Contents
- What is Virtual POS?
- How to Get a Virtual POS?
- What is the Virtual POS Commission Rate?
- Conclusion
One of the most important steps to take when building a new business is cost planning. With this planning, you can determine your strategy and also create a significant projection in terms of the expenses you will encounter. The virtual POS commission rate you will pay to the relevant organizations to receive payment in your virtual store can constitute a significant part of your budget.
In this article, you can see what commission rates the virtual POS and payment institutions you need to work with to receive online payments will apply to your business.
What is Virtual POS?
Virtual POS systems are digital versions of POS devices that allow payments to be accepted with credit and debit cards in a physical environment. Also known as Virtual POS (VPOS), these systems function as the digital equivalent of physical POS devices.
The difference between virtual POS devices and a physical POS device is that instead of swiping the card on a device, the card information is entered into the specified fields on the digital screen. Thus, the product or service fee is transferred from your buyer’s account to the seller’s account.
How to Get a Virtual POS?
If you are a business that wants to accept online payments, you need to work with virtual POS. To do this, you need to contact a bank or payment institution.
In order to apply for a virtual POS, you must meet certain criteria set forth by these banks or payment institutions. The criteria requested by each institution may be different. However, we can list these criteria in their most general form as follows:
- Having an SSL certificate: SSL certificates are products that are added to the root directory of websites by a reliable provider and provide encrypted communication between servers and websites. It is one of the most important criteria to be met when opening an online store.
- List your products and services: In order to have a virtual POS, you must have products or services ready for sale in your online store. If the bank or payment institution you apply to does not see a product for sale on the website, it may evaluate your virtual POS application negatively.
- Documents for compliance with relevant legislation: Your online store must have contracts and policies set forth by the legislation on distance selling transactions. In addition, the necessary documents regarding the protection of personal data are expected to be available on your website and the permission procedures arising from this legislation are expected to be fulfilled.
What is the Virtual POS Commission Rate?
Virtual POS devices provided by banks and payment institutions have commission rates based on the payment volumes passing through businesses. The virtual POS commission rate is usually calculated as a percentage of the sales amount. For example, if a virtual POS device with a 2% commission rate is used and a purchase of 100 TL is made, the commission amount will be 2 TL.
Virtual POS commission rates may vary depending on transaction volume, 3D Secure, single payment, installment payment transactions or the number of websites from which payment will be received.
Conclusion
As you can see, when you want to receive online payments, you need to work with a bank or payment institution and complete your commercial agreement regarding the virtual POS commission rate.
If these commission rates become a significant part of your company’s cost items over time, you may need to consider a question like “How can I reduce virtual POS commission costs?” At this point, working with different virtual POS and payment institutions and also taking advantage of payment orchestration solutions with smart routing mechanisms will be advantageous for your business.
