How to Accept Credit Card Payments in Your Small Business

In this guide, we’ll break down everything you need to know about accepting credit card payments in your small business. From understanding the different payment methods to comparing costs, setup options, and security requirements—this is your complete guide to getting started the right way.

These days, most Australians prefer to pay with cards or digital wallets rather than cash. Whether you’re running a café, a boutique, a trades service, or an online store, accepting card payments isn’t just a nice extra—it’s expected. The good news is that it’s easier than ever to get started. The challenge is choosing the best method for your business while keeping fees under control.

Let’s unpack your options and help you build a smooth, secure payment process.

Why Accepting Credit Cards Matters

Before diving into how to set things up, it’s worth understanding why card payments are crucial for small businesses today.

• Customer convenience: Most customers don’t carry much cash anymore. If your business doesn’t accept cards, you risk losing sales.
• Increased average spend: Studies consistently show customers spend more when paying by card compared to cash.
• Faster transactions: Modern card readers process payments within seconds, keeping queues short and service efficient.
• Better record-keeping: Electronic transactions are automatically logged, simplifying accounting and tax reporting.
• Professional image: Being able to accept all major cards and digital wallets makes your business appear more established and trustworthy.

With that in mind, let’s look at the different ways to accept credit card payments.

How to Accept Credit Card Payments in Your Small Business

1. Accepting Credit Card Payments In Person

For in-store, on-site, or mobile businesses, in-person payments are the most common. This is typically done through an EFTPOS machine or card reader.

EFTPOS Terminals

An EFTPOS (Electronic Funds Transfer at Point of Sale) terminal is the most straightforward way to accept both debit and credit cards. These machines let customers tap, insert, or swipe their card and can also handle contactless payments through Apple Pay and Google Pay.

There are three main types of terminals:

• Countertop: Fixed to your checkout counter and ideal for shops or cafés.
• Portable: Wireless terminals that work over Wi-Fi or mobile data, perfect for table service or market stalls.
• Integrated POS terminals: These sync with your POS system, automatically recording payments and sales data.

Mobile Card Readers

If you run a mobile business—like a food truck, trades service, or pop-up stall—you can use compact card readers that connect to your phone or tablet via Bluetooth. Providers like Square and Zeller make this setup affordable and simple.

For example:

• Square Reader: From $59, connects to your phone and processes tap payments.
• Zeller Terminal: Around $199, with built-in display and standalone operation.

Both options deposit funds into your account within one to two business days.

How to Get Set Up

1. Choose a provider – Compare options like Square, Zeller, Tyro, or your bank (e.g., NAB or CBA).
2. Apply for an account – You’ll need your ABN, business details, and bank account info.
3. Order and activate your terminal – Most providers deliver within a few days.
4. Start taking payments – Once connected to Wi-Fi or mobile data, you’re ready to go.

For most small businesses, setup takes less than a week.

2. Accepting Credit Card Payments Online

If you sell products or services online, you’ll need an online payment gateway. This is software that processes credit card transactions securely through your website or app.

Popular Online Payment Gateways in Australia

• Stripe: Known for its flexibility and seamless integration with eCommerce platforms.
• Square Online Payments: Easy to use and integrates with Square POS.
• PayPal: Familiar to most customers and trusted globally.
• Shopify Payments: Built-in for Shopify users, saving extra setup steps.

Most online payment gateways charge a transaction fee, usually between 1.5%–2.2% per sale. Some also have monthly fees depending on your sales volume and platform.

How Online Credit Card Payments Work

1. A customer adds items to their cart and goes to checkout.
2. They enter their card details or choose a digital wallet.
3. The payment gateway encrypts and sends the details to the card network.
4. Once approved, the funds are transferred to your business account (usually within 1–2 days).

If you already have a website through platforms like Shopify, Squarespace, or Wix, you can integrate payment gateways with just a few clicks.

Security Considerations

When accepting online payments, you must ensure PCI DSS compliance (Payment Card Industry Data Security Standard). This means your systems securely handle and store card data.

Most major providers—like Stripe, PayPal, and Square—handle PCI compliance for you, so you don’t have to manage it manually.

