What is the primary function of a wireless terminal in payment processing?

The primary function of a wireless terminal in payment processing is to facilitate transactions via a cellular data network. This technology enables merchants to accept payments without being tethered to a specific location, providing mobility and flexibility, especially in scenarios like outdoor markets, events, or deliveries. Since these terminals operate wirelessly, they can process card payments securely while connected to cellular networks, allowing real-time transaction verification and authorization, similar to traditional point-of-sale systems.

In contrast, the other options describe functions that do not align with the core capabilities of wireless terminals. For instance, a physical card reader connected directly to a register is typical of wired point-of-sale systems that require a fixed location and do not offer the mobility that wireless terminals provide. Accepting cash payments only is not a function specific to wireless terminals, as they are designed to process electronic transactions, primarily using cards. Lastly, a system requiring a physical connection to the internet does not embody the core feature of mobility and convenience that wireless terminals represent, as they rely on cellular connections instead.