When you deliver a product or service, you need to get paid. This comes with a few logistical obstacles. 

How does your client send money to your bank account? How long will this take? How much does it cost? 

The answer to these questions depends on the payment method used. Cash, checks, credit cards, digital payments, and other options come with their own sets of pros and cons. 

What’s more, different customers prefer different payment methods. You can’t just pick the one that suits you best. To deliver a customer experience that’s truly fantastic from start to finish, you need to cater to all kinds of preferences. 

At this point, you’re probably wondering how to accept payments as a small business. This guide will show you where to start. 

First, we’ll explain why you need to accept multiple payment methods. Then, we’ll list out the essentials. 

We’ll walk you through how to set up payments for your business. We’ll also explore best practices for creating a seamless customer payment experience. 

To wrap up, we’ll share three quick tips to help you manage payments across multiple methods. Let’s get started! 

Why Your Small Business Needs to Accept Multiple Payment Methods 

Your clients care about experience. More than half are willing to pay more for better customer service. 

Delivering a five-star customer experience is, therefore, in your best interest. It inspires loyalty, wins trust, and helps you stand out among your competition. 

But here’s the thing about customer experience—there’s no one magic bullet trick. It’s multifaceted. It’s the sum of all the interactions your clients have with your business. And this includes payments. 

That’s why offering multiple payment methods is such an important step for small businesses like yours. It solidifies and enhances the customer experience. 

Get it right, and you increase sales potential by catering to different customer preferences. This also makes your service more personalized. Your clients feel like your payment process was made just for them. 

And for your business, this translates into increased revenue. You encourage more customers to make a repeat purchase. Your cash flow is steadier, too, because you’ve eliminated friction. Payments are easy, and easy means fast. 

You spend less time chasing unpaid invoices and more time improving your offering and growing your business. 

RELATED ARTICLE: Digital Payment Methods: How They Help Small Business Owners Combat Late Payments 

Essential Payment Methods Every Small Business Should Offer 

No two customers are alike. The good news? There are enough payment methods out there for everyone. 

Here are some of the most essential options you should consider offering: 

Traditional Payment Methods Like Cash and Check 

You might think traditional payment methods are on the decline, but many Americans still prefer to use cash. In fact, 67% prefer cash payments for in-store purchases. 

Checks aren’t holding their ground quite as well. In the past year, almost half of Americans haven’t written a check. 

This doesn’t mean you shouldn’t accept checks. Customers from older generations might still prefer this physical payment method. This is especially true for higher-value transactions. 

One big benefit of cash and checks is that there are not usually fees. With cash, you have the funds immediately. But checks can take a few days to clear. 

What you need to know at a glance: 

• Accept cash and checks to appeal to a broader client base. 
• Take advantage of zero-fee transactions and maximize your profit. 
• When cashing a check, funds won’t appear in your account for a few days. 

Credit and Debit Card Payments 

Customers have expectations. They expect to be able to contact businesses by phone or email. They expect you to have a website. And they probably expect you to accept credit and debit card payments. 

Credit cards are the number one most popular retail payment method in the US. Forecasts suggest this trend will continue in 2025. Transactions will reach a staggering value of $3.843 trillion. 

You can accept credit and debit card payments in a few different ways: 

• Using a point-of-sale (POS) terminal or mobile card reader 
• With online payment processing 
• Through a recurring billing system that charges customers automatically for subscription-based services 

One thing to keep in mind with card payments is the cost. Expect to pay a transaction fee of around 2-3%. Some businesses shoulder this cost, while others pass it on to the customer. 

The benefits outweigh the drawbacks. Credit and debit card payments are convenient and popular—they are a must-have payment method. 

What you need to know at a glance: 

• Credit cards are the most popular payment method. 
• Offer credit and debit card payments to meet customer expectations. 
• Remember that transaction fees will apply. 

FROM ONE OF OUR PARTNERS: 5 Easy Ways to Accept Credit Cards 

ACH Bank Transfers 

Automated clearing house (ACH) bank transfers are an electronic payment method. Funds are transferred securely and directly between bank accounts. 

Although ACH transfers take a few business days to process, they have lower transaction fees than card payments. This makes them a smart choice for large transactions. 

Let’s say you are charging a customer $5,000 for a large project. The average credit card swipe fee is 2–4%. So, the cost of the transaction would be between $100 and $200. 

ACH transfers don’t cost any more than a few dollars at most. That’s a huge saving for you or your customer. 

As a bonus, ACH transfers work for ongoing or subscription-based services, too. 

What you need to know at a glance: 

• ACH transfers take place directly between bank accounts. 
• Enjoy lower fees, even for larger transactions. 
• Funds take between one and three business days to show up in your account. 

Contactless and Mobile Payment Solutions 

Contactless and mobile payment solutions enable ultra-fast, on-the-go payments. They’re great if your customers want to pay you on the spot and in person. 

This method uses near-field communication (NFC) technology. It allows devices to share data wirelessly when at a close distance. In the case of credit card payments, the card’s chip communicates with the POS system. 

Speaking of, you will need compatible hardware to accept this kind of payment. It’s a small upfront investment that makes collecting payments a breeze. 

Contactless payment methods come with fees. These vary depending on the payment processor and hardware you’re using. 

What you need to know at a glance: 

• This is a speedy and convenient choice for in-person payments. 
• Fees are comparable to credit and debit card payments. 
• You will need to purchase a card reader for this payment method. 

RELATED ARTICLE: The Most Popular Mobile Payment Methods for Business Owners 

Online Payments 

Online payments encompass a whole range of online portals and e-commerce platforms. Processors like PayPal and Apple Pay fall under this category. 

