Payment Links vs a Virtual Terminal: Costs and Suitability
Compare customer checkout links with staff-entered remote payments, including payment fees, administration and handling of card details.
The short answer
A payment link lets the customer complete a hosted checkout. A virtual terminal commonly lets authorised staff enter a remote card payment through a provider’s browser-based service. Compare the exact payment flow and tariff: some products offer both options, and their names alone do not establish the fee or the security responsibilities.
In this guide
Who enters the payment details?
| Method | Typical payment flow |
|---|---|
| Payment link | You send a provider-generated checkout link; the customer enters details or chooses a supported payment method. |
| Manually keyed virtual terminal | An authorised staff member enters the remote card details into the approved provider interface. |
Square’s UK payment-link page describes customer checkout without requiring your own full ecommerce website. Its virtual-terminal guidance describes browser-based remote billing. Account features can differ, so confirm the functions available to a new or existing account.
Which flow fits the customer and your team?
- Can the customer open and complete a checkout link while placing the order?
- Do you need an invoice reference, deposit amount or order description attached to the payment?
- Does the system show staff when payment is completed, failed or still outstanding?
- Can staff resend or expire a link and avoid collecting the same invoice twice?
- Which payment methods, authentication steps and accessibility needs must the checkout support?
A link may suit deposits, remote invoices and follow-up payments. Staff-entered payments may be relevant where the approved service and customer circumstances require that process. Compare the actual workload, including unfinished checkouts and customer support, rather than assuming either method eliminates administration.
Worked example: percentage plus pence versus a higher percentage
Fictional tariffs. A business collects £6,000 through 120 remote payments a month. Assume every payment qualifies for the stated rate.
| Cost | Payment-link offer | Keyed-payment offer |
|---|---|---|
| Percentage fee | 1.4% = £84 | 2.5% = £150 |
| Fixed payment fee | 120 × 25p = £30 | £0 |
| Monthly processing | £114 | £150 |
| Additional monthly service | £0 | £5 |
| Monthly total | £114 | £155 |
The total difference is £41 monthly or £492 over twelve identical months. The fixed 25p fee matters: on a £10 payment, 1.4% plus 25p is 39p, while 2.5% alone is 25p. The preferred tariff can therefore change with payment size.
Allow separately for staff time, refunds and any required subscription. Use the same customer card mix for both offers.
Keep card handling within the approved process
Let customers enter card details directly into the provider’s checkout where that is the chosen flow. Do not request card numbers or security codes through ordinary email or messaging. For telephone payments, ask your acquirer how the approved process deals with staff access, call recordings and any other systems that could capture payment data.
A hosted checkout can reduce the card details your staff handle, but does not automatically remove all merchant security obligations. PCI SSC directs merchants to their acquirer or payment brand for the applicable validation requirements. Our PCI fee guide explains how to separate compliance work from provider charges.
Compare the exact channels and verify completion
Ask each provider to price payment links and manually keyed payments separately, including different card categories and any international charges. Check refund terms, payout timing and whether a paid invoicing or subscription product is required.
Use the calculator’s remote/online figures for a like-for-like scenario only when the entered tariff matches the method being modelled. Keep separate calculations if you use several remote methods with different rules. Verify payment status in the provider’s system rather than relying only on a customer’s screenshot.
Common questions
Do I need a website to send a payment link?
Many hosted payment-link services can be used without a full ecommerce site. Check the provider’s onboarding and business requirements.
Is a virtual terminal another physical card machine?
Usually the term refers to a software interface for remote payments. Confirm whether the offer also includes a connected reader or a customer payment-link option.
Put your own figures to work.
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Sources and how to use this guide
Primary references checked on 15 October 2026:
- Square UK: payment links and customer checkout
- Square UK: Virtual Terminal and remote billing
- PCI Security Standards Council: merchant resources
Worked examples are original fictional scenarios, not customer results, market averages or provider quotations. Unless stated otherwise, they use a consistent VAT basis and include only the costs listed. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.
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