Choosing a payment processor can feel like walking through a minefield of hidden fees and confusing contracts. You just want a simple, secure way to get paid. A virtual terminal is a powerful tool for this, but finding the right one means looking for a partner who values transparency. The advertised rate is rarely the full story, and unexpected charges can quickly eat into your profits. This article breaks down the true cost of virtual terminals, explaining the difference between pricing models and highlighting the common fees to watch out for, so you can confidently select the best virtual terminal for small business.

Key Takeaways

• Process payments without a card reader: A virtual terminal turns any internet-connected device into a secure payment tool, perfect for taking phone orders, mail-in payments, or processing invoices on the spot.
• Calculate the total cost to avoid surprises: The advertised transaction rate is only part of the story. Always ask for a full fee schedule to uncover hidden charges for things like monthly statements, PCI compliance, and batch processing.
• Choose a partner, not just a processor: Beyond rates, your provider must offer robust security features to protect your data and accessible, human support to help you resolve issues quickly without disrupting your business.

What is a Virtual Terminal and Why Does Your Business Need One?

Ever had a customer call to place an order, but you had no way to take their card details right then and there? Or maybe you sent an invoice and want to give them an easy way to pay over the phone? That’s exactly where a virtual terminal comes in. Think of it as a secure, online version of a credit card machine that lives right in your web browser on your computer, tablet, or even your phone.

A virtual terminal is an online tool that lets you manually enter a customer’s payment information to process a transaction. You don’t need a physical card reader or a clunky point-of-sale (POS) machine. This is a game-changer for any business that takes payments when the card isn’t physically present—what the industry calls “card-not-present” transactions. This includes phone orders, mail orders, and payments for invoiced services. With just an internet connection, you can securely process credit card payments from anywhere.

One of the biggest advantages is flexibility. The best virtual terminals allow you to accept all major credit cards, debit cards, and even ACH bank transfers. By offering more ways to pay, you make the entire process more convenient for your customers. This simple improvement can lead to faster payments, better cash flow, and a more professional experience for your clients. In short, it’s a powerful asset for any small business looking to expand its payment options and operate more efficiently without investing in extra hardware.

Essential Features to Look For in a Virtual Terminal

Choosing a virtual terminal can feel overwhelming, but it really comes down to a few key features that separate the great from the just-okay. Think of it as a checklist for your business. The right tool won’t just process payments; it will make your operations smoother, keep your customers’ data safe, and adapt to the way you work. Before you commit to a provider, take a moment to walk through these essential features to make sure you’re getting a solution that truly fits your needs and helps your business grow.

What Payments Can You Accept?

At its core, a virtual terminal is a web-based tool that lets you manually enter customer payment information. This is perfect for taking payments over the phone, from a mailed-in form, or even via email. The best virtual terminals offer flexibility, allowing you to accept all major credit cards, debit cards, and even ACH bank transfers. The more payment options you can offer, the easier you make it for customers to say “yes.” Look for a system that makes it simple to key in a transaction without needing a physical card reader, giving you a reliable way to get paid no matter where your customer is.

Is It Secure and PCI Compliant?

When you’re handling payments without the customer present, security is non-negotiable. You need a virtual terminal with strong features to prevent fraud and protect sensitive data. First and foremost, your provider must be PCI compliant, which is the industry standard for securing cardholder information. This protects you from liability and gives your customers peace of mind. Beyond that, look for features like tokenization, which securely stores customer payment info for future use without holding the raw card data, and an Address Verification Service (AVS) to confirm the cardholder’s billing address and reduce the risk of fraudulent transactions.

Does It Work With Your Other Tools?

Your virtual terminal shouldn’t operate in a silo. To save time and keep your records accurate, it needs to integrate smoothly with the other software you use to run your business. A great virtual terminal connects with tools for invoicing, setting up recurring payments, and securely keeping customer payment information on file. Imagine being able to automatically send invoices and set up subscription billing right from your payment platform. These integrations eliminate tedious data entry, reduce human error, and create a more streamlined workflow for you and your team. This is especially important for businesses that rely on repeat customers or subscription models.

