How to Accept Credit Card Payments Online in 4 Steps
This article is part of a larger series on Payments.
Small businesses wanting to expand to online sales will need to sign up with a traditional merchant services provider or payment processor to accept online payments. These companies provide the technology that allows online platforms (such as websites) to securely process credit card payments.
Accepting credit card payments online involves choosing how you want to receive payments, selecting a service provider, setting up and testing your system, and securing your site. We detail each step below:
Step 1: Decide How You Want to Receive Online Credit Card Payments
Businesses that want online credit card processing may do it in several ways:
- Through a website or ecommerce platform for customers to go to when making purchases, such as online shops
- By sending an invoice or a payment link that will take customers to a secure hosted payment page for one-time purchases, such as for service-based businesses, freelancers, or B2Bs
- By setting up recurring payments, such as for subscription-based products
- By using a virtual terminal to input the credit card information, such as for mail and telephone orders
For any kind of online credit card payment, a payment gateway is necessary to process the transaction and send the encrypted payment information. Some small business solutions, such as ecommerce platforms and invoicing software, either have their own payment gateways or allow users to integrate their service with other payment gateways for payment processing.
Step 2: Choose a Payment Processor or Service Provider
After you have decided how you want to accept credit card payments online, the next step is choosing a payment processor. Look for competitive processing fees and a solution that is compatible with how you would like to receive online credit card payments. While you won’t find a reputable processor to accept credit payments online for free, there are low-cost options available.
Choose how you would like to receive online credit card payments to see our recommended payment processors:
I would like to receive online credit card payments …
All-in-One Solution
If you would like the flexibility to accept payments in different ways, an all-in-one solution is the best option. Here are our recommended providers that can handle multiple credit card payment options and have zero monthly fees:
Processing Rates | Ecommerce Integrations | Invoicing | Recurring Payments | Virtual Terminal | |
|---|---|---|---|---|---|
 | Interchange plus 0.2% + 10 cents to 0.5% + 25 cents | ✓ | ✓ | ✓ | ✓ |
 | 2.59% to 3.49% + 49 cents | ✓ | ✓ | + $10 monthly fee | + $30 monthly fee |
 | 2.9% + 30 cents to 3.5% + 15 cents | ✓ | ✓ | ✓ | ✓ |
 | 2.9% to 3.4% + 30 cents | ✓ | + 0.4% to 0.5% processing fee | + 0.5% to 0.8% processing fee | Limited use |
Learn more about the best online credit card processors that offer payment flexibility.
Payment Gateway
If you already have an existing website and want to know how to accept credit card payments on your website, what you need is a payment gateway. Check with your website or ecommerce platform—most of them offer a built-in payment gateway or allow integrations. Here are the top payment gateways we recommend:
Monthly Fees | Processing Rates | Chargeback Fees | |
|---|---|---|---|
 | $25 | 2.9% + 30 cents or 10 cents per transaction and 10 cents batch fee | $0 to $25 |
| $0 | Interchange plus 0.2% + 10 cents to 0.5% + 25 cents | $0 to $15 |
| $0 | 2.9% + 30 cents to 3.5% + 15 cents | Waived up to $250 per month |
| $0 | 2.9% to 3.4% + 30 cents | $15 |
Learn more in our guide to the best payment gateways.
Ecommerce Platform
If you have yet to create your own website and would like to start accepting credit card payments online, you will need to sign up with an ecommerce platform. No matter what ecommerce platform you are using, you still need a payment gateway to accept credit card payments on a website. Some of these ecommerce platforms, like our top pick, Shopify, have built-in payment gateways or offer a list of payment gateways for you to choose from.
Online Store Starting Price | Processing Rates | Compatible Payment Gateways | |
|---|---|---|---|
 | $39 | 2.9% + 30 cents | 100+ |
 | $39 | Varies | 65+ |
 | $0 | Varies | 70+ |
| $0 | 2.9% + 30 cents to 3.5% + 15 cents | Square Payments |
Learn more in our guide to the best ecommerce platforms for small businesses.
