What does a Virtual Terminal emulate in online transactions?

A virtual terminal emulates a physical credit card terminal, allowing merchants to process payments without the need for a traditional card-swiping device. This technology is essential for businesses that may not have a fixed point of sale, such as those operating remotely or in a service-oriented industry.

By replicating the functionality of a physical terminal, a virtual terminal enables merchants to enter payment information directly into a secure system, facilitating transactions through various means like phone orders or online sales. This emulation includes capabilities for processing card payments, managing transaction records, and maintaining security measures, which are critical for safeguarding customer data.

In contrast, other options present distinct technologies or services that do not specifically mimic a physical terminal. A payment processing app may assist in handling transactions but does not exclusively replicate the physical terminal's functionality; electronic wallets provide a different method of storing payment information without emulating terminal operations; and mobile payment solutions often involve smartphones and NFC technology, rather than simulating the experience of a physical card reader. Thus, the function of a virtual terminal is most accurately aligned with simulating a physical credit card terminal.