How to accept payments online in 2024

As more consumers ditch cash and in-store shopping, setting up online payments is not just a smart business strategy — it’s a necessary one. It allows your business to make money around the clock, from far and wide. Figuring out how to accept payments online doesn’t have to be difficult. In fact, your business can be ready to accept payments online in just a few steps.

Some of those steps include deciding what payment types you need to accept, choosing a payment processor and setting up your payment gateway. Read on to learn more about how to accept online payment for your business.

How to accept online payments in 4 steps

For the purposes of this step-by-step guide, we’ll assume that you already have a business license and a business bank account. Here are the steps to follow to start accepting online payments.

1. Determine your needs

Accepting online payments starts with thinking about your business needs. Here are some questions to ask yourself first:

• How many payments do you take in a month?
• Which credit cards do you want to accept? 
• Do you want to accept debit card payments?
• Is taking eChecks and ACH payments a requirement for your business?
• Do you plan to take digital wallet, cryptocurrency or mobile payments?

2. Choose a payment processor

Unless you plan to build out your own payment capabilities and apply for a merchant account, you’ll need a payment processor. This is a company that handles credit card payments and works with banks to transfer funds from one party to another. Some of these companies also take payments through: 

• eCheck
• ACH
• Digital wallets
• Cryptocurrency
• Mobile apps

Select a payment processor that meets the needs you identified in the first step. Some companies offer high-transaction discounts as well as flat-rate and subscription-based plans. Also, check out any fees you could be on the hook for. That way, you’ll have a better idea of all the costs involved.

3. Create an account

After you find the right payment processor and cost plan for you, it’s time to create an account. For this step, you’ll need:

• Your basic business information, such as the address, contact details and website URL.
• Type of business (e.g., sole proprietor, LLC) information.
• Bank account information.
• An idea of how many transactions you’ll process every month.
• Business license, permits and other documents required based on your location or the company you work with.

4. Set up a payment gateway

Payment processors are a good fit for businesses starting to accept online payments because they offer out-of-the-box tools to help you quickly add payment capabilities to a website or app. 

One of those tools is a payment gateway, which can be embedded on a website or app to capture and verify payment information. That said, you don’t have to go through a payment processor to set up a payment gateway.

After setting up an account for you, the payment processor can give you the information you need to integrate the payment gateway into your website or app. Businesses can customize how they ask for online payment, whether it’s a shopping cart or an online invoice sent through email. Some companies also offer recurring billing.

After completing these steps, you’ll be ready to accept payments online.

Accepting different types of online payments

For businesses, there are more ways to get paid than ever before. Here are the most popular payment types you can accept as an online business.

Accepting credit and debit cards

Out of the many ways to accept payments online, credit and debit cards are two of the most common, particularly for online purchases. They typically come in the form of Visa, Mastercard, American Express and Discover.

According to the Federal Reserve, 83% of adults have one or more credit cards. Many consumers enjoy the convenience of using a card for online purchases. Add debit cards into the mix, and it’s easy to see why being able to accept these payment methods is crucial. 

Accepting eCheck and ACH payments

Although not as popular as credit and debit cards, eChecks and ACH payments are two additional ways businesses can get paid. An eCheck, or electronic check, is the digital form of a paper check. ACH is a network banks use to transfer funds electronically.

Using these forms of payment typically requires entering account and routing numbers into a payment gateway. For some businesses, such as those who send online invoices, this can be the simplest way to receive payments.

Accepting digital wallet payments

Digital wallets — such as Apple Pay, Google Wallet and PayPal — have become increasingly popular in recent years. According to Forbes, about two-thirds of U.S. shoppers reported using digital wallets to make payments as often or more often than credit or debit cards. 

Digital wallet transactions come with some security benefits, such as encryption, that you don’t get with other payment methods. For those making the payments, they provide the convenience of not having to key in credit card information. Additionally, digital wallets store credit card information — not you — making them less risky from a security standpoint. 

You can accept digital wallet payments by partnering with many of the same service providers that also assist with accepting credit cards, debit cards, eChecks and ACH payments.

Accepting cryptocurrency payments

Cryptocurrency, including Bitcoin, is gaining traction as a form of online payment. 

“Cryptocurrency is and will be part of the future, and the businesses that don’t participate will be left behind,” says Gerard Dache, executive director of Government Blockchain Association, which links business and government together to advance cryptocurrency and other blockchain technologies.

Cryptocurrency transactions tend to have lower processing fees and are thought to be safer than credit cards, which could be subject to chargebacks in the event of cardholder disputes. 

However, cryptocurrency can be subject to market volatility and longer processing times. “The protocol itself has never been hacked,” Dache says about Bitcoin, “but you pay for that in terms of waiting 10 minutes for that transaction to be settled.”

To accept cryptocurrency as a form of payment, you’ll first need a cryptocurrency wallet and a payment gateway that accepts cryptocurrency.

Accepting mobile payments

A mobile payment is any payment made using a smartphone or tablet. The source of the funds could be a credit card, debit card, bank account or a digital or cryptocurrency wallet, among others. Accepting mobile payments can be a great way to meet your customers where they are. After all, more than 60% of internet users count on their mobile devices to surf the web. 

Payment processors that handle digital wallet payments often provide mobile payment processing as well. That’s because there’s quite a bit of overlap. For example, ApplePay and Google Wallet are digital wallets that shoppers on both mobile phones and desktop computers can use to make payments. Some platforms, such as Cash App and Meta Pay, focus heavily on mobile users.

Advantages of accepting payments online

Here are some key ways businesses and consumers benefit from accepting and making online payments. 