Invoicing/Payment Links Solution
If your small business only receives payments by sending out invoices, a simple payment solution that allows you to send out invoices with payment links is all you need to start accepting credit card payments online. This payment setup is often applicable for those offering professional services, freelancers, or B2B merchants.
Monthly Fee | Processing Rates | Compatible Payment Gateways | |
|---|---|---|---|
 | $30 to $200 | 2.9% + 25 cents | QuickBooks Payments |
 | $17 to $55 | 2.9% + 30 cents | FreshBooks Payments, Stripe, PayPal |
 | $19 to $149 | Varies | 30+ |
| Free or $20 | 2.9% + 30 cents | Square Payments |
Learn more about the best invoicing software for small businesses.
Recurring Payments Solution
Recurring payments, often referred to as subscription payments, recurring billing, or automatic payments, are payments that are pre-scheduled to be collected at specific intervals. These payments are often used for subscriptions, professional services, memberships, and lessons.
Monthly Fee | Processing Rates | Recurring Payments Service Fee | |
|---|---|---|---|
| $0 | 0.2% + 10 cents to 0.5% + 25 cents | $0 |
| $0 | 3.5% + 15 cents | $0 to $20 |
| $0 | 3.49% + 49 cents | $10 to $40 |
 | $0 | 2.9% + 30 cents (+ 0.5% for AmeEx) | $0 |
Learn how to set up recurring payments and our top payment processors for this payment solution.
Virtual Terminal
If your business primarily handles orders placed by phone, mail, email, or instant messaging, a virtual terminal will allow you to key in your customer’s credit card information to process the payment. Because of the higher risk of fraud with this payment method, processors often charge a slightly higher processing fee than other online credit card processing.
Virtual Terminal Fee | Processing Fee | Chargeback Fee | |
|---|---|---|---|
| $0 | 3.5% + 15 cents | Waived up to $250 per month |
| $0 | Interchange plus 0.2% + 10 cents to 0.5% + 25 cents | $0 to $15 |
 | $0 | 2.9% + 25 cents | $25 to $100 |
| $30 monthly fee | 2.39% + 49 cents to 3.09% + 49 cents | $15 to $20 |
Learn more about the best virtual terminals for small businesses.
Is your business in the high-risk category because of the good or services you provide? Check out our list of the best high-risk merchant accounts.
Step 3: Set Up & Test Your Online Payment Processor or Service Provider
The process of setting up what you need to accept credit cards on a website or online will vary depending on how you choose to receive payments. Most all-in-one solutions will have a dashboard where you can access different payment options. Follow your provider’s instructions on how to set up each payment channel.
If you use an ecommerce platform or invoicing software with a separate payment gateway, you might need to use integrations to link the services. Refer to your provider’s documentation on how to do this and complete all the customizations needed for invoices and checkout pages.
Most payment processors allow you to test and run trial transactions. Conduct tests and make sure everything is working correctly as it should.
Step 4: Secure Your Site
One of the most important things you will need to double-check are your payment security processes. It’s important to get this step locked down as soon as possible to make sure all your transactions are protected. At a minimum, you want to meet the requirements outlined in the Payment Card Industry Data Security Standard (PCI DSS). This is known as the PCI standard.
The PCI Standard is a set of payment security guidelines all businesses accepting credit card payments need to adhere to. The standard was created by credit card companies and is enforced by the PCI DSS Council. Failure to maintain PCI compliance can result in fees. If fraud occurs while you’re not compliant, your business may be deemed at fault, and you could be held financially responsible.
There’s a higher risk associated with online payments because the card isn’t physically present for the purchase, which poses a greater risk of fraud. So banks and credit card companies charge higher processing fees to cover the risks associated with processing online payments.
Regular occurrences of fraud and chargebacks will increase your processing fees. Look for a payment processor with built-in chargeback and fraud prevention or third-party software. Many online processors have features like address verification services (AVS) or machine-learning algorithms to help prevent fraudulent transactions from being approved.
