Quick Answer
Payment processing solutions generally fall into four categories: card-present terminals and POS systems for in-person sales, payment gateways for online transactions, virtual terminals for phone and mail orders, and ACH/bank-transfer processing for larger or recurring payments. Most businesses need a combination, not just one. If you're not sure which mix fits your business, talk to our team at Argent Payments.
Introduction
"Payment processing" gets used as a catch-all term, but it actually covers several distinct technologies built for different situations. A retail counter, an online store, and a contractor invoicing clients by phone all need different tools, even though they're all ultimately "processing payments." Understanding the categories helps you ask for the right thing instead of the first thing a sales rep offers you.
Key Takeaways
- Card-present terminals and POS systems are built for in-person, face-to-face transactions
- Payment gateways connect your website's checkout to the card networks for online sales
- Virtual terminals let you key in a card manually for phone, mail, or invoice-based orders
- ACH processing moves money via bank transfer, often at a lower cost than card processing
- Most growing businesses eventually need more than one of these working together
In-Person Solutions: Terminals and POS Systems
For businesses with a physical location, card-present processing is the standard. A dedicated terminal handles chip, tap, and swipe transactions on its own; a full POS system combines that with inventory tracking, employee management, and sales reporting. Card-present transactions typically qualify for lower interchange rates than online transactions, because the physical card and chip reduce fraud risk. For a deeper look at how these systems work day to day, see our guide to how point-of-sale payment systems work. Explore our POS integration solution to see what a modern setup looks like.
Online Solutions: Gateways and Virtual Terminals
Selling online requires a payment gateway — the software layer that securely captures card details at checkout and passes them to the processor. This is different from a virtual terminal, which is a web-based tool that lets your staff manually key in a card number for a phone order, a mail-in payment, or an invoice. Businesses that take both walk-in and phone/online orders often need both tools connected to the same account. We cover the terminology distinction in more depth in payment processors vs. payment gateways.
Comparing the core solution types
| Solution Type | Best For | Typical Cost Position |
|---|---|---|
| POS terminal | Retail, restaurants, in-person services | Lowest — card-present rates |
| Payment gateway | E-commerce checkout | Moderate — card-not-present rates |
| Virtual terminal | Phone/mail orders, invoicing | Moderate to higher — manually keyed, card-not-present |
| ACH/bank transfer | Large invoices, recurring B2B payments | Lowest — flat or capped fee, no interchange |
What Argent Looks For
When a business asks us which solution they need, we ask about their sales channels before we recommend anything — a restaurant and a B2B services firm need almost entirely different toolkits, even though both are "accepting payments." Matching the tool to the channel is what keeps cost and complexity down.
ACH and Bank Transfer Processing
For larger transactions — invoices, recurring contracts, B2B payments — ACH processing moves funds directly between bank accounts instead of through the card networks. It typically costs less than card processing per transaction, though it settles more slowly. We compare the two directly in ACH payments vs. credit card processing. See our ACH payments solution for how this fits alongside card processing.
Not sure which combination fits your business? Contact Argent Payments for a walkthrough of your options.
How Argent Payments Approaches This
We don't sell a single tool and try to make every business fit it. We start with your sales channels and volume, then recommend the combination of terminal, gateway, virtual terminal, or ACH processing that actually matches how you get paid — see our full solutions overview for the complete list.
Frequently Asked Questions
Do I need a payment gateway if I already have a POS system?
Only if you also sell online. A POS system handles in-person transactions; a payment gateway is specifically for capturing card details on a website checkout. If you're purely brick-and-mortar, a gateway isn't necessary.
What's the difference between a virtual terminal and a payment gateway?
A payment gateway works automatically behind your website's checkout with no manual entry. A virtual terminal is a login-based tool your staff uses to manually key in a customer's card number, typically for phone or mail orders.
Is ACH processing cheaper than credit card processing?
Generally yes, on a per-transaction basis — ACH doesn't carry interchange fees the way card transactions do. The trade-off is slower settlement (often 1-3 business days) and lower buyer-side dispute protections compared to cards.
Can one processor handle both my POS terminal and my online store?
Many can, and it's often worth prioritizing a processor that does, since it simplifies reporting and funding into a single account rather than reconciling two separate systems.
Which solution type has the lowest processing rate?
ACH/bank transfer typically has the lowest cost structure, followed by card-present (in-person) transactions, with card-not-present transactions (online, phone, virtual terminal) generally carrying the highest rates due to increased fraud risk.
Sources & Further Reading
- PCI Security Standards Council — pcisecuritystandards.org
- Visa and Mastercard merchant processing resources (available through your processor or the networks' merchant-facing sites)
Next Steps
The right payment processing setup isn't one tool — it's the right combination for how your business actually gets paid. Connect with an Argent Payments specialist to build a setup that matches your sales channels instead of forcing your business into someone else's default package.