How to accept online payments and get paid faster

Published Thursday 27 November 2025

Table of contents

• Benefits of accepting online payments
• Popular online payment methods
• How to set up online payments for your business
• Keep payments secure and prevent fraud
• Online payment fees and costs
• Integrate payments with your accounting software
• Will online payments help you get paid faster?
• Getting started with online payments
• FAQs on accepting online payments

Key takeaways

• Implement online payment options to get paid twice as fast on average, with 30-50% of customers paying immediately and significantly improved cash flow for your business.

• Choose the right payment method based on transaction size—use credit/debit cards (2-4% fees) for most invoices and direct debit (20 cents to $2 per transaction) for larger invoices over $100 to minimise costs.

• Integrate your payment provider with accounting software to automatically record payments and fees, eliminating manual data entry and providing real-time cash flow visibility.

• Prioritise security by selecting reputable payment providers that comply with PCI DSS standards and handle sensitive customer data protection, so you don't need to store payment information directly.

Benefits of accepting online payments

Online payments help you improve cash flow by reducing payment times from weeks to days or even minutes. The Australian Taxation Office says cash flow is the top challenge for small businesses.

For your business:

• Faster payment: Get paid twice as fast as with traditional invoicing
• Reduced admin: Less time chasing overdue payments
• Better cash flow: Instant access to funds for business operations

For your customers:

• Convenience: Pay invoices anytime, anywhere with one click
• Flexibility: Choose their preferred payment method
• Avoid delays: Skip postal delays and bank visits

Popular online payment methods

Online payment methods are digital ways customers can pay invoices without cash or cheques. The most popular options for small businesses include:

• Credit and debit cards: Instant payments with 2-4% transaction fees
• Digital wallets: Services like PayPal that process payments through customer accounts
• Direct debit: Automatic bank transfers you initiate from customer accounts
• Bank transfers: Direct account-to-account payments

These methods let your customers pay you immediately, without visiting the bank or writing cheques.

With direct debit, your customer authorises ongoing payments. You can then take money directly from their bank account when a bill is due.

How to set up online payments for your business

Set up online payments by connecting your invoicing software to payment processors, so your customers can pay you with one click. Here’s how you do it:

Setup process:

1. Choose a payment provider that integrates with your accounting software
2. Connect your business bank account for deposits
3. Add payment options to your invoice templates
4. Send invoices with embedded 'Pay now' buttons

What happens next:

• Click the payment button on your invoice
• Enter payment details securely
• Transfer funds to your account (minus small transaction fees)
• Record the payment automatically in your accounting software

You can usually set up online payments for free, with no monthly fees.

Keep payments secure and prevent fraud

Reputable payment providers use advanced security to protect your business and your customers’ data. In Australia, these protections follow standards like the ePayments Code and Payment Card Industry Data Security Standard (PCI DSS) compliance. Providers handle this, so you do not need to store sensitive information yourself.

Online payment fees and costs

Online payment fees are small charges taken from each transaction to cover processing costs. Here’s what you typically pay:

Card payments (credit/debit):

• pay a fee of 2 – 4% of the invoice value
• for example, a $100 invoice means a $2 – $4 fee
• best for most invoice amounts

Direct debit:

• pay a fee of 20 cents to $2 per transaction
• for example, a $1,000 invoice means a $2 maximum fee
• best for larger invoices over $100

Cost management tips:

• set up with many providers for free and pay no monthly fees
• turn payment options on or off for specific invoices
• use direct debit for invoices over $100 to reduce percentage-based fees

Integrate payments with your accounting software

When you connect your payment provider to your accounting software, you save time and reduce errors. Australian Taxation Office (ATO) research shows a 90 per cent link between using accounting software and paying tax on time. When a customer pays an invoice, your software records the payment and any fees automatically.

This removes manual data entry, gives you a real-time view of your cash flow, and simplifies bank reconciliation.

Will online payments help you get paid faster?

Online payments help you get paid faster. Not every customer will pay instantly, but you will see results.

Typical results:

• get paid twice as fast on average
• 30 – 50 per cent of customers pay immediately
• reduce late payments as late payers often become on-time payers
• enjoy more predictable income timing

Why it works:

• remove payment friction (no cheques to write, no bank visits)
• let customers pay when it suits them
• reduce procrastination with one-click payments
• increase response rates with automatic reminders and payment buttons

Make it as easy as possible for your customers to pay you.

Getting started with online payments

Offer convenient online payment options to improve your cash flow and give your customers a better experience. When you integrate payments with your accounting software, you automate your bookkeeping and get paid faster.

Ready to simplify your payments? Start a free trial of Xero accounting software and see how easy it is.

FAQs on accepting online payments

Here are answers to some common questions about accepting online payments.

What is the cheapest way to accept online payments?

The most cost-effective method depends on your sales volume and average transaction size. Look for providers with transparent pricing and no monthly fees. When you integrate with your accounting software, you save time and money.

What is the safest way to accept payment online?

Using a reputable payment provider that meets Payment Card Industry Data Security Standard (PCI DSS) compliance is the safest approach. These services use encryption and fraud protection to secure transactions, so you do not need to handle sensitive card details directly.

How do I start accepting payments in Australia?

To accept payments in Australia, sign up with a local or international payment gateway that integrates with your invoicing or ecommerce platform. Services like Stripe, PayPal, and GoCardless are popular choices that connect easily with Xero accounting software.