Businesses in every industry and stage of growth must decide how to accept payments from customers—and how to balance online payments, in-person payments, and payments on mobile devices. There’s no one-size-fits-all solution to this challenge, and the answer will depend on the business itself.

In 2024, top payment methods in the US included credit cards at 35% of all transactions, debit cards at 30%, cash at 14%, and ACH at 13%, followed by alternative payment methods like prepaid cards, gift cards, and buy now, pay later payment methods making up 5% of the total.

Below, we’ll cover different kinds of payment methods and how to figure out which options are the best fit for your business.

What’s in this article?

• How to accept payments online
  
• How to accept credit and debit card payments on a website
  
• Accepting payments in person
  
• Benefits of accepting payments online
  
• Should I sell through my website or a marketplace?
  
• How much does it cost to accept payments?
  
• Other common fees charged by payment processors
  
• Which payment processor is best for my business?
  
• How Stripe Payments can help
  

How to accept payments online

To get started accepting online payments, you need two things: a payment processor and a payment gateway. Some providers offer both, and some offer only one. Here’s how payment processors and payment gateways differ:

• Payment processor
  Payment processors manage the entire scope of a transaction. They handle communication between the customer’s bank and the merchant’s bank, getting the money where it needs to go. They’re the third-party tool that gives you the technical ability to accept payments and process transactions.

• Payment gateway
  A payment gateway either approves or denies a payment method after a customer submits it for payment. Gateways send payment information to the payment processor, which handles the rest of the transaction. Stripe, like most payment processors, has gateway functionality built into its payment processing solutions, so you don’t need to worry about setting up a separate gateway. However, standalone payment gateway products do exist.

Once you have your processor and gateway selected, follow these steps to start accepting payments:

1. Complete your account setup
   First, create your merchant account with your chosen provider. You’ll need to provide business details, verify your identity, and link a bank account so the processor knows where to deposit your funds.

2. Integrate your payment gateway
   Next, connect the gateway to your website or app. If you’re using an all-in-one solution like Stripe, this often involves simply embedding a prebuilt payment user interface or installing a plugin. For custom builds, you’ll use application programming interface (API) keys to establish a secure connection between your platform and the processor.

3. Run a payment test
   Before charging customers, use your provider’s “test mode.” This allows you to simulate successful and failed transactions using dummy card numbers to ensure your checkout flow, automated emails, and receipts are all working correctly.

4. Go live and process transactions
   After successful testing, it’s time to go live. Your system is now ready to securely authorize real-time payments and move money from your customers’ banks to yours.

How to accept credit and debit card payments on a website

Merchants must have a payment processor and payment gateway set up in order to accept credit card or debit card payments on their website. If you’re selling through an online marketplace or platform with built-in payment processing for merchants, you’ll probably only need to link your business bank account.

Accepting payments in person

If your business also conducts transactions in person, pick a payment processor that offers hardware to accept in-person transactions—like a point-of-sale (POS) terminal and a card reader that’s able to accept credit and debit card information. Your payment processor should also offer cloud-based payments software that aggregates in-person and online transactions.

Make sure your card reader is able to accept these types of credit and debit card payment methods:

• Contactless payments
  Most credit and debit cards can transmit payment information when you hold the card close to the card reader or tap it. These card transactions use near-field communication (NFC), which also supports digital wallet transactions and are highly secure. Most modern card readers accept these types of transactions, including digital wallet payments, which are an increasingly popular payment method for consumers and businesses due to their convenience and security. Tap to Pay allows businesses to accept contactless payments directly on compatible iPhones and Android devices.

• EMV chip payments
  If you’ve ever inserted a credit or debit card into a card reader, instead of tapping or swiping it, that payment action was facilitated by an EMV chip. EMV chips are small square computer chips that are embedded in some cards, which are used when customers insert a card instead of swiping or tapping it. These chips conduct payments by transmitting unique codes—not card numbers—to card readers, making payments less vulnerable to fraud than card number-based swiped-card transactions.

