How To Accept Credit Cards In-Person, Online, and Over the Phone

If you’re starting a business or already running one accepting only cash, you should know that research shows purchases with cards outdo cash purchases by a huge percentage. A 2023 survey from Forbes Advisor shows that 90% of customers purchase with a card, whether debit or credit.^[1] Forbes. “Credit Card Statistics And Trends.” Accessed April 9th, 2025. This means less than 10% of customers primarily purchase with cash.

Accepting a variety of payments allows your business to reach more prospective customers, making it a potentially lucrative practice. If you’re running any kind of business, accepting credit card payments specifically is a necessity for your enterprise to thrive.

Ready for the next step? Below, we discuss everything you need to know to set up credit card processing for your business.

• Ways to accept credit card payments are online, in-person, and over the phone.
• Setting up credit card processing involves contacting a merchant service provider, determining your method of payment acceptance, applying for a merchant account, and implementing chargeback prevention and management tools.
• Accepting credit cards has many benefits, including increased sales and credibility, improved customer experience and security, and international reach.

Different Ways To Accept Credit Card Payments

There are three ways to accept credit card payments. Businesses can take payments online, in person, or over the phone. Each method requires its own tools to successfully complete payment transactions.

Accepting online credit card payments comes with a variety of benefits. It allows you to take payments from customers across the globe. Fifty-two percent of online shoppers buy internationally. ^[2] Forbes. “35 Top E-Commerce Statistics” Accessed April 9th, 2025. Taking credit card payments also enables you to keep up with the competition, who are likely already accepting online credit card payments, and it provides customers with a quick and easy payment option.

To enable online payments, you need three elements:

• An online storefront – This allows you to display your products or services to browsing customers. To sign up for a digital storefront, many businesses simply create an account through an eCommerce platform provider.
• A payment gateway – A payment gateway provider enables your business to integrate a cart and storefront, giving you the ability to process payments through a secure, cloud-based solution. With this software, it’s simple to get up and running.
• A payment processor – Your processor will collect customers’ payment information and communicate that data between your merchant account and the banks involved. It ensures the funds are authorized and approved, then transferred from the customers’ issuing bank to your merchant account.

Taking in-person credit card payments also offers advantages. Customers will be able to make larger purchases when they’re in-store. They’ll also be more likely to buy from you if you accept credit cards since only about 12% of purchases made in-store use cash.^[3] Capital One Shopping Research. “Cash vs Credit Card Spending Statistics.” Accessed April 9, 2025 Accepting credit cards can also encourage impulse spending since they’ll have more options to pay.

To complete in-person transactions, you need:

• A payment service provider – A payment provider will handle processing your credit card payments for you.
• A point-of-sale (POS) system—This system includes all the necessary hardware, like a credit card reader, as well as the software that processes the credit card information. You can use countertop card readers or mobile card readers.

Merchants may want to take MOTO payments or Mail Order Telephone Payments. The term is a misnomer since most businesses don’t do mail orders, but the acronym is still used to describe over-the-phone transactions. This option is often a must for businesses like restaurants, caterers, and catalog-based businesses. This gives customers the option of paying over the phone, making the process more convenient and increasing the likelihood of repeat business. In fact, 63% of customers are more willing to shop at businesses that offer the payment method they prefer. ^[4] CIO. “Consumers Want More Payment Flexibility in Their Shopping Experience.” Accessed April 9, 2025

It’s also an efficient sales funneling method because you can better encourage the customer to complete their purchase if they call with any issues.

To accept credit card payments over the phone, you’ll need:

A virtual terminal – With the virtual terminal, single transactions and recurring billing functionality are available. The merchant can also initiate invoices from the interface.

How To Set Up Credit Card Payments for Your Business in 5 Easy Steps

Here’s a summary of the five steps needed to set up your business for credit card payments.

1. Contact a merchant service provider

Some providers allow you to sign up online, while others require you to contact a sales representative. After that, you can negotiate a contract. Some may require you to print out an application and scan it with a physical, handwritten signature.

2. Determine how you will be accepting credit card payments

Next, decide which payment methods you’ll want to accept. As noted, your options include credit card payments online, in person, or over the phone.

3. Apply for a merchant account

Once you’ve reviewed the available payment options and are ready to apply for a merchant account, here’s what you need to know.

A merchant account is a channel set up with a bank to process electronic credit card transactions. This has been the traditional way in which businesses accept card payments. Merchant accounts function much like a holding account for your business. Money from card purchases goes into your merchant account, where it is held until the transaction is complete. Then, the funds are transferred to your bank account.

Merchant service providers range from banks and payment processing companies to independent sales organizations (ISO). Hundreds of providers exist in the market.

Applying for a merchant account may seem complex, but there are helpful guides on what a merchant account is and how it works that give the insight needed to easily navigate the application process. Here is an overview of steps to follow before hitting “submit” on your merchant account application:

1. Obtain a business license
2. Establish a business bank account
3. Confirm your business structure
4. Consider separate processors
5. Add terms of service and refund policies
6. Ensure PCI compliance
7. Gather required documents

Once you complete your application, most often online, a merchant services provider will review your documents and grant your approval. At this stage, there are a few final steps to take to prepare your business for its new processing features.

4. Set up hardware and/or software integrations

Depending on your business’s payment options, you’ll need different equipment and software. For example, for online processing, you will not need a countertop credit card terminal or POS system with physical hardware required for in-person transactions.

Your new processing may mean that you have to upgrade and integrate your existing software and/or hardware. If your business is a brick-and-mortar, you might have to buy checkout software or install an EMV chip-enabled card reader. Your payment service provider may supply this equipment for you.

5. Secure a reliable chargeback prevention and management tool

As a final step in your credit card processing journey, set up chargeback prevention and management tools if you’re taking payments in an online or card-not-present environment. A chargeback is a payment that is returned to a customer’s card due to a charge dispute or a return. Because chargebacks can be costly to your business, you should be proactive about preventing and managing them. Make sure you invest in effective transaction recordkeeping, quality customer service, and chargeback management solutions.

With effective systems in place to manage all your processing needs, you can set your business up for financial health and credit card processing success in the future.

Benefits of Accepting Credit Cards

To review: accepting credit cards allows you to take payments from customers internationally. It will empower you to keep up with your competitors. Customers are more likely to make larger purchases at your business since they’re not limited by the physical cash they have, and accepting this payment method can encourage some impulse spending.

Credit card payments offer your customers a quick and convenient way to pay. Customers without cash won’t need to find a nearby ATM to pay for the transaction. This convenience will increase the likelihood they’ll come to you again.

How Can I Accept Credit Card Payments? Closing Thoughts

By now, you should have a good understanding of how to accept credit card payments for your business.

Accepting credit card payments immediately improves your business by helping you reach more customers. In today’s world, the average consumer is looking for quick and convenient ways to shop. By accepting credit cards, your business can appeal to modern consumer behavior and boost your sales. PaymentCloud offers you credit card processing solutions using innovative technology, quick processing, competitive rates, and 24/7 merchant support to make accepting credit cards simple. Reach out to us today to see what we can do for your business!

Ready to accept payments? Have your merchant account up and running in no time.

Open a Merchant Account Today!