How to Accept Credit Card Payments for a Small Business

To accept credit card payments as a small business, choose a payment processor, pick the right tools for where you sell (a card reader, POS system, online checkout or payment links), connect it to your business bank account and keep your payments secure. Most small businesses can start accepting cards in a day using an all-in-one provider.

Step 1: Decide how you’ll take payments

Where you sell	What you need
In a shop or at markets	Card reader or POS terminal (tap, chip and swipe)
On the go	Mobile card reader that connects to your phone, or tap-to-pay on your phone
Online store	Payment gateway or checkout built into your website
Services and freelancers	Invoices with a “Pay now” link or payment links
Over the phone	Virtual terminal to type in card details

Step 2: Choose a payment processor

There are two main types:

• All-in-one processors (payment service providers): quick sign-up, simple flat-rate pricing and hardware included. Ideal for new and small businesses.
• Merchant accounts: a dedicated account with a bank or processor. They can be cheaper at high volumes but take longer to set up and may have monthly fees and contracts.

When comparing providers, check:

• transaction fees and any monthly or hardware costs
• how fast you receive your money (payout speed)
• whether it works with your website, invoicing and accounting software
• contract length and cancellation fees
• customer support

Step 3: Understand the fees

Most providers charge a percentage of each sale plus a small fixed fee per transaction. Rates typically sit in the low single digits, often around 2.5%–3.5%. Keyed-in and online payments often cost a bit more than tapped or chipped cards. Always read the full pricing page, and record these fees in your books. See how to track business expenses.

Step 4: Set up your account

1. Sign up with your business details, including your EIN or SSN and your business bank account.
2. Verify your identity as requested by the provider.
3. Order hardware or set up online checkout.
4. Run a small test payment and refund it.

Don’t have a registered business yet? Start with how to start a small business at home.

Step 5: Keep payments secure (PCI compliance)

Any business that accepts cards must follow the Payment Card Industry Data Security Standard (PCI DSS). Most all-in-one processors handle much of this for you. Your part:

• Never write down or store full card numbers.
• Use the provider’s secure checkout, not your own payment forms.
• Keep devices updated and use strong passwords with two-factor authentication.

Step 6: Reduce chargebacks

A chargeback happens when a customer disputes a payment with their bank. To avoid them:

• Use a business name on statements that customers will recognise.
• Have a clear refund policy and good communication.
• Keep receipts, delivery confirmations and signed agreements.

Can you charge customers a card fee?

Surcharging rules depend on card network rules and state law, and some states restrict it. Offering a cash discount is another option. Check your processor’s guidance and local rules before adding fees.

Frequently asked questions

What is the cheapest way to accept credit cards?

For low volumes, flat-rate all-in-one processors are usually the simplest and most affordable. High-volume businesses may save with a merchant account.

Can I accept card payments on my phone?

Yes. Many providers offer tap-to-pay on compatible phones or small Bluetooth card readers.

How long does it take to receive the money?

Typically 1–2 business days, with instant payouts available from many providers for an extra fee.

Do I need a business bank account?

It’s strongly recommended, and many processors require one for business payouts.

Want more customers paying by card? Read how to market a small business.

This article is general information, not financial or legal advice. Fees and rules vary by provider and state.

Sources

• PCI Security Standards Council
• SBA: Marketing and sales