Top 7 Payment Methods to Consider for Your Business

Woman using her preferred payment method, a credit card, at an ATM.

A key factor in a successful business is the range of payment methods offered to customers. By understanding the intricacies of payment methods, businesses can build strategies that empower them to create seamless, secure transaction experiences.

A payment method is the specific form of payment a customer provides in exchange for goods or services. Buyers have plenty of payment options to choose from. Some of the more popular examples include credit and debit cards, checks, and good old-fashioned cash.

In this guide, we’ll explore popular payment methods. Specifically, we’ll delve into what constitutes a payment method, readily available options, and how to choose the right payment type for your business.

TABLE OF CONTENTS

Key Takeaways
Top 7 Payment Methods
Pros and Cons of Each Payment Type
Best Payment Methods for Different Business Types and Industries
What to Consider when Choosing Payment Options for Your Business
How to Choose the Payment Method that is Right for Your Business
Payment Methods for Small Businesses: FAQs

Key Takeaways

Different payment methods make sense for various types of businesses.
Credit cards remain the premier payment choice for most consumers, though options like mobile wallets are gaining traction with younger demographics.
Offering your customers a range of payment options is one way to ensure satisfaction during checkout.

Top 7 Payment Methods

Here are the seven most popular payment types currently used by consumers and businesses:

Credit/Debit Card

Credit and debit cards remain the most widely used payment method. The process entails using a payment gateway that routes the credit card information for verification and processing. Credit and debit cards remain popular for their convenience and flexibility.

ACH

Transactions completed using ACH, or Automated Clearing House, leverage an electronic network to facilitate the transfer of funds between accounts. This payment method is widely used in the B2B (business-to-business) world, as it simplifies electronic deposits and withdrawals.

eCheck

eChecks have become increasingly popular due to their streamlined setup and robust security measures. eChecks are processed relatively quickly (3-5 business days) and generally involve a merchant processor who facilitates and oversees the successful transfer of funds.

Mobile Payments

Customers can use smartphones to make mobile payments. This process encompasses various facets, including contactless options and payment apps. Completing a mobile payment consists of linking to a digital wallet, initiating the payment, routing the payment to a designated processor, and verifying and settling the transaction before funds are deposited into the merchant’s account.

Cryptocurrency

It’s no secret that the cryptocurrency acceptance is on the rise. Cryptocurrency payments, arguably the most contentious method on this list, are processed through payment gateways that leverage secure blockchain technology. Despite this method’s inherent volatility, crypto advocates remain confident in its potential for profitability.

Cash

Cash remains the most time-tested payment method, particularly in retail. Why is it so attractive? For one, cash transactions eliminate the hidden fees that sometimes come with credit sales. You don’t need an app or internet connection to accept cash payments. However, customers paying in cash forego their ability to build credit.

Checks

While the advent of electronic payments has seen checks dwindle slightly in popularity, they still come in handy in certain scenarios. It’s worth noting that checks are also subject to potential fraud risks.

Pros and Cons of Each Payment Type

While the modern merchant can choose from an array of payment options, knowing which one is right for your business is key. After all, what is ideal for one merchant may not work for another.

Below are the pros and cons of each available payment method:

Credit/Debit Cards:

Pros: Ease of use, global popularity, access to rewards and travel perks, the ability to build up credit score over time with a credit card.
Cons: Interest rates and wait times for settling transactions.

ACH:

Pros: Automation convenience, reduced fees.
Cons: Fluctuating transfer limits.

eCheck:

Pros: Cost-effective and versatile.
Cons: Less widely accepted than credit cards or cash.

Mobile Payments:

Pros: Popular with younger consumers, strong security measures.
Cons: Not universally accepted.

Cryptocurrency:

Pros: Market volatility with the potential to translate to significant consumer gains.
Cons: Decentralized, not universally accepted, potential to translate to financial losses, controversial cultural associations.

Cash:

Pros: No wait time for transactions to settle, no fees or interest.
Cons: Limited ability to recover lost or stolen funds, increasing number of merchants embracing cashless business philosophy.

Checks:

Pros: One of the more tried and true payment methods, offers a paper trail.
Cons: Vulnerable to fraud, not environmentally friendly.

Allowing customers to choose their preferred payment option, be it credit cards, mobile payment apps, or cash, contributes to a positive shopping experience and encourages repeat business.

Naturally, different payment methods come with varying levels of security. Selecting payment types that align with your risk preferences can help businesses reduce the chances of fraud and related issues.

