Small business credit card processing is a key part of doing business in today’s landscape.
Credit card usage has been on the rise, and this trend isn’t showing signs of slowing down. Industry data shows that 82% of American consumers have at least one credit card or charge card, and experts are expecting that number to continue to grow.
Needless to say, small business owners that don’t accept credit cards are leaving a lot of money on the table. If you want to keep up with modern shoppers, you need to ensure that you have the systems in place to accommodate their payment needs.
Doing that starts with evaluating different credit card processing services and selecting the right solution for your business.
Credit card payments and your small business
One of the first steps to getting started with credit card processing for businesses is determining your specific needs. Ironing out your requirements will make it easy to evaluate credit card processing companies and figure out the best option for your business.
To that end, below are some helpful questions that can surface your business needs.
What types of credit card brands do you want to accept?
Understanding what debit card and credit card brands to accept is very important for your business and customers. Credit cards contain their own unique set of rates and interchange fees, which can be costly. As a business owner, you pay for the convenience of accepting a chosen payment method in order to accommodate the interests of your customers. Visa and Mastercard are standard, but then you also have American Express and Discover.
Visa and Mastercard continue to dominate card spending in the U.S. According to The Nilson Report, purchase volume across U.S.-issued Visa and Mastercard credit, debit, and prepaid cards reached approximately $10 trillion in 2025.
It’s important to note that each of these card networks have varying processing fees and policies, so be sure to consider them when deciding on the credit card types to accept. However, please note that while a business is free to choose which card networks to accept—such as taking Visa and Mastercard but declining American Express—it must generally honor all valid cards issued within an accepted network under standard merchant agreements.
How will you accept payments?
List the methods you’ll use to accept card payments. Are you accepting in-person payments or online? Will you be accepting mobile payments or contactless payments like Apple Pay? Do you plan to take credit card payment info over the phone? What about online payments?
The answers to these questions will enable you to figure out what hardware and software you need to effectively set up and take credit card payments. For example, if you’re a large retail business that focuses on in-store transactions, then having a robust POS system that integrates with your credit card processor and credit card machines is a must.
If you’re selling online, see to it that your payment processor integrates with your ecommerce shopping cart.
There are many credit card processing solutions you can choose from. Depending on the industry, some payment types will serve as a default with additional options to expand payment collection methods from customers. Customers can make payments on your website or through a POS terminal next to the cash register.
You can process payments on your smartphone with a mobile card reader, or you can type payments into a virtual terminal. Payment preferences are continuously changing, so it’s important to know how customers want to pay, as well as how your business wants to charge.
How much sales volume do you expect to be credit card transactions?
The number and amount you process are major factors that credit card processing companies consider when setting your rates. As such, you should understand your transaction volume before hunting for a merchant account service.
What do you need to accept credit card payments?
Before you can start accepting credit card payments, you’ll need a few essential tools and services to process transactions securely and get funds into your business bank account.
These include:
- Payment processor. A payment processor handles credit and debit card transactions, communicating with banks and card networks to authorize and process payments.
- Merchant account or payment service provider. A merchant account enables your business to accept card payments and receive funds from transactions. Alternatively, you can use a payment service provider that processes payments through a shared merchant account structure.
- Payment gateway. If you accept online payments, you’ll need a payment gateway to securely transmit payment information between your checkout system and payment processor.
- Credit card machine or POS system. For in-person payments, you’ll need a card reader, payment terminal, or point-of-sale (POS) system that accepts credit cards, debit cards, and contactless payments.
- Business bank account. You’ll need a bank account where your payment provider can deposit funds from completed transactions.
We know that’s quite a list, but you don’t necessarily need to source each component separately. Many modern payment processing companies offer all-in-one solutions that combine merchant services, payment processing software, and hardware, making it easier to get up and running.
How to set up credit card processing for your small business
Setting up credit card processing is relatively straightforward once you know what your business needs. The exact process depends on how you sell, which payment methods you want to accept, and the payment processing provider you choose.
Follow these steps to get your small business ready to accept credit card payments.
1. Determine how you want to accept payments
Start by figuring out how and where customers will pay you. This will help you narrow down your payment processing options and choose a system that fits your business.
Common ways to accept payments include:
- In-person payments. Retail stores, restaurants, and other brick-and-mortar businesses typically use credit card machines or point-of-sale (POS) systems to accept chip, swipe, and contactless payments.
- Online payments. Ecommerce businesses need a payment gateway or online checkout solution that lets customers enter their payment details securely.
- Mobile payments. If you sell at farmers markets, pop-up shops, or customer locations, you can use a portable card reader or a compatible smartphone with Tap to Pay.
- Remote payments. Service-based businesses can send digital invoices or payment links so customers can pay without visiting a physical location.
- Recurring payments. Subscription businesses and membership-based services need payment processing software that supports automatic billing.
