Virtual terminals let businesses manually enter payment details without a card reader or point-of-sale hardware. If your business often receives phone, fax, email or mail orders from customers, you’ll need a virtual terminal to accept those card payments and a company to process them.
Most payment processing companies offer their own virtual terminals, and the best option is typically to stick with a single provider to avoid unnecessary complications. Still, make sure to consider a service’s overall costs — as well as factors like deposit speed, customer support and online payment options — to determine which virtual terminal is the best fit for your business.
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Here are NerdWallet’s top picks for the best virtual terminals.
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Best Virtual Terminals
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Monthly fee
$0.00
and up.
Learn more
on Square's website
Pros
- Free plan option available.
- Offers helpful related services, like payroll, that integrate closely with its POS system.
- No long-term contracts or termination fees.
- All plans include a free online store.
Cons
- Can’t run on Windows devices.
- Complex industries might prefer a more specialized system.
Pros
- Free plan option available.
- Offers helpful related services, like payroll, that integrate closely with its POS system.
- No long-term contracts or termination fees.
- All plans include a free online store.
Cons
- Can’t run on Windows devices.
- Complex industries might prefer a more specialized system.
Monthly fee
$0.00
Learn more
on U.S. Bank's website, Member FDIC
Pros
- Same-day funding seven days per week for U.S. Bank checking account holders.
- No cancellation or PCI compliance fees.
- Free POS software plan available.
- 24/7 support.
Cons
- POS system onboarding assistance can be costly.
- Deposit times are not as quick for merchants using third-party bank accounts.
- Virtual terminal costs extra.
U.S. Bank Merchant Services
Best for Fast deposits
Monthly fee
$0.00
Learn more
on U.S. Bank's website, Member FDIC
Pros
- Same-day funding seven days per week for U.S. Bank checking account holders.
- No cancellation or PCI compliance fees.
- Free POS software plan available.
- 24/7 support.
Cons
- POS system onboarding assistance can be costly.
- Deposit times are not as quick for merchants using third-party bank accounts.
- Virtual terminal costs extra.
Pros
- Businesses save when customers use cards with low interchange rates.
- Unique add-on features, like custom branding.
- No long-term contracts.
- Compatible with POS system providers, such as Clover.
- No PCI compliance fees.
Cons
- Not ideal for businesses with low-volume sales.
- Pricing isn't as transparent as competitors.
- Interchange-plus costs can be difficult to predict.
Pros
- Businesses save when customers use cards with low interchange rates.
- Unique add-on features, like custom branding.
- No long-term contracts.
- Compatible with POS system providers, such as Clover.
- No PCI compliance fees.
Cons
- Not ideal for businesses with low-volume sales.
- Pricing isn't as transparent as competitors.
- Interchange-plus costs can be difficult to predict.
Monthly fee
$39.00
and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89.
Learn more
on Shopify's website
Pros
- No long-term contracts or termination fees.
- All plans include an online store.
- Built specifically for online sellers.
- 24/7 chat support.
Cons
- No free plan options.
- Cannot process cards in offline mode.
Shopify Retail POS
Best for E-commerce integration
Monthly fee
$39.00
and up for e-commerce plans with POS Lite; Can upgrade to POS Pro for an extra $89.
Learn more
on Shopify's website
Pros
- No long-term contracts or termination fees.
- All plans include an online store.
- Built specifically for online sellers.
- 24/7 chat support.
Cons
- No free plan options.
- Cannot process cards in offline mode.
Pros
- Free plan available if you’re only using a mobile card reader.
- 24/7 phone support.
- All restaurant plans include no-fee online ordering, and retail plans let you integrate with existing online stores.
- Offers a variety of plans tailored to six specific types of businesses.
- Can pair POS systems with third-party payment processors.
Cons
- Promotions require a three-year contract.
- May be subject to early termination fees if you use Clover as your payment processor.
- Online payment processing rates are more expensive than competitors.
Pros
- Free plan available if you’re only using a mobile card reader.
- 24/7 phone support.
- All restaurant plans include no-fee online ordering, and retail plans let you integrate with existing online stores.
- Offers a variety of plans tailored to six specific types of businesses.
- Can pair POS systems with third-party payment processors.
Cons
- Promotions require a three-year contract.
- May be subject to early termination fees if you use Clover as your payment processor.
- Online payment processing rates are more expensive than competitors.
Payment processing fees
N/A
Quote-based.
Monthly fee
$69.00
and up.
Learn more
on TouchBistro's website
Pros
- 24/7 phone, chat and email support.
- Includes restaurant-specific features, like table and menu management.
- Optional profit management system provides tools for improving margins.
- As a hybrid POS system, TouchBistro can operate without the cloud. Offline capabilities include accepting payments, taking orders, editing menus and managing staff.
Cons
- Payment processing rates are quote-based, making them difficult to compare to the competition.
- Contracts are automatically renewed and can't be terminated early.
- No free plan options and charges setup fee.
- Ability to accept online orders costs extra.
TouchBistro
Best for Restaurants
Payment processing fees
N/A
Quote-based.
Monthly fee
$69.00
and up.
Learn more
on TouchBistro's website
Pros
- 24/7 phone, chat and email support.
- Includes restaurant-specific features, like table and menu management.
- Optional profit management system provides tools for improving margins.
- As a hybrid POS system, TouchBistro can operate without the cloud. Offline capabilities include accepting payments, taking orders, editing menus and managing staff.
Cons
- Payment processing rates are quote-based, making them difficult to compare to the competition.