Best Payment Methods for Different Business Types and Industries

Shopper surfing on a credit card, which is their preferred payment method.

For better or worse, credit cards remain the most widely accepted payment method among businesses. With that in mind, stores ranging from retail outlets to small boutiques would be wise to implement credit card compatibility at checkout.

Of course, there are also plenty of benefits to using cash. With cash, there’s no waiting for a transaction to settle and, of course, no credit card transaction fees. Merchants accept cash from their customers, provide change and proof of receipt, and the deal is done. However, with more and more businesses opting to go cashless, a cash-only operation risks turning customers away.

Businesses whose clientele consists primarily of millennials and Gen Z’ers should consider offering mobile wallets as a payment option. According to a study performed by PYMNTS in 2024, nearly 80% of Gen Z’ers habitually use digital wallets to complete payments. ^[1]PYMNTS. “Got Leather? Almost a Third of Consumers Prefer Carrying Physical Wallet“. Accessed on April 8, 2025. Digital wallets can also come in handy if a merchant oversees a high-volume, quick-turnaround business, such as a mobile food truck.

Ultimately, there are payment options for every business. Assess your customers’ spending patterns and determine the most convenient options you can offer.

What to Consider when Choosing Payment Options for Your Business

When settling on the right payment options for your business, there’s a fair amount to consider. In making your decision, be sure to keep the following suggestions in mind:

Understand Your Business Model: Identify the nature of your business (e.g., eCommerce, on-demand services, SaaS) to align payment methods with consumer-specific requirements.
Know Your Customers: Create a detailed profile of your ideal customer, one that takes age, demographics, and preferred payment methods into account.
Payment Method Families: Get familiar with prominent payment method families, ones that encompass options like cards, bank debits, transfers, Buy Now Pay Later (BNPL), and cash-based vouchers.
Consider Recurring Payments: Prioritize payment methods supporting recurring transactions for a seamless experience.
Assess Risk Tolerance: Evaluate your business’ risk tolerance and choose payment methods that align with your preferences.
Prioritize Security and Compliance: Select payment methods with top-notch security and PCI compliance.

How to Choose the Payment Method that is Right for Your Business

A merchant looks at her phone and researches different payment methods.

Your business can accept payments in both traditional and alternative ways. The appropriate payment method will become evident once you carefully consider and review the specific parameters of your business.

However, your options for choosing the correct payment method are limited without first setting up a merchant account. Whether you set up shop online or at a brick-and-mortar location, it’s crucial to learn the steps needed to take payments.

Although there may be complications throughout the process, rest assured that there are payment processing professionals who have the expertise and experience necessary to lend a helping hand. No matter your business type, a merchant services provider can break down the transaction process from start to finish while ensuring your specific needs are met.

Payment Methods for Small Businesses: FAQs

Which payment method is safest?

Each payment method offers different forms of security. Credit cards and reputable digital wallets generally provide strong security features. Encryption and authentication are two security measures merchants should look out for.

What is the best payment type for small businesses?

The ideal payment method for any small business will depend on factors like transaction volume and customer preference. It is relatively common for small businesses to accept credit and debit cards, cash, and even select digital payments.

What is the most preferred payment method?

Preferences vary among consumers, but credit and debit cards and digital wallets are often among the most preferred payment methods.

What are the different types of cards used for payment?

Common types of payment cards include credit cards, debit cards, and prepaid cards. Each has distinct features, such as debit cards accessing funds directly from a bank account and prepaid cards requiring preloaded amounts.

What are the different types of payment systems for eCommerce businesses?

eCommerce businesses utilize various payment systems, including credit and debit card processing, digital wallets, bank transfers, and BNPL options, allowing customers to make online purchases. The choice of payment systems depends on factors like the target market, transaction volume, and the need for recurring payments.

What is the most common payment method in the US?

Paying in person with credit or debit cards remains the top choice for most American consumers. However, according to Payments and Commerce Marketing Intelligence (PCMI), digital wallets continue to lead the way as a top payment choice in eCommerce. ^[2]PCMI. “North America’s Most Popular Payment Methods“. Accessed on April 8, 2025.

What is the best way to pay online?

Online merchants are encouraged to support credit card and digital payment options to accommodate potential customers. Credit cards provide multiple layers of security, including fraud detection, while digital wallets offer additional protection through features like passwords and biometric authentication (e.g., facial or fingerprint recognition).