Consider which payment methods your customers prefer, too. Beyond credit and debit cards, you may want to accept digital wallets like Apple Pay and Google Pay, as well as ACH bank transfers.
2. Research and compare payment processing providers
Once you’ve identified your payment needs, it’s time to find a payment processing company.
There are plenty of payment processors for small businesses, but their pricing, features, and services can vary significantly. Some specialize in online payments, while others offer comprehensive merchant services for businesses that sell across multiple channels.
As you compare providers, consider:
- Payment methods. Does the provider support the credit cards, digital wallets, and other payment options your customers use?
- Processing fees. How much will you pay per transaction? Are there monthly fees, setup costs, or other charges?
- Hardware and software. Does the provider offer compatible credit card machines, POS systems, and online payment tools?
- Funding times. How quickly will funds reach your business bank account?
- Integrations. Can the payment system connect with your ecommerce platform, accounting software, or other business tools?
- Customer support. What assistance is available if you encounter payment processing issues?
Don’t automatically choose the provider advertising the lowest transaction fees. Look at the total cost of processing payments, along with the features and support your business needs.
3. Choose a credit card processing pricing model
Your payment processor’s pricing structure can have a significant impact on your operating costs, particularly as your sales volume grows.
Common pricing models include:
- Flat-rate pricing. You pay a fixed percentage, often plus a per-transaction fee, for each payment. This model is straightforward and can work well for newer businesses with relatively low processing volumes.
- Interchange-plus pricing. You pay the underlying interchange fees and card network assessments, plus a markup from your processor. This model offers greater visibility into processing costs.
- Subscription-based pricing. Some providers charge a monthly membership fee alongside transaction-level charges. Depending on the fee structure and your processing volume, this may be cost-effective for established businesses.
Review the full fee schedule before signing up. Pay attention to monthly minimums, chargeback fees, and early termination penalties.
4. Sign up for a merchant account or payment service provider
After choosing your provider, you’ll need to complete its application or registration process.
Most payment processing providers ask for information such as:
- Your business name, address, and contact details
- Business structure and tax identification number
- Owner or authorized representative information
- Business bank account details
- Estimated monthly card processing volume
- Average transaction amount
- Products or services you sell
Traditional merchant account providers may conduct underwriting before approving your application. Payment service providers often offer faster initial onboarding, although additional verification may still be required.
Make sure your business information is accurate and complete to avoid unnecessary delays.
5. Set up your credit card machine or payment processing software
With your account established, the next step is configuring the tools you’ll use to accept payments.
Your setup will depend on your sales channels:
- For physical stores: Connect your credit card machine or POS system, configure your products and prices, and make sure the device can communicate with your payment processor.
- For online stores: Integrate your payment gateway or hosted checkout with your ecommerce website.
- For mobile businesses: Pair your portable card reader with your smartphone or tablet, or activate Tap to Pay if your provider supports it.
- For service businesses: Set up digital invoicing, payment links, or recurring billing features.
If your payment provider integrates with your accounting software, connect the two systems now. This can simplify bookkeeping and help you track payments, fees, and deposits.
6. Configure payment methods and security settings
Before accepting live transactions, confirm that your payment system supports the payment methods you want to offer.
Enable the relevant card networks and available payment options, such as contactless payments, digital wallets, and ACH payments.
You’ll also want to review your security settings. This includes configuring fraud prevention tools, setting employee access permissions, and understanding your responsibilities under the Payment Card Industry Data Security Standard (PCI DSS).
Many payment providers offer built-in security features and tools to help businesses meet applicable requirements.
7. Test your payment processing system
Don’t wait until a customer is standing at the checkout counter to discover that something isn’t working.
Before going live, test your setup to confirm that:
- Credit and debit card transactions process successfully.
- Your card reader or online checkout accepts the intended payment methods.
- Customers receive accurate receipts or payment confirmations.
- Refunds can be processed correctly.
- Transactions appear in your payment dashboard.
- Payment data syncs with your accounting or POS software, if applicable.
Use your provider’s test environment where available, and follow its instructions for any live transaction testing.
8. Start accepting credit card payments
Once everything is configured and tested, you’re ready to accept credit card payments.
Keep an eye on your first few transactions to make sure payments are processed correctly and deposits are reaching your bank account as expected.
As your business grows, regularly review your processing fees, transaction reports, and customer payment preferences. You may find opportunities to reduce costs, add payment methods, or upgrade your payment processing system to better support your operations.
What are the best credit card processing options for small businesses?
There’s no one-size-fits-all approach to small business credit card processing. The right solution depends on your business model, where you sell, and how your customers prefer to pay.
For example, a retail store may need a point-of-sale (POS) system with a credit card machine, while an online business may prioritize a secure payment gateway. Service-based businesses might benefit from payment links and recurring billing tools.
