How to Collect Dispatching Fees through a Virtual Terminal
Today we will discuss how you can collect dispatching fees from your clients by using a virtual terminal.
In our previous post, How Truck Dispatchers Get Paid, we discussed options that independent truck dispatchers could use to collect fees from their clients. If you read that post, you may recall that we consider the Virtual Terminal to be the most efficient way to collect your fees and earnings from your clients.
What Is a Virtual Terminal?
To simplify things, a Virtual Terminal is just a website that allows you to collect money by charging your clients’ credit cards. All you have to do is log into your virtual terminal or the website and enter your client's information. It can be saved there as well for your convenience. Then, enter the amount you want to charge your client and the invoice and order numbers. Last, you click the “authorize” button, and the money is charged from your client's credit card and goes into your bank account.
What Are Its Advantages?
A virtual terminal provides you with a lot of advantages. The main advantage is controlling your receivables and not needing to beg your client to pay your invoice. You have done the work, and you charge your client for the work you have done. Simple as that.
Some of you may object, saying your client may not feel comfortable providing you with their credit card information. As discussed in our Truck Dispatcher Training Course, when you sign an agreement with your client, you clearly outline what you're going to do, how you're going to do it, what you will charge, and how you will be charging your clients. That should not be a reason for your client to be concerned. After all, if there are any unauthorized charges on their card or account, they can always call their bank and tell them the charges were never authorized. Those funds would be refunded.
So, there is really no reason why one legitimate business, such as a trucking company, would have a problem paying another legitimate business, such as a dispatching service. For example, at Alfa X Logistics, we send our clients to our website, where they can sign the agreement and complete their payment information.
If someone calls us and says they aren’t comfortable providing their payment information, I start questioning why. Are they not willing to pay us for our service? If that's the case, we don't want to work with them in the first place. So a virtual terminal basically acts as a filter, filtering out all the people who are just kicking tires and not serious about working with you and your company.
How Do You Get a Virtual Terminal?
There are a couple of different ways you can get a virtual terminal. In our case, we went to our bank and told them what we were trying to do. They offered a virtual terminal solution, and we had to complete an application. The application was approved, and they provided us with access to the website where we charge our client's credit cards.
However, this is a more complicated option. Now you can go to online payment processors such as PayPal or Stripe.com and get your virtual terminal through them. It can then be linked to your bank account. And as in the previous example, you're using their website or their portal to collect your payments, and they will be transferring them to your bank account.
So again, it's pretty simple. You can apply for those online, which could help you improve your accounts receivables. I believe there are also many other options for virtual terminals out there, but I don't have much experience with them. Therefore, I cannot recommend them. But if you research online, you should find other great options.
You should now know what’s involved in collecting dispatching fees through a virtual terminal. There are multiple options out there, and they can be a highly efficient way to accept payments.
© By Alfa X Logistics December 2022
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