Accepting credit card payments: Guide for businesses in Australia

Around 75% of payments are made with cards in Australia¹. For startups and established businesses alike, setting up a credit card payment system is almost a rite of passage, an important step to reaching new customers and increasing sales.

Traditionally, making credit or debit card payment online is a process where customers of online merchants click through a few prompts, fill in their card details, and voila, their purchase is confirmed.

However, like most technologies, card payments are also evolving. They are no longer confined to desks at retail stores. It’s now possible to capture sales on the move and online with mobile card readers and contactless payments.

In this blog we’ll explore some of the benefits of accepting credit cards, the methods for using them, and the fees involved. We’ll also explore how Wise Business can be an indispensable tool when accepting cross-currency payments.

Table of contents
Benefits of accepting credit card payments for your business How to accept credit card payments in Australia How to set up credit card payments Fees for accepting credit card payments Accepting credit card payments in other currencies FAQs on accepting credit card payments

Benefits of accepting credit card payments for your business

There are multiple benefits to accepting credit cards. It can open up new avenues for business and improve processes — card transactions are quick, efficient, and accountable for all.

Competitive differentiator

For startups, accepting credit cards can be a competitive differentiator — 55% of small businesses offer it as a payment method in Australia². Furthermore, a quarter of Australians actively seek out businesses that accept multiple payment options². In 2025, consumers have higher expectations when it comes to payment types, and meeting them can be great for business.

Increased sales and revenue

The vast majority of payments in Australia are made with cards. An inability to accept credit cards can severely limit your sales potential. Adding a card terminal or accepting online card payments will make it easier and more convenient for your customers to buy your products and services, which will boost sales and transaction amounts.

Better cash flow

Relying on cash or bank transfers can put a hand brake on operations and complicate accounting. Card payments are processed faster — especially with Wise — giving you almost instant access to the funds you need for your business. It also reduces security risks in terms of theft and handling errors.

Helps grow your business

Accepting credit card payments lays the groundwork for future expansion. It simply makes it much easier to do business with international suppliers and customers. It also facilitates seamless transactions cross multiple channels — you’ll have no problem accepting payments in store, online, even on social media. Removing barriers lets you focus on growth in the long-term.

How to accept credit card payments in Australia

There are multiple ways to take credit card payments as a business in Australia. For most of these you’ll need a merchant account, which can be tailored to a specific card payment type: e-commerce, mobile, retail, or phone, and a payment gateway service.

Online

Around a fifth of all retail payments in Australia are now made online³. You can receive credit card payments online through your website by setting up a digital storefront. There are plugins for WordPress that integrate the storefront with a payment gateway, such as WooCommerce. After setting up a storefront, visitors can then check out and enter payment details to purchase your products or services.

Let us look at two ways to accept credit card payments online!

1. Merchant accounts and payment gateways

Setting up a merchant account is the traditional method to accept credit card payments online. This is when your business enters into a contract with a merchant acquiring bank. This could be with your business banking provider or another bank, depending on if they offer merchant account options and your business meets eligibility requirements.

With a merchant account you’ll also need to set up a payment gateway. Payment gateways act as the customer facing interface or the “check out” portal on your website that enables your business to securely accept customer card details.

❓Merchant accounts vs Business accounts, what's the difference? New businesses often confuse business accounts with merchant accounts, but they serve different purposes. Merchant accounts are specialized for accepting and processing credit and debit card payments, but they can't store money or handle transactions.

Business accounts, like Wise Business, are used for general business transactions, such as paying bills, receiving payments, and handling cross-currency conversions, but they don't process card payments. Instead, business accounts can receive funds from payment processors like Stripe.

2. Third party payment processors

The second way to accept customer card payments is by using a third party payment processor. A third party payment processor is an intermediary business entity that has their own relationship with merchant acquiring banks. This means they provide the online payment gateway and merchant bank services without you having to go through multiple entities.

Some of the top payment processor entities in Australia:

• Stripe is a global payment management company providing software and APIs for e-commerce businesses to accept and send payments worldwide. It allows merchants to integrate various payment APIs and start receiving payments instantly.
  Read more on how Wise Business works with Stripe
• PayPal provides a platform for individuals and businesses to process payments globally with diverse payment options.
• Pin Payments is an Australian based company that allows small businesses to easily accept online card payments with customizable integration options.

	Payment Gateway + Merchant Account	Third Party Payment Processors
Setup and Approval	Difficult approval process with high setup costs	Quick and easy setup with no upfront commitments
Payment Acceptance	Accepts card payments through local banks with greater security	Global reach with customizable payment integrations, including foreign currencies
Contracts and Flexibility	Involves strict agreements and separate fees for each service	No lock-in contracts but subject to third-party business decisions
Support and Service	Offers in-person support through certain banks	Less personalized customer support
Transaction Costs	May require additional international gateways with higher fees	Variable transaction fees that can change
Technology and Integration	Requires multiple technologies and accounts	Can use existing business bank accounts, reducing technology needs

When deciding on which option is best for your business, consider what industry you are in, the size of your business, what your budget allows and how quickly you want to start accepting payment

Additionally, businesses that use third-party payment processors or platforms (like Stripe or Pin Payments) can often manage card transactions without needing a separate merchant account, as these services handle the card processing on behalf of the business. In such cases, the funds collected through these platforms can be deposited directly into a business account like a Wise Business account.

Sign up for the Wise Business account! 🚀

Physical stores

Digital payments are growing. However, 43% of Australians still prefer shopping in store⁴. You’ll need a business bank account and credit card terminal to accept payments in a brick-and-mortar store. These point of sale (POS) systems also require a merchant account — an intermediary — to process customer’s payments before you receive them.

