What is Virtual POS? How to Buy? Receiving Online Payments
In this period when consumers have acquired contactless payment and online payment habits, leaving your e-commerce site without a virtual POS is out of the question. Because customers’ ability to make secure payments for online shopping depends on this. If you do not receive virtual POS service, you can only offer alternatives such as money transfer and EFT to your customers. This would be an unsafe and costly transaction for the consumer. Therefore, you should move your POS device to the virtual environment and provide a secure payment service. So what exactly is virtual POS, where is it used, how does it work?
What is Virtual POS?
Every business that accepts payment by credit and debit cards has a POS (Point of Sale) device. Virtual POS or VPOS (virtual point of sale) is an internet adaptation of the POS devices we use when shopping with a credit card or debit card. On e-commerce sites, card payments are accepted via virtual POS device. This technology is the digital version of the physical POS device. It works with exactly the same logic and performs the same task. Consumers who want to shop online can pay with debit and credit cards during the payment step, thanks to VPOS.
Virtual POS is a digital payment system that allows online payments with credit and debit cards.
Virtual POS payment system is widely used all over the world. The only difference between this system, which facilitates payment for the buyer and receiving payment for the seller, from a physical device is that the card is not read by a device. Card information is entered manually and this information is queried through the bank, just like on the physical device. The most important advantage is that there is no need to carry a different device for each bank. Most virtual POS accept almost all domestic and foreign cards.
Where to Use Virtual POS?
E-commerce is the widest usage area of virtual POS. This service is available on all e-commerce sites that sell online. Virtual POS is among the most preferred e-commerce payment systems. The reason for this is that it is fast, practical, easy, advantageous and most importantly safe. Consumers do not prefer to shop from sites that do not have this system.
Virtual POS enables secure payments on e-commerce sites.
If you have an e-commerce site, you should see the use of virtual POS as a necessity, not a choice. If you want to be successful when selling products online, you must first build trust. Potential customers must have confidence in both your products, your service, and your brand in general. A customer who likes your products, adds them to his cart and reaches the checkout step may give up shopping if he does not see a safe payment alternative. For this reason, virtual POS is widely used in e-commerce sites.
Is Virtual POS Reliable?
Consumers may have questions about the reliability of virtual POS transactions. However, this system is one of the safest payment options for both the seller and the buyer. Paying with this method is no different than shopping with a credit card in a supermarket. Likewise, payments received are also safe. Consumers can take security measures by choosing reliable shopping sites, and e-commerce companies can only take security measures by cooperating with authorized organizations.
Virtual POS service is provided by payment institutions and banks approved by BRSA (Banking Regulation and Supervision Agency). Therefore, at the first stage, banks and payment institutions provide security. If an e-commerce company applies for VPOS, it is examined in detail by the service provider. This service is provided after checking various documents related to the company and ensuring that all security measures are taken on the e-commerce site.
Virtual POS is an internet version of physical POS devices.
Consumers may be hesitant to enter their card information into a screen. However, thanks to SSL certificate technology, the information entered in the payment form is only transmitted to the bank and cannot be viewed by the shopping site. 3D security system comes into play during the virtual POS shopping process. Thanks to this system, when an online payment is made with a card, an SMS is sent to the card holder’s mobile phone. If the verification code sent via SMS is not written on the payment screen, the payment transaction will not be made. In other words, even people who hold the card cannot make payments via virtual POS without the permission of the card holder.
Who Can Use Virtual POS?
In order for an e-commerce site to receive payments via virtual POS, it must meet some conditions. The first requirement is company ownership. It is already a legal obligation to establish a company to do e-commerce. If you want to sell your products online but have not established a company, banks and payment institutions will not provide you with virtual POS services. In addition, the e-commerce site where the service will be used must be active and healthy, contain products, and offer the card option on the payment screen.
How to Integrate Virtual POS?
When your virtual POS application is approved, you need to manually add this payment method to your e-commerce site. If you use an infrastructure that offers virtual POS integration, such as IdeaSoft, your job is quite easy. After a few practical steps, you can complete the integration and start receiving payments by card. You can track payment transactions through the virtual POS management panel offered by the service provider.
Virtual POS offers 24/7 payment opportunity and saves time.
If you do not have a suitable infrastructure for easy integration, you need to know at least basic coding or get support from a software developer. You should not forget to optimize the payment pages after the integration.
How to Get Virtual POS?
In order to receive virtual POS opening service, you must first apply to a bank that provides this service or a payment institution approved by BRSA. To apply, you must be a taxpayer, that is, a company owner. During the application, the relevant institution requests information about your company and e-commerce site. You must submit company documents. In addition, your site must comply with e-commerce norms, be usable and legal.
