Virtual merchant accounts - the answer to your online business needs

When it comes to establishing virtual merchant accounts for your eCommerce website, traditional banks place a lot of rules and requirements on businesses. There are also Electronic Money Institutions that can combine the best practices that traditional banks have to offer and innovations to make online payment accessible, convenient, and swift. So why are businesses care about virtual merchant account services? And what solutions can fintech companies do to go beyond traditional banks' services? Let’s read the article to uncover that hidden information.

Virtual merchant accounts - the answer to your online business needs

1. What are Virtual merchant accounts

Virtual merchant accounts definition

A merchant account is the kind of bank account that enables companies to accept and handle electronic payment transactions securely. Businesses can take debit or credit card payments using a merchant account. A merchant account is connected to a physical terminal (POS - Point of Sales system) to enable customers to check out at the counter by credit cards or debit cards. The physical payment gateway includes hardware and software to facilitate merchants to collect card payments and withdraw funds to their merchant bank accounts.

A virtual merchant account is also a kind of business bank account that can collect payments from online shoppers. Virtual merchant accounts are linked to virtual terminals, which are web-based applications requiring no additional software. A virtual terminal can be created on any computer that has internet connectivity. Virtual terminal merchant accounts include unlimited virtual terminals. In order to use a virtual terminal system, a company must partner with a merchant acquiring bank or card processor, which manages all communications related to an electronic payment transaction. In fact, virtual payment terminals work similarly to physical payment terminals. The primary difference between them is that one operates credit card payment processing at the brick-and-mortar store while the other work in the online environment.

While local merchant accounts with POS can only take card payments inside the market, global payments virtual terminals make it outstanding in the eCommerce market where merchants are able to connect with international buyers across the world.

The integration of the virtual terminal payment processing gateway with the majority of popular CRM, accounting, and shopping cart platforms reduces development costs and accelerates time to market. virtual terminal for payments offers rich cloud reporting and gives you all the data you need to run your business efficiently.

Beneficial Features of a virtual terminal merchant account

Accept credit cards & international payment methods

First and foremost, a virtual terminal for card payments lets online shoppers enjoy their purchasing experience by offering the way they used to pay with traditional credit cards and debit cards (Visa, Mastercard, American Express, Discover, DinersClub, JCB, etc.) and other alternative payment methods in multicurrency.

Comprehensive merchant reports and insightful analytics

Business owners and their teams can access multiple merchant reports for tracking and in-depth analysis of website transactions, approve ratios, chargebacks, and other metrics from one dashboard. From there, corporate clients have more foundation to make any business decision and execute new product development plans.

Direct payout

From the dashboard, you may monitor your settlement account and every payout detail. Merchants can schedule their payouts by selecting one of the D+1, D+3, or D+7 timing options. The virtual payment terminal releases your funds without any delay, and with no hidden costs.

Integrate easily with CRMs and shopping cart platforms

No matter what type of shopping cart platform you choose, your developing team can integrate virtual merchant accounts to almost systems you are establishing your websites and online stores. In case your teams have no developing skills, you may also seek support from the virtual terminal card processing service providers to support you in setting up and data synchronization. They offer clients quick integration and full service if they run their online business in Shopify, PrestaShop, OpenCart, OXID, WooCommerce, Magento, Drupal, etc.

Integrate APIs right away

The Open source APIs that are provided from virtual merchant accounts can be integrated into your website quickly in a few simple steps. In addition, you even can create customizable checkout pages to offer your customers a seamless payment experience.

Try test mode before going live

Before going live, you have a chance to test your merchant dashboard carefully to have a better understanding of the possibilities. Then you can employ fully functional facilities on your virtual terminal merchant account after exploring it and customizing it to meet your company’s standards.

Manage business in multiple account users by sharing access

If a company is managed by a board of directors, this feature can help the management team share access with other members, and together your team can oversee the whole picture of the business and quickly solve any issue to improve sales.

Expand beyond credit cards payments

With virtual merchant accounts, online firms are added to more powerful advantages to win in the eCommerce competitions. This means your company can offer card alternative payment methods to appeal to a larger, international demographic. Apart from major issuers like Visa, Mastercard, and American Express, your sites also accept banking transfers, cryptocurrency payments and e-wallets namely PayPal.

2. How many types of virtual merchant account services

Every business is distinctive and they do need a customized virtual merchant account service to target their needs, help the businesses streamline their operations and payment process, maximize sales and run business smoother.