• Magnetic stripe payments
  Magnetic stripe (magstripe) payments use the magnetic stripe that stretches across the back of credit cards, debit cards, prepaid cards, and some gift cards. Although this classic card payment mechanism is less secure than other methods of credit card transactions, many credit and debit cards still use them. It’s a good idea for your business to be equipped to process magnetic stripe payments, even if you prefer newer, more secure methods.

Benefits of accepting payments online

Whether your business accepts in-person payments or exists entirely online, accepting online payments is a powerful way to expand your digital presence, drive growth, and convert customers effectively. Most businesses today need to accept online payments, and even businesses that operate entirely in person benefit from adding online payment processing.

Businesses that need to accept payments online include:

• Ecommerce and direct-to-consumer (DTC) retailers
  
• Subscription-based businesses (memberships, digital content, recurring services)
  
• Software-as-a-service (SaaS) platforms
  
• Digital creators and influencers (selling content, courses, or merchandise)
  
• Online marketplaces connecting buyers and sellers
  
• Platform businesses that facilitate payments between multiple parties
  
• Service-based businesses offering online booking and payments (consultants, agencies, freelancers)
  
• Digital product sellers (ebooks, templates, software licenses)
  
• Nonprofits and organizations accepting online donations
  
• Education and training providers offering paid online courses or programs
  

The majority of Americans prefer to shop using an online payment option. In 2024, 92% of Americans used digital payments, up from 82% in 2021.

Should I sell through my website or a marketplace?

Merchants must choose between selling on their own website, where they control branding, customer experience, and data, or selling through a third-party marketplace, which provides built-in audiences and faster exposure but less control.

Accepting payments on your own website puts the burden of processing payments on you, but it comes with a few important advantages:

• Full control over the customer experience
  You have total control over how your website looks, how it is organized, and what gets featured. You can curate and optimize every detail of a visitor’s experience, according to your goals and target audiences. Accepting payments on your website allows you to increase conversion, grow revenue, and strategically orchestrate your marketing and sales efforts.

• Stronger brand ownership and customer loyalty
  When you primarily process sales through your own website, you get immeasurable brand equity in return. If a potential customer discovers your product on a large marketplace like Amazon, they could easily decide to purchase another brand’s product instead.

If you’re trying to cultivate a strong brand with scalable solutions that will grow with you, selling on your own website may be the best option.

However, there are definite benefits to selling through marketplaces: they give your business exposure to new customers, bolster credibility, and provide you with a payment gateway and payment processor. Consider the best fit for your business and your goals.

How much does it cost to accept payments?

Payment processors typically charge fees in one of three ways. Each model affects how predictable your costs are and how much you pay per transaction. Multiple factors affect the cost of accepting payments, including your industry, the payment processor you use, and which payment methods you most commonly accept.

There are three main pricing models that payment processors use:

• Interchange plus pricing
  You’ll pay the interchange rate set by the credit card network, plus a margin added by your payment processor. Your costs vary by card type, but pricing is often a percentage plus a small fixed fee (e.g., 2.9% + $0.30 per transaction).

• Subscription pricing
  You’ll pay a flat monthly subscription fee that covers most of your processing costs. This can lower per-transaction fees if you process a high volume of payments.

• Flat rate per transaction pricing
  You pay the same rate for every transaction of the same type. While this includes interchange differences, it offers predictable pricing that’s easier to budget.

Other common fees charged by payment processors

Aside from the processing costs, there are a few other fees you might run into with your payment processor or merchant account. A merchant account is a type of bank account that allows your business to accept card payments. Some modern processors include this as part of an all-in-one solution.

• Setup fee
  You’ll pay a one-time initial charge to establish and configure your new merchant account. This covers the administrative costs of onboarding your business so you can begin accepting payments.

