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Small business

July 10, 2026

 

Helping small businesses accept credit card payments with confidence

From choosing how and where to accept payments to understanding the partners and tools that make it possible, here’s how small businesses can get started.

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Marcus O'Toole

Senior Vice President, Global Small & Medium Enterprise Solutions & Design, Mastercard

Accepting credit cards may sound complicated, but for most small businesses, it comes down to a few key steps: choosing the right payment partners, deciding how and where  to accept payments, and putting the right systems in place to do it securely. Once that foundation is set, businesses can start taking payments in store, online or from a mobile device — helping make checkout easier for customers and operations simpler for the business.

 

What are the benefits of using a business credit card for small businesses?

At a basic level, accepting credit cards allows small businesses to capture sales from customers who prefer cashless payments. Today's consumers, many of whom don’t carry cash at all, expect the convenience of paying with credit cards, debit cards and digital wallets. By accepting more payment methods, small business owners remove a barrier that causes potential customers to walk away.

But there are other, less obvious reasons. A business that accepts credit cards appears established and customer-focused. Digital payments are also key to enabling better data analytics and can improve back-end efficiencies, and the digital transaction history they offer can be vital to showing creditworthiness, increasing access to credit.

Beyond perception, card payments improve operational efficiency. Digital records simplify bookkeeping and tax preparation. Cash-only businesses face practical limitations. They must spend time managing physical currency and face higher security risks. Accepting credit cards addresses these challenges while positioning businesses to serve a broader customer base.

 

 

How do small businesses start to accept credit cards?

Setting up card acceptance involves a step-by-step process beginning with selecting a payment processor, obtaining necessary equipment and meeting the requirements for ensuring cardholder data is protected. The process typically takes one to five business days depending on the chosen provider and business type.

 

Step 1: Payment acceptance method

A business’s sales environment determines which acceptance method fits best:

  • Point-of-sale (POS) terminals work for brick-and-mortar retail locations with counter checkout
  • Mobile card readers connect to smartphones or tablets for markets, pop-ups and service calls
  • Smartphones themselves can be turned into acceptance devices with an app, no additional hardware necessary, and can be used in any setting.
  • Online payment gateways process e-commerce transactions through a business’s website
  • Virtual terminals — software on a connected device — allows businesses to enter card details manually for phone or mail orders

 

Step 2: Select a payment processor

Payment processors, acquirers, and payment facilitators help provide the infrastructure that allows businesses to accept payments and move funds from customer accounts to business accounts. These partners often work with payment networks, like Mastercard, to enable secure, reliable transactions across in-person, online and mobile channels. Options include traditional merchant account providers, who set up a separate account, and all-in-one providers that bundle processing, hardware and software.  Merchant account providers can provide more personalization and choice in routing which larger merchants may require. Bundled processors provide fast onboarding, simplified options and pricing for businesses that have fewer resources to manage. 

 

 

Step 3: Merchant account or payment service set up

Traditional merchant accounts require an application with business documentation including Employer Identification Number, business license, bank statements and processing volume estimates. Approval can take several days.

All-in-one payment services often allow same-day setup with minimal documentation, making them popular with new businesses and side-hustle operators who need to start accepting payments quickly.

 

Step 4: Obtain and configure hardware or software

For in-person sales, look for a card reader that accepts contactless payments, chip cards and magnetic stripe cards. Costs range from free basic readers to several hundred dollars for full POS systems with receipt printers and cash drawers.

For online sales, a business can choose from a provider’s bundled set up or opt for a more bespoke checkout solution and connect to a payment gateway. Most major platforms offer pre-built integrations that require minimal technical setup.

 

Step 5: Complete PCI compliance requirements

The Payment Card Industry Data Security Standard applies to all businesses that accept credit cards. Compliance involves completing a self-assessment questionnaire and implementing security measures to protect cardholder data. Most payment processors guide businesses through this process and handle much of the technical compliance on their behalf.

 

 

FAQ

How long does it take to get set up to accept credit cards?

Most businesses complete setup within one to five business days. All-in-one payment services often allow same-day approval, while traditional merchant accounts can take three to seven business days due to underwriting requirements

Do I need a merchant account to accept credit cards?

A merchant account is one option, but all-in-one payment services bundle merchant account access with processing, which removes the need to set one up separately. New businesses and mobile sellers often find all-in-one services faster and simpler to start with.

How do you accept credit card payments via phone?

Credit card payments can be accepted via phone as easily as downloading an app. A mobile card reader can be connected to a smartphone and use the payment processor's app. This same setup can be done using a tablet. Mobile readers from major payment providers plug into devices ports or connect via Bluetooth. In any case, the apps process transactions, send receipts via email or text, and deposit funds to a linked bank account. 

Can you accept credit cards online without technical expertise?

Yes. Most major e-commerce platforms offer pre-built integrations with payment gateways that require minimal technical setup. All-in-one payment services like Click to Pay also provide hosted checkout options that connect to a business’s website without custom development.

What is PCI compliance and is it needed?

Payment Card Industry Data Security Standard (PCI DSS) compliance applies to every business that accepts credit cards globally. It involves completing a self-assessment questionnaire and implementing security measures to protect cardholder data. Most payment processors guide businesses through the process and handle much of the technical compliance on their behalf.

Powering payments for small businesses

Mastercard's SME payment solutions provide small businesses with the infrastructure to accept payments securely while accessing tools that support growth. 

Learn more