Skip to main content
Magestore Logo

Point of Sale for

Explore Magestore POS Now

Multiple payment methods give your shoppers more ways to complete their purchases. For instance, besides cash, your retail store can offer other payment options such as credit and debit cards, bank transfers, and digital wallets.

Studies show that retailers providing top three methods rather than just one option can increase conversion rate by up to 30%. Or you might lose about 13% of your sales if you do not provide enough payment methods for your customers.

As today’s customers demand more payment options, retailers should adapt to meet their expectations. In this discussion, we’ll explore how to implement different payment methods, key factors to select suitable options, and challenges of multiple payment options and solutions. Let’s dive in.

Why should you accept more payment options in your store?

If omnichannel retail means buying and fulfilling from everywhere, should ‘pay in any way’ be added to our definition? The answer is obvious. Customers are becoming increasingly demanding. They always go for the most convenient options. By offering your customers various payment options—both traditional and those brought about by emerging technologies—you can capture more sales and stay ahead of the retail competition.

Ease and convenience for customers

Regarding payments, customers expect to use the method and channel they’re most comfortable with. For that reason, it’s important to offer seamless checkout options to increase customer experience. When you limit the payment methods, customers might feel frustrated or cornered.

Take flexible payments with Magestore POS

At the end of the day, everybody wants to have options. Cash, credit cards, e-wallets, and other alternative payment methods will allow customers to shop easily, no matter where they are.

Higher conversion rates at checkout

More choices mean a higher rate of completed payments, which translates into higher revenues for your retail store. On the other hand, customers who can complete their purchases on the spot without waiting for additionally verified transactions or bank approvals would be more likely to become loyal and recommend your business to others.

Product exchange helps build customer loyalty

Competitive advantage for businesses

With the rapid rise in payment technology and ever-increasing competitiveness, many online-offline stores are competing on prices and exclusive deals. Payment options are a key competitive factor, as you can acquire more users by offering popular payment methods.

More payment offers to attract customers

Many payment gateways advertise their merchants or offer special discounts (funded by them) for customers using their payment method on the designated website or offline stores.

Careem x Mastercards

The collaboration between Careem and Mastercard is an example of how these two businesses promote each other. Customers get a 20% discount on 3 rides per month when they use Mastercard to pay for a ride. PayPal often does the same promotion as well, bringing direct benefit to the merchants.

14 types of payment methods and how to accept them

Forget one-size-fits-all payments! Modern customers expect multiple payment methods to pay for their purchases. Below is a list of the 14 most common options, along with an overview and quick guide on how sellers can accept them. We’ve grouped them into three main categories for your easy reference:

  • Traditional payment methods
  • Digital payment methods
  • Other payment methods

1. Traditional payment methods

Traditional payment methods
How to accept
This old payment method is still in usage, but declined in popularity by 25% due to the risk of theft or loss.
Cashiers accept cash from customers and update the balance in the register or POS system.
Bank transfers
  • Direct transfers from bank to bank used for online or in-person transactions
  • Popular in Europe and Asia with real-time options and in America with ACH transfers
  • Suitable for all types of business, especially for high-value transactions
  • For direct payment, share your bank account number and routing number with the payer⁤
  • For online transactions, integrate online banking platforms or partner with a payment gateway that offers ACH transfers
  • Declining in popularity due to payment processing time and potential fraud
  • Mostly accepted in larger retail chains and department stores
For online transactions:
  • Sign up with an ACH provider to accept e-check payments
  • Customers verify payment and provide account details, then funds are electronically transferred via the ACH network.
  • You can accept e-checks on your website with security features like digital signatures and encryption for safe transactions.
For offline transactions:
  • Ensure the check's numerical and written amounts match and don’t accept checks for more than the invoiced amount
  • Confirm the check includes the payer's name, date, bank ID numbers, payee name, amount, and signature
  • Deposit the check promptly to ensure the funds are quickly available in your account.
Money orders
Money orders are like prepaid checks. While declining in popularity, they're still secure payment methods used for purchases from unfamiliar vendors or sending rent payments.
  • Ensure the money order is valid, check for fraud signs, and confirm the amount is correct
  • Fill out the payee information, endorse the back, and keep a copy for your records
  • Deposit the money order in-person, via mobile app, or at an ATM, and wait for the funds to clear