- Contracts are automatically renewed and can't be terminated early.
- No free plan options and charges setup fee.
- Ability to accept online orders costs extra.
Monthly fee
$20.00
for most industries; $15 for nonprofits.
Pros
- Reduced processing rates for nonprofits.
- Businesses save when customers use cards with low interchange rates.
- No long-term contracts.
- No PCI compliance fees.
- Compatible with Clover POS systems.
Cons
- Charges account closure fee.
- Requires separate accounts for online and in-person payments.
- Recurring billing and online invoicing cost an extra $10 per month.
- Deposits can take up to two business days.
Dharma Merchant Services
Best for Surcharging option
Monthly fee
$20.00
for most industries; $15 for nonprofits.
Pros
- Reduced processing rates for nonprofits.
- Businesses save when customers use cards with low interchange rates.
- No long-term contracts.
- No PCI compliance fees.
- Compatible with Clover POS systems.
Cons
- Charges account closure fee.
- Requires separate accounts for online and in-person payments.
- Recurring billing and online invoicing cost an extra $10 per month.
- Deposits can take up to two business days.
A virtual terminal is an online application that makes it possible to process card transactions from anywhere with an internet connection, even when you aren’t face-to-face with a customer.
These transactions are usually initiated by phone, email or fax orders, making virtual terminals a convenient alternative if you can’t accept cards in person with POS hardware or online through an e-commerce site. Many payment processors and POS software providers include virtual terminals as part of their services. Standalone options may also be available, but choosing a company with strong overall payments infrastructure can make sense — especially since some don’t charge a subscription fee to use their terminals.
After setting up an online account with your virtual terminal provider, you’ll log in and navigate to its payments section. Exact directions and information needed varies based on provider, but generally you’ll enter the following information to process transactions:
- Card number.
- Expiration date.
- CVV/CVV2 number (the three- or four-digit number on the back of a card).
- Customer name.
- Billing ZIP code.
There may also be an area on the screen to write a note to the customer, as well as an option to email or text a payment confirmation. Processing fees are deducted from the payment before the transaction funds are transferred to your business account.
Many payment processors give you access to a virtual terminal for free. If there are no monthly subscription fees, that means you’re typically just responsible for payment processing fees.
At a minimum, those include interchange rates and per-transaction fees or markups. Card-not-present transaction fees are usually higher than in-person fees because they’re considered to have a greater potential for fraud. While some payment processors treat virtual terminal transactions as online transactions, others charge more expensive transaction rates for manually keyed-in transactions.
For example, Square and U.S. Bank Merchant Services charge 3.5% plus 15 cents per manually keyed transaction compared to 2.9% plus 30 cents for online transactions. That means, for a $1,000 purchase, you’d pay about $6 extra in fees if it was manually entered instead of processed online.
Separately, if you plan to use POS software for in-person or online sales, make sure to factor those monthly costs in too.
» MORE: Best small-business apps
Businesses that accept payment information from customers who are not physically there — card-not-present transactions — use virtual terminals. They’re also an option when a mobile card reader is required (but unavailable) or when customers prefer contactless payments.
Businesses that may use virtual terminals include:
- Mail-order and telephone-order businesses, also called MOTO businesses.
- Restaurants, diners and cafes that process phone and online orders.
- Delivery-based businesses such as food and beverage stores, florists and gift shops.
- Mobile businesses such as food trucks, pet groomers and photographers.
- Freelancers such as web designers, artists, SEO specialists and bookkeepers.
Here are some factors to consider to choose the right virtual terminal for your small business.
Payment processor and POS integrations
If you already have a POS system, your best option is generally to use your existing provider’s virtual terminal (if they offer one). However, if more than about a quarter of your transactions are entered manually, looking for a different payment processor that offers a more robust virtual terminal or lower transaction fees could be a smart choice.
Price
The cost of credit card processing is important to consider when evaluating your options. There are a variety of payment processing pricing models, such as flat-rate, interchange-plus and membership plans. Because each payment processor has different pricing, it’s not easy to make a quick side-by-side comparison.
This credit card processing fees calculator can help you get a good idea of the cost of each plan based on your volume of manual transactions.
For example: Say a processing service charges $100 monthly to use its platform, and its virtual terminal option is free. Its processing fees are 2% of the transaction total plus 10 cents per transaction. If you do 80 manual transactions a month for a total of $4,000, you would pay the monthly fee of $100 and processing fees of $80 (2% of $4,000) plus $8 (10 cents x 80 transactions) for a total of $188.
A company with a high volume of phone orders could benefit from a membership-based model with lower processing fees, while a business that does a small volume of phone orders may pay less with a flat-rate model and no monthly fee.
Payment speed
The money your customers pay you doesn’t immediately get transferred to your business’s bank account. Ideally, you’ll receive the funds the next business day and have an option to pay extra for same-day deposits.
Fraud and chargeback protection
Virtual terminal transactions carry a higher risk of fraud and chargebacks because the customer isn’t making the purchase in person and credit card numbers can be keyed in wrong. Make sure your payment processor offers fraud and chargeback protection tools in some capacity, especially if you aren’t familiar with the company. Many processors include security tools in their services or offer advanced security tools as an add-on.
Customer support
At a minimum, you want support available during the hours you'll be submitting transactions. Getting 24/7 phone and/or chat support is ideal, but isn’t always available. Searching through customer reviews of a product may give you some insight into a provider’s quality of service and general response times.
Last updated on April 10, 2024