Is It Easy to Use on Any Device?

The beauty of a virtual terminal is its flexibility. Since it’s a web-based application, you should be able to access it from any device with an internet connection—your office desktop, a tablet at a trade show, or your phone while you’re on the go. The interface should be clean, simple, and intuitive, allowing you or your staff to process a payment in just a few clicks without needing a lengthy training manual. This freedom means you can take payments from anywhere, anytime. Whether you’re a service provider completing a job at a client’s home or a B2B business taking an order over the phone, your payment system should be as mobile as you are.

The Top Virtual Terminals for Small Businesses

Once you know what features you need, it’s time to compare the top players in the market. The right choice often comes down to your sales volume, business model, and budget. Some providers are great for getting started with no upfront costs, while others offer savings for established businesses with consistent transaction volume. We’ve broken down some of the most popular options to help you see how they stack up. Remember to look beyond the sticker price and consider how each provider’s fee structure will impact your bottom line as your business grows. Here are a few of the best virtual terminals available for small businesses.

MBNCard Virtual Terminal Solutions

Our virtual terminal is designed with the needs of small and mid-sized business owners in mind. We focus on providing a secure, user-friendly platform that lets you accept payments by phone, mail, or online without any hassle. Because we believe in transparent pricing, you won’t find hidden fees in our statements. Our solution integrates seamlessly with our other merchant services, including our popular dual pricing and cash discount programs, helping you save significantly on processing costs. We pair our powerful technology with dedicated, personalized support, so you always have a real person to talk to when you need help. It’s the ideal choice for businesses that value reliability, affordability, and a true partnership.

Helcim Virtual Terminal

Helcim is widely recognized as the best overall virtual terminal for small businesses, especially those looking to keep fees low. What makes it stand out is its interchange-plus pricing and automatic volume discounts. As your business grows and you process more sales, Helcim automatically lowers your rates. This built-in scalability is a huge plus for ambitious entrepreneurs who expect their sales to increase over time. There are no monthly fees, and its transparent pricing structure makes it easy to understand exactly what you’re paying for each transaction. This makes it a flexible and cost-effective choice for businesses on a growth trajectory.

Square Virtual Terminal

If you’re just starting or run a business with occasional card-not-present transactions, Square is a fantastic option. Its main draw is accessibility—you can get set up in minutes with no monthly fees or long-term contracts. Square is ideal for new and small businesses because of this low barrier to entry. You simply pay a flat-rate fee for each transaction you process. While the per-transaction cost can be higher than other providers, the simplicity and lack of a monthly subscription make it perfect for testing a new idea, managing seasonal sales, or handling a low volume of keyed-in payments without a recurring financial commitment.

Payment Depot

Payment Depot carves out a niche as the most cost-effective choice for businesses with a medium amount of sales. Instead of a percentage-based markup, it uses a subscription-based model. You pay a monthly membership fee and get access to wholesale interchange rates without any additional markup. This structure is designed to benefit businesses that have outgrown the flat-rate pricing of services like Square but aren’t yet processing the high volume needed for enterprise-level solutions. If your business processes a moderate, consistent volume of transactions each month, Payment Depot’s model could lead to significant savings compared to other providers.

Stax Payment Processing

For larger businesses with high sales volumes, Stax is often the best choice. Like Payment Depot, Stax operates on a subscription model, giving you direct access to wholesale transaction fees for a monthly fee. This can result in substantial savings for companies that process a large number of transactions. Their platform is robust, offering detailed analytics and integrations to help you manage your payments effectively. While the monthly subscription might be higher than other options, the savings on per-transaction costs can be massive for high-volume merchants, making it a smart investment for businesses that have scaled successfully.

PayPal Virtual Terminal

If your business operates on a global scale, PayPal’s virtual terminal is a powerful contender. Its key advantage is the ability to easily accept payments from customers in various countries and currencies. This versatility simplifies international sales and removes many of the complexities associated with cross-border transactions. While its fees can be on the higher side, the convenience and brand recognition of PayPal can build trust with international customers. It’s a great fit for e-commerce businesses with a diverse customer base or any company that needs a straightforward way to handle payments from around the world.

