Option 2: Use a Virtual Terminal. (Non-Secure Process)
A Virtual Terminal is a web based portal that can be accessed through a desktop, tablet or mobile device. Designed for merchants to use when taking mail order or telephone payments to process credit and debit card payments, as well as refund transactions, all in real time.
The process for taking payments over the phone will vary, depending on your provider. You’ll need to:
- Log in to your virtual terminal with the account details your provider has given you.
- Follow the on-screen prompts to enter the customer’s details. Usually, you’ll need their long card number, the card’s expiry date, and the card security code.
- You might be required to ask for further information for security purposes, such as the name on the card, or the billing address.
- Submit the transaction and keep the customer on the phone while it is being processed
- Once the payment has been approved, your can dispatch the goods to the customers postal address.
Businesses need to be aware that these are often promoted as a 'secure' way to process MOTO transactions.
In our opinion, this is a little misleading as transactions processed through a Virtual Terminal, may be processed as and charged at a 'non-secure' transaction rate, by your merchant account provider. Again, the cardholder needs to provide their sensitive card data, typically their long card number, expiry date and the 3 digits on the reserve of the card, to which the business will key in to Virtual Terminal. Additional checks such as 'Address Verification Services' (AVS), are often commonplace, however if you use a Virtual Terminal, your business is liable for fraud related chargebacks, should the cardholder challenge the transaction, claiming that they never authenticated the payment. It is therefore suggested that you should only deliver goods or service to the 'registered cardholders address'. PCI DSS requirements are also triggered, causing additional time, effort and cost.