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Complete Guide: How to Accept Credit Cards for Small Business Owners in 2025

Posted on August 1, 2025
by Lin McLeod

As a small business owner, the ability to accept credit card payments is more than just a convenience – it’s an essential part of doing business in today’s economy. Consumers expect seamless, secure, and fast options for both in-person and online transactions. Whether you run a retail store, offer services in the field, or operate your business online, accepting credit card transactions can help you improve cash flow, reach a wider customer base, and increase revenue.

This guide will walk you through how to start processing credit cards in 2025, including step-by-step setup, understanding payment processing systems, fee structures, equipment needs, and compliance best practices. You’ll also learn how to integrate tools like mobile payments, ACH payments, and secure payment pages to support omnichannel commerce.

What You Need to Know to Get Started Accepting Credit Card Payments

Accepting Credit Cards is Essential for Growth and Customer Trust: Consumers use credit and debit cards more than cash. Businesses that accept card payments increase sales, build credibility, and support omnichannel sales strategies.
Setting Up Credit Card Processing Involves a Few Critical Steps: These include choosing a trusted processor, setting up a merchant account, deciding how to accept payments (in-person, online, mobile), and integrating the system with existing tools.
Understanding Costs and Compliance is Key to Profitability: Credit card processing fees include interchange fees, processor markups, and equipment costs. Compliance with Payment Card Industry Data Security Standards (PCI DSS) is necessary to protect customer data and avoid penalties.
Equipment Needs Vary Based on How and Where You Accept Payments: Whether you’re selling in-store, online, or on the go, choosing the right POS system, mobile card reader, or online payment gateway ensures smooth, secure transactions.

Why Accepting Credit Cards Is Crucial in 2025

Fewer customers are carrying cash, and the rise of contactless payments, mobile wallets, and online credit card payments means businesses need to be equipped to accept different types of payments. The convenience and security offered by major credit cards and digital payment methods are now the standard.

Here’s why accepting credit card transactions is a must for modern small businesses:

Boosts Sales: Customers using cards tend to spend more. According to an often-cited study by Dun & Bradstreet, credit card users spend 12–18% more per purchase than those using cash.
Builds Trust: Offering a secure and professional payment processing system builds confidence in your brand. It shows customers you’re legitimate and serious about protecting their data.
Supports Omnichannel Selling: Accepting payments online, on mobile devices, and in-person lets you serve customers wherever they are – at events, in your store, or through your website.
Improves Operations: Electronic credit card transactions reduce human error, streamline accounting, and speed up deposits into your business bank account.
Meets Consumer Expectations: Cash was the third-most-used payment method after credit and debit cards in 2024, according to the Federal Reserve Bank Services.

How to Accept Credit Cards in 2025

To start accepting credit cards, you’ll need to complete a few key setup steps that prepare your business for secure, seamless transactions. Whether you’re just launching or updating your setup, follow this process to begin accepting in-person transactions, mobile payments, and credit card payments online.

Step 1: Choose a Reliable Credit Card Processing Provider

Your payment processing system is the backbone of your checkout experience. A credit card processor connects your business to major credit card networks, such as Visa, Mastercard, and American Express, and facilitates the transfer of funds from customers to your business bank account.

When evaluating payment processor providers, consider the following:

Transparent pricing and disclosure of all applicable fees, including assessment fees, monthly charges, and transaction fees
Support for ACH payments, mobile payments, and contactless payments
Secure encryption and PCI compliance tools
Integration with your website, POS, or accounting system
Compatibility with all major credit card providers

Different pricing models – flat-rate, interchange-plus, and tiered – can significantly affect your bottom line. Ask for a detailed breakdown of applicable fees and any hidden costs before committing.

Step 2: Set Up a Merchant Account

A merchant account is a special type of bank account that temporarily holds funds from credit card transactions before they’re deposited into your regular business bank account. Some processors bundle this with their service, while others require a separate setup.

You’ll typically need:

Basic business documentation (license, EIN, legal structure)
Business address and contact info
Your business bank account and routing number
Estimated sales volume and average transaction size

After approval, you’ll be ready to process transactions quickly, often within 24–48 hours.

