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One of the first questions that comes up when you start selling anything is: how do I collect payments in my online business? There are so many options today — some are simply a way to take a payment, others are all-in-one cart providers that run your entire checkout. This guide walks through the main categories so you can pick the right fit.
One important note before we start: these processors are not a substitute for a business bank account. You should always have a separate business bank account, no matter which tools you use below.
Let’s begin with the two names you’ll hear most: PayPal and Stripe. Neither is technically required, but in the online business world they’re considered near-essential. Many buyers love PayPal because they don’t have to go find their wallet; just as many people dislike it and prefer a credit card. Report after report shows payments split almost evenly between PayPal and credit card. The takeaway: offer both. Give customers the option to pay with PayPal and with a credit card.
Payment processors
These systems let you collect a payment from your clients — one-time payments or recurring plans. They collect the money from your customer and either make it available for you to transfer to your bank or deposit it directly for you.
PayPal
PayPal is one of the best-known processors on the internet, used in over 200 countries. As a payer, you can link a credit card, debit card, or bank account, but the seller only ever sees your PayPal account info. As a seller, you can create payment links, send individual invoices, and set up recurring charges (for example, $99/month for four months). Funds land in your PayPal account, where you can leave them or transfer to your bank. You should create a PayPal business account — you’re a business owner, and even if you’re hoping to dodge the fees, you can’t; they’re simply a cost of doing business.
Stripe
Stripe is similar to PayPal, accepting credit cards and depositing money into your bank account a few days after payment. Its fees are very similar to PayPal’s. Stripe was built for developers, so for most business owners it’s used to connect (via API) to different cart systems rather than directly. If you can handle a little coding — or patiently follow Stripe’s directions — you can create payment links inside Stripe. Once your bank account is linked, Stripe transfers your money (minus fees) in 1–5 business days depending on your approval and country. Transfers don’t happen on weekends.
Authorize.net
Authorize.net is similar to PayPal, with comparable per-transaction fees, but it also charges a monthly fee. It’s been around longer than PayPal and Stripe and was one of the first vendors to allow online credit card payments. For most online businesses today, it’s less popular given all the newer options.
Payline
Payline is another PayPal/Stripe-style option that advertises some of the lowest pricing. If you feel PayPal and Stripe fees run high, it’s worth a look. Payline also offers a credit card swipe / point-of-sale machine for in-person sales — handy if you regularly sell at craft shows or farmers markets.
2Checkout
2Checkout works much like PayPal, but I’ve found it’s available in some countries where PayPal isn’t. Whenever I meet a business owner in a country PayPal doesn’t support, 2Checkout usually works for them. Fees are comparable, and you can create invoices, payment links, and recurring payment links.
Square
Square offers online website payments plus in-person hardware — a swipe reader and a contactless + chip reader — and lets you build an entire store on your site. It was designed more for in-person businesses but works for online ones too.
Wise (formerly TransferWise)
As an online business owner, you may need to send or receive money across borders when one party doesn’t use PayPal. Wise is a great option: transfers to another country often cost far less than your bank (and sometimes less than PayPal), and you see the exact cost before you send. It supports a wide and growing list of countries and currencies.
A couple of notes: There are many more options than these, but you don’t need an account at every one — for most online businesses, PayPal and Stripe are the core recommendations, and most cart systems below require you to link them to get paid. Also, Venmo and Zelle are not payment processors and generally shouldn’t be used in your business.
Shopping cart software
These systems let you collect payment for one or more items, set up payment plans, and in some cases email your entire list. They also handle delivery — sending your customer exactly what they bought via a download link, email, or both.
SendOwl
SendOwl lets you sell digital goods. You create your product, upload the file to SendOwl, and when someone buys, it’s delivered automatically both on-screen and by email. Link your PayPal and/or Stripe to receive payment, connect your email provider to keep marketing after purchase, and set up affiliates to help you sell.
MoonClerk
MoonClerk makes it easy to use your Stripe account without the coding Stripe normally requires. Create one-time or recurring payments, deliver digital products, and build a payment form in minutes — then share the link to collect money into your Stripe account. It integrates with many tools, including email providers.