How Much Do Virtual Terminals Really Cost?

Let’s talk about one of the most confusing parts of choosing a payment provider: the cost. When you’re looking at virtual terminals, it’s easy to get lost in a sea of percentages, flat fees, and technical terms. The advertised rate is rarely the full story, and the total cost of a virtual terminal is a mix of several different charges. Understanding these costs is the first step to finding a solution that actually saves you money instead of surprising you with unexpected bills.

The price you pay is typically broken down into three main categories: transaction fees, monthly or recurring fees, and the less-obvious (and more frustrating) hidden fees. Each provider structures these differently, which makes a direct, apples-to-apples comparison tricky. Some might offer a super-low transaction rate but make up for it with a high monthly subscription. Others might advertise “no monthly fees” but charge more for every sale you make. The key is to look at the complete picture and understand how each fee impacts your specific business, based on your sales volume and how you take payments. We’ll break down each of these cost components so you know exactly what to look for.

How Do Transaction Fees Work?

Every time you process a payment, you pay a transaction fee. This is usually a percentage of the sale amount plus a small flat fee (for example, 2.9% + $0.30). It might seem small, but these fees are where the bulk of your processing costs come from. It’s shocking, but the average small business can lose around $2,400 a year to hidden payment processing fees they didn’t even know they were paying. These fees cover the costs for everyone involved in the transaction—the credit card networks, the issuing banks, and your payment processor. For keyed-in transactions through a virtual terminal, these rates are often slightly higher than for swiped cards because the risk of fraud is greater.

Monthly Fees vs. Pay-Per-Use: Which is Right for You?

When you sign up for a virtual terminal, you’ll likely encounter one of two pricing models: a monthly subscription or a pay-per-use plan. A monthly plan involves a recurring fee for access to the software, which can range from $10 to over $50. Often, providers charge a monthly gateway fee just to connect you to the payment network. This model often comes with lower per-transaction rates, making it a good fit for businesses with steady, predictable sales volume. On the other hand, a pay-per-use model has no monthly fee, but you’ll typically pay a higher rate on each transaction. This is a great option for new businesses or those with fluctuating or seasonal sales.

Watch Out for These Hidden Fees

This is where things can get frustrating. Hidden fees are charges buried in the fine print of your merchant agreement that can significantly inflate your monthly bill. You have to be vigilant, because some processors rely on these fees to pad their profits. Common hidden fees can include statement fees, batch fees (for settling your daily transactions), and PCI compliance or non-compliance penalties. Some providers even charge for customer support or have steep early termination fees if you decide to switch. Always ask for a complete fee schedule before signing a contract and don’t be afraid to question any charge you don’t understand. A transparent partner will be happy to explain every line item.

How to Compare Virtual Terminal Pricing

Comparing virtual terminal pricing can feel like trying to hit a moving target. One provider advertises a super-low rate, while another has a different fee structure altogether. The key is to look beyond the advertised transaction rate and understand the total cost. A provider that isn’t upfront about all their fees isn’t a partner you can trust. After all, you’re looking for a long-term solution, not a short-term headache filled with confusing statements and unexpected charges.

The goal is to find a solution that is both affordable and predictable, so you can avoid the unpleasant surprise of a much-higher-than-expected bill at the end of the month. To do that, you need to know what to look for and what questions to ask. It’s about digging a little deeper to find a provider who values transparency as much as you do. This means getting a full picture of every single fee, understanding how different pricing models work, and recognizing when a deal seems too good to be true. Let’s break down the main components of virtual terminal pricing so you can make a confident choice for your business.

Calculate Your Total Cost of Ownership

The advertised rate is just one piece of the puzzle. To understand what you’ll actually pay, you need to calculate the total cost of ownership. This includes the transaction fees plus any monthly, annual, or one-time charges. Many providers tack on extra charges that can significantly inflate your bill. Some of the most common hidden costs include statement fees, PCI compliance (or non-compliance) fees, batch processing charges, and early termination fees. Before you sign any agreement, always ask for a detailed breakdown of every potential fee. A transparent provider will have no problem giving you a complete fee schedule.

