Note: Mentions of third-party providers are for informational purposes only and do not imply endorsement by Remitly. Product features and pricing may change—please consult each vendor’s website for current information.
As an immigrant entrepreneur, staying competitive in an oversaturated market comes with its challenges. From promoting your business to forming partnerships, flexibility in payment options remains key to small business success.
Today’s consumers use less cash and expect quick, seamless credit card payments. Adapting to these expectations can strengthen your customer relationships and increase sales.
At Remitly, we know launching a business involves many decisions. This guide covers credit card payments, processing systems, pricing, and security practices—all tailored for small businesses.
Why Credit Card Payments Matter
As 64% of Americans expect a cashless future, non-cash payments have become essential. If your business operates on narrow margins, offering multiple ways to pay can protect and grow revenue.
Boosting Efficiency and Satisfaction
Payment methods at checkout influence sales—77% of shoppers abandon carts when their preferred payment option is missing. Accepting cards helps convert more customers and enhances satisfaction.
Common Payment Methods
Credit and Debit Cards
Cards are widely used for convenience and security. Business-side fees vary by card type, network, and processor (e.g., Stripe, Square, PayPal).
- Online: Customers enter card info via website or app with authentication.
- In-person: Cards are swiped, inserted, or tapped at POS terminals.
Digital Wallets
Apps like Apple Pay and Google Pay offer secure, contactless payments via NFC. These require compatible hardware but enhance speed and safety for customers.
Bank Transfers
Common for B2B, ACH and wire transfers are secure but slower. Learn more about ACH payments.
Buy Now, Pay Later (BNPL)
Used increasingly by Gen Z, BNPL services grew to a $37.8 million market in 2024. Merchants may face higher transaction fees and delayed payouts.
Setting Up Card Processing
Online Payments
Choose a gateway like Stripe, Square, or PayPal based on your product, audience, and needs. Consider:
- Real user reviews
- Monthly or per-transaction fees
- PCI compliance
- Simple checkout UX
- 24/7 customer support
For a secure checkout, implement:
- SSL/TLS encryption
- Tokenization for data protection
- 3D Secure authentication
- OTPs for sensitive fields
- Guest checkout options
In-Person Payments
- Standalone terminals: Basic and internet-connected; supports all card formats.
- Local POS systems: Offline capable; good for data privacy.
- Integrated systems: Cloud-based; best for hybrid retail.
- mPOS readers: Mobile-friendly but costlier per transaction (e.g., Zettle, SumUp).
Processing Providers: Fees & Features
| Provider | In-Person Fees | Online Fees |
|---|---|---|
| Stripe | 2.7% + $0.05 | 2.9% + $0.30 |
| Square | 2.6% + $0.05 | 2.9% + $0.30 |
| Helcim | 1.83% + $0.08 (AMEX fees may apply) | 2.27% + $0.25 (AMEX fees may apply) |
| PayPal | 2.9% + $0.09 | 2.89% + $0.49 |
| PayAnywhere | 2.69% | 3.49% + $0.19 |
Reducing Payment Risks
Digital payments come with fraud risks like identity theft, phishing, and chargebacks (fees: $15–$50 per instance). Implement these strategies:
Fraud Detection & AI
Modern systems spot suspicious patterns and evolve as threats change.
Transaction Audits
Regularly review your processes and logs to catch irregularities and ensure compliance.
Tokenization
Use encrypted tokens instead of storing actual card data.
Access Controls
Only allow credentialed users to handle sensitive payment data.
3D Secure
Use OTP or biometric verification to reduce chargeback risks.
FAQs
Can I write off credit card processing fees?
Yes. These are typically deductible as standard business expenses.
Which is cheaper: Stripe or Square?
Square is slightly cheaper (0.01%) for in-person payments on its basic plan. Stripe may offer better rates for high-volume businesses via custom pricing.
Why accept credit cards at all?
It increases convenience, trust, and transaction volume—benefits that drive business growth.