This payment option is hugely popular. Take PayPal as an example. In the first three months of 2024, the company processed an incredible 6.5 billion transactions worldwide. 

PayPal and other online payment solutions charge pretty high merchant fees. PayPal’s are 3.49% plus a fixed fee. 

Although on the pricier side, online payments are a customer favorite. They can be easily integrated into your website. This creates an effortless customer experience. 

What you need to know at a glance: 

• Online payments are extremely popular in the US and around the world. 
• Quick and easy integration contributes to a positive customer experience. 
• Although the fees are higher, the level of convenience can make online payments worth it. 

How to Set Up Multiple Payment Methods for Your Business 

You’re ready to take action. Before you jump head-first into the setup, you’ll need to partner with a payment processor. 

How to Choose a Payment Processor 

A payment processor is a service that handles transactions between your business and your customer. When they make a payment, it’s processed by the service provider before it ends up in your bank account. 

When choosing a payment processor, take your time and do your research. A lot hinges on making the right decision, including: 

• The payment options you can offer 
• The level of security 
• How easy the checkout process is for your customers 
• Whether or not your payment data integrates with other software you use 

Follow these tips to find the best-fit payment processor for your business: 

• Consider the types of payments you want to accept. Make sure the provider supports these. 
• Check whether the processor integrates with your accounting or invoicing software. This makes managing your finances much simpler. 
• Research their reputation. Read reviews from real-life customers. 
• Find out about their security protocols. Make sure they are compliant with regulations like PCI DSS. 
• Test out their customer service. If something goes wrong, you want to know that support is available. Even if the issue is the processor’s fault, your customer might blame you. 

How to Set Up Multiple Payment Methods 

You’ve chosen a payment processor. Now, it’s time to get everything organized and working. Here’s how: 

• Step 1: Consider your business needs. How much are your transactions on average? If they are on the higher side, you might prioritize lower-fee payment methods. What kinds of customers do you serve? Do they prefer traditional or digital payment options? 
• Step 2: Select the payment methods you want to offer. This might include one or all the options we listed above. Make sure the methods you offer reflect your business needs. They should also be supported by your payment processor. 
• Step 3: Open merchant accounts. Depending on the payment method, you’ll need to open a merchant account. This is like a business bank account. 
• Step 4: Get the payment hardware or software you need. For example, if you’d like to offer contactless mobile wallet payments, you’ll need a mobile card reader. 
• Step 5: Integrate your payment systems with your accounting software. This means all payments will be recorded automatically. You don’t have to enter data manually. This saves time and makes mistakes less likely. 
• Step 6: Check your security settings. Make sure you are using all the security features available to you. Features like encryption and multi-factor authentication (MFA) protect your business and customers. 
• Step 7: Test your payment methods. Before you introduce your new payment methods, make sure they work. Process a few small transactions. See if everything goes smoothly. If you run into any problems along the way, you might need to reconfigure some settings. Take advantage of the support and resources offered by your payment processor too. 
• Step 8: Update your payment terms. Make sure the instructions on your invoices include all the payment options you now offer. Where needed, add in your payment information. Include any fees that you’d like the client to cover. 

Creating a Seamless Customer Payment Experience 

At the end of the day, your business’s success comes down to one thing: how your customers feel about what you deliver. The quality of your product or service plays a huge role in this. But so does the experience. 

With the right approach, you can transform payments into a strategic advantage. It can become an extension of your customer care strategy, something that gives your business a leg up. 

What might this involve? Follow these best practices to create a seamless customer payment experience: 

Make Sure the Payment Interface Is Easy to Use 

User-friendliness goes a long way in making digital payments easy. Your customers should know exactly where to input their information. They should be guided through the process step-by-step. 

An easy checkout means faster payments. It can also mean fewer abandoned carts if that’s relevant to your business. 

Of course, you won’t be building this interface yourself. It’s something your payment processor will take care of. So add user-friendliness to your list of must-have features. 

Opt for a Payment Processor That’s Optimized for Mobile 

If you offer payment via an online portal, make sure it works on mobile too. 

You can bet a good portion of your customers will check out on their phones. The process should be just as easy as paying on a desktop computer. 

Write Your Payment Terms Clearly 

Payment terms are there to inform your clients, not confuse them. They should know exactly what’s expected from them. This includes how and when to pay. 

When reviewing your payment terms, think about your expression. Is there a simpler word you could use? Could you break down a long sentence into several smaller ones? 

Even small edits like these can improve comprehension and help you prevent payment disputes. 

Prioritize Security and Compliance 

Every business that deals with payment information is responsible for protecting it. Yes, this safeguards your clients against cyberattacks and breaches. But it’s also the law. 

Always configure your security settings so they provide maximum protection. They should also follow the rules set out in the PCI DSS. 

FROM ONE OF OUR PARTNERS: 5 Things You Should Know About Accepting Electronic Payments 

3 Tips for Managing and Tracking Payments Across Multiple Methods 

Tracking payments from different sources can get tricky. Use these three tips to stay on top of it all: 

• Continuously monitor your approach to payments. Which methods are most popular? Which results in more late payments? Use this insight to adjust your strategy. 
• Choose a payment processor that covers all the bases. It should offer all the payment methods you’d like to accept. And it should integrate with your other software. That way, you’re not looking here, there, and everywhere for payment information. It’s all in one place. 
• Get your invoicing right. Add a unique number to every invoice. Ask your clients to use this as their payment reference. This helps you keep track of payments regardless of where they are coming from.