How To Accept Credit Card Payments As A Small Business

Cash is on the decline, and more customers are paying with credit and debit cards. If your business can accept cards, you can boost sales — and it’s easier than you might think.

Payment service providers (PSPs) like Square can get you set up to take card payments in a day or two. Traditional merchant accounts take a bit longer to set up, but can save you money if you process a lot of transactions each month.

In this article, we’ll break down the best ways for small businesses to accept credit cards and walk you through how to get started with credit card processing.

Ways To Accept Credit Card Payments As A Small Business

The best credit card processing companies can handle both in-person and online payments. Mobile payments have also become popular, as wireless terminals and mobile card readers let businesses accept payments almost anywhere, while integrated payments platforms pull it all together for an integrated solution.

Here’s a breakdown of what you need to know about each method.

In-Person Payments

If you have a physical location, like a store or restaurant, you’ll need at least one card machine per location. You can choose between:

• Countertop terminals: Simple machines that just process payments.
• POS systems: More advanced systems that can track inventory, schedule employees, and more. They cost more but offer a lot more features. Tablet-based POS systems are often cheaper and portable.

Pro tip: Make sure your hardware accepts EMV chip cards and contactless payments like Apple Pay. Having QR code payment options is also a nice touch for customers who prefer tap-and-go.

Online Payments

If your business is online-only with no in-person sales, you don’t need physical hardware. You can accept payments from customers in two ways:

• Virtual terminals: These turn your computer into a card reader, letting you manually enter card info. Retailers can also pair a virtual terminal with a card reader to replace a dedicated countertop terminal for in-person payments.
• Payment gateways: With this web-based software service, you can connect your website to your processor’s payment network so customers can pay online. Some providers include a free gateway with your account. Note that using a third-party gateway may cost extra per transaction.

Pro tip: If you send invoices, online or even text-based invoices can get you paid faster. Customers can just click a link and pay instantly—no checks or manual processing required.

Mobile Payments

For businesses that are on the go, mobile readers are lightweight, affordable, and let you accept payments anywhere. This is great for field work, pop-ups, or even extra checkouts in restaurants.

Mobile systems usually include an app for your tablet or smartphone and a card reader that connects to your device via Bluetooth or headphone jack.

Modern mobile card readers support EMV and contactless payments and cost significantly less than traditional countertop terminals. You may even be able to accept Tap to Pay directly on your device — no card reader required.

Pro tip: If you want to go the easiest route, sign up with a payment service provider like Square or PayPal. You can apply online and often get approved within 24 hours. Square even offers a free magstripe reader, and you can accept contactless payments using just your phone with Tap to Pay on iPhone or Android.

For more info on mobile payment systems, check out why accepting credit cards with your phone is the easiest option.

All-In-One Credit Card Processing

A growing trend in the processing industry is integrated payments platforms. These all-in-one platforms use payment gateways to combine online and in-person payments into one system. Sales processed with credit card terminals, POS systems, virtual terminals, and payment gateways are integrated into one platform.

Integrated payments platforms let you track sales in real time, accept phone or online orders, and avoid juggling multiple providers.

Pro tip: Even if you’re a small retail shop with no website, having a dashboard to see all your sales in one place can save hours each month and help you spot trends faster. Providers like Square, Toast, and many traditional merchant accounts now offer these platforms.

4 Steps To Start Accepting Credit Card Payments

Setting up credit card processing doesn’t have to be complicated, but it does take some research. Here’s a straightforward roadmap to get your business ready to accept cards.

What’s The Best Way To Accept Credit Cards For Your Small Business?

There’s no single “best” way to accept credit cards because every business is different. But by following the steps above, you can pick a processor and the right equipment that fits your needs.

Whether you’re looking for the cheapest credit card processing or a solution for a new startup, there are plenty of great payment processing options out there. Now, it’s just a matter of finding the one that’s right for your business.