How to accept payments online – and why it’s smart

Strike Gold with Smarter Online Payments: A Guide for Australian Businesses

Information in this article is current as at 10 August 2026.

Accepting payments online is no longer simply an ecommerce convenience. For many Australian businesses, it is an essential part of improving cash flow, reducing administration and giving customers an easier way to pay.

The key is to choose payment methods that suit your customers, transaction values and business model—without allowing fees, fraud or poor bookkeeping to erode your margins.

Key Takeaways

• Australian businesses can accept online payments through cards, digital wallets, payment links, QR codes, PayID, PayTo, BPAY, direct debit and buy now, pay later services.
• PayPal is a digital wallet and online payment service—not an “ACH service”. ACH is a United States banking term.
• Compare the total cost of a payment service, including transaction, monthly, refund, chargeback, foreign-card and failed-payment fees.
• Card-surcharge rules will change on 1 October 2026, so affected businesses should review their pricing now.
• Never collect complete card details through ordinary email. Use a reputable payment provider, tokenisation and multi-factor authentication.
• Accounting integrations can save time, but businesses must still reconcile the gross sale, processing fee, refund or chargeback and net bank deposit.

What is the best way for an Australian small business to accept online payments?

There is no single payment method that suits every business.

A retailer may prioritise cards and digital wallets for a fast checkout. A professional-services firm may prefer invoice payment links, PayTo or bank transfer. A membership business might use PayTo or direct debit for recurring payments.

As business.gov.au explains:

“No one type of payment is best—it will depend on the needs of your business.”

The smartest approach is usually to offer a small number of well-chosen payment options: one that is quick and familiar, one suitable for recurring payments where relevant, and one lower-cost alternative for larger invoices.

That combination can provide the “gold standard” of online payments: convenience for customers, control for the business and clean data for the accounts.

Why accepting payments online makes commercial sense

Australian consumers have steadily moved towards electronic and online payments. Reserve Bank of Australia research found that online transactions represented 18% of consumer payments in 2022, compared with 13% in 2019 and just 4% in 2007.

Giving customers an immediate way to pay can:

• remove the need to manually enter payment information later;
• allow invoices to be paid outside normal business hours;
• support deposits, instalments and recurring payments;
• reduce cash and cheque handling;
• automate reminders and transaction matching;
• improve visibility over expected cash receipts; and
• reduce the delay between a customer receiving an invoice and taking action.

Online payment facilities do not guarantee faster payment. Incorrect invoices, unclear terms, affordability issues and disputes can still cause delays. However, reducing payment friction gives customers fewer reasons to put an invoice aside.

Clear payment terms remain important. They should explain which payment methods are accepted, when payment is due, whether instalments are available and what happens if an account becomes overdue.

Nine ways to accept payments online in Australia

1. Credit and debit card payments

Businesses can accept cards through:

• an ecommerce checkout;
• a hosted payment page;
• an invoice payment button;
• a secure payment link;
• an embedded payment gateway; or
• recurring-billing software.

For many small businesses, an all-in-one payment provider connected to their website or accounting software will be easier to manage than assembling separate gateway, processing and merchant-acquiring services.

A hosted checkout can also reduce the amount of sensitive card information passing through the business’s own systems. Using an external provider does not eliminate every security responsibility, however. The PCI Security Standards Council says PCI DSS applies to entities involved in payment processing, including merchants, regardless of their size or transaction volume.

2. Digital wallets

Digital wallets can provide a faster mobile checkout by allowing customers to approve a payment without manually typing their complete card details.

Options may include:

• Apple Pay;
• Google Pay;
• PayPal; and
• other wallets supported by the business’s payment provider.

PayPal should be described as a digital wallet or online payment service—not an ACH service. “ACH” refers to the United States Automated Clearing House network and is not the appropriate term for Australian online payments.

Wallet payments may use tokenisation, where a substitute digital token is used rather than disclosing the customer’s underlying card number to the merchant. Availability and fees depend on the payment provider and the customer’s device or financial institution.

3. Secure payment links and QR codes

A business does not need a full online store to accept payments digitally. Many providers generate secure payment links that can be added to:

• invoices;
• appointment confirmations;
• emails;
• SMS messages;
• proposals;
• social media profiles; and
• QR codes displayed at a counter or event.

This can be particularly useful for consultants, trades, health providers, accommodation businesses and mobile service operators.

Generate links inside a reputable payment platform, protect the account with multi-factor authentication and check that customers can clearly identify the business before paying.

4. PayID and real-time bank transfers

PayID allows a participating business to link an easy-to-recognise identifier—such as an ABN, email address or phone number—to its bank account. Before completing a payment, the payer is generally shown the name associated with the PayID, helping them check who they are paying.

