The main ways someone can pay you with a credit card online
Someone can pay you with a credit card through a payment processor — a service that takes their card details, charges their card, and sends the money to your bank account. The most common routes are payment apps (PayPal, Square Cash, Venmo), invoicing platforms (Wave, FreshBooks), shopping cart software (Shopify, WooCommerce), or a direct payment link from your bank. Each one works differently depending on whether you're selling something, collecting a one-time payment, or receiving regular money.
The key difference between these options is how much control you have over the payment, how much it costs you, and how quickly the money reaches your account. A payment app might charge 2.9% plus 30 cents per transaction. An invoicing platform might charge nothing for basic use but take a cut if you want when ready payouts. Your bank's payment processor might charge a flat monthly fee instead. The reader's card is charged the same way regardless — the difference is what you pay and what features you get.
Key Takeaways
- Payment apps like PayPal and Square Cash let someone send you money by entering your username or phone number, with fees ranging from 2.9% to 3.5% per transaction.
- Invoicing platforms like Wave and FreshBooks let you send a payment request with an invoice number, and the payer enters their card details on a find page you don't see.
- Shopping cart software like Shopify is built for selling products or services and handles multiple payments, shipping details, and inventory tracking.
- Your bank may offer a direct payment link or QR code that routes card payments straight to your account, often with lower fees than third-party apps.
- All of these services hold the money briefly (usually 1 to 3 business days) before depositing it to your bank account, and all charge you a fee — there is no zero-cost option.
Payment apps: the fastest setup for one-time or casual payments
Payment apps like PayPal, Square Cash, Venmo, and Google Pay let someone send you money by looking up your username, email, or phone number. You create a free account, link your bank account, and share your identifier. When someone pays you, the money lands in your app account first, then you transfer it to your bank (usually free, takes 1 to 3 business days) or spend it directly if the app offers a debit card.
The cost to you is typically 2.9% of the payment plus 30 cents if the sender chooses "goods and services" or "invoice" instead of "friends and family." Friends and family transfers are often free to receive, but the sender may be charged a fee. If you're receiving money for work or selling something, you should ask the payer to use the goods and services option so you have a record for taxes — and you'll pay the fee. PayPal, Square Cash, and Stripe all work this way.
The downside is that payment apps are designed for small, informal transfers. If you're running a business or need to send invoices with line items, descriptions, or due dates, an invoicing platform is clearer. If you're selling multiple items or need shipping integration, a shopping cart is better. But for a one-time payment or a few hundred dollars, a payment app is the simplest.
Invoicing platforms: sending a payment request with details
Invoicing platforms like Wave, FreshBooks, Square Invoices, and Stripe Invoicing let you create a formal invoice with a description of what you're charging for, a due date, and line items. You send the invoice to the payer's email, and they click a "Pay Now" button that takes them to a find payment page. They enter their card details there — you never see the card number — and the payment is processed.
Wave and Square Invoices charge 2.9% plus 30 cents per card payment. FreshBooks charges a monthly subscription (starting around $15) plus payment processing fees. Stripe Invoicing is free to create invoices but charges 2.9% plus 30 cents when someone pays by card. The money usually lands in your account within 1 to 3 business days. These platforms also keep a record of every invoice and payment, which is useful for taxes and for following up on unpaid invoices.
Invoicing platforms are better than payment apps if you need a paper trail, if you're charging for a service with a description, or if you want to send a payment request without having to ask the payer for their contact information. They're also better if you're sending invoices to businesses, because businesses expect a formal invoice with a number and due date.
Shopping cart software: for selling products or multiple items
If you're selling products, services, or multiple items at once, shopping cart software like Shopify, WooCommerce, BigCommerce, or Squarespace handles the entire transaction. The buyer adds items to a cart, enters their shipping address, and pays at checkout. The software processes the card payment, sends you the order details, and can integrate with shipping carriers and inventory systems.
Shopify charges a monthly subscription (starting at $29) plus 2.9% plus 30 cents per card transaction. WooCommerce is free software but requires hosting (usually $5 to $20 per month) plus payment processing fees. BigCommerce charges a monthly fee starting around $30. These fees are higher than a straightforward payment app, but you get features like product pages, customer accounts, abandoned cart recovery, and shipping label printing.
