How to accept payments on your online store

How you accept payments on your online store determines how many orders you actually receive. A checkout that supports the right payment methods, runs on a secure and recognizable provider, and processes transactions smoothly removes the last barrier between a buyer and a completed order.

This article covers how payment processing works, what the difference is between a payment gateway and a payment processor, which methods to offer, and what to look for when choosing a provider. For broader context on how all of this fits into your store's infrastructure, see our guide on how an online store works.

How does payment processing work?

When a buyer enters their card details and clicks pay, the transaction moves through several steps before the money reaches your account.

The buyer's payment details are encrypted and sent from your store to your payment gateway. The gateway passes the transaction details to the payment processor, which routes the request to the buyer's card network. The card network contacts the buyer's bank to confirm the funds are available and the transaction is not flagged as fraudulent. The bank sends an approval or decline back through the same chain. The whole process takes a few seconds.

Once approved, the funds are not transferred to your account immediately. There is a settlement period, typically one to three business days, before the payment clears and the amount arrives in your bank account. During this window, the money is being processed and verified between financial institutions.

Each approved transaction also incurs a fee. The fee covers the cost of the network, the processing infrastructure, and the fraud protection built into the system. Fees vary by provider and payment method but are taken from each transaction before the remainder is paid out to you.

What is the difference between a payment gateway and a payment processor?

These two terms describe different parts of the payment chain and are sometimes used interchangeably, which creates confusion.

A payment gateway is the technology that captures and encrypts payment details at checkout and securely transmits them. It is the connection between your store's checkout and the payment network. A payment processor is the service that handles the actual movement of money between the buyer's bank and your account.

In practice, most modern providers combine both functions. When you sign up with a payment provider, you are usually getting a gateway and a processor in a single integrated service. You do not need to select them separately unless you are building a custom checkout integration, which is not typical for most store owners.

What matters practically is that your chosen provider supports the payment methods your buyers use, integrates with your store builder, and handles settlements reliably.

Which payment methods should you offer?

The payment methods you offer should reflect what your buyers expect to use. Offering only one option will cost you buyers who do not use it.

Credit and debit cards are the baseline. Major card networks are accepted globally. Some card brands have wider coverage in the US than in other markets. Any payment provider you choose should support the major card networks your buyers use.

Digital wallets have grown significantly and now account for a large share of online purchases in most markets. Buyers store their card or bank details in a wallet and pay with a single tap or click, without entering their card number each time. In many regions, offering at least one major wallet option is now expected rather than optional.

Bank transfer and direct debit are common in markets like Germany, the Netherlands, and other parts of Europe, where buyers have a stronger preference for direct bank payments over card transactions. If a significant share of your buyers are in these markets, supporting local bank-based payment methods increases conversions noticeably.

Buy now, pay later is increasingly popular for higher-value purchases. It allows buyers to split a payment into installments, which can reduce friction on orders where the upfront cost feels significant. Whether to offer this depends on your product price range and whether your payment provider supports it.

The right set of methods depends on where your buyers are. Research the dominant payment preferences in your primary market before deciding. What works in the US may not be the right combination for a store targeting buyers in Germany, Brazil, or Southeast Asia.

What are transaction fees and what do they include?

Every payment you process comes with a fee. Understanding the fee structure before you choose a provider helps you price your products correctly and avoid surprises in your payouts.

Most providers charge a percentage of the transaction plus a small fixed amount per transaction. A common structure is 2.9% plus $0.30 per transaction, though this varies by provider, country, and payment method. Some providers charge higher rates for international cards or card types that carry higher interchange fees.

The percentage fee is the largest cost. On a $50 sale at a 2.9% rate plus $0.30, you pay $1.75 in fees and receive $48.25. On a $10 sale, the fixed fee has a larger proportional impact. This is worth factoring in if you sell low-priced items in volume.

Some providers also charge monthly fees, setup fees, chargeback fees, or fees for accessing certain features. Read the full fee schedule before committing to a provider, not just the headline transaction rate.

What is PCI compliance and what does it mean for your store?

PCI DSS (Payment Card Industry Data Security Standard) is a set of security requirements for any brand that handles payment card data. It was created by the major card networks to protect buyer data and reduce fraud.

For most online store owners, PCI compliance is managed largely by your payment provider. When you use a hosted checkout or a payment provider that handles card data on your behalf, your exposure is limited. The provider takes on the bulk of the compliance responsibility because the card data never touches your server directly.

Where store owners run into compliance issues is when they try to build custom checkouts that collect and transmit card data themselves, or when they store card details in their own systems. Unless you have a specific reason to handle card data directly, use your payment provider's hosted checkout or their official integration, which keeps compliance simple.

Some providers require you to complete a short self-assessment questionnaire annually to confirm you are using their integration correctly. This is straightforward for most store setups and takes under an hour.

What should you look for when choosing a payment provider?

Payment methods supported are the first filter. A provider that does not support the methods your buyers use is not the right fit, regardless of how good its other features are.

Integration with your store builder is the second. Your provider needs to connect to your store without requiring custom development. Most major providers offer direct integrations with popular store builders.

Fee structure matters for your margins. Compare the full cost of processing, not just the headline rate. Include any monthly fees, chargeback fees, and international rate differences.

Settlement speed determines how quickly you access your revenue. Some providers settle daily, others weekly. For brands with tight cash flow, faster settlement is meaningful.

Support and dispute handling are often underrated. When a payment fails or a buyer initiates a chargeback, you need a provider with clear processes and reachable support. A provider with a poor reputation for handling disputes can cost you money even when you are in the right.

Currency and country support matter if you sell internationally. Confirm your provider can accept payments in the currencies your buyers use and pay out in your local currency.

For the full picture on setting up your store from the ground up, see our guide on how to start an online store from scratch.

How WEMASY supports payment setup for your store

WEMASY's e-commerce system includes payment provider integrations that cover major card networks, digital wallets, and local payment methods. You connect your preferred provider through the store settings, and payment processing runs through their secure infrastructure. No custom development is required.

See which plans include the e-commerce features at WEMASY pricing.

Frequently asked questions