E-junkie
E-junkie is similar to SendOwl. Link PayPal and/or Stripe (plus a few others like Authorize.net and 2Checkout), upload your digital product, and buyers download it immediately after purchase. It also has a marketplace where shoppers can find your products, and supports affiliates.
Shopify
Shopify is your own online store for digital products and/or services. Each store gets its own link, and you can use a custom domain. There are many free and paid add-ons, and it’s fairly easy to set up and maintain.
WooCommerce
WooCommerce is much like Shopify, except it’s a plugin you install on a WordPress site — so you control the entire site. Many add-ons are available, but you build (or hire someone to build) the store yourself.
Squarespace
Squarespace is a website builder that also lets you create a store similar to a Shopify store.
SamCart
SamCart is an all-in-one shopping cart. Build full sales pages and funnels with order bumps, upsells, and downsells; run subscriptions and payment plans; and use its affiliate center to recruit and track promoters. Link PayPal and Stripe to get paid, connect integrations to add buyers to your email list or membership, and lean on strong analytics (clicks, revenue, and how many people clicked away without buying). It offers free/paid trials and a free trial of the cart itself, and works across multiple websites.
ThriveCart
ThriveCart is very similar to SamCart, with (at the time of writing) fewer integrations and sign-up available only through an affiliate link. It’s historically been a one-time payment for lifetime access across your sites, and lets you build full funnels with order bumps, upsells, and downsells.
Kartra
Kartra is an all-in-one platform hosting your email list, sales pages, membership sites, products, affiliate center, and opt-ins in one place. Use one piece or the whole thing; a built-in “University” walks you through it. You can build funnels with upsells and downsells, and there’s a $1 trial to test it.
Kajabi
Kajabi is very similar to Kartra — email list, products, membership site, affiliate hosting, all in one. It offers a trial so you can test before committing. As with Kartra, some features are intuitive and others need a little instruction.
ClickFunnels
ClickFunnels is also in the Kartra/Kajabi family — a system to create, market, and sell products online with full funnels including order bumps, upsells, and downsells. It was built with entrepreneurs in mind, offers training to build a profitable funnel, and has a free trial.
Other all-in-one cart systems
A few more programs work like Kartra, Kajabi, and ClickFunnels: Keap (formerly Infusionsoft), Ontraport, and MemberVault.
Other systems that collect payments
These aren’t cart systems, but they still let you collect payments from clients.
QuickBooks
QuickBooks is a bookkeeping program that can also send invoices and collect payment — customers pay directly from the invoice, and the money deposits into your bank account. Sending invoices one at a time isn’t ideal if you have many customers, but for a handful it can be easy and may even be a cheaper way to collect. Do your own research on the fees.
FreshBooks
Like QuickBooks, FreshBooks lets you send invoices to collect payments, one at a time. Check the fees and weigh how many clients you’ll invoice to decide whether it’s worth the time.
Wave
Wave also sends invoices to collect payments. Link your bank account to receive funds after a client pays. As with the others, you create and send invoices one by one.
Calendar systems like Acuity
Many scheduling tools now integrate payment processors like PayPal and Stripe so a customer can pay and book an appointment at the same time. The one I use is Acuity: connect Stripe and/or PayPal, set appointment types and prices, and the booking isn’t complete until the customer pays.
So, how should you collect payments in your online business?
As you can see, there are plenty of ways to collect payments — and this list is far from exhaustive. It’s easy to get lost trying every option, but switching programs is time-consuming because you have to set everything up again each time. Instead, pick one or two of the options above, set them up well, and start collecting money today.
You’ll also notice some programs cost far more than others. The pricier all-in-one platforms are generally built to help you make more money, which is what makes their cost easy to justify once they’re doing that job for you.
This article is for general educational purposes only and is not legal, accounting, or tax advice. Tools, features, and pricing change over time — verify current details with each provider. Always consult a qualified professional about your specific situation.