PayPal Virtual Terminal: Taking Card Payments, Refunds and Voids

Here's the catch that trips people up later. As of October 2026, a Virtual Terminal sale can only be refunded with the Refund button for 60 days. After that, PayPal's own instructions have you send the customer a brand new payment and choose Sending to a friend. So if you take orders that might come back months later, know that the refund route changes at day 60.

The three Virtual Terminal order types

When you launch Virtual Terminal, you pick a tab for the kind of transaction you're processing.

Tab	What you enter, as of October 2026	Useful optional extras
Quick order	Transaction type, amount, currency, card details and billing zip code	Invoice ID, order description, customer email, shipping address
Standard order	All the details needed for processing, plus the customer's card and billing address	Tax rate, shipping amount, tax on shipping, invoice ID, PO number, phone and email
Recurring payment	Product or service name, the amount, number of payments, payment cycle, start date and currency	Failed payment settings, trial period, one-time setup fee, profile reference

Two optional fields earn their keep. An Invoice ID blocks duplicate invoice IDs, which stops you charging the same order twice by accident. And if you enter the customer's email address, PayPal can send them a PayPal-branded receipt once the transaction completes. The order description is searchable later, so it's worth a line.

Sale or Authorization: which to choose

Every Quick order starts with a transaction type. Sale charges the amount straight away and marks it for transfer in the next settlement period, all in one step. Authorization is a two-step process: it checks the card has enough funds or credit and holds the amount, then you capture it manually later.

Authorization suits businesses that need room to adjust. You can capture an amount that differs slightly from what you authorised, to reflect changes to taxes, shipping or item availability after the order. But each authorization has an honor period during which approval is guaranteed. Capture after it ends and the charge may not be approved if the funds on the card have changed.

Taking a Quick order, step by step

1. Launch Virtual Terminal from the Business Tools page and choose the Quick order tab.
2. Select Sale or Authorization from the transaction type drop-down.
3. Enter the amount, currency, card details and billing zip code, plus any optional fields.
4. If you're shipping something, choose the Shipping address option and fill in the address.
5. Review everything in the Order Preview section.
6. Click Place Order. PayPal processes it immediately. Cancel clears the page if you need to start again.

Capturing an authorization

An authorization isn't a payment until you capture it. PayPal recommends capturing within three days of the original authorization.

1. Go to your Activity page.
2. Find the transaction.
3. Click Capture in the Actions column, or click the Name field to open the Transaction Details page and click Capture there.

Voiding an authorization you won't use

If you no longer want to capture the funds, void the authorization. Authorizations are the only Virtual Terminal transaction you can void, and a void cancels the entire open amount, releases the funds to the customer's card and means you can't capture anything from it afterwards. You can void while the authorization is pending, or when you haven't captured the full authorised amount.

1. Go to your Activity.
2. Find the transaction and click Void in the Actions column.

Refunding a Virtual Terminal sale

Within 60 days of the original payment, go to your Activity, find the transaction and click Refund in the Actions column. After 60 days, the steps PayPal gives are:

1. Start a new payment to the customer and enter their email address, mobile phone number or name.
2. Enter the refund amount and currency, with an optional note under What is this payment for?
3. Click Continue and choose Sending to a friend.
4. Select the payment method for the refund and click Next.
5. Review the details and click Send the Payment, or Change payment method to pick another.

Recurring payment profiles

The Recurring payment tab sets up a profile that bills a customer at regular intervals. Beyond the basics, you choose how many failed payments to allow and whether to add failed payments to the next billing cycle. You can add a trial period charge, and a one-time transaction such as a setup fee, which is added to the first payment. Click Continue to review, then Submit if it's right.

Giving staff access to Virtual Terminal

By default, Virtual Terminal is set up for a single user, but you can give secondary users access, and only the account owner can change their privileges.

1. Log in to your PayPal business account and go to Manage Users.
2. Click the User ID you want to give access to.
3. Click Permissions on the left menu, then Add Permissions.
4. Tick Virtual terminal for offline sales and click Continue. You'll see Permissions updated successfully.

For a new user, the permission checklist appears after the initial setup of name, email, ID and password. To revoke access, go to Manage Users, click the three dots under Actions, then View profile, Permissions, the three dots next to Virtual terminal for offline sales and Remove Permission. They can't process Virtual Terminal transactions after that.

My verdict on PayPal Virtual Terminal

I'd use Virtual Terminal if you take card details for offline sales and already run a PayPal business account. Use Sale for simple orders and Authorization only when the final amount might change, and capture inside three days. If your customers can pay online themselves, PayPal payment links save you typing card numbers at all, and it's worth checking how PayPal fees work before you choose.

If your team re-keys the same order details into PayPal, your CRM and a spreadsheet, that's exactly the sort of repeat work I help businesses automate. I run AI training and workshops for teams, and help businesses with AI enablement and workflow automation, so the busywork runs itself and people get time back. Most of that work is with SaaS marketing teams and small businesses. Here's how we can work together.

Frequently asked questions

Where do I find PayPal Virtual Terminal?

Once your PayPal account is configured to use it, you launch Virtual Terminal from the Business Tools page.

What's the difference between Sale and Authorization in Virtual Terminal?

Sale charges the card straight away in one step. Authorization checks the card and holds the amount, and you capture the funds manually later.

How soon should I capture a Virtual Terminal authorization?

PayPal recommends capturing payments within three days of the original authorization.

Can I refund a Virtual Terminal payment after 60 days?

Not with the Refund button. After 60 days, PayPal's steps are to send the customer a new payment and choose Sending to a friend.

Can more than one person use Virtual Terminal?

Yes. It's set up for a single user by default, but the account owner can give secondary users the Virtual terminal for offline sales permission in Manage Users.