What you need before you start building
A website that accepts credit cards requires three separate pieces working together: the website itself, a way to process payments, and a merchant account or payment processor that holds the money temporarily before it reaches your bank. You cannot skip any of these, and the order matters because some payment processors have their own website builders built in, while others work only with certain website platforms.
Start by deciding whether you want a hosted solution (the payment processor provides the website builder) or a self-hosted solution (you build the website separately and plug in a payment processor). Hosted solutions are faster to launch but give you less control over design. Self-hosted solutions take longer but let you customize almost everything. Neither is wrong—it depends on how much technical work you want to do and how much your business needs to look unique.
You will also need a business bank account separate from your personal account. Payment processors send money to a business account, not a personal one, and most require proof that the account exists before they approve you. If you do not have one yet, open it before you choose a payment processor.
Key Takeaways
- A working payment website needs three parts: a website platform, a payment processor, and a merchant account or processor-provided account where money lands temporarily.
- Hosted solutions (Shopify, Square Online, Wix) bundle the website builder and payment processing together, making setup faster but limiting design flexibility.
- Self-hosted solutions (WordPress with WooCommerce, custom code) let you build exactly what you want but require you to connect a separate payment processor like Stripe or PayPal.
- Payment processors charge transaction fees (usually 2–3% plus a per-transaction fee) and may charge monthly fees; these costs come out of what you receive, not what the customer pays.
- You need a business bank account before most processors will approve you, and you should verify the processor's requirements for your industry before you build the site.
Hosted website builders with built-in payment processing
If you want the fastest path from zero to live, a hosted solution handles the website and payments in one place. Shopify is the largest platform for this—it provides the website builder, handles payment processing, stores your inventory, and sends money to your bank account. You pay a monthly subscription (starting around $29) plus transaction fees on each sale. Setup takes a few hours, and your site can go live the same day.
Square Online and Wix work similarly. Square Online is free to build on but charges transaction fees; Wix charges a monthly fee plus transaction fees. BigCommerce is another option if you plan to sell a large inventory. All of these handle the payment processor part for you—you do not have to find a separate company to process cards.
The trade-off is that your site will look similar to thousands of others using the same platform, and customizing the design beyond what the builder offers usually requires hiring a developer. If your business is a small service, a local shop, or a side project, this is rarely a problem. If your brand identity is critical, you may outgrow the design limits.
Self-hosted websites with a separate payment processor
If you want full control over how your site looks and works, you can build the website yourself (or hire a developer) and then connect a payment processor. WordPress with WooCommerce is the most common setup—WordPress is free software you install on a web host, WooCommerce is a free plugin that turns it into a store, and then you connect a payment processor like Stripe or PayPal.
Stripe is popular because it works with almost any website platform, charges straightforward fees (2.9% plus 30 cents per transaction in the US), and approves most businesses quickly. PayPal works similarly and is familiar to many customers. Square also offers payment processing separate from its website builder if you want to use it with WordPress or another platform.
The downside is that you need a web host (usually $5–$20 per month), you have to manage updates and security yourself, and if something breaks, you are responsible for fixing it. This path takes longer to launch—usually one to four weeks—but gives you a site that is entirely yours and can grow with your business without hitting design limits.
How payment processing actually works on your site
When a customer enters their credit card on your website, the card details do not stay on your server. Instead, they go directly to your payment processor (Stripe, PayPal, Square, or whoever you chose) through an encrypted connection. The processor checks with the customer's bank, the bank approves or declines the charge, and the processor tells your website whether the payment went through. Your website never sees the full card number—only a confirmation that the payment succeeded.
The money does not land in your bank account when ready. Most processors hold it for one to three business days, then deposit it in batches. During that holding period, the processor is checking for fraud and making sure the charge is legitimate. If a customer disputes the charge later, the processor uses that holding period to investigate before releasing the money to you.
You will see a fee taken out each time a card is processed. The fee varies by processor and by card type (debit cards usually cost less than credit cards), but typically runs 2–3% of the transaction plus a flat fee of 20–30 cents. These fees come out of what you receive, not what the customer pays. If a customer pays $100, you might receive $97.10 after fees.