Here’s a breakdown of the most common payment processing options for small businesses.
| Payment processing option | How it works | Best for |
| Traditional merchant account | Provides a dedicated merchant account for accepting credit and debit card payments, typically with underwriting and a separate processing agreement. | Established businesses with consistent or higher transaction volumes. |
| All-in-one payment service provider | Combines payment processing, merchant services, and payment tools into a single solution, often simplifying setup and management. | Small businesses looking for a convenient way to start accepting payments. |
| POS-integrated payment processing | Connects card payments with a POS system to manage sales, transactions, and potentially inventory and customer data. | Retail stores, restaurants, and other brick-and-mortar businesses. |
| Online payment gateway | Securely transmits payment information during online checkout and works with a processor to complete transactions. | Ecommerce stores and businesses accepting payments through websites. |
| Mobile credit card processing | Uses portable card readers or compatible smartphones to accept card payments on the go. | Mobile service providers, pop-up shops, market vendors, and businesses operating outside traditional storefronts. |
| Recurring billing solution | Automatically charges customers on a scheduled basis using securely stored payment credentials. | Subscription businesses, membership programs, and service providers with ongoing billing arrangements. |
Keep in mind that these options aren’t mutually exclusive. Many payment processing providers support multiple payment methods and sales channels through a single platform.
For instance, Stax and Payment Depot offer payment processing solutions for businesses that accept payments in person and online.
When comparing your options, consider your current transaction volume, preferred payment methods, processing costs, and any software or hardware you already use. The goal is to choose a payment processing system that meets your needs today without limiting how your business can grow.
How to choose the best payment processor for your small business
The best payment processor for your small business depends on how you sell, how much you process, and which features matter most to your operations. Here’s what to consider when comparing payment processing providers.
Compare processing fees and pricing structures
Credit card processing fees can add up quickly, so look beyond advertised transaction rates. Consider the provider’s pricing model, monthly fees, hardware costs, and any additional charges.
For example, Stax offers subscription-based payment processing, while Payment Depot offers interchange-plus pricing. Depending on your sales volume, these models may help you save compared to flat-rate processing.
Calculate your estimated monthly processing costs based on your average transaction size and sales volume to determine which option offers the best value.
Consider how and where you accept payments
Your payment processor should support the ways your customers prefer to pay.
If you operate a physical store, look for compatible credit card machines and POS integrations. Online businesses need secure checkout capabilities, while service providers may benefit from payment links, digital invoicing, and recurring billing.
If you sell across multiple channels, choose a provider that can handle both in-person and online transactions.
Evaluate software features and integrations
Beyond processing card payments, the right payment solution can help streamline your operations.
Look for features such as transaction reporting, customer management, recurring billing, and integrations with your existing accounting software or ecommerce platform.
Stax, for example, offers payment processing tools that help businesses manage transactions and payment activity from an all-in-one platform.
Check funding times and customer support
Reliable cash flow is essential for small businesses. Find out how quickly your processor deposits funds into your bank account and whether faster funding options are available.
Also, consider the level of customer support offered. If your credit card machine stops working or a payment fails, you’ll want access to assistance that can help you resolve the issue quickly.
Review contract terms and scalability
Finally, review the provider’s contract terms, cancellation policies, and potential hidden fees.
Think about your future needs, too. A payment processor that works for your current sales volume should also be able to support additional locations, higher transaction volumes, and new payment methods as your business grows.
Ready to set up credit card processing for your small business?
If you’re looking for the perfect payment processing solutions for your small business, you’ve come to the right place. Stax Pay offers subscription-based, integrated payment processing services at a direct, subscription-based cost.
FAQs about getting a credit card machine
Q: What is a credit card machine, and why do I need one for my small business?
A credit card machine, also known as a point-of-sale (POS) terminal, is a device that allows your small business to accept credit and debit card payments from customers. It is essential for modern businesses, as it enables easy and secure transactions, expanding your customer base and increasing sales.
Q: How can I get a credit card machine for my small business through Stax Payments?
Getting a credit card machine through Stax Payments is simple. You can visit our website and request a call from our team once you provide some basic information about your business. Once registered, you can browse through our range of credit card machines and choose the one that best suits your business needs. Our team will guide you through the application process and provide assistance every step of the way.
Q: What types of credit card machines are available for small businesses at Stax Payments?
Stax Payments offers a variety of credit card machines to cater to diverse business needs. Our selection includes traditional countertop terminals, wireless terminals for mobility, virtual terminals for online transactions, and mobile card readers for on-the-go businesses.
Q: How secure are the credit card machines offered by Stax Payments?
Security is a top priority for Stax Payments. Our credit card machines are equipped with the latest encryption and compliance measures to protect your customers’ sensitive data. Rest assured that your transactions are safe and compliant with industry standards.
