How to accept credit card payments in your small business
Credit card acceptance used to require a bank meeting, a merchant account, and a leased terminal. Now it takes about 15 minutes and a smartphone.
The trade-off is a per-transaction fee (usually 2.6%–2.9% + 30¢). But charging a card gets you paid instantly instead of chasing checks for weeks — and for most service businesses, that speed is worth every penny of the fee.
The two mainstream options: Stripe and Square. Stripe and Square are the default choices for small business card acceptance. Both are pay-as-you-go — no monthly fee, no long-term contract, no leased hardware unless you want it.
In-person vs online: which do you need?. If you invoice customers and they pay from home, you need online card acceptance — the pay button on the invoice. This is the most common setup for service businesses.
The setup process (about 15 minutes). Connecting Stripe or Square to your invoicing app is a one-time OAuth flow. You'll need your business EIN or SSN, a bank account for deposits, and your business address. The processor verifies your business, links to your invoicing app, and every invoice from
Handling fees: eat them or pass them?. Two approaches, both common. Some businesses build the fee into their prices (a $500 job is priced as $515 so the ~2.9% fee still leaves $500 net). Others add a surcharge line to the invoice for card payments.
Chargebacks and how to prevent them. A chargeback is when a customer disputes a card charge with their bank. It's the biggest risk of accepting cards — you can lose the money and pay a $15 dispute fee.
Frequently asked questions
Do I need a business bank account?
Yes. Both Stripe and Square require a bank account tied to your business EIN or your SSN if you're a sole proprietor.
How fast do I get the money?
1–2 business days is standard. Same-day payouts are available for a small fee (typically 1%).
Can I accept Apple Pay and Google Pay?
Yes. Any Stripe or Square-processed card payment can also be Apple Pay or Google Pay — same fee, faster tap-to-pay experience.
Is there a monthly minimum?
No. Stripe and Square are pay-as-you-go with no monthly fees or minimums.
