Accept credit card payments as a small business

As a small business, you know it’s important to make every opportunity count. You work hard to drive sales through your products and services, customer service, branding and marketing. You can’t afford to lose a sale at checkout simply because you don’t take card payments.

Consumers today are using their credit cards like never before. They like the enhanced security features that cards now offer, they appreciate hassle-free shopping without having to go find cash and they enjoy the points and other rewards they can earn with each credit card transaction.

Because of these consumer benefits, credit and debit card usage is on the rise. According to the Worldpay Global Payments Report (GPR) 2024, credit cards represented 50% of POS payments globally in 2023, with 27% of transactions made with credit cards and 23% made with debit cards.

At the same time, cash is no longer king. The GPR also reported that the use of cash fell 8% between 2022 and 2023 year-over-year across the globe, and it is projected to decline at -6% CAGR through 2027.

Based on this data, you could be leaving significant money on the table – and losing customers – if you’re only accepting cash payments. And because consumers tend to spend more on each purchase when they use a credit card, you could be limiting your ticket average, as well.

If you want to sustain and grow your revenue, you need to know how to accept credit card payments as a small business.

So, what’s holding you back? If you think learning to accept credit card payments may be too complicated, or if you’re worried about the cost of a card machine and credit card processing fees, don’t let those fears stop you.

It can be easy to start accepting credit card payments, and the benefits can often far outweigh the fees.

In this guide, we will cover:

• The ways to accept card payments and which business types they are suited to
• The steps to accepting card payments
• The benefits of accepting card payments for a small business
• The things to consider before accepting card payments

Ways to take card payments

There are multiple ways to accept credit and debit card payments, including in person, online, and over the phone, and each method has unique benefits for different types of small businesses.

Accepting in-person payments

One of the most common ways to take card payments is to accept in-person payments. If you own a brick-and-mortar business, like a car repair center, clothing boutique, or grocery store, you will most frequently need to process in-person card payments. Because the customer presents their physical card to you, these transactions tend to have a lower risk of fraud, which typically means lower credit card processing fees for your business.

To accept in-person payments, you’ll need card machines at checkout. Consider choosing a card machine that accepts swipes, insert EMV chips and contactless payments, so your customers can run their cards however they prefer.

Your card machine will connect to your POS System, the software that helps you track your products, inventory and sales history, which is especially important for retail businesses and restaurants that offer multiple products or services.

Or, if you have a business that operates outdoors, like a lawncare company or a food truck, you may prefer to use mobile card machines to take card payments. Mobile card machines or mobile card readers are small devices that turn smartphones and tablets into a card terminal.

Mobile card machines also work well for restaurants, cafes and pubs because they allow you to interact with customers and take payments right at their tables.

Accepting online payments

One of the other ways to take card payments is online. If you run an online-only business, or if you have an e-commerce channel for your brick-and-mortar shop or restaurant, you’ll need to take online payments.

Taking card payments online usually means little or no hardware, saving you money. But accepting online payments typically means a higher credit card processing fee than in-person payments because these card-not-present (CNP) transactions have a higher risk of potential fraud. But given the tremendous opportunities e-commerce offers, the benefits to your business can outweigh the potentially higher fees.

To accept online payments, you’ll need a digital storefront (e-commerce store or website), a business bank account and you’ll need to explore payment gateways. A payment gateway is software that allows your customers to securely share their credit and debit card information with your payment processor. Payment gateways may connect to your website or link to an offsite account portal.

Some payment gateways offer the ability to not only accept payments directly from your website, but also create shareable payment links that you can send to customers via email, text or embedded in an electronic invoice, giving you more ways to ensure you get paid.

Accepting over-the-phone payments

While online and in-person payments are the best choice for many businesses, others can benefit from accepting over-the-phone payments. Service providers often take card payments over the phone to secure an initial deposit before beginning work, and restaurants that accept take-out orders over the phone can also benefit from this payment method.

Like online card payments, accepting over-the-phone payments is considered a card-not-present transaction, so the fee per transaction might be higher, but the additional revenue secured often outweighs those fees.

In the past, businesses accepting payments over the phone needed to manually enter the customer’s credit or debit card information into their card machine, which can be a slow and frustrating process. But now, there are virtual terminals, ─ a web-based interface that connects to the world of electronic payments. Virtual terminals are practical, affordable, simple to use and easy to set up, and they are ideal for taking over-the-phone payments.

How to start accepting credit card payments

It’s easy to begin accepting credit card payments with Worldpay, whether you plan to take card payments in person, online, over the phone, or all three!

