How to Take Card Payments as a Small Business?

By Olivia Johnson - Trusted UK Business Expert

Last Updated 10th of May 2025

5 minute read

If you’re a small business owner, learning how to take card payments can seem daunting. However, it’s essential for streamlining your payment process and improving customer satisfaction. We are here to guide you through the steps and options available to make this easy. 

To take card payments as a small business, you’ll need a payment processor, a merchant account, and a card reader or payment gateway. These tools allow you to securely accept card payments both in-person and online, depending on your business needs. 

In this post, we will break down each step of the process, explore the different types of payment methods, and explain the tools you’ll need to get started. Let’s dive into the details on how you can successfully take card payments as a small business. 

Grow your business with card payments. Discover simple, affordable ways to accept cards as a small business. Get started below.

How to Take Card Payments as a Small Business? 

As a small business, accepting card payments is an important step to boost your sales and provide convenience for your customers. Whether you are selling products in-store or offering services online, card payments offer a fast, secure, and reliable method of transaction. But how exactly can you accept card payments in your business? 

Step 1: Choose the Right Payment Processor 

The first thing you’ll need is a payment processor, which will handle the transaction and allow you to accept card payments. A payment processor is a company that manages all the behind-the-scenes work when a customer makes a payment. They facilitate the transfer of money from the customer’s bank account to yours, ensuring the transaction is secure and completed smoothly. 

Step 2: Set Up a Merchant Account 

Once you have a payment processor, you’ll also need a merchant account. This is a type of bank account that allows your business to accept card payments. It temporarily holds the funds from your card transactions before they’re deposited into your regular business bank account. 

Step 3: Get a Card Reader or Payment Gateway 

For physical stores, a card reader (or terminal) is required to accept card payments in person. These devices read the card details when the customer swipes, taps, or inserts their card. If you’re running an online store, you will need a payment gateway, which allows customers to enter their card details securely on your website. 

Step 4: Ensure Security Compliance 

Card payment transactions must comply with the Payment Card Industry Data Security Standards (PCI DSS). This set of security standards is designed to protect cardholder data. As a small business, you’ll need to make sure that your payment system follows these guidelines to avoid potential fines or security breaches. 

Types of Payment Methods Available for Small Businesses 

When it comes to accepting card payments, you have different options depending on how you conduct business. Below are the main types of payment methods small businesses can choose from: 

• Point of Sale (POS) Systems for In-Store Payments: If you have a brick-and-mortar store, you’ll likely need a POS system to process card payments. POS systems are physical devices (such as card readers or terminals) that allow customers to swipe, tap, or insert their card. Many POS systems are integrated with software that tracks your sales, inventory, and customer information. 
• Mobile Payment Solutions for On-the-Go Businesses: For small businesses that operate on-the-go, such as food trucks or market stalls, mobile card readers are a great solution. These compact devices plug into a smartphone or tablet, turning it into a portable payment terminal. Popular services like Square or SumUp offer easy-to-use mobile card readers for small businesses. 
• Online Payment Gateways for E-Commerce: If you run an online store, you will need a payment gateway. These are secure platforms that allow you to accept payments on your website. Popular options include PayPal, Stripe, and Square. These gateways allow customers to securely input their card details when making a purchase. 
• Virtual Terminals for Remote Payment Processing: Virtual terminals allow businesses to process card payments without the need for a physical card reader. If you take orders over the phone or through email, a virtual terminal allows you to enter card details manually into a secure online system. This is an ideal solution for service-based businesses. 

What to Consider When Choosing a Payment Processor? 

Choosing the right payment processor can be crucial for your business’s success. Here are a few factors to consider when selecting a payment solution: 

• Fees and Rates: Different payment processors charge different fees. Most will charge a flat transaction fee, but you should compare rates between providers. Some processors may also have monthly fees, setup fees, or additional charges for certain payment methods. 
• Security and Compliance: Ensure that your payment processor follows PCI DSS standards to guarantee the security of customer data. Security breaches can lead to costly fines and damage to your business reputation. 
• Integration with Your Current System: Your payment processor should integrate smoothly with your existing POS system, website, or other software tools you use for accounting and inventory management. A seamless integration will help you save time and reduce errors. 
• Customer Support: Look for a payment processor that offers reliable customer support. When things go wrong, you need assistance quickly, so choose a provider that offers responsive customer service through multiple channels, such as phone, email, or live chat. 

How to Minimise Payment Processing Costs? 

Payment processing fees can quickly add up, especially for small businesses. Here are some tips to minimise the costs associated with taking card payments: 

• Negotiate Fees with Your Processor: If your business grows, you may have more room to negotiate lower fees with your payment processor. Some providers may offer lower rates to businesses with a high volume of transactions. 
• Use a Flat-Fee Payment Processor: Some payment processors charge a flat fee for each transaction, rather than a percentage of the sale. This can be beneficial for businesses that have a large volume of small transactions, as the cost per transaction remains the same regardless of the amount. 
• Offer Discounts for Cash Payments: Encourage customers to pay by cash by offering a small discount for doing so. This will help you avoid paying card processing fees on those transactions. 

How Long Does it Take to Set Up a Card Payment System? 

The time it takes to set up a card payment system will depend on the complexity of your business and the solution you choose. If you’re setting up a basic POS system, it could take just a few days to get everything up and running. For more complex setups, such as integrating an online payment gateway, the process may take a bit longer. 

If you’re ready to start accepting card payments as a small business, click the link below to explore payment processing options that work for you.

FAQ 

Do I need a merchant account to accept card payments?

Yes, a merchant account is needed to process card payments. It acts as an intermediary between your payment processor and your business bank account.

Can I accept card payments without a physical card reader?

Yes, you can accept card payments through a payment gateway or virtual terminal, which allows you to process payments online or over the phone without a physical card reader.

What are the most popular payment processors for small businesses?

Some popular payment processors for small businesses include PayPal, Square, Stripe, and SumUp. Each has its own set of features, fees, and payment methods.

Is it safe to take card payments as a small business?

Yes, as long as you comply with PCI DSS standards and use secure payment processors, taking card payments is very safe for both you and your customers.

Can I accept card payments if I only operate online?

Absolutely! You can use an online payment gateway like PayPal or Stripe to accept card payments securely on your website.

By following the steps outlined above, you’ll be well on your way to successfully accepting card payments as a small business, improving your payment process and boosting customer satisfaction.