Mobile

Startups may benefit from accepting credit payments via mobile POS systems connected to a smartphone or tablet. These systems — great for pop up vendors, food trucks, service providers etc. — usually feature a small card reader that processes the transaction and communicates with a merchant account or payment services provider.

Phone

You can also close deals and accept credit card payments on the phone by using a virtual terminal provided by a payment processor to enter a customer’s card details directly. This payment method may be useful for plumbers, electricians, consultants, and other service-based businesses.

How to set up credit card payments for business

When setting up credit card payments, the main choice for a business is whether to go with a traditional merchant account and payment gateway, or opt for a third party payment processor. The latter is more accessible for startups, but there might be higher transaction fees and fewer branding options.

Most merchants and processors support major credit card networks — Visa, Mastercard, American Express — and digital wallets like Apple Pay and Google Pay. But it’s best to double-check to be sure.

Here’s a quick guide for setting up credit card payments:

1. Register your business and get an Australian Business Number (ABN)
2. Set up a payment processor. There are two main options for a business in Australia:
   1. A merchant account with a traditional bank combined with a payment gateway service
   2. A payment service provider (PSP) such as Stripe or PayPal that offers an ‘all-in-one’ solution
3. Set up a point of sale (POS) system in your store to accept payments
4. Add a digital storefront on your website and connect your merchant account or PSP to a payment gateway plugin to accept online payments
5. For those using a third-party payment processor, you can open a business account to receive payments. Solutions like Wise Business are apt at handling foreign currency transactions and offer low-cost transfers with transparent fees. This would suit businesses that handle and accept credit card payments across borders.
6. Fully understand the payment processing fees and other costs involved.
7. Test your credit card payment systems before launching them

If you’re wondering how to accept contactless payments, most modern POS systems support these by default. However, you might need to opt in or activate NFC payments with your payment processor.

Fees involved in accepting credit card payments

There are multiple costs and fees involved when accepting credit payments as a business in Australia. It’s important that you’re aware of all of these to prevent hidden charges from affecting your bottom line.

• Establishment fees - A one-time charge for setting up a merchant account, covering the cost of setting up the account and verifying it.
• Payment processing fees - A charge for every credit card payment processed, typically a percentage of the transaction value or a flat fee, to cover the costs of authorising and transmitting transactions.
• Ongoing account keeping fees - A monthly or annual fee for maintaining the payment process account.
• Interchange fees - A fee businesses pay to the customer’s bank to process card payments. These are usually set by card networks — Visa, Mastercard, American Express.
• Terminal set up fees - An initial one-time charge for setting up POS systems.
• Refund and chargeback fees - A charge for processing refunds and handling the costs of customer disputing transactions.
• Currency conversion fees - The cost of converting money from one currency to another when processing payments from customers overseas.

Unfortunately, payment fees are one area that small businesses struggle to control and manage. The cost of hidden fees in financial transactions can be particularly debilitating for startups — US-based SMBs lose $153bn every year⁵.

Accepting credit card payments in other currencies

The costs of simply doing business is a major challenge when completing international transactions. In contrast to domestic payments, cross-border transactions have more variables, with high currency conversion fees and volatile exchange rates.

However, hidden charges inherent to traditional banking systems can be a killer sometimes when it comes to international transactions. In such cases, you can leverage the use of multi-currency accounts like Wise Business that can be used to receive payments into the business account.

How Wise can help you to keep more of your credit card payments

Once the money is received, Wise Business can be used to convert the currency at the mid-market rate with transparent transfer fees so that businesses can keep more of their hard-earned money.

In addition, the Wise Business account can integrate with business tools to help automate invoice payments, simplify bookkeeping, and more. This effective top-down approach helps you to save money, which can be invested in things that really matter. It also gives you confidence to finally target growth and expansion globally without fear of the unknown.

What's more, you'll benefit from the following with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit and expense cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, Quickbooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 65 AUD

Sign up for the Wise Business account! 🚀

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FAQs on accepting credit card payments

Can you accept credit card payments without a merchant account?

Yes, you can accept cards by using a payment service provider (PSP) if you can’t open a traditional merchant account. It’s often difficult for startups and small businesses to get approval for a merchant account and payment gateway. Using a third party PSP such as Stripe might be a quicker and easier way to accept credit card payments.

What is a merchant account and why do you need it?

A merchant account is a payment processing account that facilitates transactions by credit and debit cards. It is a business bank account, but not in the typical sense. When customers make payments, the funds are held in the merchant account briefly before being transferred to the business’s main bank account. Merchant accounts act as a secure intermediary.

What is the difference between a merchant account and a payment service provider?

A merchant account is an account used to process card payments for a single business, while a payment service provider groups multiple businesses under one shared account. They both serve the same purpose but a merchant account typically has lower transaction fees and fewer account restrictions.

Are online payment services safe to receive credit card payments?

The short answer to this question is yes, online payment services are safe to receive credit card payments. However, there are some caveats to security and things to look for when it comes to using these services.

As the card data you’ll be processing is sensitive information, it's imperative you go with a provider that meets PCI compliance standards. You should always check what other measures each provider has in place to mitigate fraudulent activity and online security breaches such as:

• Software and system update schedules
• Encryption and tokenization
• SSL certificates
• Security audits

These measures can signify that their systems are secure and trustworthy to handle customer card data.

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Sources:

1. Reserve Bank of Australia - evolution of card payments
2. Xero report - Small business payments
3. Reserve Bank of Australia - evolving retail payments landscape
4. Forbes - Australian shopping trends
5. Wise - State of US SSMBs report
6. Wise - Business pricing

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To learn more about how much Wise could save your business, check out the Wise Business account. You can sign up online with a few clicks — in minutes.

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