How to Accept Payments as a Small Business in 2026

If you're wondering how to accept payments as a small business, you'll need a business bank account and a payment provider that can transfer funds to it. From there, you can choose the payment methods that fit how you sell and what your customers prefer.

Small businesses can accept payments in person, online, by invoice, or through recurring billing. Cards are a common starting point, but they aren't always the cheapest option.

The main things to compare are processing fees, setup requirements, payment speed, and what happens if a customer disputes a charge.

According to the Federal Reserve’s 2026 Diary of Consumer Payment Choice, credit and debit cards accounted for two-thirds of all U.S. consumer payments in 2025.

This guide explains the main payment options, their costs, and how to choose the right setup for your business.

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What Does It Mean to Accept Payments as a Small Business?

Learning how to accept payments as a small business starts with understanding how money gets from your customer to your business bank account. The process involves several steps, and payment providers charge fees to handle transactions.

Three terms are worth knowing. A payment processor moves transaction information between banks and payment networks. A merchant account temporarily holds card payment funds before they reach your business bank account, although some providers handle this for you. A payment gateway securely collects and sends payment details for online transactions.

For an online card payment, the process typically works like this: the customer enters their card details, the payment gateway sends the information to the payment processor, and the transaction goes through the card network to the customer’s issuing bank for approval. Once the payment is processed, the funds are settled to your business bank account, sometimes through a merchant account.

Cards and digital payments aren't the only options to consider. According to the Federal Reserve’s Diary of Consumer Payment Choice, consumers made an average of six cash payments per month, accounting for 14% of all payments. Keeping cash as an option can help you serve customers who prefer paying that way.

The basic process is similar for startups and small businesses, but your setup depends on how you sell, your transaction volume, and the payment methods your customers prefer. 

What Do You Need To Accept Payments?

To accept payments as a small business, you’ll usually need a tax ID, a bank account for deposits, and any business registration your structure requires. The account, however, should match your registered business details.

An EIN is free from the IRS, and eligible applicants can usually get one online in minutes. You can usually get one online immediately, if eligible.

You don’t need a website to start accepting payments. Many providers let you accept payments through invoices, payment links, or in-person transactions.

Common information payment providers may ask for: 

Approval times vary by provider, business type, and whether additional verification is required. 

Some businesses may be declined or placed on a reserve, where a provider temporarily holds part of each payout. This can happen because of industry risk, chargebacks, limited processing history, or unusual transaction activity. 

Getting these details right makes the next steps easier. If you're planning to start an ecommerce business, open your business bank account before applying for payment processing.

Make sure you have all the required information ready before submitting your application.

How Can a Small Business Accept Payments?

Learning how to accept payments as a small business starts with choosing the methods customers prefer and a provider that supports them. Depending on how you sell, you may need in-person payments, online checkout, invoices, recurring billing, or a mix of these options.

Once your setup is live, connect transactions to your customer records, track incoming payments, and follow up on overdue invoices.

1. Decide Which Ways You Need to Get Paid

Before choosing a payment provider, think about how your customers prefer to pay. Start with two or three payment methods you’re likely to use. This helps you avoid paying for features your business doesn’t need.

Small businesses commonly accept payments in person, online, through invoices, or on a recurring schedule. 

The Federal Reserve’s October 2025 Diary found that, for in-person purchases, 40% of consumers preferred debit cards, 38% preferred credit cards, and 16% preferred cash.  These figures show which payment methods consumers prefer, not necessarily which ones they use most often.

Make a list of the payment methods you need, then compare providers and the best ecommerce platforms that support them.

2. Choose Between One Payment Provider or a Merchant Account

When deciding how to accept payments as a small business, a single payment provider can be one of the simplest options. It combines the merchant account, payment gateway, and processing into one service. Setup is usually simpler, though fees may be higher.

