The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
From coast to coast and around the world, small business owners are always on the lookout for ways to thrive and expand their businesses with the right tools — and that starts with a payment processor and the right payment methods.
Whether you're selling online, offline, or a combination of the two, some of the best payment solutions can help you accomplish a central part of doing business: making sure you get paid simply and quickly.
The result? Selling your goods and services no matter where you are — online, in your own brick and mortar, or even on the go. What’s important is that you’re ready for every sale wherever your customers find you.
When it comes to small business payments, the key is to keep the payment process as quick and hassle-free as possible for your customers as well as your team.
Simplifying the payment process can help improve the overall experience for everyone involved — from increased customer satisfaction to streamlined operations.
Not sure where to start? Read on for different payment methods for small businesses that may align with your unique needs.
According to a study by the Federal Reserve Bank, credit cards accounted for 32% of all payments in 2023, and debit cards accounted for 30% of all payments, marking the highest level for both figures since the study began in 2016.1
With a growing preference for credit cards over cash and other payment methods, small business owners stand to benefit from offering card payment options for shoppers.
As one of the best payment methods for small businesses, here are some of the advantages of card payments:
Here are some items you’ll want to keep in mind as you consider selecting a card payment solution:
Unlike card payments, cash payments allow for immediate receipt of funds — which can help manage cash flow and meet urgent financial needs. Plus, there are little to no fees associated with accepting cash from customers.
However, running a cash-only business does come with its challenges. One of the main concerns is the risk of theft, both from external sources and internal employees. Cash transactions can also be more difficult to track compared to digital transactions.
One of the best ways to accept small business payments is through online payment processing. Online payment gateways provide a seamless and secure way for any type of operation – from retail to food service – to accept payments on their websites or e-commerce platforms.
By integrating an online payment gateway, you can offer customers the convenience of making purchases directly on your website, eliminating the need for manual processing or offline payment methods. These gateways also support various payment options, such as credit cards, debit cards, and digital wallets.
Check payments involve customers writing a physical check for the desired amount and businesses depositing the check into their bank account.
Accepting checks can provide a paper trail for record keeping and attract customers who prefer this method. However, it can be time-consuming to process and deposit checks, and there is a risk of accepting bad checks or discovering insufficient funds.
To start accepting check payments, businesses should establish a relationship with a bank or financial institution that offers check processing services. This involves setting up a business bank account and following the bank's guidelines for check acceptance and verification procedures.
Digital wallets are electronic payment methods that allow users to securely store their payment information on their mobile devices or online platforms. Customers can make purchases by scanning a QR code or using NFC technology.
Digital wallets offer convenience, streamlined transactions, and enhanced security, but businesses will likely need a compatible POS system or payment gateway to process these payments. Examples of digital wallets include a customer’s PayPal account, Apple Pay, or Google Pay.
PayPal’s solutions can help you do business almost anywhere.
Take orders online with our credit card processing system, sell on an online marketplace, accept payments for sales on the go with a mobile point of sale or QR code, and email invoices to clients for services rendered — all with PayPal.
As end-to-end commerce provider for platforms and marketplaces, PayPal delivers a complete payments platform with the global scale and flexibility your business needs to help you stay competitive. As a great payment solutions for small businesses, we’re here to help you reach more customers and make it easy for you to get paid, however you choose to do business.
PayPal online checkout is a one-and-done payment solution that lets your business accept a range of payment types. Whether you choose something simple or need a completely custom integration, PayPal can intelligently present relevant payment types to your customers, making it easy for them to pay using PayPal, a credit or debit card, or other payment methods.
If you're looking for something simple that you can implement yourself, try creating a payment button. Setup takes just minutes and includes basic customizations like changing the button’s alignment, shape, and colors. By copying prebuilt code and pasting it next to the products or services you want to sell on your website, you can start accepting payments right away — no developer help required.
Better still, when a customer sees the PayPal payment button, they may trust that their credit card information will be secure. That helps you build trust with new customers who may not have done business with you yet.
When you want to fully integrate a more robust checkout process into your website, PayPal Checkout has an integration with the features you’re looking for. You can choose everything from the colors to the layout and language, designing a checkout process that is completely customized for your business.
As a payment gateway for small businesses, you can also process credit card payments over the phone, by fax, or by mail with Virtual Terminal. Virtual Terminal allows you to enter a customer's credit card information directly into your PayPal account, so you can be flexible and accept payments in the way that's most convenient for them.
Meeting customers where they are is essential to keeping your business relevant for the times — and it means adapting to changing consumer behavior and buying preferences.
As a great credit card readers for small businesses, PayPal Zettle lets you accept credit and debit magstripe cards, chip cards, and contactless payments like Apple Pay. In addition to accepting payments, Zettle can help you streamline your operations with features to manage inventory, sales reports, performance reports, and more.
With PayPal QR codes, there's no need for you or your customers to handle cash or cards. This option allows customers to pay by simply opening the PayPal app and scanning your unique code, and then you receive payment quickly. Your PayPal QR code is free to create, reusable, and never expires. (Limits Apply. See all merchant fees here.)
With PayPal invoicing, you can generate professional-looking invoices in minutes. Online invoices make it as easy for your customers to pay them as it is for you to create them.
Just as important, you can effortlessly keep tabs on your invoices and track payments in real time, allowing you to stay organized and ensure that payments are received promptly.
With the right business tools, you can simplify your processes, save time, and focus on what truly matters: growing your business.
While it’s important to be able to sell to customers wherever they find your business, there are even more ways that customers want to pay beyond simple credit and debit cards. PayPal can help here too. Some customers want to pay with their Venmo account. Others want to pay over time. You can allow them to pay in 4 interest-free payments or give them the chance to pay for a large purchase monthly.
Explore the various ways PayPal can help your business accept payments.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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