3. Accepting Credit Card Payments Over the Phone

Some businesses still take payments over the phone—common for trades, service bookings, or deposits.

To do this safely, you’ll need a virtual terminal, which lets you manually enter the card details into a secure online form.

Providers such as Square, Tyro, and Stripe offer virtual terminals that can process phone orders instantly.

Example workflow:

• Customer calls to book a service.
• You enter their card number and amount in the virtual terminal.
• The system processes it, and you receive an instant confirmation.

Just remember: Never write down card numbers on paper or store them unencrypted—it’s a major security risk.

4. Costs of Accepting Credit Card Payments

Let’s talk about the part that matters most—how much it costs.

Credit card processing fees vary based on your provider and the type of card used. Here’s what to expect:

Example:

A boutique processing $10,000/month in credit card sales with a 1.6% fee will pay about $160/month in transaction fees.

The key is to choose a provider with pricing that matches your sales volume and business type.

5. How to Choose the Right Payment Solution

When deciding how to accept card payments, think about:

Transaction Volume

High-volume businesses should look for lower per-transaction fees, even if there’s a small monthly cost.

Customer Behaviour

If most of your customers are in person, an EFTPOS machine makes sense. If you sell mainly online, focus on a strong gateway provider.

Integration Needs

Using a POS system like POSApt? Choose a payment provider that integrates smoothly so your sales data and payments sync automatically.

Settlement Speed

Instant or same-day settlements are helpful for cash flow. Some providers (like Zeller) offer same-day deposits—even on weekends.

Contract Terms

Avoid long lock-in contracts unless you’re confident about the provider. Many modern fintech options like Square and Zeller are month-to-month.

6. Security and Compliance

Security isn’t something to take lightly when handling card payments. Every small business must follow some basic practices:

• Use PCI DSS-compliant systems (your provider should confirm this).
• Never store card details manually.
• Ensure Wi-Fi networks are secure when using mobile terminals.
• Regularly update your software to protect against new threats.
• Train your staff on safe handling of customer data.

Most Australian providers include built-in fraud protection and encryption, but it’s still your responsibility to maintain a secure setup.

Common Mistakes to Avoid

Even with the best intentions, small businesses sometimes run into issues when setting up credit card payments. Watch out for these:

• Ignoring small transaction fees: A difference of 0.2% can mean hundreds of dollars per year.
• Using outdated hardware: Slower terminals frustrate customers and staff.
• Not reading contract fine print: Some providers charge penalties for early cancellation.
• Skipping reconciliation: Always match your POS reports with settlement records.
• Neglecting customer trust: Make sure receipts and payment confirmations look professional.

Tips to Save on Fees

If you’re processing a lot of payments, these strategies can help you reduce your costs:

• Negotiate rates: If your sales volume is strong, ask your provider for a lower rate.
• Compare plans annually: Market competition means new, cheaper options appear often.
• Encourage debit card payments: Debit cards often have lower processing fees.
• Consider surcharging (carefully): Some businesses pass transaction costs onto customers, though this will become restricted by mid-2026 under RBA changes.

A small percentage saved per sale can make a big difference to your bottom line over time.

The Future of Credit Card Payments in Australia

Australia continues to lead in contactless and mobile payments. In 2025, around 90% of in-person transactions are tap-and-go, and digital wallets are growing rapidly.

The trend is clear: customers expect seamless, fast, and secure payment experiences—whether they’re in-store or online. Businesses that offer flexible payment options are more likely to attract repeat customers and stay competitive.

We’re also seeing the rise of integrated systems that combine POS software, inventory management, and payments in one platform. For small businesses, that means fewer headaches and better insights.

Final Thoughts

Accepting credit card payments is no longer an option—it’s a must for modern Australian businesses. Thankfully, setting it up has never been simpler.

Start by assessing how and where your customers pay—then choose a solution that fits your business model. Compare transaction fees, hardware costs, and integration options carefully.

Whether you choose an EFTPOS terminal for in-person sales, a gateway like Stripe for online transactions, or both, focus on reliability, transparency, and security.

With the right setup, you’ll not only make it easier for customers to pay—you’ll also build credibility, speed up operations, and improve your cash flow.