How does your business process payments? Because consumers make roughly 78% of purchases with debit or credit cards, business owners need to know how to deliver efficient payment solutions to their customers.
Contemporary technology allows businesses to process payments in more modern ways. By using the Internet’s ability to store information in the “cloud,” merchants can process payments from any location with Internet access.
Are you looking for a new cloud-based payment solution, or do you just want to learn more about the one you have? Let’s consider a couple of options: virtual terminals and payment gateways.
A Virtual Terminal:
- Is a web-based Point of Sale (POS) system that allows businesses to process credit card payments virtually.
- Allows access from any computer.
- Inputs cardholder information and runs transactions manually.
- Requires no additional software.
A Payment Gateway:
- Is a cloud-based credit card processing terminal.
- Links transactions to credit card networks for approval from acquiring banks.
- Safely houses credit card records.
- Uses stored information to process future transactions without requiring duplicate data input.
- Can integrate into existing software.
- Uploads multiple transactions and processes daily batches.
What’s the Right Solution for My Business?
According to CreditCards.com, only 9% of Americans still prefer to pay with cash. 35% would rather use a credit card.
A business owner can determine whether his or her business needs a cloud-based payment solution based on the amount of credit cards it processes.
If your business only runs a small number of cards, and you or your accountant don’t mind manually entering credit card information for each transaction, you might prefer a virtual terminal.
If your business processes credit card transactions frequently, manages recurring accounts, and has a list of customers on terms, a payment gateway will prove more beneficial.
Businesses that process transactions electronically will find payment gateways an ideal solution, while virtual terminals are used mainly by merchants.
A payment gateway enables businesses to accept payments online. It also allows for software integration and provides batch settling, unlimited transaction history, and secure payment tokenization.
A virtual terminal can run transactions processed over the phone or through telephone orders.
Use these guidelines to decide whether a cloud-based payment solution makes sense for your business. You may find that implementing one will save you time on accounting processes and increase your revenue stream. Even better, find a payment gateway provider that also offers processing services as well as in-house development for robust functionality with seamless integration.