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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.

Virtual terminal (in payment Processing)

A virtual terminal is an online-based payment processing system that enables merchants to accept credit card and debit card transactions without requiring a physical point of sale (POS) system. Virtual terminals are commonly used by businesses that do not necessitate a traditional POS setup, such as e-commerce websites, remote service providers, or those conducting transactions over the phone.

Features of Virtual Terminals:

  1. Web-based Interface: Virtual terminals are accessed via a secure web browser, allowing merchants to process transactions using devices connected to the internet, such as computers, tablets, or smartphones.
  2. Manual Transaction Entry: Merchants manually enter customer payment information, including credit card numbers, expiration dates, and billing addresses, into the virtual terminal to process transactions.
  3. Recurring Payments: Virtual terminals often support recurring payment functionality, allowing merchants to schedule automatic billing for subscription services or installment plans.
  4. Payment Reporting: Virtual terminals typically provide detailed payment reports, enabling merchants to monitor transaction history, analyze sales data, and generate financial reports for accounting purposes.

Benefits of Virtual Terminals:

  1. Cost-effectiveness: Virtual terminals are generally more affordable than traditional POS systems since they do not necessitate 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 consolidate multiple payment methods, such as credit cards and debit cards, into a single platform, streamlining payment processing.
  4. Improved Customer Experience: Virtual terminals enable merchants to accept payments in various 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 they may not be suitable for businesses that primarily rely on in-person payments.
  3. Internet Dependence: Virtual terminals require an internet connection to function, making them potentially unsuitable 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. Key security measures include data encryption, tokenization, and secure storage, which prevent unauthorized access to sensitive information.


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.
  • Authorize.Net. (n.d.). Virtual Terminal. Retrieved from https://www.authorize.net/solutions/merchantsolutions/merchantservices/virtualterminal/
  • Chen, J. (2021, July 30). What is a Virtual Terminal for Credit Card Processing? Investopedia. Retrieved from https://www.investopedia.com/ask/answers/122314/what-virtual-terminal-credit-card-processing.asp
  • Payment Card Industry Security Standards Council. (n.d.). PCI Data Security Standard (PCI DSS). Retrieved from https://www.pcisecuritystandards.org/pci_security/why_security_matters
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