Flat-Rate vs. Interchange-Plus: What’s the Difference?

You’ll typically encounter two main pricing models: flat-rate and interchange-plus. Flat-rate pricing is the simplest to understand—you pay a single, fixed percentage and a small per-transaction fee for every sale, regardless of the card type. This model offers predictability, which is great for new businesses. On the other hand, interchange-plus pricing separates the wholesale cost of the transaction (the interchange fee that goes to the card-issuing bank) from the processor’s markup. This is a more transparent model that can be more cost-effective for businesses with higher sales volumes, as the processor’s margin is clearly defined.

When “Low Fees” Actually Cost You More

It’s easy to be drawn in by a provider advertising an incredibly low transaction rate. But often, that rock-bottom rate is used to distract you from a long list of other fees. A provider might offer a low rate but make up for it with high monthly fees, equipment rental costs, or inflated PCI compliance charges. In fact, the average small business loses about $2,400 annually to hidden payment processing fees, which shows how quickly those “small” charges add up. The most affordable option isn’t always the one with the lowest advertised rate; it’s the one with transparent, fair pricing and no surprises.

Common Virtual Terminal Problems (And How to Avoid Them)

Virtual terminals are powerful tools, but it’s smart to go in with your eyes open. Like any technology, they come with a few potential headaches. Knowing what to look for can save you from major disruptions down the road, from sudden cash flow freezes to the panic of a lost internet connection. The good news is that most of these issues are entirely avoidable when you partner with the right payment provider.

The biggest challenges usually fall into three categories: unexpected holds on your money, reliance on a stable internet connection, and getting help when you actually need it. A cheap or free virtual terminal might seem appealing at first, but it can cost you dearly if it fails in one of these areas. Let’s walk through each of these common problems and, more importantly, discuss the practical steps you can take to prevent them from happening to your business. By asking the right questions upfront, you can find a provider that acts as a true partner, helping you process payments smoothly and securely without any unwelcome surprises.

Dealing with Payment Holds and Account Reserves

There’s nothing more stressful than making a sale only to find out you can’t access your money. Some payment processors place a “reserve” on your account, meaning they hold back a percentage of your funds for a set period. This can happen even if you have a perfect track record with no chargebacks. For example, some business owners have reported providers suddenly holding 20% of every payment for 90 days, which can cripple cash flow.

Processors do this to protect themselves from risk, but it puts the burden squarely on you. To avoid this, ask potential providers about their hold and reserve policies before you sign anything. Find a partner who offers transparent underwriting and is clear about what might trigger a reserve on your account.

What Happens When Your Internet Goes Down?

A virtual terminal runs through your web browser, which means it needs a live internet connection to work. If your Wi-Fi goes out, you can’t process payments, which could lead to lost sales and unhappy customers. While you can’t prevent every outage, you can certainly prepare for one.

First, always have a backup plan, like a mobile hotspot on your phone that you can switch to in an emergency. Second, and more importantly, ask your provider if their virtual terminal has an offline mode. Some systems allow you to securely capture and save transaction information when your internet goes down, then automatically process the payments once you’re back online. This feature can be a lifesaver during an unexpected outage.

Getting the Right Support When You Need It

When you’re dealing with customer payments, you can’t afford to wait hours for an email response. Whether you have a question about a transaction or a concern about security, you need access to fast, reliable support from a real person. Many small business owners worry about cybersecurity threats but aren’t sure how to protect their business. A good payment partner should be part of your defense.

Before choosing a provider, test their customer service. Do they have a phone number you can call? Are their support hours compatible with your business hours? The right partner won’t just give you a tool; they’ll provide the guidance and support you need to use it safely and effectively.

Virtual Terminals vs. Other Payment Methods

With so many ways to accept payments, it’s easy to get the terminology mixed up. A virtual terminal is a powerful tool, but it’s designed for specific situations. Understanding how it differs from other payment methods will help you build the perfect processing setup for your business. Let’s break down the key differences so you can see exactly where a virtual terminal fits in.