2. Digital payment methods

Digital payment methods
How to accept
Credit and debit cards
Credit and debit cards are the most widely used payment methods with 41% of POS payments made with credit cards and 28% with debit cards.
  • Cashier enters the amount into the POS system.
  • Customer swipes, dips, or taps their card on the reader.
  • Payment processors and banks verify the payment data and notify you and your customer if the transaction is successful.
  • Funds are settled in your merchant account.
  • Customer receives their purchases.
Digital wallets
  • Digital wallets operate via apps on smart devices, connecting to a customer's credit card, debit card, or bank account.
  • This fastest-growing payment solution is estimated to account for over 50% of all eCommerce payment methods worldwide by 2025.
  • Some examples include Apple Pay, Google Wallet, and Samsung Pay.
  • Integrate a payment processor supporting digital wallets into your POS system
  • Equip your POS terminals with NFC technology
How to accept:
  • Customer taps their NFC-enabled device on the POS terminal.
  • Payment processors and banks authorize the payment information.
  • If the transaction is successful, the funds are transferred to your merchant account.
  • Then the customer receives their purchases.
Online payment gateways
  • Online payment gateways are merchant services working as middlemen between customers and merchants.
  • eCommerce stores often use this method to process payments.
  • Select a payment gateway and create a merchant account to receive funds
  • Connect the gateway's software to your website's checkout system
How to accept:
  • Customers pay securely on your site, funds transfer to your account.
  • Cryptocurrency is a digital currency that employs cryptography for security.
  • Bitcoin, Ethereum, and Litecoin are examples of widely used cryptocurrencies.
  • Set up a business cryptocurrency wallet
  • Choose a cryptocurrency payment processor and integrate it with your website or POS system
How to accept:
  • Customers can pay using their crypto wallets, and the funds are securely transferred to your  account.
QR codes
  • QR codes are barcodes that link to payment apps, allowing customers to scan them with their phones for instant payment.
  • QR code payments skyrocketed by 283% in 2022 compared to 2021, with an additional 43% increase in the last year.
  • Cashiers generate QR codes for each transaction or general payment and display them to buyers.
  • Customers scan the codes with their phones, complete the transaction, and you receive confirmation.
Contactless payments
  • Contactless payments allow making transactions without using cash or swiping a card. For example, customers can simply tap their mobile device on the POS terminal to complete the payment.
  • With the rise of smart devices, contactless transit transactions skyrocketed by 97% year-over-year.
  • Equip POS system with NFC technology
How to accept:
  • Customer simply taps their contactless card and smartphone on the NFC reader.
  • Payment processors and banks validate the payment data.
  • If the data is correct, you'll have funds in your merchant account.
  • Your customer receives products and goes.

3. Other payment methods

Other payment methods
How to accept
Buy now pay later (BNPL)
  • BNPL is a merchant service, like Klarna or Afterpay, allowing customers to split purchases into smaller payments over time.
  • Because it’s interest-free and convenient, many online shoppers prefer BNPL.
  • Partner with a BNPL provider to provide this option at checkout
  • Shoppers select BNPL as their payment method.
  • Once confirmed, you’ll receive the full amount upfront from the BNPL provider, while shoppers make installment payments directly to the BNPL provider later.
Invoice payments
  • Invoice payments are requests for money after a service or product is delivered (B2B).
  • While not as instant as credit cards, BNPL options are popular for larger transactions, especially among B2B businesses offering services like consulting or construction.
  • Use online invoicing software or create clear invoices with payment options such as bank account details or an online payment gateway link
  • Educate your customers on payment procedures and send reminders as the payment due date approaches
  • Subscriptions are a recurring payment model where customers pay a regular fee (monthly or annually) for access to products or services. Think of it like a membership that grants ongoing benefits.
  • Subscription services are popular for digital products such as streaming services, software, and cloud storage.
  • Choose a subscription management platform that integrates with your website or app
  • Clearly outline billing cycles (monthly or annually) and offer easy cancellation options
  • User chooses a subscription plan, enters their payment method, and payments are automatically billed (monthly, annually).
    Loyalty payments
    • Loyalty payments are the points, rewards, gift cards, or discounts customers earn for repeat purchases, encouraging them to come back for more.
    • Retailers, airlines, and coffee shops often use them to boost sales.
    • Customers notify the cashier of their intent to redeem rewards.
    • The cashier accesses their account details and applies the discount to the final bill.
    • Customers pay the bill and receive their products or services.

