You need to get paid for your products or services online but the information on how to accept payments online is confusing. Most websites that pop up when you search for “How to Accept Payments Online” are payment merchants that want you to use their services, so how can you trust their advice?
I’ll break it down in this handy guide, that has no affiliation to any payment provider, so you can make an informed decision on how best to accept payments online for your business.
Why Is My Choice of Payment Method Important?
Over 40% of customers will abandon their baskets if they don’t see their preferred method pf payment on checkout. That’s a lot of lost opportunities for sales. In 2025 it’s even more cutthroat as many now expect to pay in instalments with APPs like Klarna and Clear Pay but all of these payment providers have to make money somehow, and that’s usually where you come in.
Many will charge transaction fees, some may even hold onto your money or freeze it at a moment’s notice, therefore it is so important that you choose the right payment provider and merchant from the outset, to protect you and to customers.
The Two Essential Things You Need to Accept Payments Online
Before you can start accepting online payment you need a merchant account. This enables you to receive credit and debit card payments. The merchant account does due process that you can’t. It will check the customer’s bank to make sure there is enough money, it will make sure the transaction is completely secure and it will verify transactions with the customer’s bank. The merchant account usually holds the funds for up to 48 hours as checks are being made but you will get used to these as regular payments come in.
The Merchant Account used to be known as Credit Card Processing.
How Do I Get a Merchant Account?
A merchant account is a bank account you sign up for. Simply search for the best ones, compare and choose the merchant account that’s right for you and your business.
The next essential you need is a payment gateway. This is the payment facilitator you will choose to take the payments using the customer’s preferred method of payment. The payment gateway allows you to accept Visa, Mastercard and other credit and debit cards. They will embed a checkout page on your site, and connect to your merchant account, providing a seamless checkout experience for your customer.
You will have heard of most of these.
How Do I Choose the Best Payment Gateway?
You are not limited to choosing just one payment gateway, some businesses choose many, as we’ve mentioned, if the preferred payment isn’t available customers will abandon checkout. Here are the most popular free (to set up) payment gateways, their pros and cons, allowing you to make the best decision for your business.
PayPal
If you’ve ever sold on eBay, you’ve already accepted payments through PayPal. This is one of the most popular payment gateways as it’s well known globally and accepts almost all types of payments. It also has the PayPal Buy Now, Pay Later option now so customers can spread the cost of their purchase.
Pros
Very well known, used by everyone, accepts almost any form of payment, has buy now, pay later options, easy to add checkout.
Cons
It can become expensive as you will pay transaction fees both to your merchant account (usually around 15 pence per transaction) and to PayPal (from 1%-4%)
Stripe
Stripe is another way to use your merchant account and payment gateway to accept payments. Unlike PayPal its checkout pages are customisable so you can make them completely bespoke to your business, displaying a smart, well-designed checkout that doesn’t take the customer away from your brand. Stripe is ideal if you have a subscription-based model as it has the facility to send invoices or charge monthly.
Pros
Free to set up and zero pence monthly fee. Fully customisable. Great for subscriptions. Good customer service.
Cons
Can be costly per transaction, 3% plus the standard 15 pence. The subscription model also charges an extra 0.8%.
Other Ways to Accept Payments Online
If you don’t want to find a merchant account and set up a payment gateway there are other ways you can accept payments online quickly, easily, and without much fuss.
All In One Websites
Shopify is probably the most popular all in one website builder that delivers a payment provider for you. Others include Wix, WooCommerce (for WordPress) and Square Space. These are great for getting your website up and running quickly, however you will be tied into a subscription fee that could become expensive over time depending on which plan you choose.
It is the most popular option for smaller businesses as it takes out the stress of web hosting too but they do allow you to add your own payment gateways also.
Pros
Ready to go straight from the box, zero fees, great sales reports, easy to use, convenient.
Cons
You may have to pay third party transaction fees. Monthly subscription can be expensive.
Digital Wallet Payments
Another way to accept payments for your business is through adding a digital wallet option. Apple Pay, Samsung Pay and Google Pay are set to become the most preferred payment method for customers by next year! This will put you ahead of the game.
To set it up with your website you will need a developer who understands API, or you can try another out of the box website builder that already has the functionality for you. BigCommerce and Square Space are the most popular choice.
Pros
You can’t get more secure than with a digital wallet payment. Increases opportunities to customers.
Cons
You can’t just accept payments from one brand such as Apple Pay, you need to accept them from the three top brands which can make it expensive.
More Ways to Accept Payments Online
Buy Now, Pay Later
BNPL schemes like ClearPay can increase the average basket value for a customer, but it does come with some drawbacks. Customers may buy higher price point items, but the fees are higher to reflect this. It’s great for adding a choice but you could receive negative attention if a customer becomes unstuck with payments.
Cryptocurrency
This deserves a whole article of its own but if you are selling digital assets, it may be an idea to accept Cryptocurrency. It means you can accept global payments without worrying about conversion rates, and differing banks but also has its drawbacks. It’s becoming more widely accepted as a currency now but will require patience to set it up. It also poses a risk due to the fluctuation of the crypto value.
Bank Transfers
If you want to keep it simple you can set up payments with bank transfers. At checkout, you provide the customer with a unique reference number, they use this to pay into the account you’ve given them details of. Only when the money clears do you send out the item. You don’t need a merchant account, a payment gateway or an all-in-one website builder for this.
A Summary of How to Take Payments Online
In summary there are many ways to take payments online and its best to research to find out which one is right for your business. For the most part you will need a merchant account, which is very easy to obtain, and in a lot of cases a payment gateway too.
Always keep an eye on the fees, the ease of set up, the customisation and the customer service. You want to be able to get hold of someone quickly if a problem occurs that stops you from receiving payments.
Consider your customer, what is the demographic? What ways do they choose to pay for goods already, what payment method would suit them the best? Once you have all the answers, you’re ready to start taking payments online, we wish you every success!