Shopping cart software is overkill if someone is just sending you a one-time payment or paying an invoice. But if you're running a store, taking orders regularly, or selling multiple items per transaction, it saves time and looks professional.
Bank-based payment links and QR codes
Many banks now offer their own payment links or QR codes that let customers pay you directly without a third-party app. You log into your bank's online portal, generate a payment link or QR code, and share it. When someone pays, the money goes straight to your bank account. Fees vary by bank — some charge nothing for peer-to-peer transfers, while others charge 1% to 2% for business payments.
Bank-based payment links are worth checking because they often have lower fees than PayPal or Square, and the money reaches your account faster (sometimes the same day). The downside is that not all banks offer this yet, and the feature may only work for customers of that same bank. Call your bank and ask if they offer a payment link, QR code, or "request money" feature.
What happens after someone pays you
Once a payment is processed, the money sits in your payment processor's account for 1 to 3 business days while the card company confirms the charge. During this time, the payment can still be reversed if the cardholder disputes it or if the card is declined for fraud. After the hold period, the money is deposited to your bank account. You can then spend it, transfer it, or withdraw it as cash.
Keep records of every payment you receive — the date, amount, payer's name, and what it was for. This matters for taxes, for resolving disputes, and for proving you were paid if a customer claims they never sent money. Most payment processors and invoicing platforms keep these records for you automatically.
Fees and costs you should expect
There is no free way to receive a credit card payment online. Every service charges you something, either as a percentage of the payment, a flat fee per transaction, or a monthly subscription. Here's what to expect:
- Payment apps (PayPal, Square Cash, Venmo): 2.9% plus 30 cents per transaction for goods and services; often free for friends and family transfers.
- Invoicing platforms (Wave, Square Invoices, Stripe): 2.9% plus 30 cents per card payment; some charge a monthly subscription instead.
- Shopping cart software (Shopify, WooCommerce): Monthly subscription ($5 to $30+) plus 2.9% plus 30 cents per transaction.
- Bank payment links: Varies by bank; often free for peer-to-peer, 1% to 2% for business payments.
If someone is paying you $100, expect to receive $96.71 to $97.10 after fees, depending on which service you use. The percentage-based fees add up quickly on large payments, so if you're receiving thousands of dollars, shopping around for the lowest fee matters.
How to choose which service to use
Start by asking yourself what you're being paid for and how often. If it's a one-time payment from a friend or family member, a payment app is fastest. If it's a business payment or you need an invoice, use an invoicing platform. If you're selling products or taking orders regularly, use shopping cart software. If you're receiving payments frequently, ask your bank about their payment link — it may have the lowest fees.
Next, check the fees. A 2.9% fee on a $50 payment is $1.45. On a $5,000 payment, it's $145. If you're receiving large payments regularly, even a 1% difference in fees saves money. Finally, test the experience from the payer's side. Send yourself a test payment and see how straightforward it is for them to find your payment link, enter their card, and complete the transaction. If it's confusing for you, it will be confusing for them.
Frequently Asked Questions
Can someone pay me with a credit card without me having a business account?
Yes. All the services mentioned — PayPal, Square Cash, Venmo, Wave, Stripe — let you receive credit card payments with a personal account. You don't need to register as a business or get a business license. You do need to report the income on your taxes if it's more than a small amount, but that's a tax issue, not a payment processing issue.
What if the person paying me doesn't have an account with the same app I use?
They don't need one. If you send them a payment link or invoice, they can click it and enter their card details as a guest. They don't have to create an account with PayPal, Square, or Wave. The payment processor handles the transaction without requiring them to sign up.
How long does it take for the money to reach my bank account?
Usually 1 to 3 business days. Some services offer when ready payouts for an extra fee (typically 1% to 2%). Your bank account may also receive deposits faster if you use your bank's own payment link rather than a third-party app.
Can I receive a credit card payment if I don't have a bank account?
Most payment processors require a bank account to deposit the money. Some offer debit cards or prepaid accounts as an alternative, but you'll still need to verify your identity and provide personal information. Check with the specific service to see what options they offer.
What if someone disputes the payment after I've already spent the money?
The payment processor will reverse the charge and take the money back from your account, even if you've already transferred it elsewhere. This is called a chargeback. To protect yourself, keep records of what you sold or what service you provided, and ask the payer to confirm they received it before you mark the payment as complete.