Also called: Virtual Payment Terminal, Virtual Point of Sale, Virtual POS, VPOS
What a virtual terminal is
A virtual terminal is a browser-based interface where you manually enter payment-card information and submit a transaction over the internet. You use a connected computer or other internet-enabled device instead of a physical terminal that reads or taps a card.
It is useful when a customer gives you card details by phone or mail, such as for a medical bill, custom order, or reservation. The tool sends the transaction for authorization and returns an approval or decline. It is not the same as an online checkout page, where the customer enters their own details.
A browser-based terminal saves you a card reader, not the costs or risks of manually entered payments.
How it works
You sign in to the provider’s payment portal, enter the card details and sale amount, then submit the transaction. The virtual terminal does not read the physical card. Manually entered payments are card-not-present transactions, even when the customer is standing in front of you.
Some virtual terminals also let you issue a refund from the original transaction record. Features differ by provider, so confirm that your interface supports the specific tasks your staff need, such as refunds or sending receipts.
What it means for your costs and risk
A virtual terminal avoids buying or leasing a dedicated reader, but it does not automatically lower your processing fees. Your card costs still include interchange, network fees, and processor markup. Only the markup is negotiable. The transaction’s keyed, card-not-present status can affect its processing category and risk.
Manual entry creates more exposure to keying errors and fraud than a card read at the point of sale. A dispute can also put the sale amount and a chargeback fee at risk. Under Visa and Mastercard rules, cardholders generally have 120 calendar days to dispute; some delayed-delivery cases have outer limits up to 540 days, as of 2026.
You also need to protect the device and account used to access the terminal. PCI DSS v4.0.1 is the current standard as of 2026, and processors commonly bill a monthly PCI non-compliance fee when a merchant has not validated compliance.
Where it fits
A virtual terminal fits low-volume remote payments, including phone orders and occasional customer invoices. It gives you a way to take payment when a reader is unavailable, without dedicated terminal hardware.
For frequent in-person sales, a physical terminal reads the card or chip rather than requiring staff to type the details. For larger transaction volumes, compare the time spent entering each payment and the added card-not-present exposure with a point-of-sale setup designed for your sales flow.
What you can actually change
- Compare the markup. Review your merchant statement for processor markup and keyed or card-not-present pricing. Compare those charges with your in-person transactions, not just the provider’s advertised rate.
- Protect terminal access. Use a secure, access-controlled device and browser, and limit portal access to staff who take payments. Do not leave a signed-in terminal unattended.
- Use it for the right volume. Track how many payments staff enter manually and how long each takes. If it becomes a routine checkout method, compare a reader-based setup and its total costs.
- Check dispute controls. Confirm whether your terminal supports address verification and card security code checks. Keep records that connect each remote payment to the order or service.
Frequently asked questions
Is a virtual terminal the same as a payment gateway?
No. The virtual terminal is the browser interface you use to enter and submit a payment. A payment gateway is the technology that transmits payment data between the business, acquiring bank, and card networks.
Does a virtual terminal require a card reader?
No. You enter the card details through a web browser, so a dedicated reader is not required. The customer’s card is not read directly by the virtual terminal.
Are virtual terminal payments card-present?
No. When you manually enter card details instead of reading the card, the transaction is card-not-present. That classification affects the transaction’s risk and can affect its processing category.
Does a virtual terminal lower processing fees?
Not by itself. Your processing costs still include interchange, network fees, and processor markup. Only the markup is negotiable, and manually entered transactions can be priced differently from card-read sales.