klogs logo cursor-pointer

Multiple Virtual POS Usage: Advantages and Challenges

Image

Multiple Virtual POS Usage: Advantages and Challenges

One of the biggest challenges for businesses that sell online or offer credit card payment options to their dealers is virtual POS management.

Many businesses start with a single bank’s virtual POS. However, as sales volumes grow and the customer base diversifies, the need to use multiple virtual POS accounts from different banks arises.

This is where multiple virtual POS management comes into play.
So, what are the advantages of using multiple virtual POS accounts for businesses, and what challenges does it bring? Let’s explore. 💳

What is Multiple Virtual POS?

Multiple virtual POS refers to a business managing virtual POS accounts from multiple banks or payment providers through a single system.

For example:

  • A business has virtual POS accounts from Akbank, Garanti BBVA, and Ziraat Bankası.
  • Each bank offers different commission rates and installment options.
  • With a multiple virtual POS system, the business can automatically select the most suitable POS for the customer.

This setup provides a significant advantage, especially for:

  • E-commerce sites
  • B2B companies with dealer networks
  • High-volume businesses
  • Global companies selling to multiple countries

Advantages of Using Multiple Virtual POS

Using multiple virtual POS accounts offers several benefits. When managed correctly, it reduces costs and improves the customer experience.

1. Lower Commission Rates

Each bank applies a different commission rate for credit card transactions.
One bank may charge 2.5%, while another charges 1.8% for the same transaction.

Advantage:

  • A multiple virtual POS system automatically routes transactions through the POS with the lowest commission rate.
  • This reduces business costs and increases profit margins.

Example:
If your monthly transaction volume is 100,000 TL, reducing your commission rate from 2.5% to 1.8% can save 700 TL per month, 8,400 TL annually.

2. Flexibility in Installments and Card Campaigns

Some banks offer special installment options or campaigns for specific card types.
For example, one bank may provide 9 installments for Bonus cards, while another offers 12 installments for World cards.

Advantage:

  • You can offer customers the most suitable installment plan.
  • This increases the likelihood of a sale and improves customer satisfaction.
  • Especially important for e-commerce sites, it reduces cart abandonment rates.

3. Backup (Protection Against Downtime)

Relying on a single virtual POS is risky.
If the bank experiences technical issues or the POS temporarily fails, sales may halt completely.

With a multiple virtual POS solution:

  • If one POS fails, payments continue through other POS accounts.
  • Provides an uninterrupted sales experience.

Example:
During major campaigns (11.11, Black Friday, New Year), this backup is critical. A single POS failure can result in losing thousands of TL within seconds.

4. Currency and Forex Management

Businesses selling internationally often need to accept payments in multiple currencies.

With multiple virtual POS accounts:

  • You can open separate POS accounts for Euro, USD, or other currencies.
  • Optimize exchange rates to minimize potential losses from currency fluctuations.

5. Easy Management for Dealer Networks

Managing separate POS accounts for each dealer is challenging.
With a multiple virtual POS system:

  • All dealers are managed from a single platform.
  • You can centrally monitor which POS each dealer uses.
  • Collections are tracked in a structured and transparent manner.

Challenges of Using Multiple Virtual POS

Like any advantage, managing multiple virtual POS accounts comes with certain challenges.

1. Management Complexity

Using multiple virtual POS accounts means tracking:

  • Different commission rates
  • Reconciliation processes
  • Bank reporting

This can create a significant workload, especially if done manually.

Solution:
Use a centralized payment orchestration software to manage all POS accounts from a single panel.

2. Technical Integration Difficulty

Each bank has its own virtual POS integration system.
Integrating 3 different banks’ POS accounts on one e-commerce site requires:

  • Separate technical development
  • Different API connections
  • Continuous maintenance and updates

Solution:
Use a payment gateway that covers all banks through a single integration point.

3. Reconciliation and Reporting Issues

Manually checking transactions from each bank can be cumbersome.
This may lead to:

  • Incorrect reports
  • Delayed collections
  • Extra workload in accounting

Solution:
Use automated reconciliation systems to match reports from each POS in real time.

4. Fraud Risk

Different POS channels can complicate fraud detection.
If each POS has separate fraud filters, it may create security gaps.

Solution:
Use a centralized fraud management system for all POS accounts.
This ensures suspicious transactions are monitored and blocked from a single point.

Best Practices for Multiple Virtual POS Management

  • Automated POS selection: The system should automatically choose the most suitable POS at the time of the transaction.
  • Single panel management: All POS accounts should be monitored from a unified dashboard.
  • Reconciliation integration: Daily POS reports should integrate with accounting systems.
  • Fraud protection: All POS transactions should be protected by a centralized fraud prevention system.
  • Downtime plan: If one POS fails, another should automatically take over.

Conclusion

Using multiple virtual POS accounts provides businesses with:

  • Cost advantages
  • Broader payment options
  • Uninterrupted sales
  • Global market access

However, if not managed properly, it can become a complex process.
Therefore, it is critical for businesses to simplify the process using a centralized payment orchestration solution.

Klogs offers businesses strong features for multiple virtual POS management:

  • Centralized control from a single dashboard
  • Automated POS selection
  • Simplified reconciliation
  • Fraud prevention

Simplify multiple virtual POS management in your business with Klogs Gateway and manage all your payment processes from a single platform.