Virtual Terminals vs. Physical Card Readers

A physical card reader, or point-of-sale (POS) terminal, is what you use for in-person sales. When a customer is standing in front of you, they can swipe, dip, or tap their card to pay. This is ideal for retail stores, restaurants, and any business with a brick-and-mortar location.

A virtual terminal, on the other hand, is built for card-not-present transactions. You use it when you need to manually key in a customer’s payment details, like when they call in an order over the phone or send it by mail. It turns your computer or tablet into a credit card terminal without needing any extra hardware. Many businesses use both to cover all their bases.

Virtual Terminals vs. Payment Gateways

This is one of the most common points of confusion. While both process online payments, they serve opposite roles. A payment gateway is a customer-facing tool that lives on your website. When a customer adds items to their cart and clicks “checkout,” the gateway securely handles their payment information on your behalf. The customer enters all their own details.

A virtual terminal is a merchant-facing tool. It’s a secure web page that only you and your staff can access. You log in to manually enter the payment information a customer has given you. Think of it this way: a payment gateway is for e-commerce self-checkout, while a virtual terminal is for processing payments you handle personally.

Virtual Terminals vs. Invoicing Software

Many accounting and invoicing platforms allow you to send invoices with a “Pay Now” button. When your client clicks that button, they are typically taken to a payment page (powered by a payment gateway) to enter their card details themselves. This is great for giving clients a flexible way to pay on their own schedule.

A virtual terminal comes in handy when a client wants to pay that invoice immediately over the phone. Instead of waiting for them to click a link, you can pull up their invoice, open your virtual terminal, and key in their card information right then and there. It gives you a direct, real-time method for settling outstanding invoices and securing payment instantly.

Find the Right Virtual Terminal for Your Business Type

The best virtual terminal isn’t a one-size-fits-all solution. The right choice for your business depends entirely on how you operate and where your sales happen. A contractor who sends invoices and takes payments on-site has different needs than a business that processes all its orders over the phone. Understanding your specific workflow is the first step to narrowing down your options and finding a tool that feels like it was built just for you.

Think about your day-to-day operations. Do you need to send invoices with a “pay now” button? Are you manually keying in card numbers from a mail-in form? Do you need a way to handle a wholesale order that came through email instead of your online checkout? Each scenario points toward different features. By matching the virtual terminal’s capabilities to your business model, you can avoid paying for features you don’t need and ensure the one you choose simplifies your payment process instead of complicating it. Let’s look at a few common business types and what they should prioritize.

For Phone and Mail Order Operations

If your business runs on mail order, telephone order (MOTO), or even takes payments via email, a virtual terminal is your command center. It’s an online tool that lets you securely type in a customer’s payment information without needing a physical card or reader. This is essential for any transaction where you can’t just tap or swipe a card. For these businesses, security is paramount. You’re handling sensitive card data, so your virtual terminal must have top-notch security and help you maintain PCI compliance. Look for features like recurring billing for repeat customers and a simple, intuitive interface that makes it easy for your team to process payments quickly and accurately.

For Service-Based Businesses

Professionals like consultants, mechanics, and designers need a flexible payment solution that can keep up with them. You might be sending an invoice from your desk one minute and taking a payment over the phone the next. A virtual terminal gives you that adaptability. Many service-based businesses appreciate all-in-one options like Square for their low startup costs and simple setup. The best virtual terminals for this model allow you to create and send professional digital invoices, securely store customer payment information for future billing, and set up recurring payments for clients on retainer. This turns your payment process into a smooth, professional experience for your clients.

For E-commerce and Online Sales

Even if you have a thriving online store, a virtual terminal is a powerful tool to have in your back pocket. It’s perfect for handling situations that happen outside of your standard online checkout, like taking a large wholesale order over the phone or processing a payment for a custom project. If you sell internationally, you’ll want a provider that can handle various currencies and payment methods. As Technology Advice notes, a platform like PayPal is often favored by businesses that need to accept payments from customers in different countries. The key is finding a virtual terminal that integrates smoothly with your e-commerce platform and accounting software, keeping all your sales data in one organized place.