Payments made through Australia’s New Payments Platform can usually move quickly between participating accounts, including outside traditional banking hours.

PayID can be a useful low-friction option for invoices and higher-value transactions. However, businesses should use clear references or accounting integrations so incoming payments can be matched to the correct customer and invoice.

5. PayTo

PayTo is an important development in Australian account-to-account payments. It supports one-off, ad hoc and recurring payments directly from a customer’s bank account.

The customer authorises a PayTo agreement through their online banking using a PayID or BSB and account number. They can then view and manage the agreement through their banking service.

PayTo may suit:

• memberships and subscriptions;
• professional retainers;
• payment plans;
• recurring invoices;
• rental or insurance payments; and
• higher-value transactions where card costs are significant.

Australian Payments Plus says PayTo can offer real-time verification and notifications while supporting easier reconciliation.

Availability, payment limits and pricing vary between banks and payment providers, so check what is supported before redesigning your collection process.

6. Traditional direct debit

BECS direct debit remains a familiar option for recurring payments. The customer authorises the business or its payment provider to collect agreed amounts from a bank account.

Before choosing direct debit, compare:

• transaction fees;
• dishonour and failed-payment fees;
• settlement times;
• cancellation procedures;
• dispute handling; and
• accounting integration.

PayTo should now be considered alongside traditional direct debit. PayTo offers customers greater visibility over their payment agreements, while the best commercial choice will depend on provider availability, costs and the business’s existing systems.

7. BPAY

BPAY remains useful for invoice-based businesses whose customers prefer paying through online banking. It can provide familiar payment instructions and structured reference numbers that assist with reconciliation.

Its suitability depends on establishment costs, transaction volume, customer preferences and how well BPAY receipts integrate with the accounting system.

8. Buy now, pay later

Buy now, pay later services can allow eligible customers to spread the cost of a purchase while the merchant receives settlement from the provider, subject to the provider’s terms.

Before adding BNPL, assess:

• merchant fees;
• effect on gross margin;
• settlement timing;
• refunds and disputes;
• integration costs;
• average transaction value; and
• whether it is appropriate for the products or services being sold.

BNPL regulation has also changed. From 10 June 2025, buy now, pay later contracts became regulated as a form of credit under the National Credit Act, with providers generally required to hold appropriate Australian credit licensing.

9. Peppol eInvoicing

eInvoicing is not a payment method by itself, but it can make the process leading to payment more efficient and secure.

A Peppol eInvoice is transferred directly between compatible accounting systems through approved access points. It is not simply a PDF attached to an email, and the ATO does not receive or view the invoice.

The ATO reports that payment-redirection and false-billing scams caused losses of more than $166 million in 2025. It says Peppol eInvoicing can lower the risk of intercepted, fake or compromised invoices compared with posted or emailed invoices.

Pairing eInvoicing with a suitable payment method can help businesses move from sending invoices to managing a more connected, traceable accounts-receivable process.

How much do online payments cost?

Avoid relying on a broad claim such as “online payments cost 2% to 4%”. Actual costs vary according to:

• payment method;
• transaction value and volume;
• domestic or foreign-issued card;
• card type;
• card-present or card-not-present transaction;
• provider pricing plan;
• currency conversion;
• refund and chargeback activity; and
• settlement or payout requirements.

The RBA found that a small merchant on a single-rate card plan paid an average of approximately 1.4% of transaction value, compared with approximately 0.9% for a small merchant on an unblended plan. Only 19% of small merchants in the RBA’s data were on unblended plans.

These are averages—not quotes for a particular business. When comparing providers, look beyond the headline percentage and ask about:

• setup and monthly fees;
• fixed per-transaction charges;
• refund fees;
• chargeback fees;
• failed-payment fees;
• international card costs;
• currency-conversion margins;
• payout holds or reserves;
• minimum contract terms; and
• early termination costs.

A low advertised rate can lose its shine if other fees make the total cost higher.

Card surcharges are changing on 1 October 2026

Businesses need to understand both the rules applying now and the changes coming shortly.

Until 30 September 2026

A business that imposes a card surcharge must not charge more than its cost of accepting that payment type.

If customers have no way to pay without a surcharge, the minimum unavoidable surcharge must be included in the displayed price. Surcharges must also be disclosed clearly before payment.

From 1 October 2026

The RBA has decided that card surcharging should end for eftpos, Mastercard and Visa prepaid, debit and credit cards. Those networks have decided to introduce no-surcharge rules from 1 October 2026. American Express has also announced the removal of surcharging from that date.

The RBA summarises the change plainly:

“Surcharging on debit and credit cards should end from 1 October 2026.”

