Online commerce has revolutionised the way we buy and sell. If you are thinking of starting or improving your online shop, understanding what a virtual POS is and how it works is key to offering your customers a secure and efficient shopping experience. 

What is a virtual POS?

A virtual POS, or virtual point-of-sale terminal, is a digital platform that allows merchants to accept payments over the Internet. In essence, it is the online equivalent of the dataphone used in physical shops. 

When a customer makes a purchase in your online shop, the virtual POS processes the payment quickly and securely. This system is usually integrated with the merchant’s bank and complies with strict security protocols to protect card data.

How does a virtual POS work?

1. The customer selects a product or service: Go to the online shop, choose what you want and add it to your cart. 
2. You are redirected to the virtual POS: At the time of payment, the customer is taken to a secure page where they enter their card details. 
3. Verification and authorisation: The system validates the information and sends the request to the customer’s bank to confirm the transaction. 
4. Payment completed: If everything is in order, the money is transferred to the merchant, and the customer receives a confirmation of the purchase. 

Examples of virtual POS usage

Virtual POS is applied in many sectors, enabling a borderless shopping experience. Some case studies include: 

• Online shops: From clothing and technology to food and niche items, any e-commerce needs a virtual POS to process card payments. 
• Digital subscriptions: Services such as streaming platforms, software or memberships use virtual POS to charge on a recurring basis. 
• Travel and accommodation bookings: Travel agencies, airlines and hotels offer online payments to allow immediate booking. 
• Online courses and training: Educational institutions and learning platforms charge tuition and fees through this method. 
• Donations: Many charities enable virtual POS so that users can easily donate from anywhere. 
• Professional services: Freelancers and companies can accept payment for services such as graphic design, copywriting, consulting or digital marketing. 

Advantages of the virtual POS for retailers

• 24/7 availability: It allows you to sell at any time, regardless of business hours. 
• Greater reach: Potentially, customers can shop from anywhere in the world. 
• Security: Virtual POS must comply with security standards and authentication systems, which reduces the risk of fraud. 
• Easy integration: It can be integrated into most e-commerce platforms. 

Recommendations for implementing a virtual POSl

If you are a merchant and are considering a virtual POS, consider these suggestions: 

1. Choose a safe platform: Make sure that the POS complies with the most advanced security protocols. 
2. Optimise the customer experience: Facilitates a quick and easy checkout process to avoid cart abandonment. 
3. It offers several payment methods: Although the virtual POS is the core, including options such as Bizum also enhances the customer experience. 
4. Keep your systems up to date: Constant updates help prevent vulnerabilities and comply with regulations.