A virtual payment terminal is a Web-based version of a credit card swipe device that allows merchants to process orders made by mail, over the phone or online.
Virtual terminals facilitate payment for small businesses that might otherwise have difficulty accepting credit card payments. Once the seller has signed up for the virtual terminal service, they enter customer payment data for transactions in a form, with fields for name, address, type and number of credit card, card verification value (CVV) and so on.
Virtual Payment systems are easier for sellers because VPS does not require any hardware or even software. All transactions go through the virtual payment provider's system. Because payment goes through VPS's provider third-party side is responsible for Security standards (PCI DSS)