Best Payment Options & Methods for Small Businesses: A 2026 Guide

When it comes to getting paid, small businesses have to decide which payment methods and options make the most sense for their business. The right mix can streamline the checkout process, enhance the customer experience, and ultimately increase conversions.

So, how do you build a payment stack that gives customers what they want without overcomplicating your operations? In this guide, we’ll break down the best ways to get paid in 2026 and how to choose what works for your business.

Payment Methods vs. Payment Options: Understanding the Difference

The terms “payment method” and “payment option” might seem interchangeable, but they do have some key distinctions.

A payment method is the underlying way money is moved from the customer to the business. It’s the actual funding mechanism. Examples include cash, credit cards, debit cards, ACH transfers, wire transfers, and digital wallets.

Meanwhile, a payment option is the way those methods are presented to the customer. The options available in the payment experience include online checkout, an in-store POS terminal, payment links, invoices, QR codes, or recurring billing setups.

The Benefits of Offering Multiple Payment Methods & Options

From enhancing the customer experience to improving your business’s financial health, offering multiple payment options and methods has several benefits.

Increase Sales and Conversion Rates

People want to pay using the method that’s easiest for them, whether that’s a card, a digital wallet, or a bank transfer. When you make that choice simple, they’re more likely to complete their purchase. In fact, research by PYMNTS shows that 70% of consumers say that the availability of their preferred payment method significantly influences their choice of where to shop.^[1]PYMNTS. “Lack of Payments Choice Risks Higher Cart Abandonment on Online Brand Sites.” Accessed December 5, 2025.

Build Trust and Professionalism

The ability to support multiple payment methods signals that you run a reliable operation. Customers feel more confident entering their card or bank details when they see trusted logos and familiar payment flows. The more secure and seamless the payment experience feels, the more customers trust you with their purchase.

Improve Cash Flow

Because multiple payment types can improve conversions, you’ll see more funds flow through your business. And if you’re a business that invoices customers, offering digital payment options instead of relying on paper checks can expedite processing and reduce wait times for deposits.

Reduce Late Payments

Having more options makes it easier for customers to pay on time. Payment links provide clients with a convenient way to settle outstanding invoices. Digital wallets enable customers to check out without needing to dig for a card. And if it makes sense for your business, automatic billing or recurring charges can ensure customers never miss a payment. 

Competitive Advantage

Shoppers have more choices than ever, and a smoother payment experience can be the reason they choose you over a competitor. Businesses that offer modern, flexible payment options stand out because they remove friction for customers. It also demonstrates that your business keeps up with how people actually shop, which can give you a genuine edge in crowded markets.

Best Payment Options & Methods by Business Type

The type of business you run is a primary consideration in determining which payment methods and options to prioritize. Here’s how to think about your setup based on where and how you sell.

For Online Sales

For online payments, having the following options and methods will help ensure that shoppers have choices at checkout:

• Credit and Debit Cards: Credit and debit cards remain the most common way consumers pay online, and supporting all major brands helps you avoid unnecessary drop-off.
• Digital Wallets (Apple Pay, Google Pay, PayPal): Digital wallets streamline checkout and eliminate the need for customers to manually enter their card details.
• BNPL: BNPL gives customers more flexibility and often increases average order value, particularly for higher-ticket items.
• ACH or Bank Transfer (for B2B or High-Ticket): ACH offers a lower-cost alternative to cards and is well-suited for repeat clients or subscription-style billing.

For In-Person

Small businesses that accept in-person payments (e.g., retail stores, restaurants, and event venues) should ideally have the following:

• Tap To Pay: Tap to Pay offers a fast and convenient checkout experience that many customers now expect.
• EMV Chip Card Acceptance: Supporting chip cards helps reduce fraud liability and covers a large portion of card-present transactions.
• Digital Wallets: Digital wallets are increasingly popular in stores and give mobile-first shoppers an easy way to pay.
• Cash: Cash still plays a role in small purchases and impulse buys, especially in local or high-volume environments.
• QR Code Payments: QR codes pave the way for tableside ordering, self-checkout, or quick-payment workflows in busy environments.

For Mobile

If most of your sales come through smartphones and tablets, you’ll want mobile payment options that keep checkout fast, simple, and easy to complete on a small screen. Consider the following:

• Digital Wallets (Apple Pay, Google Pay, PayPal): Digital wallets reduce friction by allowing customers to pay with a single tap, which is especially important when browsing on their phones.
• Saved Cards or Stored Payment Profiles: Offering customers the option to save their card details can encourage repeat purchases and reduce abandoned carts.
• BNPL Optimized for Mobile Checkout: BNPL options embedded in mobile flows help hesitant shoppers move forward with higher-ticket items without leaving the page.
• Payment Links: Payment links sent via text, social DMs, or email allow customers to complete a transaction from their phone in just a few taps.

For Self-Service

Payments for self-service facilities with kiosks, stations, and unattended retail locations need payment options that are quick, intuitive, and secure:

• Contactless: Contactless payments allow customers to complete transactions quickly without touching hardware.
• Chip Card Acceptance: Chip card acceptance ensures customers who prefer using their physical cards can still check out easily.
• Digital Wallets: Digital wallets offer a fast, seamless option for mobile-first users who expect quick self-checkout.
• QR Code Payments: QR code payments let customers initiate and complete transactions directly on their phones, eliminating the need for a keypad.
• Stored Payment Profiles: Stored payment profiles are ideal for membership-based models, such as gyms, coworking spaces, or refill stations.