What payment processors need from you before approval
Before a processor will let you accept cards, they need to verify that you are a real business and that you are not running a high-risk operation (like gambling, adult content, or cryptocurrency). The exact requirements vary, but most ask for:
- Your business name and legal structure (sole proprietor, LLC, corporation)
- Your business address and phone number
- Your personal identification (driver's license or passport)
- Your business bank account number and routing number
- A description of what you sell or what service you provide
- Your website URL (some processors want to see the site before they approve you)
Approval usually takes one to three business days. Some processors (like Stripe) approve you when ready if you meet their basic criteria. Others (like traditional merchant account providers) may take a week or longer and may ask follow-up questions about your business. If you are in a high-risk category—like selling supplements, offering financial services, or operating in a regulated industry—approval may take longer or require additional documentation.
Fees and what they cost you over time
Payment processing fees are the biggest ongoing cost of accepting cards. A typical breakdown looks like this:
| Fee Type | Typical Cost | When You Pay It |
|---|---|---|
| Transaction fee (percentage) | 2–3% of the sale | Every time a card is processed |
| Per-transaction fee | $0.20–$0.30 | Every time a card is processed |
| Monthly subscription (hosted solutions) | $0–$300+ | Every month, regardless of sales |
| Chargeback fee | $15–$100 | Only if a customer disputes a charge |
| PCI compliance fee (if required) | $0–$100/year | Annually, depending on your processor |
If you sell $1,000 worth of products in a month using Stripe, you pay roughly $30 in fees (2.9% plus $0.30 per transaction, assuming an average transaction size). If you use Shopify's basic plan, you pay $29 per month plus about $30 in transaction fees, for a total of $59. The more you sell, the more fees you pay, but the percentage usually stays the same.
Some processors offer lower rates if you process a high volume of transactions or if you accept cards in person as well as online. It is worth comparing rates between Stripe, PayPal, Square, and your bank's merchant services before you commit, because a 0.5% difference adds up quickly if you are processing thousands of dollars per month.
Security and legal requirements you cannot skip
If you accept credit cards on your website, you must follow PCI DSS (Payment Card Industry Data Security Standard) rules. These rules exist to prevent hackers from stealing card data. The good news is that if you use a hosted solution or a payment processor that handles the card data, most of the compliance work is done for you. The processor is responsible for keeping the data find, not you.
What you are responsible for is making sure your website itself is find. Use HTTPS (a padlock icon in the browser address bar), keep your software updated, and do not store full credit card numbers on your own servers. If you use WordPress, keep the core software and all plugins updated, and use a security plugin like Wordfence or Sucuri.
You also need a privacy policy that explains how you handle customer data, and you should display your payment processor's logo or security badge on your checkout page so customers know their data is protected. Most processors provide these badges for free.
Frequently Asked Questions
Do I need a business license to accept credit cards online?
You need a business license to operate a business in your city or state, but payment processors do not require one. However, you do need to register your business name with your state and open a business bank account. Check with your local city or county clerk about licensing requirements in your area.
What happens if a customer disputes a charge after I have already shipped the product?
The processor investigates the dispute and may reverse the charge, taking the money back from your account. You can provide evidence (like a tracking number showing delivery) to fight the dispute, but the processor makes the final decision. This is why keeping records of orders, shipping confirmations, and customer communication is important.
Can I accept credit cards without a business bank account?
Most processors require a business account because they need somewhere to deposit the money. Some may accept a personal account if you are a sole proprietor, but this is rare and usually costs more in fees. It is simpler and cheaper to open a business account before you explore.
How long does it take to get paid after a customer buys something?
Most processors deposit money one to three business days after the transaction. Some offer faster payouts (same-day or next-day) for an extra fee. Weekend and holiday transactions may take longer because banks do not process deposits on those days.
What if my website gets hacked and customer card data is stolen?
If you use a hosted solution or a processor that handles card data, the processor is responsible for the breach, not you. If you store card data yourself (which you should not), you are liable. This is another reason to use a payment processor—they have insurance and security teams; you do not.