Here’s how the three setup options compare:

Flat-rate pricing applies one rate across card transactions. It’s easier to understand but may cost more. A separate merchant account takes more work to set up, but may offer more competitive pricing at higher volumes. 

If you sell outside the US, check supported countries and currencies before choosing a provider. Compare the total costs of both options before deciding. Your choice can affect your margins through processing rates, international fees, and platform charges. My Stripe competitors roundup covers alternative providers.

3. Apply and Get Through Underwriting

You must provide your business information and go through underwriting when you apply. Before authorizing you to take payments, the supplier verifies your identification, business details, and degree of risk. Since signing up does not ensure automatic approval, this may take some business owners by surprise.

Underwriting looks at three things: whether your business is legitimate, whether you are who you claim to be, and how likely disputes are.

Have these details ready: your legal business name and EIN, bank details, estimated card volume, and the products or services you sell.

Approval time varies by provider and may take longer if additional verification is required. If you're approved with a reserve, plan for the portion of your funds the provider will hold back.

4. Set Up Card Payments in Person

Accepting credit card payments in person starts with one question: how much hardware do you need? The answer depends more on your queue length than your revenue.

There are three options, each requiring a different level of setup. Tap to pay turns your phone into a payment terminal. Tap to Pay accepts contactless payments on a compatible phone. A mobile card reader connects to a phone or tablet, while a standalone terminal or POS system can handle checkout independently. 

When searching for ways to accept credit card payments as a small business, you'll find plenty of provider options. Choose phone-based Tap to Pay, a card reader, or a POS system based on your checkout volume and setup. Keep your terminal software up to date.

Whichever option you choose, test a live transaction before accepting customer payments. It's also worth exploring the best ecommerce tools to support your online sales.

5. Set Up Online, Invoice and ACH Payments

When learning how to accept payments as a small business, online checkout, payment links, invoices, and ACH are common options. If you bill customers monthly, you'll also need a recurring payment schedule.

A payment link is a URL that opens a hosted checkout page. You can send it directly to customers without building a full checkout on your website.

Another option is ACH (Automated Clearing House), a network that moves money between bank accounts. Standard ACH payments can take longer than card payments, but they often have lower processing costs. This makes them useful for small businesses handling larger invoices.

According to Nacha's 2025 ACH Network figures, the network processed 35.2 billion payments that year. Of these, 1.4 billion were Same Day ACH payments, up 16.7% from 2024.

Sales tax is a separate matter from payment processing, so check what your state requires. If you charge customers regularly, subscription billing platforms can also help by collecting recurring payments automatically. You can explore some subscription billing platforms to find one that fits your business. 

For scheduled invoices and repeat payments, recurring billing software can help automate the process.

6. Connect Payments to Your Customer Records

Connect your payment tool to the system you use to manage customer records. This way, you can see which customer made a payment without entering every transaction manually. It also makes it easier to keep track of sales as your business grows.

HubSpot payment links are available when you use HubSpot Payments or connect Stripe. HubSpot Payments requires a paid subscription, while Stripe processing is available on all plans. As HubSpot explains, “A Starter, Professional, or Enterprise subscription is required to use HubSpot payments.”

When comparing tools, check how well they work with your existing system. My CRM tools for small business roundup can help you compare your options.

Here's what each option offers:

7. Track What Lands and Chase What Does Not

Check your payouts against your sales records each month. Payment providers often bundle several sales into one payout and deduct their fees before sending the money to your bank. So, the amount you receive may cover multiple transactions rather than match a single invoice. 

Verify which sales are covered by each payout and ensure that all fees are paid. Look for any refunds, contested payments, or adjustments to processing costs that could account for the discrepancy if the sums still don't match.

For unpaid invoices, set a reminder schedule. Send one before the due date, another on the due date, and a follow-up a week later.

HubSpot’s Revenue Agent, currently in beta, can automate invoice follow-ups using HubSpot Credits. It uses 500 credits when payment collection outreach starts for an invoice. Eligible Starter subscriptions include 500 HubSpot Credits per month. Unused credits don’t roll over, and additional credits cost $10 per 1,000. 

