How to accept credit cards: a guide for business owners
Accepting credit cards used to mean a bank, a terminal, and a contract. Now it means choosing the right mix of channels, the right merchant account, and the right gateway for how your business actually sells. Here's the practical version.
The short answer
To accept credit cards, you need three things: a merchant account (where the money lands), a payment gateway or terminal (where the card data is captured and encrypted), and a payment processor (which moves the transaction through the card networks to your account).
Most modern providers bundle some or all three. The choice that matters most is whether you use a dedicated merchant account with real underwriting (better for any business that isn't completely vanilla) or a payment facilitator that lumps you in with millions of other merchants under one account (faster to start, riskier to scale on).
The rest is choosing the right channels for how you sell: online, in-person, by phone, or all three.
The 5 steps to start accepting credit cards
Step 1: Choose your channels
Decide where you actually take payments. Online checkout, in-person at a counter or pop-up, over the phone, by emailed invoice, on mobile, or recurring billing for subscriptions. Most businesses need at least two. Pick the ones that match how you sell today, not how you wish you sold.
Step 2: Get a merchant account
A merchant account is the business bank account that holds card transactions before they settle to your regular bank. You can get one through a payment facilitator (Stripe, Square, PayPal) which is fast but shares one account across millions of merchants, or through a dedicated provider that underwrites your specific business. Dedicated accounts take longer to open, but they don't freeze when a flag goes up on someone else's volume, and they don't shut you down because someone in underwriting suddenly noticed what you sell.
Step 3: Set up your payment gateway
The gateway is the software that captures and encrypts the card data, then sends the authorization request to the processor. For online sales, the gateway is either embedded in your checkout page or hosted by your provider on a secure page customers are redirected to. For in-person sales, the terminal or POS handles this. For phone sales, a virtual terminal lets you enter the card on a web form your provider hosts.
Step 4: Stay PCI compliant
PCI DSS is the security standard every business that touches card data has to follow. If you use a hosted checkout or a tokenizing gateway, the heavy lifting is done for you. If you store, transmit, or process card data yourself, you need full compliance. Either way, you'll fill out a Self-Assessment Questionnaire each year and your provider will guide you to the right one.
Step 5: Plan for chargebacks and risk
Chargebacks aren't a maybe, they're a when. Set up clear billing descriptors, fast customer service, visible return policies, and chargeback alerts so disputes don't post as chargebacks. Read the full chargeback guide at https://www.easypaydirect.com/credit-card-chargeback-management-disputes/
How to accept credit cards by channel
Online (ecommerce)
• Embed a gateway in your checkout or use a hosted checkout page
• Connect to your store platform: Shopify, BigCommerce, WooCommerce, ClickFunnels, or custom
• Use AVS, CVV, and 3D Secure to push fraud liability to the issuing bank
• Tokenize stored cards so PCI scope stays small
In-person
• POS system or countertop terminal for card-present transactions
• Tap to Pay on iPhone or Android phone for mobile-merchant or pop-up sales
• Print your return policy on the receipt for Visa rule compliance
• Lower interchange rates than card-not-present transactions
By phone
• Virtual terminal turns any computer or tablet into a secure card entry point
• Confirm PCI compliance with your provider before manually entering numbers
• Record customer consent for the charge, especially recurring
• Email or text a payment link instead, same money, less PCI exposure
Recurring and subscription
• Tokenize the card on first sale so subscribers don't re-enter on each charge
• Use Account Updater so expired cards refresh automatically through the networks
• Send a reminder before each charge to reduce chargebacks
• Mastercard allows recurring disputes up to 540 days, so keep records
What you'll actually pay to accept credit cards
Every credit card transaction has four cost components:
Interchange. Set by Visa, Mastercard, Discover, and American Express. Paid to the issuing bank. Varies by card type (rewards cards cost more), transaction type (card-not-present costs more), and your industry. No processor can lower interchange because no processor sets it.
Dues and assessments. Set by the card networks (Visa, Mastercard, etc.). Smaller than interchange, paid to the networks themselves.
Processor markup. What your processor charges on top of interchange and dues. This is the only piece that's negotiable, and it's the only piece you should be comparing when you shop processors.
Gateway fees. Monthly fee plus per-transaction fee for the gateway software. Some processors bundle this in, others bill separately.
Read our full breakdown on rates and pricing.
Should I use a dedicated merchant account or a payment facilitator?
If you're under $50K a year in card volume, in a low-risk industry, and you don't run subscriptions or future deliverables, a payment facilitator like Stripe or Square will get you running in minutes and the trade-off is fine.
If you're processing serious volume, running subscriptions, in any industry that touches "high risk" (CBD, supplements, firearms, adult, coaching, travel, continuity, ticketed events, high-ticket digital goods), or you can't afford a sudden 7-day funding hold, a dedicated merchant account with real underwriting is the safer foundation. Payment facilitators don't underwrite you up front, they review your account after it's already processing, which is why merchants get shut down so often after their first viral sales day.
Easy Pay Direct underwrites your business before you process the first dollar, so you know what you're approved for and the account is built around how you actually sell.
Why merchants choose Easy Pay Direct
Real underwriting up front
We get to know your business model before you process. That means no surprise holds, no "we didn't know you sold that" account closures, and a merchant account built around how you actually sell.
Multi-account transaction routing
We built a gateway that lets you run multiple merchant accounts and route transactions across them automatically. One account having a bad day doesn't stop your business.
100,000+ businesses, $12B+ processed
Since 2009 Easy Pay Direct has powered ecommerce stores, brick and mortar, coaches, subscription brands, and high-volume merchants across nearly every vertical. EPD Commerce is the new platform layer, powered by an Easy Pay Direct merchant account underneath.
Frequently asked questions about accepting credit cards
Do I need a merchant account to accept credit cards?
How long does it take to start accepting credit cards?
Can I accept credit cards without a website?
What's the difference between a payment gateway and a payment processor?
What's the cheapest way to accept credit cards?
Can I pass credit card fees to my customers?
Do I need to be PCI compliant?
What happens if I process for a high-risk industry?
Will I get a chargeback if I accept credit cards?
Can I switch credit card processors later?
Ready to start accepting credit cards?
Tell us how you sell and we'll build the right merchant account around it. Most low-risk businesses are processing within 24 hours.
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