How to accept online payments: a guide to taking payments on a website

Over the past decade, the way consumers spend their money has transformed dramatically. 

Online shopping, once a niche market, has grown into a multi-trillion-pound industry.  Technological advancements and changing consumer preferences have propelled this shift, with more Brits than ever opting for the convenience and variety offered by over 500,000 ecommerce websites in the UK. 

The takeaway for businesses is that UK consumers are moving from bricks to clicks, and companies must adapt to stay competitive. If you’re looking to get set up to take online payments, we’ll dive deeper into why taking payments online is crucial for your business’s success and how you can do so.

What types of online payments are there?

Online or e-commerce payments are transactions made over the Internet, allowing customers to purchase goods and services from the comfort of their homes or on the go. 

Here are some of the most popular online payment methods:

• Credit and debit cards 
• Digital wallets like PayPal, Apple Pay, and Google Wallet
• Bank transfers
• Buy Now, Pay Later (BNPL)

Which businesses could benefit from taking payments online?

Whether you’re a small startup or an established business, getting set up to take online payments could be the key to achieving growth in the future. 

Here are some industries that could benefit the most from offering online transaction options:

• E-commerce stores — For businesses that operate entirely online, accepting digital payments is a given. E-commerce stores must have reliable transaction processes in place to keep business flowing.
• Subscription services — Any company that offers subscription-based products or services could hugely benefit from accepting online payments. Automated billing systems allow for hassle-free recurring transactions, ensuring your customers’ subscriptions are uninterrupted.
• Businesses accepting prepaid cards — Prepaid cards were used much more frequently back in the day, but today are commonly used for adding credit to prepaid mobile phones and household utility cards. Customers can load up prepaid cards with funds via electronic top-up (ETU) which turns the money into phone or utility credits. You used to have to visit your local Post Office, bank, or petrol station to do this, but thanks to the online payments of today, electronic top-ups can be done over the internet. If you’re a business that offers an electronic top-up service, allowing your customers to transfer funds to a prepaid card or account via an online payment method maximises convenience.
• Nonprofits and charities — Accepting donations online is a game-changer for nonprofits and charities. With online payment options, supporters can contribute quickly and easily from anywhere in the world.
• Event organisers — From concerts to conferences, event organisers can improve the ticket-buying experience by accepting online payments. Having the option available encourages early sales and can provide real-time data for better event planning and management.
• Travel agents — If you book travel, accommodation, or tours, securing bookings online is undoubtedly one of the best ways to stay competitive in the travel industry as they’re secure, instant, and provide a seamless experience.

How does an online payment system work?

Whether you’re an e-commerce-only website or are setting up an online storefront to complement your brick-and-mortar business, the key players involved in accepting website payments are the same. 

Here’s what you need to know:

1. Payment gateway

A payment gateway is the software that securely processes online payments — think of it like the digital equivalent of a card machine for in-person payments. When a customer enters their financial information to buy something from your website, the payment gateway encrypts the information and makes sure that the transaction is authorised and completed safely.

2. Payment processor

The payment processor is the financial institution or bank that facilitates the transaction, transferring funds from the customer's account to your waiting merchant account. 

3. Merchant account

If you accept card payments of any kind, you’ll need a merchant account. It’s a special type of bank account that acts as a middleman between your customer's bank and your business’s, temporarily holding funds until they’re transferred to your business bank account.

There are a few more steps involved in the entire end-to-end process, but these are the most important elements that you need to know. In a nutshell:

• Your payment gateway accepts and processes the online transaction
• Your payment processor moves the funds from your customer’s bank account into your merchant account

How to take payments online

Accepting digital payments is now easier and safer than ever before, and you’ve got options, too, so you can tailor your payment system to your business’s needs.

1. Payment gateway

First up is a payment gateway, also known as a payment page, as it’s the most straightforward way of selling through your website and means your business is open 24 hours a day.

A payment gateway connects with your online shopping cart, so once consumers have added what they want to their basket, they’re taken through to the secure payment gateway. There, they can pop in their details and the transaction is completed. 

A payment gateway is usually easily integrated into a website through plugins or APIs, but it’s essential to carry out test orders to ensure everything is working properly before going live. 

Some of the benefits of using a payment gateway to accept online orders are:

• Multiple payment options — Payment gateways often support various payment methods, from credit cards to digital wallets.
• Customisable — Most payment gateways have customisation options so you can make sure the entire transaction journey looks and feels like your brand.

2. Virtual terminal

A virtual terminal allows you to take payments online while you’ve got your customer on the other end of the phone. 

All you do is log into the secure page provided by your payment provider and enter your customers’ card details while they’re on the line. You don’t need a website to use a virtual terminal, just an internet-enabled device like a smartphone, tablet, or laptop.

Virtual terminals are perfect for businesses that need to take orders over the phone or by post.

Here are some of the reasons why you should opt for a virtual terminal:

• Flexible — With a virtual terminal, you don’t need a physical card machine to take payments.
• Don’t need a website — While virtual terminals technically allow you to process card-not-present or remote payments where the customer can order from anywhere in the world, you don’t actually need a website to accept them.

3. Pay by link

Pay by link is an email invoicing solution that makes online payments simple. 

Once again, you don’t need a website to get paid online; just an internet-enabled device on which you create a custom digital invoice that’s emailed directly to your customer.

In turn, they open the email and are directed to a secure payments page where they enter their details, and you get paid.

Find out why pay by link could be ideal for your business:

• No complex checkouts — When paying by link, customers can complete payments quickly without navigating through a full checkout process.
• Online reporting insights — You’ll get access to real-time reports and can track payments, giving you valuable insights to manage your everyday trading.