Keep payment reminders polite and professional. You want to collect what's owed without damaging the customer relationship. These customer retention strategies can help you encourage repeat business.

What Does It Really Cost to Accept Payments?

The headline rate is only one of four costs to consider. To find the best way to accept payments for a small business, compare the pricing model, additional fees, disputes, and payout speed.

Compare all four, and choosing a payment solution becomes less of a guessing game.

Three common pricing models appear in many payment processing quotes.

Flat-rate pricing is simple but can cost more. Interchange-plus passes through the issuing bank's interchange and adds a disclosed markup, making costs easier to track.

Tiered pricing sorts transactions into categories with different rates. This can make it harder to understand why some payments cost more than others.

Look beyond the headline rate, too. Check for monthly minimums, statement fees, PCI compliance fees, chargeback fees, and same-day payout surcharges.

Here's how seven payment methods compare on cost and timing.

The Federal Reserve's triennial payments study reported that noncash payments by consumers and businesses reached 236.6 billion in 2024. Cards accounted for over three-quarters of payments by number, while ACH approached three-quarters by value.

Cards dominate payment volume, while ACH moves much of the total value. Depending on how your customers pay, it may be worth supporting both. It's similar to estimating how much a website costs before commissioning one.

What it really costs: Don't rely just on the price that is advertised. Examine the provider's overall pricing. While interchange-plus pricing makes it clearer where the fees go, flat-rate pricing is simpler to comprehend. It can be more difficult to understand tiered pricing and determine what you're really paying for each transaction.

Can You Pass Payment Processing Fees On to Your Customers?

Yes, in some cases. But before adding a fee to card payments, it's worth comparing surcharges with cash discounts. The rules differ by state and card network, so the right option depends on where your business operates.

Here is how the two options compare:

A surcharge is an extra fee charged to customers who pay by credit card. A cash discount lowers the regular price for customers who pay with cash.

Under federal law on card discounts, merchants can offer cash discounts when they meet the applicable requirements.

Credit card surcharges come with more restrictions. Visa limits surcharges to the lower of the merchant's cost of acceptance or 3%. Mastercard caps surcharges at the lower of the merchant’s cost of acceptance or 4%. State laws may set additional limits or prohibit surcharges altogether. Check Visa's surcharge guidance and Mastercard's merchant rules before making a decision.

Keep in mind that the cost of acceptance is based on eligible card processing costs. It isn't necessarily the same as the overall processing rate you pay across all payment types.

State rules can also affect how you display prices. For example, New York's guidance requires businesses to show the total credit card price before a customer makes a purchase.

Before introducing a surcharge or cash discount, check your state's current laws and your payment processor's requirements. This information is for general guidance only and isn't legal advice.

Who Is Responsible for Payment Security and Chargebacks?

Even if a payment provider handles transactions for you, you still have responsibilities. You’ll still need to keep your business secure, meet the relevant security standards, and handle any payment disputes that come up. 

The PCI Security Standards Council develops PCI DSS, the security standards for businesses that store, process, or transmit cardholder data. 

Small businesses can often complete a Self-Assessment Questionnaire (SAQ) to check whether they meet the requirements. The PCI DSS v4.0.1 bulletin explains which questionnaire may apply to your business.

If you sell online and fully outsource card-data handling to a PCI DSS-compliant provider, you may qualify for SAQ A, depending on your setup. The PCI Security Standards Council's eligibility guidance explains the conditions. If you also accept cards in person, your compliance requirements may be different.

There are a few other things worth doing. Keep your payment terminals updated, use address and CVV verification when appropriate, and enable 3-D Secure for online payments. 3-D Secure can shift liability for certain fraud-related chargebacks to the issuer when the transaction qualifies. 

