What does a virtual terminal allow merchants to do?

A virtual terminal is essentially a web-based application that allows merchants to process credit and debit card transactions without the need for a physical card reader or point-of-sale system. This technology enables merchants to accept payments through an internet connection, making it highly versatile for various sales environments, including e-commerce and remote transactions.

The correct response highlights that a virtual terminal facilitates payments via a website, which is essential for online business operations. By utilizing a virtual terminal, merchants can effectively manage transactions, capture customer information, and process payments securely over an IP connection, hence supporting both e-commerce and traditional business models that may not rely on physical card swipes.

Understanding that a virtual terminal is not limited to retail locations, exclusive debit card processing, or solely storing cardholder information is important. The focus here is on the ability to process transactions through a digital platform, which broadens the scope and convenience for merchants in accepting payments.