, managing subscriptions, or working without a storefront, they can simplify the way you get paid. If you want a secure and reliable way to accept payments without the burden of full POS hardware, it may be time to make the switch. Speak with a payment specialist today and discover the ideal setup for your business. With the right tools in place, you Contact 2Accept Team Today