How to Accept Credit Card Payments Online and In-person

Last Updated on October 3, 2024

It was a sunny Saturday morning at the local farmers' market, and Jane was excited to debut her homemade jam business. Her table was neatly arranged with mason jars, each one filled with her signature flavors. Her first customer, a tourist, approached with enthusiasm. "I’ll take two jars!" they said, pulling out their credit card. That’s when it hit Jane – she hadn't set up a way to accept credit cards because in mind it was complicated and potentially expensive. The sale was lost, and so was the potential for a returning customer.

This is a situation many small business owners find themselves in. Whether you're just starting out, like Jane, or you've been in the game for a while but haven't yet set up a merchant account to accept credit cards, one thing is clear: the ability to process credit cards, especially credit and debit cards, is crucial for the growth of your business.

In fact, according to a 2023 survey by the Federal Reserve, 72% of consumers prefer to pay with credit or debit cards for their transactions, with cash usage continuing to decline year over year. Furthermore, research from Statista shows that global eCommerce sales reached around $6 trillion in 2023, largely driven by businesses offering seamless online and digital payment options.

Are you running a small business but haven't started to accept credit cards yet? Perhaps you already do but are looking for ways to upgrade your point-of-sale (POS) experience. You probably already know that no matter how good your hotcakes are or how fantastic your signature sauce is, the last point of contact—and possibly the most lasting impression with your customer—is paying the bill.

In this blog post, we'll help you understand how integrating credit card processing works, explain why it’s important for small businesses to accept digital payment methods like credit cards, and provide easy-to-implement methods for businesses to accept credit card payments, both online and in-person.

Who can accept credit card payments?

Running a business? You may fall into one of two categories:

You haven’t had a payment processor before and are looking to get one OR

You are looking for an alternative or a better way to accept payments.

If you're just getting started, here’s what you need to know about choosing the best payment processor and pricing model for your business.

Processing credit and debit cards is no longer restricted to traditional brick-and-mortar establishments. It may surprise you to learn how many non-traditional business models can accept credit card payments, such as:

• Online and eCommerce stores (perfect for your vintage taxidermy business)
• Freelancers and contractors
• Mobile businesses (now customers can pay for your mobile dog grooming service via credit!)
• Small brick-and-mortar businesses

Whether you’re a new or established business, it’s essential to have a merchant account and a reliable payment processor to ensure you can accept credit card payments smoothly.

How to accept credit card payments online

1. Online invoicing

Online invoicing allows you to send customizable invoices to your clients via email or text, replacing traditional paper invoices. Many online invoicing platforms also allow customers to pay directly by submitting their credit card information through secure portals in just a few clicks. These tools even send payment reminders to ensure timely payments without you needing to chase down clients.

According to a survey by Fundbox, nearly 40% of small businesses would have to close within two months if cash flow dried up. Online invoicing can help businesses get paid faster, with many businesses reporting a reduction in the time it takes to collect payments after switching from traditional checks and paper invoices. By choosing the right payment processor, businesses can ensure that their invoicing platform is integrated with their merchant account and business bank account, speeding up payment settlements.

2. Virtual terminals

A virtual terminal is an ideal solution for businesses without physical payment hardware. You can manually input customer payment information through a secure portal, allowing you to accept credit card payments remotely. This is a convenient way to process credit cards online, without needing a point-of-sale system. It's perfect for businesses handling orders over the phone or through email, where neither you nor your client need to be in-person for a transaction.

3. Accepting recurring credit card payments

For subscription-based businesses, recurring payments can save time and reduce friction with your customers. With a secure payment gateway you can even store customer payment details and automatically charge them on a regular basis—weekly, monthly, or annually. This system is not only convenient but also ensures you don't have to continuously remind customers to pay.

Statista reports that the subscription economy is expected to grow to $1.5 trillion by 2025, underscoring the importance of offering seamless recurring credit card payment solutions for businesses looking to tap into this growing trend.

How to accept credit card payments in-person

1. Credit card reader and POS systems

Every new business that hopes to make sales these days requires a point-of-sale system (POS) to process credit cards for in-person transactions. However, modern POS systems do much more than just accept credit cards. They can offer features such as contactless payments, inventory tracking, and sales insights. Most card readers today are equipped with EMV (chip) and NFC (contactless) technology, allowing you to accept payments via chip, tap, swipe, and mobile wallets like Apple Pay or Google Pay. These systems are ideal for retail stores, restaurants, and service-based businesses.

With contactless payments gaining popularity, a report from Visa shows that 48% of consumers prefer contactless payments, which has grown substantially since the COVID-19 pandemic, making it a crucial feature for any in-person payment system.

2. Mobile POS systems

Not all businesses are bound by a physical location. Mobile POS systems allow you to take payments on the go. For instance, Helcim’s mobile app enables you to process credit card payments directly from your smartphone or tablet, allowing businesses like food trucks, market vendors, and delivery services to accept credit cards from anywhere. These mobile apps often come with additional features such as inventory tracking, sales insights, and the ability to send digital receipts.

Mobile POS systems are directly connected to your merchant account and business bank account, ensuring seamless payment processing for credit and debit card transactions, even when you’re on the move.

3. Accepting recurring payments in-person

Even for in-person businesses, it’s common to need a recurring payment setup. For example, gyms, salons, or service-based businesses like landscaping can offer customers the convenience of a recurring billing setup. By using a secure payment vault, you can store customer payment information and charge their card on file at regular intervals.

How to accept credit card payments over the phone

1. Virtual terminal for phone payments

Accepting credit card payments over the phone is easier than ever with virtual terminals. Customers can call you, and you can manually enter their credit card information into a secure, online payment portal to process the transaction. This is a great solution for service providers or businesses that handle remote orders, like catering services or ticket sales.

2. Accepting recurring payments via phone

If you have clients that prefer to set up regular payments, they can provide their credit card information once, and you can store it in a secure vault for future charges. This is especially useful for businesses that offer subscription services or long-term payment plans.

How can I accept a credit card payment without a POS?

Not every business needs a full-blown POS system to accept credit card payments. Here are some alternatives:

Virtual Terminals: As discussed, virtual terminals allow you to manually enter payment details into a secure system.

Payment Links: Some payment processors allow you to generate a payment link that can be sent via email or text message. The customer can then click the link and enter their payment information themselves, allowing you to process credit cards without needing a POS.

Mobile Apps: Payment apps, such as Helcim’s app, let you accept payments without the need for expensive hardware. Your phone acts as the terminal, allowing you to accept credit card payments on the go.

How do I accept credit card payments on my phone?

Accepting credit card payments via phone is simple and efficient with mobile apps. Many payment processors offer mobile apps that allow you to:

Take card-present payments: Using a card reader attached to your phone, you can accept chip, tap, or swipe payments in-person.

Process card-not-present payments: You can manually enter credit card details into the app to process remote payments.

Send invoices and payment requests: The app can help you generate invoices and payment links that your customers can pay directly from their phones.

Track sales and inventory: Many mobile payment apps also include tracking features to help you monitor your business performance in real-time.

With mobile payment solutions, you can operate from anywhere—whether you're at a trade show, a client’s home, or simply running your business on the go. A report by Juniper Research suggests that mobile POS systems will process over $3.1 trillion in transactions by 2024, making mobile payment options a must-have for businesses.

Helcim has recently launched Tap to Pay on iPhone in the US where the merchants can do all of the above on their very own iPhone.

Ready, set, go!

You've read how accepting credit card payments can be the secret ingredient to attracting all the eligible cardholders and enhancing their checkout experience. Plus, now you know what you'll need to get started taking credit cards at your business ASAP.