Virtual terminals probably sound too good to be true, especially for new businesses. After all, the money you save versus a point-of-sale system can be substantial. However, there are benefits of virtual terminals beyond the savings.
Some of these benefits, like fraud prevention, are growing in importance in our age of increased cyber threats. You may have seen the recent WSJ report of a corporation paying an unfathomable $75 million ransom to ransomware criminals. Very disturbing, to say the least.
So, it is imperative to learn how a payment terminal can protect your business from fraud in any amount and get you up and running at a super low investment. Let’s peel back the layers, starting with…
Virtual Terminals: The #1 Small Business Payment Solution
Still, simplicity is only the tip of the iceberg. Key reasons a virtual terminal makes sense for most new small businesses:
- Flexibility
- Cost-effectiveness
- Improved cash flow
- Enhanced security
- Ease of use
- Customer convenience
- Integration
- Recurring billing
- Reporting
- Scalability
You get a lot, as you can see. But the things you don’t have to get are just as critical here.
Things you don’t need when investing in a virtual terminal:
- Capital to buy payment equipment
- Space for a point-of-sale system
- Time to learn the hardware and software details of a full POS platform
Those insights and upsides are enough for many new business owners to try a virtual terminal. However, we want to be sure you understand this payment solution from a foundational level.
How To Think Of A Virtual Terminal
Many merchants see their virtual terminal as a digital bridge that connects a customer’s funds to a merchant’s bank account.
A physical bridge is designed to safely transport people from one side to the other and avoid the water hazards below.
The digital bridge, in this case, functions the same. It is designed to transport customer funds from their “side” to your “side” without being derailed by hazards like lost connections, glitches, failed authorizations, and worst of all, fraud.
Make sense?
Just remember that new businesses have to choose the right payment processor, or their awesome payment terminal might not be so awesome.
Are There Hidden Costs Of Virtual Terminals?
Only if you choose the wrong payment processing provider.
There should be zero hidden fees, but the payment industry as a whole has yet to get rid of this terrible practice.
National Processing does not do business that way. We treat customers how we would like to be treated. Plus, we want long-term relationships with our customers. We are open and honest about fees from day one.
But since the payment industry has a reputation for hiding fees, we have to go the extra mile to show customers we are transparent.
That’s why years ago we began offering an unheard-of Lowest Rate Guarantee. It pays new business owners $500 if you find lower processing rates than ours.
Feel free to test that Guarantee out. Nothing to lose. The risk is all on us!
Sign up with National Processing and find out.
Another promise we make? We keep your payments secure. So, let’s dig more into the security nuances of virtual terminals.
Secure Online Payment Processing
To show you that the $75 million crime we began this post with isn’t a random event, see the headlines below to understand how bad cybercrime has become. It paints the awful picture of how vital fraud prevention is for your virtual terminal.
- “Major brands hit by credit card scam”
- “Small Businesses Are More Frequent Targets Of Cyberattacks Than Larger Companies: New Report”
- “Exclusive: U.S. government agencies hit in global cyberattack”
- “Cybercrime cost U.K. businesses more than £30 billion in 2023, and small businesses were among the worst hit”
- “Health care company ties Russian-linked cybercriminals to prescriptions breach”
The worst part? We could fill this page with an endless doom-scroll of similar headlines.
Cybercrime shows no signs of slowing down. The government can’t protect U.S. businesses because all governments are simply too slow to ever combat technology that many officials don’t understand even at a basic level.
That means the onus is on you, the new business owner, to take charge of your own cybersecurity . With payment processing, you have to partner with a provider that:
- Has years of payment processing experience
- Has vast resources that can fight off highly-funded and sophisticated cybercriminals
- Cares as much about your business as you do
How can you find a payment processing provider that checks those boxes?
Start by reading reviews of processors and virtual terminals.
Next, ask other business owners who they use for payments and if they recommend them.
Then, once you’re having talks with provider sales reps, see how willing they are to spend real time answering your questions. If they have no time for you now, imagine how little they will have once they lock you into a contract.
Many National Processing customers don’t even have to sign a contract. And we have all the time in the world to answer your questions. We are happy to!
Let’s see a few more reasons (plus stats) on why your virtual terminal security has to be air tight for online payment processing.
All-Around Virtual Terminal Fraud Prevention
Not only are these online payment portals designed to shield your business from cybercrime by using encryption, tokenization, and multi-factor authentication, it protects your customers too.
You don’t want to lose money via fraud. Yet, it can be worse when you also lose a customer because cybercriminals accessed their payment information through your payment platform.
This creates a lack of trust as word spreads, and more people could be afraid to shop with you because they fear their payment data isn’t protected. Believe us, the word spreads.
A few years ago, a local gas station got hit by cybercriminals who used customers’ credit card numbers to make fraudulent online purchases. We heard about this not on a local news website, but rather via negative word-of-mouth from people in the community!
The word was, “don’t buy gas there, you’ll get your credit card info stolen!”
That’s obviously bad for any type of business, and cyberattacks keep coming, as the stats below detail.
- Nearly one in three Americans were hit by online financial fraud in 2023
- Across all industries, the average cost of a data breach was $4.45 million
- 57% of organizations increased the prices of products/services as a result of the data breach
- The number of people affected by data breaches rose 60% in 2023
- Credit card fraud was the most common type of identity theft (first half of 2024) — 215,000 reported cases
These are scary statistics that shoppers are hearing about or reading about daily. It makes them wary of shopping online with a new business.
So, it is critical for new business owners to invest in a top-notch virtual terminal with comprehensive security features.
Just as crucial is letting shoppers know your website and checkout page are secure. Accomplish this by posting security seals and certificates prominently on web pages. Customer testimonials help build trust for new shoppers too.
Virtual Terminal Wrap-Up
We will close with common questions we get about virtual terminal features. First, let’s summarize this post.
Key takeaways:
- There are numerous virtual terminal benefits for new business owners
- It costs very little to get started with an online payment terminal
- Though terminals require no dedicated equipment, you still have to beware of hidden processing fees
- Virtual terminals can be as secure as robust POS systems if you partner with a solid processing company
- Cybercrime will always be a concern for new business owners, so shield your funds and reputation with top-tier fraud-prevention tools
Partner with National Processing today.
Get the lowest processing fees and newest tools to protect your business’s reputation.
FAQ About Virtual Terminals Features
Can multiple users access a virtual terminal?
Yes, most support multi-user access with different permission levels.
What are the details on virtual terminal reporting features (with examples)?
Terminals give new business owners comprehensive reporting capabilities. Owners can easily monitor their financial performance, track transactions, and make informed decisions. Example reports are sales summaries for the day, week, month, and year. Also available are breakdowns of transaction types (credit, debit, QR codes, rebates, refunds). Tax reports can save businesses time and effort when it’s time to file income taxes. Charts and graph reports give new business owners key info at a glance.
What fraud detection tools are used in virtual terminals?
Common tools include: Address Verification Service (AVS), Card Verification Value (CVV) Check, 3D Secure (3DS), Velocity Checks, Geolocation Verification, Device Fingerprinting, Machine Learning Algorithms, Negative Database Checks, Transaction Amount Limits, Two-Factor Authentication (2FA), Real-time Risk Scoring, and Chargeback Monitoring.
What fraud detection tools are being developed for future small business payment solutions?
What fraud detection tools are being developed for future small business payment solutions?