This service is offered to virtual stores that comply with the legal regulations in force in Turkey, whose contact information is clearly included on the site, that do not have any legal obstacles or problems, and that have the capacity to deliver products. After the application approval, you can complete the virtual POS creation/installation/integration process with the information received from the service provider. In addition, in order to get a virtual POS, your e-commerce site must meet the following standards:
SSL Certificate: SSL certificate is a protocol that ensures information and data confidentiality. Therefore, it is of great importance for e-commerce sites and their customers. Companies that offer Virtual POS services also require SSL certificates for e-commerce sites in order to protect consumer data. Accordingly, you must have a 128 or 256 bit SSL certificate.
Product: It is not possible to apply during site establishment. First, you must add and list the products on your site. When you buy VPOS, you must have a site that can make sales.
Contract: Banks and payment institutions assume responsibility to consumers on your behalf. In this regard, they pay attention to the reliability of your e-commerce site. There must be contracts on your site that are valid throughout the online shopping process and state the rights and responsibilities of the parties.
What are the Virtual POS Application Requirements?
When you apply for a virtual POS, the relevant organization conducts some kind of audit on your company. There are some virtual POS conditions, both specific to the service provider and in line with the relevant legal regulations. Your company and your site are examined taking into account the conditions in question. Some of the details that banks and payment institutions pay attention to during the application evaluation process are:
Application documents must be complete, accurate and up to date.
There should be no access problems on the e-commerce site.
The payment steps on the site must be working properly and correctly.
The site must have an SSL certificate to ensure payment security.
The payment step must include the option to pay by debit/credit card.
There should be logos of the banks providing the service at the bottom of the payment page.
There must be a basket system on the site where products, product lists, product catalogs and products can be added.
Company procedures regarding customers’ warranty, return and cancellation rights should be clearly stated in the online store.
Texts regarding the “Privacy Commitment and Security Policy” should be added to the required pages.
Information such as the company’s name, address, phone number and e-mail address must be included on the site and must be accurate and up-to-date.
Special documents that must be obtained from authorized institutions specific to the sector (Ministry of Health Authorization Certificate for pharmaceutical companies, TURSAB Certificate for tourism companies, etc.) must also be submitted during the application.
What are the documents required to purchase a virtual POS?
The documents you need to submit when applying for VPOS are:
Company official’s T.R. ID card photocopy
ID photocopies of partners
tax plate
partnership agreement
Photocopy of the trade registry gazette
signature circular
What are the advantages of Virtual POS Service?
Receiving Secure Payment: It is one of the safest payment methods for online shopping. Payments are made securely thanks to the security measures and encryption systems offered by infrastructure providers.
Receiving Payment 24/7: There is no need to wait for the bank to be during working hours to receive payment via Virtual POS. Customers can make payments 24 hours a day, 7 days a week, regardless of weekends, public holidays or night hours.
Time Saving: In this method, the payment process is completed in a very short time. The customer is satisfied with the purchase as he can make the payment without wasting time.
Increased Competitiveness: There is intense competition in the e-commerce world. Companies that offer different payment alternatives are always one step ahead. Virtual POS helps in the competitive process.
Sales Advantage: Each consumer may want to choose a different payment method. It is possible to appeal to a wider audience by offering this service to customers who want to pay by debit and credit card. Therefore, there is an increase in sales.
Installment Sales Opportunity: Installment transactions are frequently preferred by consumers. Particularly dividing high-amount purchases into installments provides convenience to the consumer in the payment process. The first choice of this type of consumers is e-commerce sites that sell in installments. Virtual POS offers the opportunity to make installments.
Receiving Payments from Abroad: When service is received from a bank or payment institution that provides international virtual POS services, payments from abroad can be easily received. In this way, it is also possible to carry out e-export.
Receiving Payments from Various Card Types: Debit and credit cards have their own unique brand. Most virtual POS can accept payments from domestic and foreign branded cards such as VISA, MasterCard, Amercan Express, Troy, Discover, JCB, Paracard, Bonus, Shop&Fly, CUP and Diners Club.
Easy Tracking and Reporting: VPOS services have a management panel. Payment transactions, order information and transaction details can be easily tracked here. It is also possible to receive reports containing various statistics regarding payment.
Which Payment Institutions Provide Virtual POS Service?
Virtual POS companies serving in Turkey are as follows:
iPara
Iyzico
PayU
AllPay
TurkPOS
PayNet
Param
Vepara
My WorkplacePOS
UnitedPayment
Paytr
Sipay
NomuPay
Moka
Which Banks Provide Virtual POS Services?
One of the sectors where digitalization is most effective is undoubtedly banks.
What are the Virtual POS Commission Rates?
Virtual POS is a commission paid service. If you are getting this service for your e-commerce site, you need to pay a commission in return. It is free to apply and get the infrastructure in most banks and payment institutions. However, a commission is deducted at a certain rate for each sale made through VPOS. Virtual POS commission rates vary and can range from 1% to 20%. Some institutions also charge a transaction fee. Therefore, you should be careful when deciding from which bank or organization you will receive this service. You should make your decision by researching and comparing the companies, the advantages they offer, commission rates and transaction fees.
