Virtual terminal vs Payment links
Know how Virtual Terminals are different from Payment Links.
Virtual Terminals and Payment Links have some similarities but a number of key differences.
| Feature | Virtual terminal | Payment links |
|---|---|---|
| Payment process flow | Card details are entered by the merchant when the customer provides their credit card details over the phone, or through a mail order. The merchant enters these details into their payment terminal or e-commerce platform to process the transaction. | Card details are entered by the customer where the merchant generates a unique link for a specific amount and sends it to the customer via email, SMS, or other messaging platforms. The customer clicks on the link and is redirected to a secure page where they can enter their card details and complete the transaction. |
| Security measures | The risk of fraud in virtual terminals is relatively higher as the merchant manually inputs the card details received from the customer, making this method less secure. | This method is safer as the customer enters their own card details. These transactions require strong customer authentication (SCA), that is, 3DS 2.0, reducing the risk of fraud. |
| Customer experience | Virtual terminal payments can be less convenient for some customers, as this method requires direct interaction with the merchant. | Payment links are often considered more convenient, as the customer can pay at any time and on any device. The customer may not need to interact directly with the merchant to complete the payment. |
| Merchant experience | Virtual terminal payments can be more labor-intensive for the merchant, as they are required to manually input card details and handle sensitive customer information. | Payment links can be generated with minimal effort. The merchant does not need to handle sensitive card information. |
| Industry applications | Any small or large business that does not provide an online payment option. | Any business looking to simplify the payment process and improve customer experience with pay-by-link. |
noteDojo recommends that you use payment links over virtual terminals as a more secure method for accepting payments.