Below are some typical packages of virtual merchant account services for your reference:

Offshore virtual merchant accounts

Many online firms face difficulties when trying to find virtual terminal solutions to expand an offshore business. Due to the fact that we know less about overseas law policies and regulations as well as requirements from foreign banks, thus offshore merchant account applications are usually rejected. There are many virtual merchant account providers who support offshore virtual merchant services making it easier for you to complete the entire process. Learn more !

Ecommerce checkout virtual terminal

This product mainly supports unregistered small businesses and freelancers. These segments are not qualified to apply for merchant account services due to company or entity documents requirements. The eCommerce checkout virtual terminal was born to respond to the needs of merchant accounts of small businesses, sole traders and freelancers who are looking for an online payment acceptance platform and expand their services to potential buyers.

Mobile payments

Today’s consumers are using mobile phones frequently and mobile shopping is on the rise. To help merchants sell products and services every time and everywhere to clients, many providers have already launched mobile payments platforms that enable enterprises to integrate the virtual terminal into shopping apps and process card payments directly on phone.

Internet Virtual Terminal

Internet virtual terminal is a perfect payment solution for eCommerce firms and startups who run an eCommerce marketplace platform on web browsers. The internet virtual terminal allows you to integrate into your cart and process checkout from the orders. This option is also ideal for accepting payments if you are out and don’t have a mobile terminal.

Low, Medium and High-Risk virtual merchant accounts

For many medium and high-risk businesses, finding a domestic bank that supports merchant accounts is really a headache. Those e-commerce businesses which do not have a chance of opening an account through a local bank can opt for services through high-risk virtual merchant account services. Moreover, merchants receive more significant benefits with multicurrency payment acceptance and international card payment collection that will take your online business to the global level.

US Virtual merchant accounts

US market has been a promised land for almost companies of all sizes across the globe. However, the requirements to enter the US market are definitely demanding and complicated for small and medium-sized businesses as well as startups. No worries, US virtual merchant accounts providers can set up your merchant account quickly and help you to start taking card payments without any hassle. By opening US virtual merchant accounts, you have more opportunities to connect the entire transaction process in the United States and North America.

3. How does a virtual terminal work?

Virtual merchant accounts and card providers like Visa, Mastercard or American Express operate in close coordination. They support online merchants in connecting with a payment gateway so that payments can be processed. As a result, the consumer's electronic payment is used to execute all transactions with merchants.

Virtual terminals utilize non-physical software programs however function very similarly to a physical card terminal. Here is how it works:

• Step 1: Consumer browse on merchant’s website and choose items to place into cart
• Step 2: Customer visit to cart and process checkout
• Step 3: Customer is redirected to 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 processor or the merchant bank
• Step 7: Merchant bank receive order and proceed data with tokenization and fraud check
• Step 8: Merchant bank transmit data to card network for further verification
• Step 9: Card network or clearing network send data to issuing bank for processing fund to merchant bank
• Step 10: Merchant bank informs the result of electronic transaction (approved or denied)
• Step 11: Customer receives delivery

How does a virtual terminal work?

4. Online credit card processing terminal for secure payment

Security is first when it comes to online card payment. There are so many terms and features that merchants should know indeep to manage online business and avoid any fraud to protect your revenue and company reputation.

• Level 1 PCI DSS compliant Virtual Terminal Gateway: it is a virtual payment gateway that connects with a merchant account to accept online credit card payments. The PCI DSS payment gateway is a payment system that complies with the Payment Card Industry Data Security Standards (PCI). PCI compliance refers to following a set of security guidelines designed to safeguard card information during and after a financial transaction.
  • Create and manage a safe network.
  • To protect cardholder data, set up and maintain a firewall configuration.
  • For system passwords and other security parameters, do not utilize vendor-supplied defaults.
  • Within the PCI payment gateway, protect cardholder data.
  • Safeguard information about cardholders that has been stored.
  • Encrypt cardholder data transmission via open, public networks.
  • Keep a vulnerability management program in place.
  • Anti-virus software should be used and updated on a regular basis.
  • Secure systems and apps must be developed and maintained.
  • Put in place strict access controls.
  • Access to cardholder data should be limited based on business requirements
  • Each person with computer access should be given a unique ID.
  • Physical access to cardholder data should be limited.
  • Monitor and test networks on a regular basis.
  • All access to network resources and cardholder data should be tracked and monitored.
  • Validate the PCI payment gateway's security systems and processes on a regular basis.
  • Keep an information security policy in place.
  • Keep a policy in place that covers data security.

