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Virtual terminal

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This article is about the term standardized by Open system. For other uses, see virtual console and virtual terminal (payment processing).

In open systems, a virtual terminal (VT) is an application service that:

  1. Allows host terminals on a multi-user network to interact with other hosts regardless of terminal type and characteristics,
  2. Allows remote log-on by local area network managers for the purpose of management,
  3. Allows users to access information from another host processor for transaction processing,
  4. Serves as a backup facility.

PuTTY is an example of a virtual terminal.

ITU-T defines a virtual terminal protocol based on the OSI application layer protocols. However, the virtual terminal protocol is not widely used on the Internet.

Introduction:

A virtual terminal is an online payment processing tool that enables merchants to accept credit card and debit card transactions without the need for a physical point of sale (POS) system. It is a convenient and cost-effective solution for businesses that do not require a traditional POS setup, such as e-commerce websites or service providers that operate remotely. This article provides an overview of virtual terminals, including their features, benefits, and limitations, as well as the security measures that protect sensitive customer data.

Features of Virtual Terminals:

  1. Web-based interface: Virtual terminals are accessed through a secure web browser, allowing merchants to process transactions from any device with an internet connection, such as a computer, tablet, or smartphone.
  2. Manual transaction entry: Merchants can manually enter customer payment information, such as credit card number, expiration date, and billing address, into the virtual terminal to process a transaction.
  3. Recurring payments: Virtual terminals often support recurring payment functionality, enabling merchants to set up automatic billing for subscription-based services or installment plans.
  4. Payment reporting: Virtual terminals typically provide detailed payment reports, allowing merchants to track and analyze sales data, monitor transaction history, and generate financial reports for accounting purposes.

Benefits of Virtual Terminals:

  1. Cost-effective: Virtual terminals are generally less expensive than traditional POS systems, as they do not require specialized hardware or software installations.
  2. Flexibility: The web-based nature of virtual terminals allows merchants to process transactions from any location with internet access, making them ideal for remote or mobile businesses.
  3. Simplified payment processing: Virtual terminals streamline payment processing by consolidating multiple payment methods, such as credit cards and debit cards, into a single platform.
  4. Improved customer experience: Virtual terminals enable merchants to accept payments in a variety of scenarios, including over the phone, via email, or through an online invoice, providing customers with a convenient and secure payment experience.

Limitations and Considerations:

  1. Manual data entry: Virtual terminals require merchants to manually enter payment information, which can be time-consuming and prone to human error.
  2. Limited to card-not-present transactions: Virtual terminals are designed for card-not-present transactions, meaning that they may not be suitable for businesses that primarily rely on in-person payments.
  3. Internet dependence: As virtual terminals require an internet connection to function, they may not be suitable for businesses operating in areas with limited or unreliable internet access.

Security and Compliance

Virtual terminals must comply with the Payment Card Industry Data Security Standard (PCI DSS), a set of security requirements designed to protect cardholder data during payment processing. Some key security measures include:

  1. Data encryption: Virtual terminals use Secure Socket Layer (SSL) or Transport Layer Security (TLS) encryption to protect payment data during transmission.
  2. Tokenization: Tokenization is a process in which sensitive payment data is replaced with a unique identifier, or "token," reducing the risk of unauthorized access to cardholder information.
  3. Secure storage: Virtual terminals must store payment data securely, using methods such as encryption or tokenization, to prevent unauthorized access.

Conclusion:

Virtual terminals offer a convenient and cost-effective solution for businesses that need to process card-not-present transactions, such as e-commerce websites and remote service providers. They provide a range of features, benefits, and security measures, allowing merchants to accept and manage payments securely and efficiently. However, businesses should also be aware of the limitations and considerations associated with virtual terminals, such as manual data entry requirements and internet dependence, when deciding if this payment processing solution is suitable for their needs.

See also

Sources

  • Public Domain This article incorporates public domain material from Federal Standard 1037C. General Services Administration. Archived from the original on 2022-01-22.
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