How to Choose the Right Mix for Your Business

The process for selecting the best mix of payment options and methods is similar to any important business decision. You evaluate your needs, determine which features would serve you best, and then compare solutions. Let’s take a closer look at the process.

Cost, Fees, and How to Reduce Them

With the exception of cash, accepting most payment methods comes with fees. Make sure you factor these in when comparing providers or estimating your cost per transaction.

Understanding Typical Processing Fees

Payment types, processor markup, and risk levels are some of the factors that influence processing fees. While the exact numbers shift from business to business, most fees fall into a few common buckets. Here’s a quick breakdown of what you’ll typically see:

• Credit Cards: Most businesses pay a percentage of the sale plus a small per-transaction fee. You’ll also see assessment fees from the card networks, which are small additional charges. Overall, credit card processing fees typically range from 1.5% to 3.5% per transaction.
• Debit Cards: Debit transactions often cost less than credit transactions, especially when regulated rates apply. You’ll still see the standard processor markup and the network’s assessment fees, but the total tends to be lower.
• Digital Wallets:  Wallets like Apple Pay, Google Pay, and PayPal run on top of existing card rails, so their fees mirror standard card pricing. If you use a third-party provider, you may also pay a payment gateway fee to route those transactions.
• ACH and Bank Transfers: ACH is usually charged as a small flat fee or low percentage.
• BNPL: Buy now, pay later providers charge higher merchant fees because they take on the lending risk. According to the U.S. Chamber of Commerce, these fees often range from 1.5% to 7% of the purchase amount.^[2]U.S. Chamber of Commerce. “The Pros and Cons of Buy Now, Pay Later for Small Businesses.” Accessed December 5, 2025.
• Wires and EFTs: Banks typically charge a fixed fee for outgoing or incoming transfers. While predictable, these can add up if you rely on wires frequently.

How to Lower Costs

There’s no way to eliminate payment fees entirely, but you can take practical steps to keep them under control. Here are a few tactics to consider:

• Use Lower-Cost Methods When They Make Sense: ACH can save money on large invoices, and debit transactions often cost less than credit card transactions. Some businesses highlight these options first to encourage customers to choose them.
• Consider Surcharging or Cash Discounts: If allowed in your state, surcharging can pass credit card costs back to customers. There’s also cash discounting, which encourages customers to pay with lower-cost methods. 
• Optimize Your Payment Flow: A smoother checkout means fewer declines and fewer retries, which reduces unnecessary, fee-producing attempts.
• Review Pricing Tiers Regularly: Providers may adjust their rates periodically. Review your statements and speak up if something looks off.
• Watch for Hidden Fees: Some processors add charges for services or even basic account maintenance. Understanding your statement and flagging unnecessary fees can keep you from overpaying.
• Negotiate When Your Volume Grows: More processing volume gives you more leverage. Even a slight difference in rates can mean thousands of dollars a year.
• Strengthen Your Fraud Tools: Enhanced fraud screening reduces disputes, chargebacks, and the associated fees.
• Pick the Right Pricing Model for Your Size: A plan that works well for a small shop may not be suitable once your sales increase. For instance, while flat-rate payment processing works best for businesses with low credit card volume, it might not be ideal for higher-volume merchants, which may benefit more from interchange-plus. 

Considering Security, Fraud Prevention, and Compliance with Different Payment Options

Security should remain top of mind when offering any payment method. Key considerations include the following.

Protecting Customer Data

Safeguarding customer data should always be a priority. Strong security practices build trust and keep customers coming back. Conversely, dropping the ball on data security can cost you loyal customers. Research from Vercara shows that 75% of consumers say that they’re ready “to sever ties with a brand in the aftermath of any cybersecurity issue.”^[3]Vercara. “Vercara Research: 75% of U.S.Consumers Would Stop Purchasing From a Brand If It Suffered a Cyber Incident.” Accessed December 5, 2025.

Needless to say, it pays to stay ahead of the risks. A few steps to consider:

• PCI Compliance: Any business that handles credit card data must follow PCI requirements. This includes how you store, process, and transmit card information.
• Point-to-Point Encryption: This encryption scrambles sensitive data the moment a card is inserted, preventing attackers from reading it.
• Tokenization: Tokenization replaces card numbers with secure tokens. This reduces the amount of raw card data you store and lowers your compliance burden.
• Secure Payment Gateways: A reliable gateway should offer built-in security features, including encrypted connections and tools that monitor suspicious activity.
• Limited Data Access: Grant employees access only to the information they need. Fewer touchpoints reduce the chance of human error.

Reducing Fraud and Chargebacks

Every chargeback or dispute can be costly in terms of both money and time. The right tools can help you prevent and manage them better:

• AVS and CVV Checks: Basic checks, such as AVS and CVV, help confirm the legitimacy of the cardholder by validating address details and card security codes.
• 3D Secure: This extra layer of authentication shifts liability to the issuer in many cases and adds protection for online transactions.
• Risk Scoring and Fraud Filters: These systems flag unusual behavior, such as mismatched locations or multiple attempts in a short window.
• Velocity Limits: Setting limits on transaction frequency helps stop bots or fraudsters from running multiple cards.
• Clear Policies and Strong Documentation: Accurate receipts, clear refund policies, and solid proof of delivery help you effectively combat chargebacks when they arise.

Common Mistakes to Avoid When Offering Payment Options

Offering flexible ways to pay is great, but a few common missteps can create more friction or misunderstandings. 

Implementation Checklist & Next Steps to Accept Payments

Ready to get up and running with the right payment methods and options? Here’s a quick checklist to follow: