When looking to improve the customer experience and reach new markets, offering a variety of payment options is an effective strategy. In fact, about 32% of merchants1 added new ways to pay this year specifically to reduce cart abandonment.
By giving customers the flexibility to pay how they prefer—whether via cards, digital wallets or bank transfers—businesses can streamline the buying experience while potentially lowering processing costs. Nearly 60% of merchants2 now accept bank transfers, which can be effective for sending larger amounts of money or doing business with other companies.
Managing recurring payments presents its own challenges, as failed payments due to a closed account or insufficient funds can result in unintended cancellations and lost revenue.
Businesses are also rapidly adopting generative AI, with more than half of merchants3 already using smart AI tools to detect fraud and accelerate decision making, which frees up staff to focus on business priorities. Whatever payment methods you offer, they need to be fast, reliable and secure. Authorize.net and Visa’s solutions for small and medium-sized businesses deliver all of these—providing more opportunities to focus on what really matters to your business.
What are payment methods?
Payment methods are the different ways customers can transfer money to pay for goods and services, ranging from traditional options like cash and checks to modern digital solutions.
Recurring and subscription billing
When customers sign up for a streaming service such as a monthly snack box, they automatically have the payment transferred from their account every week, month or year—often using card-on-file technology—so they don't have to manually pay every time.
ACH and eCheck
ACH and eCheck are digital shortcuts for moving cash. Instead of writing a paper check, money moves from one bank account to another (often called a bank transfer or direct debit). This is popular because it helps businesses save money on processing fees compared with credit cards.
Agentic workflows
SMBs are now seeing the rise of AI-powered agents—such as Authorize.net’s “Ask Anet” assistant—that understand natural language requests and can help provide answers to customer questions or connect them to further help and support where needed. These smart computer tools help you find the resources you need quickly and easily, so you can focus on running your business.
Payment cards
These are the credit and debit cards we all use, but they’re getting high-tech. Beyond just plastic, payments now include digital versions stored in phone wallets and advanced security features—like using fingerprints (biometrics)—to ensure it is really the cardholder paying.
Pay by Text
This growing channel allows you to send payment reminders or invoices via text message. When a customer receives the SMS on their phone, they can proceed to pay immediately via a secure link.
Tap to Pay
Allows businesses to accept all types of in-person, contactless payments right on an iPhone or Android—from physical debit and credit cards to Apple Pay and other digital wallets—no extra hardware needed. It’s easy, secure and private. Reach new customers with a simpler checkout experience, take payments on the go and explore new setups, like line busting.
How do payment methods work?
Automated recurring billing (ARB): The system securely saves the customer’s payment info by replacing it with a digital code (called a token) instead of the real card number. Then, it automatically pays their bill on schedule every month—like for a streaming service or video game pass—so a customer doesn’t have to lift a finger.
eCheck processing: When a customer sends a digital check straight from their bank account to your business’s bank account, it moves along the ACH network instead of using credit card lines. This is a huge win for small businesses because it is highly secure and typically costs less in processing fees than credit cards.
Tokenization in billing: This high-tech security replaces sensitive card details with a random code known as a token. Not only does this keep card details safe from hackers but it also updates cards automatically behind the scenes. For example, if a customer’s physical card expires or gets lost, network tokens update automatically so their subscriptions don't get blocked or declined.
How can you expand the types of payment methods you offer?
Automatic payments: Ease the manual work of chasing payments by setting up a system that automatically collects them on a schedule. By using recurring billing, SMBs can keep a steady flow of money coming in without the hassle or legwork.
Digital checks (eChecks): A modern spin on the traditional check, but without the paper or pen. This lets customers pay directly from their bank accounts (via ACH). This payment method typically costs your business less in fees compared with credit cards.
Pay by Text: Sending a friendly text reminder with a link to pay is an effective way to remind customers to pay their bills on time. It makes paying as easy as sending a short message.
Secure tokens: Instead of saving actual credit card numbers, you can use tokens to stand in for the data. This keeps customer info safe from hackers and automatically updates the details if a card expires, so payments keep running smoothly.