Your Checklist: Questions to Ask Before Choosing a Provider

Choosing a payment provider is a big decision for your business. The right partner can streamline your operations, while the wrong one can create constant headaches. To help you make a confident choice, use this checklist of essential questions to ask any potential provider. Getting clear answers upfront will save you from frustration and surprise costs later.

• What is the total cost to process payments? Don’t settle for just a transaction rate. Ask for a complete, itemized list of every potential fee, including monthly charges, setup costs, PCI compliance fees, and any other costs that might appear on your statement. You need full transparency to avoid any unexpected expenses that can eat into your profits.

• Can I accept all the payment methods my customers prefer? Your virtual terminal should make it easy for customers to pay you. Confirm that it accepts all major credit cards and other payment types you need, like ACH bank transfers. A smooth payment process is a key part of a great customer experience.

• How do you protect my business and my customers from fraud? Since you’ll be handling card-not-present transactions, strong security is non-negotiable. Ask about their specific fraud protection features, PCI compliance standards, and data encryption methods. Protecting sensitive payment information is crucial for building trust and safeguarding your business.

• What does your customer support look like? When a payment issue pops up, you need to know you can get help from a real person, quickly. Inquire about their support hours, how you can reach them (phone, email, chat), and their typical response times. Reliable support is essential for resolving problems like chargebacks or funding delays without disrupting your business.

• Does your terminal work with my other business tools? Your payment system shouldn’t operate in a silo. Ask if the virtual terminal can integrate with the other software you rely on, like your accounting platform or invoicing tools. A connected system saves you time on manual data entry and helps keep your financial records accurate.

Related Articles

• 5 Best Credit Card Terminals for Small Business
• The 5 Best Contactless Payment Terminals
• Wireless Credit Card Terminal: A Buyer’s Guide
• 5 Best Portable Credit Card Machines for Small Business

Frequently Asked Questions

Do I still need a virtual terminal if I already sell through my website? Yes, it’s a great idea to have both. Your website’s checkout page is a payment gateway, which is designed for customers to enter their own information. A virtual terminal is a tool for you and your staff. It allows you to manually process payments for situations that happen outside your website, like taking a phone order, processing a payment for an invoice, or handling a special request from a client. Think of it as the perfect companion to your online store.

Is a plan with ‘no monthly fee’ really the cheapest option? Not always. A pay-per-use plan with no monthly fee is fantastic when you’re just starting out or have very inconsistent sales, as you only pay when you make a sale. However, these plans usually have higher per-transaction rates. Once your sales volume becomes more predictable, a subscription-based plan with a monthly fee often saves you money because it comes with lower transaction rates. It’s all about matching the pricing model to your stage of business.

How is using a virtual terminal more secure than just writing down card numbers? Writing down a customer’s card information creates a huge security risk for your business and puts you on the hook if that data is ever compromised. A virtual terminal is designed to prevent this. It uses advanced security like encryption and tokenization to protect payment details from the moment you type them in. The actual card number is never stored on your computer, which is a critical step in maintaining PCI compliance and protecting your business from fraud liability.

Can I use a virtual terminal for recurring billing or subscriptions? Absolutely. This is one of the most powerful features of a good virtual terminal. Most platforms allow you to securely save a customer’s payment information on file. From there, you can easily set up automatic recurring payments for subscriptions, memberships, or installment plans. This saves you the administrative hassle of chasing down payments each month and provides a smooth, convenient experience for your repeat customers.

What happens if I process a payment and my internet connection drops? This is a common concern, but there are ways to prepare for it. The simplest backup is to have a mobile hotspot ready on your smartphone so you can quickly switch connections. Some of the more robust virtual terminal providers also offer an offline mode. This feature lets you capture and securely save the transaction details, and then it automatically processes the payment as soon as your internet connection is restored. It’s a great safety net to prevent lost sales during an outage.