The short answer
You don't need a merchant account, a bank meeting or any code. Most new sellers connect a payment processor (a company like Stripe or PayPal that moves money from a customer's card to your bank), switch on the payment methods their customers use, and start selling the same day.
How online payments actually work
When a customer clicks "Pay," three things happen in a few seconds:
- Checkout collects the details. The card number goes straight to the processor, not to your store's database.
- The processor asks the card network and bank to approve it. If approved, the order goes through.
- Money settles to you later. The processor deducts its fee and pays out the rest to your bank account on a schedule, usually a few business days after the sale.
Because the processor stores and handles the card data, you stay out of the hardest part of security compliance. More on that below.
Step 1: Choose a payment processor
For a US beginner, the two most common choices are:
- Stripe. Accepts major cards and digital wallets like Apple Pay and Google Pay. Its published pricing is 2.9% + 30¢ per successful domestic card transaction, with no monthly fee on the standard plan.
- PayPal. Many shoppers already have a PayPal account, which can make checkout feel familiar. Fees depend on the product and payment type, so check PayPal's current US fee page before you decide.
Plenty of stores offer both: Stripe for cards and wallets, PayPal for customers who prefer it. Pick based on your customers, not on which logo looks bigger.
Step 2: Turn on the right payment methods
More options aren't always better. Start with:
- Credit and debit cards (Visa, Mastercard, American Express, Discover)
- Apple Pay and Google Pay, which are fast on phones, where a lot of shopping now happens
- PayPal, if your audience uses it
Stripe's payment methods overview explains what each method is and where it's available. You can add "buy now, pay later" options later if your average order is high enough that customers ask for it.
Step 3: Understand the fees before you price
A 30¢ fixed fee matters more on small orders. On a $10 item, 2.9% + 30¢ is about 59¢, nearly 6% of the sale. On a $60 item, it's about $2.04, around 3.4%. Build processing fees into your prices from day one so every sale is still profitable. (We cover pricing in more detail in our guide to starting an online store with no experience.)
Step 4: Keep payments secure
Any business that accepts cards is expected to follow the Payment Card Industry Data Security Standard (PCI DSS), set by the PCI Security Standards Council. The good news: when you use a hosted checkout from a reputable processor, the processor handles card storage and most of the heavy lifting. Your part is simple:
- Never ask customers to email or message card numbers.
- Use strong, unique passwords and two-factor sign-in on your store and processor accounts.
- Keep your site on HTTPS (the padlock in the browser).
Step 5: Know what a dispute is
A dispute (or chargeback) happens when a customer asks their bank to reverse a charge. It's usually because an order didn't arrive, didn't match the description, or the customer doesn't recognize the charge. Stripe's guide to disputes walks through how to respond with evidence.
You prevent most disputes with basics:
- Use a clear store name so it's recognizable on card statements.
- Write accurate product pages (see how to write product descriptions that rank).
- Ship with tracking and keep order records.
- Make your refund policy easy to find, and reply quickly when someone has a problem.
Step 6: Plan for payouts and taxes
Payouts arrive in your bank account a few days after each sale, and new accounts can have a longer first payout. Keep your processor's reports, since they make bookkeeping much easier.
Payment platforms may also report your sales to the IRS. The IRS explains how this works on its Form 1099-K page. Reporting thresholds have changed in recent years, so check the current rules and talk to a tax professional if you're unsure.
How Newcomer handles this
Newcomer is built for people starting their first store. You connect Stripe in a few clicks, cards and wallets show up at checkout, and you get back to the fun part: your products and your first customers. Once you're set up, our guide to getting your first 100 customers is a good next read.
Ready to start somewhere new? Create your store on Newcomer.
Questions, answered.
Do I need a business bank account to accept payments online?
Not always to get started, since many processors let individuals and sole proprietors connect a personal checking account. A separate business account still makes bookkeeping and taxes much easier, so most sellers open one early.
How much does it cost to accept card payments?
It depends on the processor and payment type. Stripe's published US pricing is 2.9% + 30¢ per successful domestic card transaction on its standard plan. Always check the processor's current pricing page before you set your prices.
Is it safe to take card payments on my own store?
Yes, if you use a reputable processor's hosted checkout. The processor handles card data and most PCI DSS requirements, and you protect your accounts with strong passwords and two-factor sign-in.
How long does it take to get paid?
Processors pay out on a schedule, typically a few business days after each sale. A brand-new account may wait longer for its first payout.
Should I offer PayPal as well as cards?
If your customers use PayPal, offering it can make checkout feel familiar. Many small stores offer cards and wallets through one processor and PayPal as an extra option.