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Online credit card processing for small business

Published by AvendoLast updated November 2026

Online credit card processing lets a small business accept card payments on its website. A gateway passes card details from checkout to a processor, the card network asks the customer’s bank for approval, and the funds settle to the merchant account minus fees.

How does online credit card processing work for a small business?

A customer enters card details at checkout, a gateway sends them securely to a processor, and the processor routes the request through the card network to the issuing bank. With Avendo, which publishes this guide, the processor for each payment is chosen in real time based on the best available rate.

Card networks, issuers and acquirers

Who is involved in an online payment

The issuer is the bank that gave your customer the card and approves or declines the payment. The card network, such as Visa, Mastercard or Discover, carries the request between banks. The acquirer or processor accepts the payment for your business, and the gateway passes card data from your website to the processor.

Each party takes a share: interchange for the issuer, assessments for the network and a markup for the processor. Avendo connects your checkout to multiple processors and routes each payment among them.

Card-not-present versus card-present

Online payments are card-not-present: the customer types card details instead of handing over a card. They are priced differently from in-person payments. For card-present payments, ECS Payments lists Visa rates between 1.29% and 2.5% plus $0.10, which apply when the card is in the customer’s hand.

For online store purchases specifically, U.S. Chamber of Commerce CO cites one provider charging 2.9% plus 30 cents, no matter what. That flat online price is a useful benchmark when comparing quotes.

The path of an online card payment

  1. Checkout

    The shopper enters card details on your website’s checkout page.

  2. Gateway

    A PCI DSS-compliant gateway passes the card data securely to a processor.

  3. Authorization

    The processor sends the request through the card network to the issuing bank.

  4. Settlement

    Approved funds move to your merchant account, minus that processor’s fees.

What to look for in online credit card processing

Avendo’s checklist for comparing online credit card processing for small business
What to checkWhy it mattersHow Avendo handles it
Effective rate on your ordersShows real cost including fixed feesRoutes each sale to the best available rate
Checkout compatibilityRebuilding checkout costs time and can hurt salesWorks with existing checkout pages
SecurityCard data must meet PCI DSSUses only PCI DSS-compliant processors and gateways
Fee transparencyBundled statements hide where money goesClearer pricing and processing reports
Who bills youExtra subscriptions add to costAvendo does not bill merchants directly

Ready to weigh your options? Read the pillar guide to the best online credit card processing for small business.

Common questions

Short answers to what small online businesses ask most. Every answer, plus dozens more, lives on the full FAQ page.

How does online credit card processing work?

When a customer pays on your website, a gateway sends the card details to a processor, which passes the request through the card network to the customer’s bank for approval. Once approved, the funds move to your merchant account minus fees. With Avendo, the processor used for each payment is chosen in real time based on the best available rate.

See this answer in the FAQ

What are card networks, issuers and acquirers?

Card networks such as Visa, Mastercard and Discover run the rails a payment travels on. The issuer is the bank that gave your customer the card. The acquirer is the bank or processor that accepts the payment on your behalf. Each takes a share of the fee, which is why processing costs come in several layers.

See this answer in the FAQ

Does Avendo work for card-not-present payments?

Yes. Avendo is built for e-commerce businesses, where customers type card details into a website instead of handing over a physical card. These card-not-present payments are what Avendo routes between connected processors. For contrast, ECS Payments lists card-present Visa rates between 1.29% and 2.5% plus $0.10, which apply when the card is in the customer’s hand.

See this answer in the FAQ

What are merchant credit card services?

Merchant credit card services are the accounts and tools a business needs to accept card payments: a processor that moves the money, a gateway that passes card data from a website, and reporting that shows what was paid in fees. Avendo focuses on the processing side for online stores by routing each payment to a connected processor.

See this answer in the FAQ

What are the top 5 best payment gateways?

A payment gateway securely passes card details from your checkout to a processor. The best gateway for your store is one that works with your store platform, is PCI DSS compliant and connects to processors with competitive rates. Avendo works exclusively with PCI DSS-compliant processors and gateways and connects to your existing checkout.

See this answer in the FAQ

What is PCI DSS?

PCI DSS stands for Payment Card Industry Data Security Standard. It is a set of security requirements for any business that stores, processes or transmits cardholder data, managed by the PCI Security Standards Council. Working with compliant processors and gateways, as Avendo does exclusively, is a core part of handling card payments safely.

See this answer in the FAQ

What is replacing PayPal for small online stores?

Many small online stores accept cards directly through a payment processor at checkout rather than relying only on a digital wallet. Wallets and direct card processing can sit side by side on the same checkout. Avendo focuses on the card processing side, routing card payments from your existing checkout to the processor with the best available rate.

See this answer in the FAQ
Read all questions in the FAQ

Accept online card payments for less

Ask Avendo how routing connects to the checkout your store already uses.

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