Benefits for businesses:

• Attracts a wider array of customers, which could lead to increased revenue.
• Requires less equipment than in-person payments.
• Saves money on payment processing, depending on the provider.
• Gives an edge over less-advanced competition.
• Provides customer insights and other data. 
• Allows businesses to bring in revenue outside of regular business hours.

Benefits for consumers:

• Offers a quick, easy way to pay for products and services.
• Provides flexibility to pay in a variety of ways.
• Allows for the convenience of recurring payments.
• Comes with fraud and security features for added peace of mind.
• Makes it easier to keep track of purchases.
• Digitizes transactions, reducing reliance on paper receipts.

Security concerns with online payments

No form of payment method is completely safe — even cash. That said, accepting online payments opens businesses up to unique risks, including fraud, identity theft, cyberattacks, theft and scams. 

Routine security measures that keep in-person transactions safe, such as ID verification, are not applicable with online payments. From the consumer’s perspective, there is a risk of personal data being mishandled with online payments. 

Although there are clear security risks with online payments, accepting them can actually make things safer. Many companies that provide payment solutions put sophisticated security measures in place to ensure payments are safe. For businesses that accept online payments exclusively, there’s no need to secure cash on-site.

Top online payment solutions

Not all payment solutions companies are the same. Each has its own features, differentiators and cost plan to consider. Here are the best online payment solutions.

Square

Square offers a comprehensive suite of services, including team and customer management tools, making it our top pick overall. Its plans are easy to set up and offer various add-ons that can be tailored to meet unique business needs. 

Square provides a free plan that allows businesses to pay per transaction plus the monthly fees. Its Plus Plan offers a 30-day free trial with the option to upgrade or transition to the free plan. With a mobile card reader included with the free plan, Square is well-suited for businesses who also want convenient equipment for processing in-person transactions. 

There are some limitations with Square. High-volume businesses will likely prefer more cost-effective options. For everyone else, Square remains the most straightforward choice for credit card processing. 

Stripe

With hundreds of software integrations and a global-friendly interface, Stripe is one of the best online payment providers for scaling businesses that want a more seamless payment experience.

Stripe’s highly customizable offerings allow businesses to process payments in ways that meet their unique needs. Businesses can use Stripe’s Payment Methods API to accept payments from hard-to-reach locales, like countries where many consumers may not have bank accounts.

Stripe’s sophisticated interface offers many perks, but some users may find its features to be too advanced. And despite its transparent pay-as-you-go pricing, Stripe doesn’t provide any free credit card processing equipment like some of its competitors. 

PayPal

A well-known name in the online payment space, PayPal is another of our top picks, particularly for those who want to accept digital wallet payments. With its user-friendly design and no-cost account setup, PayPal is ideal for small- and medium-sized businesses. 

The company’s commitment to security shows in its offerings, with features like encrypted transactions, advanced fraud protection and buyer authentication. Businesses can accept convenient online payment methods, including popular digital wallets like Apple Pay, Google Pay and Samsung Pay. 

Despite its advantages, PayPal doesn’t provide any free hardware. Businesses looking to quickly cash out will be disappointed to learn that funds can take up to five days to transfer to their bank accounts.

For more choices in online payment solutions, check out our top credit card processing companies.

Frequently asked questions (FAQs)

What is the best way to accept payments online?

The best way to accept payments online happens to be the easiest: Just choose one of our top credit card processing companies to set up an account. Your payment processor will give you what’s needed, including a merchant account and a payment gateway to start accepting online payments quickly and efficiently.

How do I accept payments through my website?

To accept payments through your website, first determine your business needs. Next, select a payment processor that meets your needs and set up an account. Your payment processor will help you integrate a payment gateway with your website to begin accepting payments.

What payment options are not accepted online?

Cash is one of the few payment methods that can’t be accepted online. Also, not every online payment platform accepts cryptocurrency, such as Bitcoin.

Can you accept online payments for free?

While it’s possible to accept online payments for free, doing so as a business is usually not feasible. That’s because there are more costs associated with processing payments for businesses.

Peer-to-peer payment solutions make up the lion’s share of available free options. These offer less buyer and seller protections, appear less professional to consumers and are not as secure as payment solutions designed for businesses. These drawbacks make peer-to-peer payment services unsuitable for businesses.

How can I accept ACH payments online?

To accept eChecks and ACH payments, you can use a payment processor such as Stripe or Square. These companies and ones like them provide a payment gateway for customers to enter their sensitive information, such as account and routing numbers. After the payment clears, the payment processor transfers the funds to your business account.

How can I accept credit card payments online?

The easiest way to accept credit card payments is to work with a leading payment processor, such as PayPal and Helcim. These companies use an integrated model to provide a merchant account and other services. 

Signing up with an integrated payment processor is typically fast and easy, which is ideal for businesses needing a quick boost in revenue. Many of these companies also provide an online payment gateway to take credit card payments. That way, there’s no need to develop capabilities from scratch.

How can I accept debit card payments online?

The process for accepting debit cards is similar to taking credit card payments. You can work with a payment processor to establish a payment gateway. This will allow you to accept debit card payments online.

What is a payment gateway?

A payment gateway is a tool used to easily accept payments online. Customers input their payment information into the payment gateway. The funds are verified in seconds. 

A short time later, those funds get processed and transferred to your business bank account. Many payment processors offer a full range of services, including payment gateways, while others make you pay extra for add-ons.

Can I accept payments online without a bank account?

No, you can’t accept major forms of payment online without a bank account. You will need a bank account for the payment processor to deposit any payments it receives.