How to Accept Online Payments: Merchant Accounts and Payment Processors

Ready to start making money online? Before your first sale, it’s essential to understand how to accept online payments securely and efficiently. Whether you're setting up a digital storefront or launching a service-based business, choosing the right payment systems can impact your revenue, fees, and customer trust. Let’s break it all down and help you launch with confidence.

Table of Contents

1. Understanding Merchant Accounts vs Payment Processors

2. Popular Payment Processors for Small Businesses

3. Fees, Security, and Settlement Times Explained

4. How to Set Up Online Payment Systems Step-by-Step

5. Pro Tips for Choosing the Right Payment Option

1. Understanding Merchant Accounts vs Payment Processors

The first decision most entrepreneurs face: Should you open a merchant account, or work with an all-in-one payment processor?

Merchant Account

A merchant account is a type of business bank account that allows you to accept card payments. It’s usually paired with a payment gateway to process transactions.

Pros:

• More control and customization

• Lower processing fees for large volumes

• Direct bank deposits

Cons:

• Requires approval and underwriting

• More complex to set up

Payment Processor

Payment processors like Stripe, PayPal, and Square bundle everything—merchant account, payment gateway, and reporting—into one platform.

Pros:

• Fast setup

• Easy integration with online stores

• Built-in fraud protection tools

Cons:

• Slightly higher fees

• Limited customization for scaling businesses

2. Popular Payment Processors for Small Businesses

Not all processors are created equal. Here are the most trusted names in online payments:

3. Fees, Security, and Settlement Times Explained

When evaluating how to accept online payments, knowing how much it costs and how secure the process is should be top of mind.

Common Fees to Expect:

• Transaction Fees: 2.6–3.5% per transaction

• Chargeback Fees: ~$15–25 per dispute

• Monthly Fees (for merchant accounts): ~$10–25/month

Security Must-Haves:

• PCI DSS Compliance: Required to handle card data

• SSL Certificates: Essential for your website

• Tokenization: Encrypts card data

Settlement Times:

4. How to Set Up Online Payment Systems Step-by-Step

Setting up to accept online payments doesn’t have to be complicated. Here’s how it typically works:

Basic Setup Process:

1. Choose a Processor – Start with Stripe, PayPal, or Square

2. Create an Account – Business name, EIN, bank details

3. Verify Identity – Upload documents, proof of business

4. Integrate into Store – Use Shopify, WooCommerce, Wix, etc.

5. Test Transactions – Run a sandbox transaction

6. Go Live – Begin accepting real payments

5. Pro Tips for Choosing the Right Payment Option

Before you decide on how to accept online payments, ask yourself:

Key Questions:

• Do you need recurring billing for subscriptions?

• Will you sell internationally (need multi-currency)?

• Are you integrating with a shopping platform?

• Do you expect high volume or want low fees?

Pro Tips:

• Start small with Stripe or PayPal

• If branding is critical, customize via merchant accounts

• Use analytics tools built into your processor to optimize sales

• Avoid long-term contracts until you’ve tested your market

Final Thoughts: Accept Online Payments with Confidence

Online sales are booming—but without the right payment infrastructure, you're leaving money on the table. Whether you opt for Stripe, PayPal, Square, or a full merchant account setup, the key is to match your processor to your business’s growth stage and customer preferences.

Ready to accept online payments securely and efficiently?🚀 Download our free Payment Processor Comparison Guide or schedule a call to help you choose the best fit for your online business today.