What is a virtual transaction?

31 Aug 2022 By PAYCEC

A virtual transaction is a form of payment in which money is transferred electronically through an electronic fund processor. The virtual transaction procedure is protected by a password and is safe.

Here is how a virtual transaction process works:

• Step 1: Consumer browses on merchant’s website and chooses items to place into cart
• Step 2: Customer visits cart and processes checkout
• Step 3: Customer is redirected to a virtual payment gateway platform
• Step 4: Choose the payment method option and enter payment credentials & billing address
• Step 5: 3D secure Authentication requirement (OTP SMS or private key)
• Step 6: The virtual terminal collects payment details and transmits to a processor or the merchant bank
• Step 7: Merchant bank receives an order and proceeds data with tokenization and fraud check
• Step 8: Merchant bank transmits data to card network for further verification
• Step 9: Card network or clearing network sends data to issuing bank for processing fund to merchant bank
• Step 10: Merchant bank informs the result of the electronic transaction (approved or denied)
• Step 11: Customer receives a delivery

What is a virtual transaction?