• Chargeback Prevention Tools: Even though each chargeback prevention technique is different, a mix of these eight methods works the best in most cases.
  • Fraud deflection services verify the identity of the shoppers
  • Address Verification Service (AVS)
  • Card Security Code Verification (CVV, CVC, CID, etc.)
  • 3D-Secure 2.0
  • Blacklist: A customer's history of disputes or chargebacks is stored dynamically in a database known as a blacklist.
  • Order Validation: You can contact issuers in real time using order validation tools to confirm the cardholder's purchase.
  • Prevention Alerts: Another option that enables you to interact with issuers in almost real-time to settle disputes is prevention alerts.
  • Analytics: Analytics show trends. A deviation from those patterns suggests hidden problems.

Online virtual terminal credit card processing for secure payments

5. Why do you need a virtual payment terminal?

Businesses may quickly accept credit, debit, and other kinds of payment online through a payment card reader thanks to virtual merchant services providers, thereby increasing their chances of converting clients.

Services and tools that grow with your ambitions

Virtual merchant services offer your businesses a variety of trusted software, APIs, and software development kits to help your website stays connected. In case you need more technical support, the development team is available 24/7 to help.

Once you are ready, begin accepting payments right away

The process of virtual terminal gateway integration is relatively quick, you can set up and run online buyer flows when your website is ready. It means you never have to worry about missing a sale.

Manage cash flows comprehensively

The merchant dashboard provides you insighful interface to oversee all of your business activities. Everything you need is located inside a CRM system from your payments, banking, and cash flow can work in sync. The payout process is also fast and seamless that enables you to access your funds conveniently.

6. Consider the hidden fees

When working with banks or ISOs (Independent Sales Organizations), you often pay some hidden costs that you even do not aware of that really take significant impacts on your pocket.

Firstly, these providers (banks and ISOs) usually ask you to sign a long-term contract with an early termination fee or buyout fee while fintech companies like PayCEC do not require those things.

Secondly, to apply for a merchant account, your site must meet PCI compliance. It means PCI compliance is on you when using merchant services from banks and ISOs. Fortunately, working with PayCEC releases you from these troubles. You don’t have to individually validate your compliance because PayCEC complies with PCI standards. As a result, your firm saves an abundance of operating costs when it comes to online business.

Thirdly, integration is also a hidden fee in the whole merchant account setting process. There are different systems for software and payment processors when using virtual merchant account services from banks and ISOs. Your development team needs to spend much time on configuring your own system in order to synchronize data transmission to their network.

Final concealed cost is fraud and dispute management. Now you can rest with ease just because PayCEC complies with PCI DSS requirements and implements highly 3D secure protection to prevent frauds and disputes, streamline your revenue and thrive your profits.

7. What industries already benefit from virtual merchant accounts?

Virtual merchant accounts are the best choice for companies who are looking for a reliable hosted payment solution for their online businesses. Due to the feature that enables clients to customize the checkout page to be similar to brand guidelines and securely store customers' card payment details, virtual merchant accounts have proved their strength in digital payment and benefited the entire economy.

There are some typical examples for these cases:

• Ecommerce
• Software as a service
• Service providers
• Event
• Insurance
• Travel
• Utility bills collection
• Transportation
• Hotels & Accommodation
• Travel agencies
• Clothing and accessories
• Home good and furniture
• E-books
• Household appliances
• Shipping & Delivery Services
• Theatres
• Ticket agencies
• Retail industry
• Games
• Digital goods
• Low-value goods
• Entertainment

Read more:

• Online merchant account
• Virtual account payment gateway
• Ecommerce merchant account solutions
• Multi currency payment gateway & multi currency merchant account
• Difference between payment gateway and merchant account
• Freelance Websites for Graphic Designers

About PayCEC

PayCEC’s secure payment gateway was established in response to the growing need of global online businesses to accept online payments more quickly and easily. In the digital era, our payment flow has evolved to work seamlessly and effectively across all platforms and devices. We pride ourselves on combining superior technology with first-class customer service.

PayCEC’s secure payment gateway for online businesses is a truly global payments platform that not only allows customers to get paid instantly and securely, but also withdraws funds to their business accounts in various currencies.

We have created an open and secure payments ecosystem that entrepreneurs and businesses choose to securely transact with each other online and on any device. We proudly maintain the highest level of client advocacy in the industry.

PayCEC Team

• [email protected]
• +44 2032 864370
• www.paycec.com