4. Beepaid

Beepaid is a payment app that allows you to accept secure online payments quickly. It allows for remote and face-to-face online payments, which is perfect for brick-and-mortar businesses expanding their reach into the digital sphere.

To use it, you simply pick up your mobile phone, open the app, create and send a custom invoice to your customer, and get paid.

You’ll have access to all your payment information, quite literally in the palm of your hand. You can extract your transaction data from the app and upload it straight to an accounting platform or send it to your accountant.

Here’s why merchants love our Beepaid app:

• Streamlines invoice processes — Online invoices simplify the billing process, making it easier to manage and monitor your transactions.
• Expert features to level up your business — Our Beepaid app can track transactions and save regular customer details for future purchases. 

Best practices for securing your online payments

Going digital can be a huge step forward for many merchants, but it’s not without precautions. 

A study has predicted that businesses could lose more than $343 billion in cumulative losses because of online payment fraud globally between now and 2027.

Thankfully, there are plenty of ways to secure your online payments and keep your customers — and your business — safe.

PCI DSS compliance

The Payment Card Industry Data Security Standard (PCI DSS) is a set of standards any business that wants to accept card payments – online or face-to-face – must comply with before doing so.

The standards were, and continue to be, developed and verified by an independent body. They were created to help reduce fraud, improve the safety of payments, and add an additional layer of security for both consumers and businesses.

Learn more about PCI DSS and its latest updates here.

SSL certification

If you accept orders through a website, you’ll need a Secure Sockets Layer (SSL) certification. It’s a digital certificate that achieves two important things for security:

• It provides authentication for a website
• It enables an encrypted connection

SSL ensures that all information passed between the consumer and the business is private and secure and helps prevent hackers from obtaining confidential details.

At takepayments, our payment gateway is SSL-certified, so that’s one less thing to worry about.

Address Verification System (AVS)

The Address Verifications System (AVS) is one of the most straightforward but secure methods for ensuring that the payer is the cardholder.

In action, it requires the shopper to enter their billing address details and checks to see if this matches the address on file with their bank. If it doesn’t, this raises a red flag about the safety of the transaction.

A Credit Verification Value check is often used in tandem with AVS. The three or four-digit number on the back of debit and credit cards is called the Credit Verification Value (CVV). During online transactions with CVV security in place, customers will be asked to input these details. If they can’t provide it, or the numbers don’t add up, this immediately indicates potential foul play and the transaction will be questioned and potentially fail.

3D Secure technology

3D Secure technology, such as Visa's Verified by Visa or Mastercard's SecureCode, enhances security for online card transactions by prompting customers to validate their identity. It’s an extra step included in the checkout and usually requires customers to enter a password or a one-time code sent to their mobile. 

This additional verification step helps prevent unauthorised transactions and reduces the risk of fraud. It’s also a common solution for businesses that accept online payments to abide by Strong Customer Authentication (SCA) regulations. 

Want to brush up further on your security measures? Check out our guide to different types of card payment security methods here.

How to choose the best online payment method for your business

When it comes to choosing the right payment solution for your business, one size certainly doesn’t fit all. The good news is that whether you’re running a bustling e-commerce store or a small service-based business, there’s an option that’s just right for you. 

Here are a few key points to consider that’ll help you make the best choice.

1. Business size and industry

Are you a small startup just dipping your toes into the online world or a well-established business looking to expand your payment options? Your needs will differ depending on what type of business you run.

For larger e-commerce businesses, a payment gateway might be the best option. It’s the most well-known method and is perfect if you have an online store where customers can fill up their shopping baskets and checkout in one smooth transaction. 

If you’re the type who’s often on the go and doesn’t have a fully-fledged website, like a plumber or an electrician, a virtual terminal or pay-by-link method could be your best friend.  

2. Fees

We all know that every penny counts, especially for small businesses. That’s why it’s crucial to consider the costs and fees associated with each payment solution.

Different providers will have different fee structures — some might charge a flat fee per transaction, while others take a percentage of each sale. Be sure to do your homework and choose a provider that offers transparent pricing with no hidden surprises. For example, if you’re processing a high volume of transactions, those percentage fees can add up quickly, so you might prefer a provider with lower transaction costs.

Don’t forget to consider setup fees, monthly maintenance fees, and any additional costs. It’s all about finding the balance between affordability and the features you need to keep your business running smoothly.

3. Website integration

If you choose a payment gateway, you’ll want it to integrate seamlessly with your website. The last thing you need is a clunky checkout process that sends customers running for the hills.

Look for a provider that offers easy integration with your existing platform, and if technology isn’t your cup of tea, choose a provider that offers solid customer support to guide you through the process.

Remember about customisation, too. Some providers allow you to personalise the checkout page with your logo and colours, making the whole process feel more personal and trustworthy for your customers.

4. Customer support

Last but definitely not least, let’s talk about customer support. No matter how tech-savvy you are, there will be times when you need a helping hand. Whether it’s a question about integrating your payment gateway or troubleshooting a transaction issue, having reliable customer support can make all the difference.

Choose a provider that offers strong support — think 24/7 availability, multiple contact methods (like phone, email, and live chat), and a reputation for resolving issues quickly. After all, the faster you can get help, the sooner you can get back to doing what you do best: running your business.

You can count on us for safe online payments

When it comes to taking payments online, we've got you covered. All our payment solutions come with top-notch security features like encryption and 3D Secure technology, and everything we do is in line with the latest PCI DSS guidelines, keeping your business and customers safe.

Ready to get started or want to learn more? Give our team a call at 0808 274 2017. We’re here to help you take your business to the next level with secure, seamless online payments.

Bryony Pearce

Copywriter