The virtual terminal allows you to enter the keywords manually or through the swipe in machines. You don’t need any extra hardware to get going. It is based on the principle of real-time processing and hence you come to know immediately if the payment is processed via alternate payment providers. The reports and details of transactions are easily available. A payment gateway helps to transfer the information from the website or the payment portal and the bank.
If the order is placed by way of a website then the customer’s browser encrypts the message to be shared with the browser of the merchant and this is done through Secure Socket Layer (SSL). Before this, the customer accepts the order and click on submit after providing his credit card details. The merchant forward’s the details to his payment gateway and the payment gateway shares the information with the payment processor and the payment processor transfers the information to the card companies like VISA etc.
The credit card company authorizes the payment and the bank receives the authorization request and confirms it with a secure code via alternate payment providers. Once the payment gateway receives back the request, it authenticates the bank and the bank then transfers the amount in the merchant’s account.
A virtual terminal is nothing but an online payment gateway which allows the customers and merchants to do payments transactions.