Frequently asked questions.

Affected businesses should review their checkout, invoices, menus, websites, payment terminals and pricing before the commencement date. The change does not automatically prohibit unrelated charges such as clearly disclosed booking, weekend or public-holiday surcharges, but Australian Consumer Law pricing rules still apply.

The RBA is also reducing domestic interchange caps from 1 October 2026. This makes 2026 a sensible time to obtain competing merchant-service quotes and reconsider whether the current provider still delivers value.

How to keep online payments secure

Convenience must be balanced with security. Australian Payments Network reported that fraud on Australian-issued payment cards totalled $854 million in the 12 months to 30 June 2025.

Practical safeguards include:

1. Use a reputable provider that supports your PCI DSS obligations.
2. Use hosted or securely embedded checkout facilities where appropriate.
3. Never ask customers to send complete card details or security codes through ordinary email.
4. Do not store card details in spreadsheets, inboxes, notes or unrestricted CRM fields.
5. Use provider-managed tokenisation for approved card-on-file arrangements.
6. Enable multi-factor authentication on payment, ecommerce, accounting and email accounts.
7. Limit refunds and payment-system access according to staff roles.
8. Keep website software, plugins and integrations patched.
9. Use available fraud-screening and cardholder-authentication tools.
10. Verify unexpected bank-detail changes through a separately sourced contact channel.
11. Maintain clear refund, chargeback, incident-response and data-breach procedures.
12. Regularly review payment logs, users, permissions and connected applications.

The Australian Cyber Security Centre describes MFA as:

“One of the most effective ways to protect your valuable information and accounts against unauthorised access.”

Privacy obligations also matter. Businesses covered by the Privacy Act must take reasonable technical and organisational steps to protect the personal information they hold and consider whether information should continue to be retained.

Do not overlook chargebacks and payment scams

Approval at checkout does not always make a payment final. Cardholders may dispute transactions, resulting in a chargeback and potentially a fee to the merchant.

Before choosing a provider, understand:

• when funds may be withheld or reversed;
• how quickly chargeback notices are issued;
• what evidence the business must provide;
• response deadlines;
• refund processing; and
• whether specialist dispute support is available.

Businesses should also guard against business email compromise. Criminals may access or imitate an email account and replace the bank details on a genuine-looking invoice.

Customers and staff should be told to verify unexpected bank-account changes using a trusted phone number—not the contact details included in the suspicious message.

Make sure the accounting is as polished as the checkout

A payment integration can automate data entry, but it does not guarantee accurate accounting.

Suppose a customer pays a $1,100 invoice and the provider deducts a $16.50 fee before depositing $1,083.50. Recording only the net bank deposit would understate both sales and payment-processing expenses.

The accounting records should ordinarily distinguish:

• the gross customer payment;
• GST and the underlying sale where applicable;
• the processing fee;
• any refund or chargeback; and
• the net amount deposited.

The ATO recommends keeping records of sales, fees and other expenses and reconciling sales with bank statements.

Before switching on an integration, test the account mapping, GST treatment, clearing account and settlement reconciliation. Automation should leave a clear trail—not bury valuable information beneath a layer of fool’s gold.

Online payment provider checklist

Before committing to a provider, ask:

• Does it support the payment methods our customers actually use?
• What is the total cost at our transaction volume and average sale value?
• Are fees higher for foreign cards or manually entered transactions?
• How quickly are funds settled?
• Can payouts be held or reserves imposed?
• Does it integrate correctly with our accounting or ecommerce software?
• Can it automatically match payments to invoices?
• Does it support recurring payments, retries and customer cancellations?
• What PCI DSS responsibilities remain with us?
• Are tokenisation, MFA and fraud controls available?
• How are refunds, disputes and chargebacks handled?
• What are the contract term, support arrangements and exit costs?
• Is customer and transaction data portable if we change providers?
• What happens if the service is unavailable?

Shortlist providers, model their total annual cost and test the complete process—from invoice or checkout to bank reconciliation—before making a final decision.

Turn easier payments into stronger cash flow

Online payments can create a smoother path between completing the work and receiving the money. But the best result does not come from simply adding a payment button.

It comes from matching the right payment methods to your customers, understanding the complete cost, protecting payment information and ensuring every transaction is accurately reconciled.

That is how a convenient payment option becomes a genuine golden thread running through your cash flow, customer experience and financial reporting.

Want to improve the way your business invoices, accepts payments and reconciles merchant settlements? Contact DJ Grigg Financial to review your payment processes, accounting integrations and cash-flow systems. Together, we can help you choose an approach that is secure, practical and built for sustainable growth.