Steps to accepting in-person payments with Worldpay

• Apply for a Worldpay account online
• Receive your card machine
• Download the Worldpay app
• Pair your mobile card machine with the app using Bluetooth
• You’re now ready to accept in-person payments

Steps to accepting online payments with Worldpay

• Apply for a Worldpay merchant account
• Once approved, activate the Simplicity plan
• Integrate the Worldpay Payment Gateway with your website
• Customers can now checkout on your website

Steps to accepting over-the-phone payments with Worldpay

• Apply for a Worldpay merchant account
• Log in to Worldpay Business Manager
• Locate the virtual terminal
• Prepare your customer's information
• Enter transaction details
• Submit for authorization

The benefits of accepting card payments for small businesses

Whether you plan to take card payments in person, online or over the phone, there are a wide range of benefits to accepting card payments for small businesses. Here are just a few:

Increased sales

According to a recent Forbes article, 52% of customers are more likely to complete purchases if they can use their credit cards, especially if that purchase is an impulsive buy. Because of this increase in sales, the benefits of accepting card payments as a small business far outweighs the cost of credit card processing fees and the cost of a card machine.

Larger ticket averages

A 2021 study by the Massachusetts Institute of Technology (MIT) found that consumers are more likely to make higher-priced purchases and more impulse buys with a credit card, than with cash. They even tip better when they use their cards!

And, according to a 2024 article on Nerdwallet.com, Dun & Bradstreet found that customers spend 12-18% more on products and services when they pay with a credit card instead of cash. These larger ticket averages, combined with the increased sales from more completed purchases, mean real benefits to small businesses.

Improved cash flow

The ability to accept credit card payments as a small business means improved cash flow. You can get paid immediately for credit and debit card transactions, instead of waiting for checks to clear or invoices to be paid.

Efficiency and convenience

When your business takes card payments, you benefit from quick settlement and deposit times, and you can set up your system to deposit payments directly into your business bank account.

Enhanced customer satisfaction

Because customers overwhelmingly prefer to pay by credit or debit card, you can enhance your customer satisfaction and build loyalty to your business when you take card payments in person, online, or over the phone.

Reduced risk

With the latest fraud prevention and protection built in, you can be sure the card payments you accept are secure. At the same time, card payments minimize the security risks associated with taking, carrying and depositing large amounts of cash.

Competitive advantage

Giving your customers the opportunity to pay however and whenever they want by credit or debit card gives you a competitive advantage, especially if other businesses in your area only accept cash or checks.

Better business credibility

When your customers see that you accept major credit cards, they view your business as more professional and trustworthy than those who only accept cash.

Sales data and insights

By accepting card payments and using your card machine and POS reporting tools, you can gain valuable insights into your customers’ spending habits that can help inform your future business decisions.

Things to consider before accepting payments

There are a number of things to consider before you start accepting credit and debit card payments; the cost of a card machine or the cost of credit card processing fees are not the only factors. Before you begin the process of selecting a payment processing provider, ask yourself these following questions.

What type of business is my business?

Whether you’re online only, multichannel with both brick-and-mortar stores and an e-commerce presence, just starting out, or an established business, you need to take card payments, but the tools you need (card machine, mobile card machine, POS, virtual terminal, etc.) can vary based on your type of business.

How do I want to take payments?

As discussed above, how you accept payments – in person, online, and/or over the phone – can vary depending on your business’ needs. If you take orders over the phone, for example, then it may make sense to take payments over the phone, too. Be sure you’re clear on all the ways your business operates before choosing your credit card payment solution.

How many card transactions do I expect to process?

Pricing not only can vary based on the types of cards you accept and the ways in which you take card payments, but also they can vary by the number of card transactions you expect to process in a given month. Some companies offer flat monthly rates regardless of the number of transactions, while others give discounts when you process a higher-than-average number of card transactions.

Do I plan to grow?

When considering a card processing solution, take into account not only your current business needs, but also your plans for the future. If you’re currently the owner of one physical location, for example, but you’re considering launching an e-commerce channel or expanding to multiple locations, make sure the processor you choose has the capacity to grow with you as you grow.

Factors to consider

The cost of a card machine

The cost of a card machine can vary depending on the provider and, typically, they can be rented or purchased. Deciding whether to rent a card machine or to outright purchase one depends on your business’ needs. Worldpay bases its pricing on three key elements: annual card turnover, average transaction value and merchant category.

Credit card processing fees

Processing fees could include, merchant account costs, transaction fees for each credit or debit card purchase, authorization fees per transaction, monthly/annual fees for low transaction volumes, chargeback fees and PCI compliance charges for data security.

PCI DSS compliance

When accepting card payments, you're responsible for adhering to PCI DSS regulations. PCI DSS stands for the Payment Card Industry Data Security Standard, a set of requirements meant to ensure that all businesses that accept credit and debit cards do so securely. Learn how Worldpay's SaferPayments program can help your business manage PCI DSS compliance.

If your small business is accepting payments for the first time, Worldpay’s Mobile Card Machine is an excellent way to flexibly take payments with both in-store and outdoor payment processing capabilities, thanks to dual-band Wi-Fi and 4G connectivity. A mobile card machine allows you to accept a wide range of payment methods, including cards like Visa, Mastercard and Amex, along with popular digital wallets like Apple Pay and Google Pay ─ all while maintaining PCI DSS compliance.