10 Ways to Accept Payments Online (Setup, Best Method)

Being able to accept payments online is essential for online businesses aiming to expand their customer base and streamline transactions. This article enumerates the 10 ways to accept payments online. 

We cover everything from online payment processors and payment terminals to mobile payments and cryptocurrencies. We also detail the setup process and highlight the best methods for different business needs.

This comprehensive guide has all the information you need to implement effective online payment solutions for your eCommerce store, subscription service, or local business. Let’s begin.

1. Online Payment Processor

One way to accept payments online is to use an online payment processor. A payment processor lets you accept credit cards and debit cards as payment. Popular options include Stripe, PayPal, and Shopify Payments. These services provide secure transactions and integrate easily with most eCommerce platforms.

Stripe offers customizable payment solutions and supports multiple currencies. PayPal is widely recognized and trusted by consumers. Shopify Payments integrates seamlessly with Shopify stores and simplifies the payment process.

2. Payment Terminal

Another way to accept payments online is to use a payment terminal, also known as a point of sale (POS) terminal or card reader. A payment terminal is necessary to accommodate customers who make purchases via phone, email, or manual card entry.

Manual card entry, also known as Mail Order Telephone Order (MOTO), involves the merchant manually entering the customer’s card details with their permission. Two examples include one-time payments entered into the payment system at the time of purchase or using a saved card on file.

A payment terminal must integrate with payment providers that support manual card entry, such as Stripe and Wix Payments. 

3. Buy Now, Pay Later (BNPL)

A third way to accept payments online is to offer Buy Now, Pay Later (BNPL) options. BNPL services let customers make purchases and pay for them in installments over time. Popular BNPL providers include Klarna, Afterpay, and Affirm.

Klarna allows customers to split their payments into 4 interest-free installments. Afterpay also offers interest-free installment plans and is widely used in various online stores. Affirm provides flexible payment options including interest-free and low-interest plans to cater to a broad range of customers.

4. Mobile Payments

A fourth way to accept payments online is to offer mobile payment options. Mobile payments allow customers to use their smartphones to complete transactions quickly and securely. Popular mobile payment services include Apple Pay, WeChat Pay, and Samsung Pay.

Apple Pay enables users to make payments using their Apple devices with a simple and secure touch. WeChat Pay is widely used in China and allows users to make payments within the WeChat app. Samsung Pay offers similar functionality for Samsung device users and supports both NFC and MST technologies.

5. Digital Wallets

A fifth way to accept payments online is to offer digital wallets. Digital wallets allow customers to store their payment information securely and make transactions easily. Popular digital wallet services include PayPal, Google Pay, and AliPay.

PayPal is a widely recognized and trusted digital wallet that enables users to pay with their PayPal balance, linked bank accounts, or credit cards. Google Pay allows users to make payments using their Google accounts and supports all popular payment methods. AliPay is popular in China and supports both online and in-store transactions.

6. ACH Transfer

A sixth way to accept payments online is through ACH transfer, also known as direct deposit. ACH (Automated Clearing House) transfers allow customers to send payments directly from their bank accounts to your business account. 

This method is secure and cost-effective, which is why it’s a popular choice for businesses and customers alike. ACH transfers are ideal for recurring payments such as subscriptions or membership fees due to their low transaction fees compared to credit card payments.

7. Recurring Billing

A seventh way to accept payments online is through recurring billing. Recurring billing is the best payment method for products or services sold on a subscription basis, as it automatically charges customers at regular intervals. This simplifies the payment process for customers because they only need to enter their payment information once.

Recurring billing is widely adopted in services like streaming platforms, subscription boxes, and membership sites. It’s a convenient and efficient way for customers to manage their subscriptions while ensuring consistent income for your business.

8. Invoicing

An eighth way to accept payments online is through invoicing. Invoicing allows businesses to bill customers for products or services and receive payments online. Invoicing platforms, such as FreshBooks, Square Invoices, QuickBooks, and Zoho, streamline this process by providing professional templates and automated payment reminders.

Invoicing is ideal for businesses that provide services or custom products where payment is made after the service is rendered or the product is delivered. It enables you to manage your billing efficiently, track payments, and ensure timely collection of funds.

9. cash

A ninth way to accept payments online is to accept cash. This method is preferred by customers who value privacy, especially when purchasing privacy-related products or services. 

Businesses like Mullvad VPN offer options for cash payments to maintain customer anonymity. They provide customers with a payment token and instructions on how to send their cash in an envelope. 

10. Cryptocurrencies

A tenth way to accept payments online is through cryptocurrencies. Cryptocurrencies provide a decentralized, secure, and fast payment method that appeals to tech-savvy and privacy-conscious customers. It involves setting up a crypto wallet to receive payments in digital currencies like Bitcoin, Ethereum, and others. 

Start by creating an account with a cryptocurrency exchange or wallet provider and generating a wallet address. Then share this address with customers who wish to pay with cryptocurrencies. This method provides a modern and flexible payment option that attracts a diverse customer base.

How to Set up Online Payments

There are 4 steps to set up online payments. Firstly, choose a reliable payment processor to handle your transactions. Popular options include Stripe, PayPal, and Shopify Payments. Secondly, set up a merchant account to manage your business’s transactions. This account receives payments from your customers and deposits funds into your bank account. Most payment processors guide you through this setup. 

Thirdly, integrate a payment gateway to connect your online store with the payment processor. A payment gateway securely transmits payment information between your website and the processor. Many eCommerce platforms offer built-in payment gateways or easy integrations. 

Lastly, test your payment system to ensure everything works smoothly before going live. Perform test transactions to verify the process from payment to fund deposit. Once you confirm the online payment system is reliable, launch it for your customers. It’s important to get your online payments up and running before launching your online business.

Can I Accept Bank Transfer Without a Local Bank Account?

Yes, you can accept bank transfers without a local bank account by using a money transfer service like Wise or OFX. 

Wise is more commonly used and provides a straightforward way to receive international payments. It allows you to create virtual bank accounts in different currencies, which enables you to receive payments as if you had a local bank account. See our Wise review to learn more.

OFX also offers similar services, and facilitates international money transfers.

Wise vs OFX: Which One Is Better?

Choosing between Wise and OFX largely depends on how much money you’re transferring.

Wise is better for low-cost transfers for personal use. It offers competitive exchange rates and lower fees for smaller amounts, which makes it ideal for individuals and small businesses.

OFX is better if you need to transfer large sums of money. It provides better rates for high-value transfers and offers more personalized customer service. Learn more in our detailed OFX review.

What Is the Best Method to Accept Payments Online?

The best method to accept payments online is to use an online payment provider. Online payment providers such as PayPal offer secure transactions, user-friendly interfaces, and are widely accepted by consumers.

What Are the Alternatives to PayPal?

The alternatives to PayPal are Stripe, Square Payments, and Shopify Payments. Stripe offers customizable payment solutions and supports multiple currencies. Square Payments provides an all-in-one payment processing solution with easy integration and transparent pricing. Shopify Payments seamlessly integrates with Shopify stores to simplify the payment process for eCommerce businesses.

See more options in our PayPal alternatives lineup to find the best fit for your business.