How to accept credit cards online - A small business guide

Ready to grow your business and reach more customers? Accepting credit cards online is no longer a luxury — it’s a necessity. More than 33% of the world population are shopping online, and most of them rely on credit cards to make those purchases. If your business isn’t offering this payment method, you’re leaving money on the table.

Offering online credit card payments gives your customers the convenience they expect and helps you boost sales, improve cash flow, and expand your market reach. Let’s explore how accepting online credit card processing works, the tools you need, and how you can make it happen effortlessly.

Should you accept credit card payments online?

The shift toward online payments

Consumer behavior has changed drastically over the past decade. More people are shopping online than ever before. In fact, in 2023, over 2.14 billion people worldwide were expected to make online purchases, and that’s over a quarter of the world’s population. What’s one thing that nearly all of them use to complete their transactions? Credit cards!

Credit cards are no longer just for big-box retailers. They’re the go-to for all types of purchases, from consulting services to handmade jewelry. Customers want convenience, security, and speed—and they expect it when they shop online. If your business doesn't accept credit card payments, you might be missing out on a huge group of potential customers.

The impact on customer experience

Think about your own shopping habits. When you find a product you want to buy online, how frustrating is it when the checkout page doesn’t accept your preferred payment method? The same applies to your customers. If you want to provide a smooth, seamless experience, you need to meet their payment preferences, and that often means accepting credit cards.

For your customers, accepting credit cards online makes the buying process easier and faster. No more scrambling for cash or worrying about outdated checks—just enter the card number and hit “pay.” Plus, online card payments give customers the convenience of shopping without leaving their home.

The impact on your business revenue

Let’s talk about money. When you accept credit card payments online, customers are more likely to complete a purchase as they can pay with a credit card, a quick and familiar payment method. People also tend to spend more when they can put it on a credit card rather than paying with cash.

Additionally, online credit card payments open doors for businesses to expand their reach. No longer limited to local customers, you can now sell to people all over the world. As long as you’re accepting credit cards, you’re tapping into a broader market and potentially increasing your sales.

What are different ways to accept credit cards online?

There are several methods for accepting credit cards online, each suited to different business needs. Lets explore the different tools that your business could consider for getting paid online.

Virtual Terminal

A Virtual Terminal is a secure online tool that allows businesses to manually enter credit card information to process payments. It works entirely online, meaning you don’t need a physical card reader or terminal. Businesses can use it from any internet-connected device, including laptops, tablets, or smartphones.

A Virtual Terminal empowers businesses to accept credit card payments from anywhere, even when the customer and merchant aren’t in the same location. For example, if a customer places an order over the phone, you can instantly and securely process their payment.

This tool is perfect for service-based businesses or those taking remote orders. Businesses like repair services, charities accepting phone-in donations, or home service providers can benefit from a Virtual Terminal.

Invoicing

Invoicing software lets businesses accept credit card payments through digital invoices. These invoices include a secure payment link, allowing customers to pay using their credit card at their convenience.

Invoicing can simplify the payment collection process, presenting your business as professional and organized. It reduces follow-ups, eliminates the need for cash or checks, and speeds up payments. Helcim’s Invoicing tool also includes tools for tracking invoices, so you can easily monitor payments without guesswork.

Invoicing is ideal for freelancers, contractors, and service providers who bill clients after work is completed. For example, web designers, consultants, or cleaning businesses can send itemized invoices and get paid faster.

Recurring Payments

Recurring payments allow businesses to automate billing for regular transactions, making it easy to set up subscription-based or ongoing services. Customers are billed automatically on a set schedule, with no need to re-enter payment details.

Automatic billing features ensure timely payments and create predictable revenue for your business. For customers, the automated process makes it more convenient.

This tool is perfect for gyms, SaaS businesses, membership clubs, and non-profits managing recurring donations. For instance, a fitness studio can automatically bill members every month, saving time and ensuring reliable cash flow.

Hosted Payment Page

A hosted payment page is a secure, customizable webpage provided by your payment processor. It serves as a standalone checkout page where customers can enter their payment details to complete a transaction.

This tool is critical for businesses that need a simple way to accept credit card payments online without a full e-commerce site. Some hosted payment pages can be branded with your logo and colors, creating a professional and seamless experience.

A Hosted Payment Page is ideal for non-profits collecting donations, event organizers selling tickets, or businesses needing one-off payment solutions. For example, a local theater selling tickets to a fundraiser can use this tool to set up a secure, easy-to-use payment page that builds trust and ensures smooth transactions.

Online Storefront

An online storefront is an e-commerce platform integrated with a payment gateway, allowing customers to browse products, add items to a cart, and complete their purchase through a seamless checkout process.

An online checkout solution is ideal for e-commerce businesses, local artisans, and boutique retailers. For example, a bakery selling custom cakes can showcase their offerings, accept credit card payments, and manage orders through an ecommerce platform.

Each online payment method offers flexibility, and the best choice will depend on your business model and customer needs.

How do I integrate a payment gateway with my existing website?

Integrating a payment gateway into your website is a more complex way your business can facilitate online payments. It can be achieved in in two common ways:

• API Integration: This involves using a set of programming instructions to directly connect your website to the payment processor. It allows for a customized and seamless checkout experience.
• Platform Integration: If you’re using platforms like QuickBooks or an eCommerce site (e.g., WooCommerce), many payment gateways offer pre-built integrations, making it easy to connect without needing technical expertise.

Both options allow you to securely accept credit card payments, but the choice depends on your website’s setup and your technical capabilities.

How much does it cost to accept credit card payments online?