    Top 6 factors to decide which payment methods to offer

    When choosing the right payment methods, you need to think about what customers like or what’s safe. Here’s a simple breakdown:

    Customer preferences

    Find out how your typical customer likes to pay. Do they love paying with their phone, or do they stick to cash or checks?
    For example, if you run an online store targeting young adults, digital wallets like Apple Pay and Google Pay are ideal for accepting online payments.

    Safe, secure POS terminals and payment solutions for your business

    Industry payment standards

    Different businesses have different ways of receiving money. For example, many restaurants let customers tap to pay, while software services often use subscription options. Research what’s common in your industry to ensure you’re not hindering customer expectations.

    Related costs and fees

    Look at the fees of multiple payment methods. This includes setup fees, transaction fees, and ongoing costs. Here is the breakdown:

    • Setup fees: Mostly $0. It’s often free to set up any payment method.
    • Transaction fees: Differ based on different factors like card types, card network, transaction volume, types of payment method, etc. Here’s an example of how transaction fees vary based on payment methods.
      • Debit and credit card: 1.5% to 3.5%
      • ACH payments (Bank transfers): $0.5-1

    Try to find a balance between what’s affordable for you and easy for customers.

    Security and fraud prevention

    Working with IT and cybersecurity specialists can secure and protect your business and customers’ information. Choose payment systems that follow the Payment Card Industry Data Security Standard (PCI DSS) and offer payment fraud prevention features like risk analysis and identity verification.


    Smooth integration and easy-to-use

    The payment method should work well with your website or point of sale system.
    You can check its compatibility by:

    • Verify if your website or POS system supports the payment method you intend to use. Check the documentation or contact the provider for support.
    • Confirm that the payment method complies with security standards (like PCI DSS)
    • Conduct thorough testing in a sandbox or test environment before going live.

    Also, make sure it’s easy for customers to use, or they might give up on buying.

    Also read:

    How to set up a payment system for multiple payment options?

    After shortlisting your customers’ favorable payment options, it’s time for payment integration. Instead of using different systems for each payment type, it’s much better to use one system to handle all of them and simplify management.
    Here’s how to do it.

    Step 1: Select a payment system

    A comprehensive payment system often includes software components (e.g., payment gateway, payment processor, merchant bank, customer bank, and card network) and hardware (e.g., POS terminals and card readers) for in-store transactions. Hence, if you’re looking for a payment system, make sure:

    • Its components are compatible with your POS system.
    • The payment system can support multiple payment options your target customers use. For example:
      • Online customers prefer debit and credit cards, digital wallets, and BNPL.
      • In-store customers prefer cash, debit and credit cards, digital wallets, and QR codes.
    • Fees (e.g., setup fees, transaction fees, ongoing fees) fit your budget
    • The system can handle multi-currency payments and comply with international payment rules if you sell globally.

    Step 2: Integrate the payment system

    To integrate a payment system, follow the steps below:

    • Create a merchant account with the chosen payment processor and complete necessary verification processes
    • Integrate the payment gateway using API credentials and documentation from the provider
    • Enable and configure all the desired payment methods (credit/debit cards, digital wallets, BNPL, etc.) in your payment gateway setting

    Payment integration might require some technical knowledge. Hence, if you’re not sure how to do it, you could get a developer to help set everything up for you.

    A highly-compatible POS solution can help streamline the process. For omnichannel sales, POS for Magento and POS for Shopify from Magestore are your go-to options since they work well with various payment providers such as PayPal, Stripe, Tyro, Square, Global Payments, and Adyen.

    Step 3: Configure payment options

    At this step, activate different payment methods in your account settings. Make sure your checkout page displays all payment options clearly, helping customers easily choose their preferred method.