Step 3: Decide How to Accept Payments

There are multiple ways to accept credit card payments, and your options will depend on how your business operates:

In-Person Transactions: Use a POS terminal, countertop device, or mobile devices with card readers to process payments on-site.
Credit Card Payments Online: Add a secure payment page or integrate an online payment gateway into your website or eCommerce platform.
Contactless Payments: Accept mobile wallets like Apple Pay and Google Pay using NFC-enabled devices.
Remote Billing: Email customers invoices with secure links for online transactions or use virtual terminals for phone orders.
Mobile Payments: Perfect for service providers, pop-up shops, and food trucks that need to accept card payments using tablets or smartphones.

Step 4: Maintain PCI Compliance

When processing credit cards, your business is responsible for safeguarding customer data. This means following PCI DSS rules.

Your provider should offer tools and resources to help you:

Encrypt customer data with point-to-point encryption (P2PE)
Replace sensitive card details with tokenization
Use EMV chip-enabled devices for in-person transactions
Stay current with ongoing PCI audits and self-assessments

Failing to comply with PCI DSS can result in fines or loss of processing privileges. Maintaining security protocols also protects your reputation.

Step 5: Integrate with Business Tools

To operate efficiently, your payment processing system should work with the tools you already use. Seamless integration helps you save time, minimize human error, and enhance the customer experience.

Popular integrations include:

Syncing with accounting software like QuickBooks
Connecting your online transactions to your CRM
Automating invoices and ACH payments
Linking in-store transactions to inventory systems
Embedding payment pages in your website or emails

Whether you’re running a business online or serving clients in person, smart integrations improve your workflow and help you manage growth more effectively.

Step 6: Accept Payments and Track Performance

Once you’re fully set up, you can begin processing credit cards across all channels. Your processor’s dashboard will allow you to:

Track in-person transactions, online transactions, and mobile sales
View settlement reports and deposits into your business bank account
Generate financial reports and analytics
Manage recurring billing and customer profiles
Monitor assessment fees, refunds, and chargebacks

Reviewing these insights regularly helps you identify sales trends, adjust strategies, and make informed business decisions.

What Are the Costs of Accepting Credit Cards?

Understanding your credit card processing fees is essential to maintaining profitability. These fees may include:

Interchange Fees: Set by the credit card networks (e.g., Visa, Mastercard), these are non-negotiable and vary by transaction type and card brand.
Assessment Fees: Fixed fees charged by credit card networks to help cover the cost of maintaining their payment systems.
Transaction Fees: Per-transaction cost, usually a percentage (e.g., 2.9%) plus a fixed amount (e.g., $0.30).
Monthly or Annual Fees: Charged for services like PCI compliance, reporting, or customer support.
Equipment Costs: For terminals, card readers, or mobile devices.

Ask providers for a full fee schedule that includes all applicable fees so you can compare total costs, not just headline rates.

What Equipment Do You Need to Accept Credit Cards?

The type of hardware or software you need depends on how and where you process transactions:

In-Store Transactions: EMV chip card readers for credit and debit cards, tap-to-pay terminals, and integrated POS systems.
Mobile Payments: Wireless card readers that pair with mobile devices
Credit Card Payments Online: Secure payment pages, SSL certificates, and shopping cart tools.
Remote Billing: Virtual terminals and cloud-based invoicing software for ACH payments or card payments.

Investing in the right tools ensures you can offer a fast, convenient, and secure experience, no matter where the transaction takes place.

Online vs. In-Person: Which Payment Method Is Best?

Choosing between online transactions and in-person transactions depends on your business model:

In-Person Transactions: Ideal for retail, food service, or any business with a physical presence. You’ll want robust POS systems with contactless capabilities.
Credit Card Payments Online: Best for eCommerce, service-based companies, and remote billing. These setups offer flexibility, automation, and convenience.

Most businesses benefit from a combination of both. For example, a boutique retailer may sell in-store while offering a full catalog online.

Build a Payment Strategy That Scales With Your Business

Accepting credit card payments, whether in-store, on mobile devices, or online, is a critical part of running a successful business in 2025. By choosing the right payment processing system, staying compliant, and integrating with your existing operations, you can increase sales, improve efficiency, and enhance customer satisfaction.

Whether you’re launching a startup or modernizing your payment tools, taking the time to understand the full scope of processing credit cards will help you make smart, scalable decisions for the future.