Virtual POS: The Secure and Fast Way of Digital Payments

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What is Virtual POS? What is it Used For?

In today's world, integrated digital solutions are becoming increasingly common. The rapid growth and development of e-commerce have made it inevitable for companies to sell products and services through online platforms. At this point, virtual POS systems play a crucial role in enabling businesses to securely and quickly receive payments from their customers.

A Virtual POS is an online payment system that operates entirely on the internet without the need for physical hardware, unlike traditional POS devices. It allows payments to be processed online via credit cards, debit cards, or other digital payment methods. This system facilitates payment transactions for e-commerce websites, mobile applications, and online platforms.

How to Use Virtual POS?

Redirecting to the Payment Page: When a customer completes a purchase on an e-commerce site or online service provider, they are directed to the payment page.

Entering Card Information: The customer enters their credit or debit card details, including the name on the card, card number, expiration date, and CVV security code.

Transmitting Information to the Virtual POS System: The entered details are securely transmitted to the bank through the virtual POS system.

Bank Approval and Transaction Completion: The bank verifies the cardholder’s details, and if the transaction is deemed valid, the payment is approved. This approval process typically takes a few seconds.

Transferring the Amount to the Business Account: Once the transaction is successfully completed, the payment is transferred to the business's account within a specified period determined by the virtual POS provider.

Notifying the Customer: The customer is informed about the success or failure of the transaction via email or SMS.

Who Can Use Virtual POS?

Virtual POS is a suitable payment solution for businesses operating in various sectors. The businesses that can benefit from this system include:

E-Commerce Websites: All businesses selling products online, whether they have a physical store or not, can use virtual POS.

Digital Service Providers: Companies offering services such as software development, web design, and digital marketing can benefit from virtual POS.

Online Subscription Systems: Platforms that require monthly or annual payments (e.g., video streaming services, online magazine subscriptions) can use virtual POS for payment processing.

Mobile App Developers: It can be used for in-app purchases or premium memberships in mobile applications.

Online Ticket Sales Platforms: Platforms selling tickets for concerts, theater, cinema, or transportation can securely accept payments through virtual POS.

Advantages of Virtual POS

The use of Virtual POS offers numerous advantages for both businesses and consumers:

24/7 Payment Collection: Unlike physical POS devices, virtual POS allows businesses to receive payments at any time.

Easy Integration: It can be integrated into e-commerce sites to automate the payment collection process.

Security: Customer information is protected with SSL certificates, 3D Secure authentication, and data encryption techniques.

Installment Payment Option: Credit card installment plans can increase sales.

Reporting and Monitoring: Since all payment transactions are recorded, financial control becomes easier.

Virtual POS Application Process

Businesses that want to use Virtual POS must meet certain financial criteria and apply to banks or authorized financial institutions. The following documents are typically required for the application:

• Company’s Commercial Registry Gazette

• Tax Certificate

• Signature Circular

• Identification Documents

• Documents proving that the e-commerce site complies with SSL certification and security protocols

Applications are usually evaluated by banks or authorized virtual POS service providers. Approved businesses are integrated with a virtual POS system and granted access to use it. The most preferred virtual POS providers include NKolay, Paratika, and Moka.

Virtual POS Usage Fees

Virtual POS services are generally priced based on a per-transaction commission or a fixed monthly fee. Commission rates may vary depending on:

• The selected virtual POS package (basic, professional, commercial, etc.)

• The policies of the bank or service provider

• The volume of sales transactions

Virtual POS and Security

Security is one of the most important aspects of online payments. Virtual POS systems provide various measures to prevent fraud and ensure data security:

SSL Certificate: Ensures encrypted and secure data transfer on business websites.

3D Secure: Requires authentication via an SMS code sent to the cardholder’s mobile phone for secure transactions.

PCI DSS Compliance: Ensures compliance with international card security standards.

Virtual POS Payment Methods

Virtual POS (Point of Sale) is a system that enables e-commerce sites and online businesses to accept payments via credit or debit cards. Functioning as the digital version of physical POS devices, Virtual POS supports security technologies such as 3D Secure and SSL encryption. Provided by banks and payment service providers, Virtual POS also allows businesses to offer installment payment options to their customers.

Payment via Link

The payment via link method is particularly practical for businesses without a physical store. The seller generates a unique payment link and sends it to the customer via email, SMS, or social media channels. The customer clicks on the link, is redirected to the payment page, and completes the transaction securely. This method is also beneficial for businesses in the service industry beyond e-commerce platforms.

Payment via SMS

SMS payment is typically used for digital content purchases, donations, and mobile services. The user sends an SMS to a specific short number or enters a special payment code provided by the mobile operator to complete the transaction. The payment amount is deducted from the user’s mobile balance or added to their phone bill. While user-friendly and fast, SMS payment is generally suitable for low-value transactions.

Payment via Digital Wallet

Digital wallets allow users to store their bank or credit card details securely and make quick payments. Platforms like Apple Pay, Google Pay, PayPal, and Papara are popular digital wallet services. Users can complete transactions with a single click and perform contactless payments. Digital wallets offer great convenience as they can be used in both online and physical stores.

Payment via Prepaid Card

Prepaid cards are ideal for users who do not want to use a bank or credit card. Users load a specific balance onto these cards and can make secure payments for online purchases. Prepaid cards are commonly used by individuals who want to control their spending or do not have a bank account. Ininal, Papara, and Troy are some of the prepaid card providers in Turkey.

Payment via Bank/Credit Card

One of the most commonly used payment methods in online shopping is payment via bank or credit card. Users enter their card details to make an instant payment and can use the 3D Secure authentication system for secure transactions. Credit card payments may offer installment options, while debit card payments are directly deducted from the bank account.

Payment via Wire Transfer/EFT

Wire transfer and EFT payments are direct bank account transactions. Wire transfers occur between accounts within the same bank and are processed instantly. EFT (Electronic Funds Transfer), on the other hand, involves transactions between different banks and is completed based on the bank’s working hours. Wire transfer/EFT payment methods are generally preferred for high-value transactions.

Conclusion

Virtual POS is a system that accelerates payment processes, enhances security, and provides extensive benefits to businesses in the digital commerce world. Compared to traditional payment methods, it is more flexible and accessible, helping businesses grow and improve customer satisfaction. By using Virtual POS, businesses can receive payments 24/7 without the need for a physical POS device and manage their transactions with ease.

Virtual POS is not just a payment tool but also a comprehensive solution offering security, speed, and accessibility. Companies operating in the e-commerce sector prefer virtual POS systems to increase customer trust and reach a broader audience. With advanced security measures, versatile payment options, and easy integration processes, Virtual POS has become an essential payment infrastructure for modern businesses.