• Monthly minimum fee
  If your total processing fees for the month don't reach a specific threshold set by your provider, you’ll pay the difference. This ensures the processor maintains a baseline level of revenue even during your slower sales months.

• Payment card industry (PCI) fee
  You’ll pay a recurring fee to cover the costs of maintaining the data security standards required by the Payment Card Industry Data Security Standards (PCI DSS). This helps protect your business from data breaches and ensures your payment environment remains secure and compliant.

• Annual fee
  You’ll pay a single lump sum once a year to maintain your service agreement with the merchant provider. This functions as a membership cost to keep your account active and accessible over the long term.

• Batch fee
  You’ll pay a small fee each time your daily transactions are bundled together and submitted for settlement. This covers the technical processing required to move a day’s worth of captured funds into your bank account.

• Chargeback fee
  You’ll pay a penalty fee whenever a customer successfully disputes a transaction and the funds are forcibly reversed. This covers the administrative overhead the processor incurs while mediating the dispute with the card-issuing bank.

• Early termination fee
  You’ll pay a fixed closing fee if you decide to cancel your service contract before the agreed-upon end date. This acts as a contractual safeguard for providers who offer lower rates in exchange for long-term commitments.

Stripe doesn’t charge setup fees, monthly minimums, annual fees, or early termination fees. You can see Stripe’s pricing here.

Which payment processor is best for my business?

For each payment processor option, consider the cost, scope of services, and potential scalability, among other factors. For most businesses, from small, independent merchants to larger marketplaces, platforms, and enterprise companies, an all-in-one payments solution like Stripe is the most functional and economical option for payment processing. An all-in-one solution allows businesses to accept many other forms of payment outside of credit and debit cards.

Also consider which payment processor will provide the best customer experience. If the transaction is effortless, you’re not only more likely to convert the sale, but you’re also investing in a better brand experience for that customer, which can generate brand loyalty and increase their lifetime value (LTV).

For small businesses, consider flat-rate pricing, low monthly fees, and all-in-one payments providers like Stripe.

Conversely, a payment processor that makes transactions feel clunky or dysfunctional risks losing sales and alienating customers. People will walk away from a transaction if checking out is a headache. Ideally, a payment processor will elevate this moment and help your customer complete their purchase. For example, Stripe’s payments platform uses machine learning to avoid customer friction at checkout, protect your business from fraud, and minimize false declines. The result is higher conversion and a smoother customer experience.

Here are a few things to consider when you’re picking the right payments solution:

• Customization
  Choose a payments solution that lets you tailor your checkout user interface and integrate with your existing digital ecosystem—and also gives you the tools and support to customize and deploy your payments setup easily.

• Security
  Prioritize a processor that offers robust fraud prevention like 3D Secure and Address Verification Services (AVS). Protecting customer data across online and in-person transactions, as well as card-present (CP) and card-not-present (CNP) transactions, is essential for building trust.

• Full-scope payment and growth solutions
  Look for a partner that supports adjacent business needs like invoicing, marketing funnels, and detailed sales reporting. An integrated strategy ensures your payment data informs every other facet of your business.

• Scalability
  Select a provider that supports everyone from small startups to global enterprises. A scalable solution saves you the future headache of migrating your data as your transaction volume and complexity grow.

• Range of payment methods accepted
  Offer a wide range of options including digital wallets, Buy Now, Pay Later, and bank transfers. While cards remain popular, providing modern alternatives is key to meeting shifting consumer preferences.

• Responsive merchant support
  Ensure your provider offers reliable, 24/7 communication to resolve technical issues quickly. Responsive merchant support prevents minor payment disruptions from turning into major revenue losses.

• An intuitive user interface
  Optimize your checkout flow to be as simple and effortless as possible for the end user. A clean, intuitive interface reduces friction at the final step and directly increases your conversion rates. Tools such as Link by Stripe make this easy by autofilling returning customers’ payment information at checkout.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.