What does Authorize.net offer?
Authorize.net Automated Recurring Billing (ARB): Put your payments on autopilot. This tool lets businesses set up a schedule to collect money automatically—weekly, monthly or annually—so neither the business nor the customer has to worry about remembering to pay every time.
"Ask Anet" AI Agent: A tool designed for Authorize.net customers, this agent uses artificial intelligence to chat with business owners, answering their questions instantly or grabbing a human expert if further support is needed.
eCheck Processing: This Authorize.net tool lets customers pay directly from their bank accounts online just as easily as using a debit or credit card. Another great way for merchants to accept payments from their customers while saving money on fees.
Customer Information Manager (CIM): Ensure customers don’t need to re-enter their payment details every single time they shop with you. This enhances the customer experience, stores data safely (so you’re PCI compliant) and helps payments go through smoothly so money gets to your account faster.
Token Management Service: This solution manages payment tokens from different networks, issuers and channels to enable new payment experiences while increasing authorizations and keeping sensitive customer data safe. For example, if a customer gets a new card number, this service updates the details automatically behind the scenes, ensuring subscriptions like music or entertainment don't get cut off unnecessarily.
Tap to Pay: Whether you are starting a new business or looking to expand, Tap to Pay allows you to accept all types of in-person payments right on your phone. Therefore, no need to invest or manage card readers and terminals—all you need is your iPhone or Android and the Authorize.net 2.0 app.
Offering new ways to pay is great for customers but more work for your business when you have to manage different processes and stay compliant. Authorize.net takes away the stress, so you can accept the latest online payments that combine speed with security.
What do users say about Authorize.net and Visa’s payment solutions?
Action Sport Optics LLC
When Action Sport Optics LLC wanted to enable seamless payment experiences for customers it turned to Authorize.net for a powerful solution. The specialist sports and lifestyle optics brand wanted to boost customer loyalty while providing payment methods that would keep customers’ private information safe and secure. By choosing Authorize.net, the company was able to accept payments for its online business, and working with a trusted partner meant it could grow its business while protecting its reputation.
Vindi
Online payments fintech Vindi needed to manage its involuntary churn, when customer subscriptions would stop because their credit cards were updated. It used tokenization to replace actual card numbers with digital codes called tokens. When a card expires, Visa's solution automatically updates the info behind the scenes, so payments continue without a hitch.
FlySafair
South African low-cost airline FlySafair used Chat 2 Pay on WhatsApp to send a secure link directly to a customer’s mobile phone. This makes paying faster and keeps the card details private. Visa helps create secure and simple checkout experiences on mobile devices, ensuring that buying from anywhere is safe and easy.
Bankcard USA
Merchant services provider Bankcard USA teamed up with Cybersource to leverage their smart fraud solution, Decision Manager. This powerful fraud solution uses AI to look at billions of transactions and spot the difference between a real shopper and a fraudster in milliseconds. Combined with Visa’s recurring billing solution, they helped merchants reduce fraudulent transactions while letting genuine customers shop easily.
FAQs
Online payment methods for small business budgets often start with bank transfers and direct debits. Some merchants may prefer these methods specifically because they have lower processing costs compared with credit cards. Real-time payments (RTP) are also becoming popular for similar reasons: they are fast and can be cost-effective. While credit cards are popular, the fees can add up, so offering bank-based payment options can help SMBs save money on every transaction.
Real-time payments (RTP) are cleared and settled within seconds, meaning the money arrives almost instantly, any time of day. Globally, about 37% of merchants4 already use RTP, and it is growing fast because customers don't have to type in their card numbers every time, making checkout a breeze.
An easy way for SMBs to get paid is by using third-party marketplaces—because these sites handle the complicated payment stuff for them. It lets SMBs reach lots of loyal customers without building a complicated website from scratch. For their own sites, SMBs use payment gateways that bundle different payment methods (like cards and digital wallets) into one simple connection.