Chargebacks are another part of accepting card payments. They happen when a customer disputes a transaction, and their bank reverses the payment. You might have to pay a chargeback fee and lose the sale. Keep receipts, delivery confirmations, and customer messages so you have evidence if a dispute comes up.

Although the statistics don't always indicate an increase, card fraud is still a problem. The Nilson Report's December 2025 issue reported $33.41 billion in worldwide card fraud in 2024, a 1.2% decrease from the previous year. Still, it's worth building security measures into your plans when you create an ecommerce website.

The bottom line: A payment provider can handle much of the payment process for you, but you’ll still need to take care of a few security basics. Check which PCI DSS requirements apply to your business and keep transaction records handy in case a customer disputes a payment. 

FAQ

Q1. Can an LLC Take Credit Card Payments?

A. Yes. An LLC can accept credit card payments through a payment provider. You'll usually need to provide your business details, verify your identity, and link a bank account. Keeping a separate business bank account also makes it easier to track income and expenses.

Q2. How Can I Accept Card Payments Without Spending Too Much on Fees? 

A. When comparing providers, think about how your customers prefer to pay and what you'll be charged for each option. The bank transfers usually cost less for invoices, while card fees vary from one provider to another. Flat-rate pricing is easier to get your head around, but interchange-plus might save you money once you're processing more sales. Keep an eye out for monthly charges and extra fees, too, as they can eat into your profits.

Q3. What's the Easiest Way to Collect ACH Payments?

A. Choose a payment provider that supports ACH and ask customers to authorize payments from their bank accounts. You can use it to collect invoice payments or charge customers on a regular schedule. Fees are often lower than card processing costs, although transfers can take several business days.

Q4. How Do I Accept Credit Card Payments for My Business?

A. Start by choosing a payment provider and filling out its application. Once approved, link your business bank account and set up the payment methods you plan to use, whether that’s a card reader, website checkout, or payment links. Before you start taking payments from customers, run a test transaction to make sure everything works as it should.

Q5. How Can a Small Business Keep Customer Payments Secure?

A. Choose a payment provider that offers a secure checkout. With hosted checkout, customers enter their card details through the provider’s system, so your business doesn’t have to handle as much card data directly. Keep your devices up to date, secure your account, follow the relevant PCI DSS requirements, and keep transaction records in case you need them to sort out a dispute.

Q6. Is Venmo Suitable for Business Payments?

A. Venmo can be a handy option for small businesses using a business profile. Before you make it your go-to payment method, take a look at the fees, payment limits, and dispute protection. It’s also worth checking that you can easily access your payment records, get help with disputes, and keep everything organised in your accounting system.

Q7. How Long Does It Take to Get Paid After a Customer Pays by Card?

A. Card payments are often approved within seconds, but the money may not hit your bank account for a few business days. How quickly you get paid depends on your provider, payout schedule, and account status. Check your provider’s payout terms so you know when the money should arrive.

Q8. Should I Open a Merchant Account or Use a Payment Provider?

A. For a small business, a payment service provider can be a simpler place to start. You can usually manage payment processing through one service instead of setting up a separate merchant account. 

Once your sales pick up, it’s worth comparing the fees to see if switching to a dedicated merchant account could lower your costs. When choosing a payment setup, focus on the methods your customers use, the fees you'll pay, and how easily you can track payments from sale to bank deposit.

Conclusion

Knowing how to accept payments as a small business comes down to choosing the right methods, provider, and payment setup for your customers.  Decide how customers will pay, compare providers that support those methods, and understand the fees, payout times, and security requirements involved.

Once your payment setup is live, connect transactions to your customer records and review payouts regularly. This makes it easier to track sales, manage cash flow, and catch payment issues early.

If you need help improving how your business attracts and converts customers, Attrock’s lead generation services can help you build a stronger path from interest to sale.

Then, when you’re ready to manage customer information, payment links, and follow-up in one place, HubSpot Starter can help bring those processes together.