Customers increasingly want to make payments with physical credit cards or with their mobile phones. Learn about how your business can accept payments and keep up with customer expectations by understanding the various ways to accept credit card payments.
Ways to accept credit card payments
There are many ways your business can accept credit card payments from its customers. For example, your business may have a physical location, or it could be more mobile and have a digital presence. Either way, you will find that there are technology and hardware solutions available to assist you in reliably receiving payments from your customers safely and efficiently.
In-person or in-store payments
Keep in mind that, to accept credit card payments in-person or in-store, usually requires aPoint-of-Sale (POS) systemwith a card reader, or a credit card terminal that can process transactions. This form of accepting payments is ideal for businesses with a physical location, such as a restaurant or a retail store.
Accept online payments
If your business has its own website, it may be able to accept online payments if the website includes an online payment gateway. This form of payment is usually most appropriate for businesses that provide digital services and eCommerce features, such as an online store.
Mobile payment processing
With NAB Easy Tap, you can easily turn your Android device into a payment terminal. Having the ability to take payments anywhere through an app can benefit small businesses, for example, at market stalls and trade shows.
Over the phone
This method of accepting credit card payments is particularly relevant for businesses on-the-go, such as delivery-based restaurants. Your business will still require a payment terminal, Point-of-Sale (POS) system, or an online payment gateway. However, it’s important to be aware that there are significant fraud risks associated with accepting credit card payments over the phone. Learn how toprotect your business from card fraud and payment scams.
Recurring bills and payments
If your business accepts the same payment or payments from the same people repeatedly, it may be necessary to set up recurring payments, such as a direct debit. For more information on direct debits and how they can improve your cashflow and reduce admin effort, visit Billing and Recurring Payments.
Learn about the benefits of accepting credit card payments
It is essential for businesses today to accept credit card payments through a variety of methods to ensure that their customers can make simple, safe, and efficient payments.
Below outlines common reasons why your business should consider accepting credit card payments.
Increased sales
Customers typically prefer credit card payments because they’re faster, safer and a more convenient payment option, especially with contactless payment methods. It also removes geographical barriers, as any business can easily accept credit card payments from almost anywhere in the world. Customers are more likely to make impulse purchases with a card than cash for security or fraud protection and reward points.
Expand your client base
Accepting credit card payments can support building your client base as it can make your business accessible to customers who prefer card payments.
Level with the competition
If your competitors accept credit card payments, customers may choose to spend with them due to the convenience.
How to start accepting credit card payments
Here are the steps you need to take for your business to start taking credit card payments:
- Decide which cards to accept - Mastercard, Visa, Apple Pay, Google Pay etc.
- Select a payment provider.
- Set up a merchant account.
- Choose a payment gateway.
- Install a card reader or terminal.
- Display signage so customers know you accept card payments.
FAQs
If you want to accept credit card payments, you can do it in one of two ways: merchant accounts or payment service providers. A merchant account is an account that you open with a bank to accept credit card payments.
How can I accept a credit card payment as an individual? ›
How can I take card payments online? Payment service providers, such as PayPal, Stripe and Square, allow you to accept card payments online. Simply open an account with one of these providers and include a link for your customers to pay.
Can someone pay me with a credit card? ›
Sending money with a credit card can be convenient, but it typically comes with fees and higher-than-usual interest rates that can add up for big transactions. Apps like Cash App, PayPal and Venmo allow you to send money through their platforms with a credit card, while Apple Cash, Google Pay and Zelle don't.
Is there a free way to accept credit card payments? ›
There's no way to accept credit card payments for free, because the card issuer will always charge a processing fee for each transaction. Although you can't avoid these fees, you can choose to accept the cards that make the most sense for your business.
How to take card payments as a small business? ›
How to accept credit cards as a small business
- Choose a payment services provider (PSP)
- Set up a merchant account.
- Integrate a payment gateway.
- Acquire hardware and software for in-person transactions.
- Compliance and security considerations.
Cons. Zelle also doesn't allow for credit card payments. Venmo, Cash App and PayPal, on the other hand, let you link your credit card. Note, however, that if you use a credit card as your payment method with any of these services, you'll be charged a processing fee.
How to accept credit card payment without POS? ›
Payment Service Providers (PSPs) work in a similar way to merchant accounts. They accept and hold the funds from credit card payments until the transaction is processed. However, they are often much cheaper and more accessible. PSPs do not usually charge a prohibitive monthly fee.
Do I need a business account to accept card payments? ›
You can take card payments without a merchant account using a payment services provider like PayPal or Square. These services work much like merchant accounts but don't require a lengthy application process. However, the drawback is that they typically charge higher processing fees than merchant account providers.
How do I accept a credit card payment online? ›
Here are the steps you need to take for your business to start taking credit card payments:
- Decide which cards to accept - Mastercard, Visa, Apple Pay, Google Pay etc.
- Select a payment provider.
- Set up a merchant account.
- Choose a payment gateway.
- Install a card reader or terminal.
This is possible. The same way you can transfer money from your account into your credit card, other people can pay into your credit card too. But you should bear in mind that someone needs to know where you live before he can pay you a visit.
About Payment Methods
Venmo allows you to make payments using a variety of methods including: Venmo balance, bank account, debit card, and credit card.
How can an individual accept a credit card payment? ›
To accept credit card payments, your business needs a payment processor, POS hardware (if you're accepting in-person payments), online payment gateway (if you're accepting e-commerce payments) and a merchant account. Usually, you can get all of these components from the same provider.
What is the safest way to accept payments? ›
What is the safest way to accept payment? Besides cash, a certified check is the safest way you can receive a payment to your business.
How do I accept payments without a company? ›
To accept credit card payments without a merchant account, the process begins with signing up to a third-party payment provider. These are also called a: Payment service provider (or a global payment gateway). Payment facilitator.
Can I receive money from a credit card to a bank account? ›
Credit card issuers offer various ways to easily get a cash advance, including the ability to directly transfer money from a credit card to your bank account. But it comes at a price, with high interest rates, steep fees and the potential to cause dings to your credit score.
How to receive payment from credit card to bank account? ›
Step 1: Place a call to your credit card company. Step 2: Request a funds transfer. Step 3: Verify the amount you want to transfer to your bank account. Step 4: Provide the necessary bank account details and other required information.
Can I accept credit card payments on my phone? ›
Open a merchant account with a payment processing provider. Download the provider's mobile payment app. Pair a certified Android or iPhone credit card reader. Swipe, dip, or tap customer's credit card to complete sale.
Can I collect payment from credit card? ›
The company/issuing bank can check if the client has access to available credit and approve or reject the transaction. You can also collect Credit Card payments via third-party payment processors. Such third-party payment processors are quick and do not require an extensive application process.