Digital wallets are effective for helping shoppers buy your goods or services easily. They are quick and easy to minimize frustrations from shoppers who don’t want to have to enter all their payment information. Real-time payments (RTP) are also great for conversion because many customers will be more familiar these days with the ease of payments that go through instantly. Generally, simply offering a choice of preferred payment methods—like adding a local option or buy now, pay later—helps stop people from abandoning their carts.
Merchants can look at two main things: cost and speed. Real-time payments (RTP) win on speed because they settle in seconds. For costs, bank transfers and direct debits are often preferred because they have lower processing fees than credit cards. In fact, 90% of merchants5 actually encourage customers to use their preferred payment method, including ones that may reduce processing costs, by offering special deals or incentives at the checkout.
For payments that happen automatically every month, like subscriptions, tokenized card payments are the recommended choice. Tokenization replaces the card details with a secure code that can be updated automatically if the physical card is lost or expires. This feature, often called lifecycle management, ensures the subscription doesn't get cancelled accidentally. It keeps the cash flowing for the business and the service running for the customer without anyone having to lift a finger.
SMBs can pick payment methods that help them reach new customers and improve the shopping experience. For example, adding digital wallets or mobile payments attracts younger shoppers who live on their phones. SMBs should also look for methods that help prevent people from abandoning their carts at checkout. By adding options that people trust and like to use, small businesses can sell to more people in new markets.
Payment methods that use tokenization are safe because they protect the real card data from fraud. EMV 3-D Secure provides excellent fraud protection for card payments by asking for extra proof (like a code on your phone) if a transaction looks risky. Also, real-time payments are being fortified with AI tools to spot scams quickly, making them safer every day. These technologies work together to approve good orders and block the bad ones.
Credit and debit cards work everywhere, both online and in-store at a point of sale (POS). Digital wallets and mobile payments (like tapping a mobile phone) are also great because they connect smoothly across both online and offline worlds. The “unified commerce” trend means businesses are connecting their online systems with their physical stores so customers can shop however they want.
One of the key players in the payments process, an acquirer is a financial institution that acts on behalf of your business. It processes and settles payments made by your customers via their issuing bank by communicating between you, the merchant, and a card payment network like Visa.
No, you do not need acquirer bundling for your business to accept payments—but for some it’s a quicker and easier way to get started. Traditionally, services like merchant account, payment gateway and payment processing were sourced separately. Today, a payment service provider might offer an all-in-one bundle—but this may not suit someone who already has a merchant account or prefers to keep things separate. One option for acquirer bundling is Authorize.net, which offers an all-in-one solution with a merchant account and gateway approved typically within an hour if the application is “auto-approved”.
A payment gateway (such as Authorize.net) works like a middleman—sitting at the heart of the payments process connecting all the key players. These include the customer, the store owner, the issuer (customer’s bank) and the acquirer (merchant’s bank). When your business uses a payment gateway, it can process and accept payments, while also accessing services like transaction management, reporting and billing. If your business has a physical storefront, you can use the gateway to process card-present payments at checkout terminals or via mobile devices around the store. If you have a website then accepting payments online is just as easy, whether via credit cards or other methods, such as eChecks.
Once you have signed up with a payment gateway, how soon you can start accepting payments depends on factors like how quickly your gateway can approve your account and whether you have an existing merchant account (needed to accept credit cards). For example, Authorize.net typically approves your account once you have completed your application successfully, and then you can be ready in a few minutes simply by updating your gateway with the parameters provided by your merchant provider. Merchant accounts can take up to five business days to open—subject to factors such as the account holder’s credit history or the type of industry they operate in.
Start accepting payments today
- The Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. (2025). 2025 Global eCommerce Payments & Fraud report [https://www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf]
- The Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. (2025). 2025 Global eCommerce Payments & Fraud report [https://www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf]
- The Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. (2025). 2025 Global eCommerce Payments & Fraud report [https://www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf]
- The Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. (2025). 2025 Global eCommerce Payments & Fraud report [https://www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf]
- The Merchant Risk Council (MRC), Verifi, Visa Acceptance Solutions, and B2B International. (2025). 2025 Global eCommerce Payments & Fraud report [https://www.visaacceptance.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2025.pdf]
Disclaimer: Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.