    Tips: Look at your sales reports to see how your customers like to pay to decide which payment methods to offer. For example, most online transactions require mobile payments, while cash is commonly used at physical stores.


    Multiple payment methods on Magestore POS

    Step 4: Test transactions

    After you’ve set everything up, it’s important to check if all payment methods work accurately and smoothly. How to do so?

    • Performance tests
      • Option 1: Manual testing by walking through the entire checkout process for each payment method (credit card, debit card, digital wallet, etc.)
      • Option 2. Automated testing by selecting a testing tool (e.g., Selenium, Cypress) and integrating it with your payment gateway for seamless testing
    • Analyze test results to identify any bugs, security risks, or performance issues. Customers will consider whether the system accurately captures their information, securely transmits payment data, and provides appropriate authorization or error messages.
    • Address any issues found during testing and re-run tests to ensure functionality and stability

    Notes: Remember to back up your data before testing to prevent data loss if your system crashes.

    4 challenges of multiple payment options and how to overcome them

    While offering various payment methods can be great for customer convenience and increasing sales, it also comes with a set of hurdles for businesses.

    1. Integration complexity

    Adding different payment methods to your business can be tricky. Each method, such as credit cards and digital wallets, has its own API to communicate with your website or system. This requires some coding to ensure everything works together smoothly.


    • Choose one with user-friendly APIs and clear documentation
    • Consider platforms offering pre-built integrations for easier setup
    • Hire an IT specialist to help

    2. Security concerns

    Using multiple payment solutions increases the potential risk of fraud. You need to ensure each option adheres to industry standards, such as PCI compliance.


    • Select reputable gateways with strong security track records
    • Implement robust fraud detection and prevention measures across all gateways
    • Stay updated on the latest security protocols and guarantee regular security audits

    3. Operational challenges

    Reconciling transactions from various platforms can be time-consuming and complex. Additionally, managing customer inquiries related to different payment methods can add to the operational workload.


    • Invest in tools, a payment processor, or gateway that consolidates transaction data from different payment methods into a single platform for central management

    4. Keeping up with regulations

    The world of payments is constantly evolving with new regulations and compliance requirements. So are you.


    • Partner with gateways that stay updated on regulations and ensure their systems meet the latest standards
    • Consider subscribing to industry newsletters to stay informed yourself

    Final thoughts

    We hope that you’ve found helpful insights on various payment methods and their implementation in this article. Offering customers with multiple payment options provides significant competitive advantages. This can broaden your market reach and increase conversion rates. Therefore, carefully select payment solutions that align with customer preferences while maintaining security.


    1. Is it possible to have several payment methods for a customer?

    Yes! You can definitely offer multiple payment methods, like credit cards, debit cards, or digital wallets, to your stores or websites. This allows customers to choose the most convenient option for their purchase.

    2. What is the most common payment method?

    It’s no surprise that credit and debit cards remain the most frequent payment methods. However, digital wallets are quickly catching up, with a projected 16% increase in usage by 2027.

    3. What are split payment methods?

    Split payments or split tenders allow you to settle a single transaction using multiple payment methods.

    For example, regular customers come to your store and run out of cash to pay for their orders. They want to pay by credit card plus the remaining points in the customer loyalty account balance. If your store accepts both credit cards and loyalty points separately, it’d be easier for the customers to check out by both payment methods in one order.

    4. How to split payments in retail stores?

    If you use a POS system that allow split payments, here’s the main flow:

    • Staff check out orders as usual
    • Enter the exact amount for each payment method and process it
    • Finalize and complete the transaction.

    If you need more details about how to process a split, check our guide on split payments, where you can find easy step-by-step instructions and the best system to do so.

    POS for eCommerce Platforms

    Available for

    Author Jackie Tran

    Jackie is Magestore's Strategic Marketing Lead with over 5 years of digital transformation experience. An acknowledged authority in eCommerce and Magento, she creates insightful content to unravel digital complexities, covering Magento best practices, eCommerce trends, and integration strategies. Read her curated insights on the Magestore blog for a profound understanding of eCommerce, offering a clear path to retail success. Jackie's content provides practical, friendly guidance to navigate the ever-evolving digital commerce landscape.

    More posts by Jackie Tran

    Leave a Reply

    Close Menu