How to Increase Conversions With One-click Checkouts & Installment Payments
An average of 80% of online shopping carts are abandoned. One way to combat high cart abandonment rates is by creating an easy checkout process, including one-click checkouts with platforms like Google Pay, Apple Pay, Amazon Pay, and PayPal. Payment processors that specialize in online payments or retail (including Square and Stax) offer these kinds of one-click checkout options.
Other processors, like Shopify, offer their own one-click checkout solution (Shop Pay), in addition to Apple Pay and Google Pay. Shopify surveyed its own merchants and found that sites with Shop Pay have a checkout-to-order rate of 1.72x times higher than those going through regular checkouts without Shop Pay.
Enabling one-click checkout options, like Shopify’s Shop Pay, is the next step in setting up your online payments. (Source: Shopify)
In other words, it’s not enough just to set up online payments—you need to optimize your checkout process so it’s convenient for your customers. In return, you’ll see a boost to your bottom line.
In many cases, particularly for retailers, shoppers expect the convenience of flexible payment terms in addition to one-click checkouts. More than 50% of consumers have used a buy now, pay later (BNPL) service. BNPL and interest-free installment payments are customer financing options that allow shoppers to pay over time.
Most popular small business website builders and ecommerce platforms work with customer financing solutions—like Klarna, Afterpay, and PayPal’s PayPal Credit or Pay Monthly.
Learn more: Best BNPL Apps for Merchants
How to Lower Processing Fees
For microbusinesses and occasional payments, services like Venmo for Business and Chase QuickPay have options to send and receive funds for free. However, most businesses will need a merchant account. For businesses processing under $5,000 monthly, Square typically offers the best value. For businesses over that threshold, Payment Depot is often the cheapest credit card processor.
As your business grows, continue to negotiate lower rates with your payment processor. Once you’re consistently processing $15,000–$20,000 monthly, you may qualify for custom rates.
Depending on your business type, you can also consider accepting ACH payments, which is one of the lowest cost-payment types. While standard online credit card processing fees are 2.9% plus 30 cents, ACH processing fees are typically 1%.
ACH transactions require customers to enter their bank information, so this payment type is typically best for recurring payments like subscriptions, ongoing services, and very expensive or high-end transactions.
Learn more about ACH payments and other ways to lower the costs of accepting online payments.
How to Accept Credit Cards Online Frequently Asked Questions (FAQs)
You will need to sign up for an online payment processor or merchant services provider in order to accept credit card payments on your website. The system connects you with banks and large financial institutions that issue credit cards and provides you with the technology to safely process payment information. Three of the most popular online payment processors are Square, Stripe, and PayPal.
Every processed transaction automatically carries a cost imposed by the card network brands and the large financial institutions for using their service. This means free credit card processing is impossible. One alternative is to pass on the fees to customers via credit card surcharging, which we don’t recommend, although it is legal in some states.
Yes. The best online payment processors provide payment links and payment buttons you can add to most online platforms, including emails, text messaging, and social media sites. Clicking on these links/buttons will send your customer to your very own checkout page, where they can pay for their purchases.
The cost for accepting online payments varies and depends on a number of factors, such as your chosen payment processor and your sales volume. Small businesses with low-volume sales tend to be charged higher transaction rates (via a flat-rate pricing method) starting at 2.9% compared to those regularly processing huge volumes of transactions where fees start at interchange plus 15 cents.
The best online credit card payment processor depends on your business needs. Generally, we recommend Square Payments as the overall best option for small businesses to accept credit card payments online. It does not charge monthly fees, and the system is easy to set up, so you can have your website and start accepting online payments in minutes.
Bottom Line
There are many ways to accept credit cards online. You may accept credit card payments on a website, by sending an invoice, through recurring payments, or using a virtual terminal. The best way to accept credit card payments online depends on your business. If you are a sole proprietor, a new business, or merely budget-conscious, a simple solution such as Square offers a user-friendly website builder, online store, virtual terminal, and invoice payments.
