You can charge a credit card by signing up with a payment processor like Square, Stripe, or PayPal, which lets you accept card payments in person, online, or over the phone without a traditional merchant account. Most platforms take minutes to set up, and some require no monthly fee. The method you choose depends on whether you’re selling face to face, through a website, or taking orders remotely.
Choose a Processing Method
There are three basic ways to charge a credit card, and each fits a different selling situation.
Mobile card reader: A small device that pairs with your smartphone or tablet, letting you swipe, dip a chip card, or accept contactless tap-to-pay. This is the most common setup for vendors at markets, service providers on the road, and small retail shops. The reader plugs into or connects wirelessly to your phone, and a companion app handles the transaction. Many readers also support tap-to-pay directly on a newer iPhone or Android device, so you may not even need the physical reader.
Online payment link or checkout: If you sell through a website, social media, or email, you embed a payment form or send a checkout link. The customer enters their own card details. Platforms like Stripe and Shopify specialize in this, but Square and PayPal offer it too.
Virtual terminal (manual entry): You type the customer’s card number into a web-based form on your computer or phone. No hardware needed. This works well for phone orders, invoices, or mail orders. Because the card isn’t physically present, processing fees are slightly higher and fraud risk increases, so processors charge more per transaction.
Popular Platforms and What They Cost
Credit card processing fees typically run 1.5% to 3.5% of each transaction. The exact rate depends on the platform, the plan you choose, and whether the card is physically present or keyed in manually. Here’s how the most accessible options break down.
Square charges 3.3% plus 30 cents per transaction with no monthly fee and no contract. You can start accepting payments the same day you sign up. Square provides a free basic card reader and offers affordable upgrades for countertop terminals. It’s the simplest option for someone who has never processed cards before.
Stripe also charges 3.3% plus 30 cents per transaction with no monthly fee. It’s built for online payments and gives developers deep customization tools, but it also offers prebuilt checkout pages and payment links that require zero coding. If you primarily sell online or send invoices, Stripe is a strong fit.
PayPal works similarly for online and in-person payments, with comparable flat-rate pricing. Its advantage is name recognition: many customers already have PayPal accounts, which can reduce friction at checkout.
Shopify starts at $39 per month and charges 2.6% to 2.9% plus 30 cents for online payments, depending on your plan tier. In-person rates are lower, ranging from 2.4% to 2.6% plus 10 cents. If you’re running an online store, Shopify bundles the payment processing with your storefront.
For higher-volume sellers, subscription-based processors can save money. Payment Depot, for example, charges $99 per month plus just 10 cents per transaction on top of the interchange fee (the base cost the card networks charge). Stax starts at $79 per month with no percentage markup. These make sense once you’re processing several thousand dollars monthly, since the per-transaction savings outweigh the subscription cost.
How to Set Up Your First Transaction
Regardless of the platform, the setup process follows a similar pattern. You create an account, verify your identity (name, address, Social Security number or EIN, and bank account for deposits), and choose how you want to accept payments. Most platforms approve you instantly or within one business day.
For in-person sales, you’ll download the processor’s app to your phone and either order a card reader or enable tap-to-pay on your device. Square ships a free magstripe reader with signup, and its chip/tap readers cost around $50 to $60. Once the reader is paired, you enter the sale amount, the customer taps or inserts their card, and the money typically hits your bank account within one to two business days.
For online sales, you’ll either integrate a checkout form into your website or generate a payment link you can text, email, or post on social media. Payment links are the fastest route if you don’t have a website. You describe the product or service, set the price, and share the link. The customer clicks, enters their card info, and you’re done.
For phone or mail orders, you’ll log into your processor’s virtual terminal through a web browser, type in the card number, expiration date, CVV, and billing ZIP code, then submit the charge. No hardware, no app required.
In-Person vs. Online Fee Differences
Processors charge less when the physical card is present because fraud risk is lower. A chip insertion or tap-to-pay transaction verifies the card is real and in the customer’s hand. When you key in a number manually or accept payment online (called “card-not-present”), the processor takes on more risk and passes that cost to you.
The gap is meaningful. Interchange fees alone can be 7 cents higher per card-not-present transaction compared to card-present. On a flat-rate plan, you might pay 2.6% plus 10 cents for a tap in person versus 2.9% plus 30 cents for the same sale online. On a $100 sale, that’s $2.70 versus $3.20. If you have the option to process in person, it saves money over time.
Keeping Customer Card Data Safe
Any business that stores, processes, or transmits credit card information must follow the Payment Card Industry Data Security Standard, known as PCI DSS. This is a set of technical and operational rules maintained by the major card networks (Visa, Mastercard, American Express, Discover, and JCB).
The good news: if you use a hosted payment platform like Square, Stripe, or PayPal, the platform handles most of the heavy lifting. Card numbers are encrypted and stored on their servers, not yours. You never see or retain the full card number. As a small merchant, you’ll typically need to complete a short annual self-assessment questionnaire confirming you follow basic security practices, like not writing down card numbers or storing them in spreadsheets.
The key rules to follow are straightforward. Never store full card numbers, CVVs, or PIN data on paper or in your own files. Use your processor’s secure tools for every transaction. Keep your devices updated with the latest software. If you use a virtual terminal, make sure you’re on a secure, private internet connection rather than public Wi-Fi. These steps protect both your customers and you from liability if a breach occurs.
When Funds Reach Your Bank Account
Most flat-rate processors deposit funds within one to two business days after a transaction. Square offers next-business-day deposits as the default, and instant transfers for an additional fee (typically 1.75% of the transfer amount). Stripe follows a similar schedule, with payouts arriving in your bank account two business days after the charge.
If you’re brand new to a platform, your first few payouts may be held slightly longer while the processor verifies your account activity. After that initial period, deposits settle on a predictable schedule. Weekend and holiday transactions process on the next business day.