How to accept credit cards on your site

So you want accept credit card payments in your online store

Most online stores today accept credit card payments. However, many new store owners are unsure how to get started or which option to choose.

Your online store must have at least one payment processing method. Before choosing a payment processor, it’s a good idea to talk with your web developer — they can tell you which payment options are supported by your eCommerce platform.

2 Types of Online Credit Card Processing Options (Real-time)

1. All-in-one online payment service (3rd party processors)
2. Traditional merchant account with a payment gateway

3rd Party Payment Processors (All-in-One Services)

Examples: Stripe, PayPal Checkout, Square, and Amazon Pay (less common today)

These services let you accept all major credit and debit cards, and in many cases digital wallets like Apple Pay and Google Pay. Setup is fast, inexpensive, and doesn’t require a traditional merchant account.

With 3rd party payment processors, you only pay a fee when there is a transaction

Typically, 3rd party payment processors charge only a per transaction fee; no application fees and no monthly charges. The only fees you’ll pay are a small fee plus a percentage for each transaction your customers make. When a transaction has been processed you and your customer are each notified by e-mail.

• How fees work: Typically, you only pay a per-transaction fee (a percentage + small flat fee). There are usually no setup fees, monthly charges, or long-term contracts.
• How transactions work: Both you and your customer receive email confirmations after payment. Funds are deposited into your bank account, usually within 1–2 business days.
• PCI compliance: Much easier because the processor handles sensitive data. In many cases, customers enter their payment details on the processor’s secure servers.
• Account management: You’ll have a secure online dashboard to track sales, issue refunds, and manage transactions.

Advantages:

• Easy to set up; no credit check
• No monthly fees or long contracts
• Widely supported by eCommerce platforms (Shopify, WooCommerce, Squarespace, etc.)
• Easier PCI compliance
• Month-to-month flexibility

Disadvantages:

• Per-transaction costs are higher than high-volume merchant accounts
• With some services, customers may be redirected to the processor’s checkout page though Stripe and modern PayPal integrations now allow on-site checkout.

For comparison of 2 popular 3rd Party Payment Processors, see article: Stripe vs Paypal

We Recommend…

The all-in-one payment service is often the best choice for businesses just starting out or those with low volume. It is the least expensive for both set up and month-to-month operating costs are much lower.

Traditional Merchant Services Provider (Merchant Account)

Examples: Authorize.net, PayPal Payments Pro, Braintree (owned by PayPal), Elevon (available through Costco)

A merchant account is a special type of bank account that allows you to accept credit card payments directly. These are often paired with a payment gateway (like Authorize.net) that securely transmits payment data from your website to the processor.

With a merchant account, you must pay the monthly fee even if you have no sales.

• How fees work: Merchant accounts may have setup and application fees, plus monthly minimums, in addition to per-transaction fees.
• Application process: Requires credit approval and can take days or weeks. You’ll need to estimate your monthly sales volume and average transaction size.
• Checkout experience: Customers stay on your site to complete the transaction (more professional and seamless than being redirected).
• Who uses this: Often chosen by established or higher-volume businesses because transaction fees can be lower over time.

Advantages:

• Lower per-transaction fees at scale
• Checkout stays on your site, giving you more control over branding and user experience
• Can integrate with point-of-sale (POS) systems if you also sell in person

Disadvantages:

• Setup takes longer and requires approval
• Monthly fees and minimums apply (you pay even if you have no sales)
• More complex PCI compliance requirements
• Contracts may be longer-term and less flexible

When shopping for a Merchant Account, be sure to specify that you want an Internet Merchant Account. Ask about up front and recurring fees and charge back fees. You’ll also want to ask what payment gateways they use. Shopping cart applications work specific payment gateways and you went to be sure that your gateway works with the shopping cart you want to use.

The payment processing market is highly competitive. When shopping for a merchant account, keep in mind that many of the fees can be negotiated.

Best For:

Established businesses or higher-volume online stores where lower transaction fees outweigh the cost of monthly fees.

We Recommend…

If your monthly sales volume is more than $5000/month, you could save on fees with a merchant account. Be sure to crunch the numbers for the provider you are considering.

SSL Certificates

If you accept payments directly on your website (not redirected to PayPal or Stripe-hosted checkout), you’ll need an SSL certificate to securely transmit sensitive customer data.

The good news: Today, most hosting providers (via Let’s Encrypt) include SSL for free. Paid SSLs ($50–$100/year) are typically only needed if you want higher validation levels (EV/OV certificates) for extra customer trust.

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