When it comes to accepting credit cards online, understanding the costs involved is key to making an informed decision for your business. Here’s a breakdown of the common fees and charges you might encounter:

Online credit card processing fees

The Visa credit card network handles up to 65,000 transactions per second, a staggering speed made possible by a complex system working behind the scenes. To keep this system running, a small portion of each online sale goes toward covering the costs of processing the transaction. This is known as online credit card processing fees.

Credit card fees vary depending on your industry and the type of cards your customers use, and they’re made up of three key components:

• Interchange fee goes to the customer’s bank to cover the risks and costs of processing the payment.
• Card brand fees, or assessment fees, are charged by card networks like Visa, Mastercard, or American Express for using their payment processing system.
• The processor's markup is the fixed markup added by the payment processor on top of the interchange fee.

To accept credit card payments, you need to work with online credit card processors. They have two methods to charge your business fees.

• Flat rate model: The flat rate model charges a fixed percentage per transaction, no matter what type of card is used. It’s simple and easy to understand, but the rates are usually set high enough to ensure the processor makes a profit on every transaction.
• Interchange plus model: This more transparent model passes the actual cost of the transaction (the interchange fee) to you, with a small, fixed markup added by the processor. Merchants using this model often save 25% on average compared to flat-rate pricing, making it a better option for reducing costs.

Interested in how much you can save with an interchange plus model? Estimate your savings here.

Monthly software fees

To accept credit card payments, you’ll need reliable POS software. Many payment processors charge additional monthly fees for tools like Virtual Terminal, Hosted Payment Pages, or Online Storefronts, which can range from $10 to $50 or more. With Helcim, all POS software and online payment tools are free, helping you save on unnecessary fees. This allows you to focus on growing your business without the added financial burden.

PCI compliance fees

PCI compliance fees help cover the costs of keeping your payment processing system secure and meeting the Payment Card Industry Data Security Standards (PCI DSS). Some processors charge $50 to $200 per year as costs associated with making the PCI compliance process easier for merchants.

Unlike other processors, Helcim helps your business stay PCI compliant at no extra costs. Staying compliant not only saves you money but also keeps your business and customer data secure, building trust with every transaction.

Early Termination Fees (ETFs)

Early Termination Fees (ETFs) are charges you might face if you cancel your payment processor contract or equipment lease before it’s up. They usually range from $200 to $500, but some processors charge based on the remaining months of your agreement, which can add up quickly. These fees cover the processor’s setup costs but can be a headache for retailers.

What to look for when choosing online credit card processors?

When choosing a credit card processor, it’s important to find one that makes handling credit card payments easy, secure, and cost-effective. The right processor can save you money, build customer trust, and simplify your operations. Here’s what to look for:

• Transaction fees: Look for transparent pricing with no hidden fees.
• Security: Ensure the processor meets the highest security standards to protect both your business and customers.
• Ease of Integration: Choose a processor that integrates smoothly with your website or platform.
• Customer Support: Great customer service is a must. Helcim provides exceptional, hands-on support whenever you need it, ensuring you're never left in the dark.

Save 25% on online credit card fees with Helcim

Helcim is an excellent choice for businesses looking to reduce their credit card processing costs. By switching to Helcim, merchants can save up to 25% on their processing fees compared to flat rate providers. This savings comes from Helcim’s transparent pricing structure and low credit card rates, which are designed to be more affordable for businesses of all sizes.

Helcim offers several tools to help our business save even more fees:

• Free Tools: Helcim provides a variety of free tools that help businesses manage their payments more efficiently, such as invoicing, hosted payment pages, and a virtual terminal, all without any extra charge.
• Automatic Volume Discounts: Helcim rewards businesses with volume discounts automatically, meaning the more you process, the lower your rates. This helps businesses with higher transaction volumes save even more over time.
• Surcharging: Helcim allows businesses to apply surcharges to credit card payments, helping to offset processing fees and reduce the overall cost of accepting payments.

For businesses currently locked into contracts with other processors, Helcim’s Merchant Buyout Program makes it easy to switch. This program helps you break free from existing contracts without penalty, so you can start enjoying lower fees and better service right away.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

FAQs

1. Why are online credit card processing fees higher than in person transaction fees?

Online transactions are considered "card-not-present," which carry a higher risk of fraud compared to in-person payments. To mitigate this risk, credit card networks impose higher processing fees for online transactions.

2. Why are online credit card payments more expensive than debit card payments?

Online credit card payments are more expensive than debit card payments because they carry higher risks. With credit cards, the issuing bank takes on the risk of lending money to the cardholder, which increases interchange fees. In contrast, debit card payments are processed directly from the customer’s bank account, reducing risk and resulting in lower fees.

3. Is it safe to accept credit card payments online?

Yes, accepting credit card payments online is safe when using secure platforms. Helcim ensures security by adhering to PCI DSS compliance standards, encrypting sensitive data, and providing tools to detect and prevent fraudulent activities. This commitment to security helps protect both your business and your customers.

4. Can I accept credit card payments online for free?

While completely free credit card processing isn't feasible due to inherent transaction costs, we allow for our merchants to pass on their processing fees through the Helcim Fee Saver. This feature allows you to pass on processing fees to customers transparently, effectively reducing or eliminating your processing expenses.

5. Do I need a merchant account to accept credit card payments online?

Yes, a merchant account is typically required to accept card payments. Helcim simplifies this by providing a full-service merchant account with a straightforward sign-up process, enabling you to start accepting payments quickly without extensive paperwork.

6. Can I accept credit card payments online without a registered business?

To comply with financial regulations and ensure secure transactions, having a valid business registration and tax identification number is necessary when setting up an account with a payment service provider.

7. How do I handle refunds and chargebacks for online payments?

Helcim provides user-friendly tools to manage refunds directly through your account dashboard, allowing you to process them efficiently. In the event of chargebacks, Helcim offers support and guidance to help you navigate disputes, including assistance in providing necessary documentation to resolve issues favorably.