Accepting Payments Online: Guide for Australian businesses

Aussies love online shopping. In 2025, 9.8 million households spent a collective $82.6 billion online, a 14% increase from 2024.¹ To get a slice of that lucrative digital pie, your business needs an efficient, cost-effective way to start accepting online payments.

From considerations to challenges and methods, this post covers how to accept online payments in Australia.

Importance of accepting online payments for businesses

You’ve seen the stats. E-commerce has become a pillar of the Australian retail landscape. Thanks to consistent year-on-year growth, the trend looks set to stay.

From retail to hospitality and professional services, Aussie SMBs are adapting to the digital era in droves. Even traditionally offline businesses – tradespeople, hairdressers, tutors – have begun accepting online payments for good reason:

• Customer expectations: Shoppers demand a secure, hassle-free online payment process, and may look elsewhere if expectations aren’t met.
• Convenience: Customers can pay for goods or settle invoices in a few clicks from any web-connected device.
• Increasing reach: Businesses can sell to customers worldwide, eliminating the geographical constraints of a standard brick-and-mortar store.
• Cash flow management: Invoices settle quickly and are easy to track and reconcile, helping you manage your cash flow.
• Reduced admin: Automated payments lessen manual admin and operational costs.
• Covering costs: Businesses can add a surcharge to cover the costs associated with a particular payment method (i.e., credit cards).
• Trust: Secure and compliant online payment systems earn customer trust.

Types of businesses that can benefit from accepting online payments

Most Australian sectors can benefit from online payments, even those that primarily trade offline. This is especially true in sectors such as:

• e-Commerce retailers selling physical goods
• Professional white-collar services (freelancers, accountants, consultants)
• Hospitality & tourism (hotels, airlines, restaurants with QR code menus)
• Tradespeople, both companies and sole traders
• Health & wellness (gyms, doctors, and personal trainers)
• Education (tutors, universities, and schools)
• Non-profit organisations accepting online donations
• Events (tickets for concerts, theatre, and sports)
• Real Estate agents collecting rent or bond

Challenges of accepting online payments

Online payments are crucial to business success. But the tech does come with challenges, especially for smaller Australian businesses with limited expertise. Here are some of the most common issues businesses need to be prepared for:

• Security: Fraudulent transactions and data breaches can create major headaches. Businesses need a secure payment system to handle sensitive data.
• Chargebacks: Online payments are more prone to chargebacks, which may result in lost revenue, higher payment processor fees, and even reputational damage.
• Technical troubles: Periodic problems like slow-loading payment pages, faulty postage calculators, website downtime, or display issues can wreck revenue.
• Design complexity: Businesses must invest in a slick, smooth-flowing website that entices leads through the buyer's journey and converts sales.
• Compliance: Australian cybersecurity and privacy regulations can complicate online payments, and non-compliance may result in heavy penalties.
• International transactions: Foreign currency payments incur high charges and unfavourable exchange rates.

How to set up online payments for a business

Ready to get cracking? Here’s how to accept payments online in Australia.

1. Open a business account

If you don’t already have one, research the best business accounts in Australia and select one that aligns with your needs. Companies and partnerships must have a business account to trade in Australia, and it’s a good idea for sole traders as well.² Aussies trading overseas might want to prioritise a good business account for international payments.

2. Evaluate your payment needs

The ideal online payment system depends on your business. Will customers primarily pay invoices or through a payment gateway? Does your business generally charge one-off or recurring payments through a subscription model? Consider which payment methods best suit your business and whether foreign exchange is required.

3. Compare payment processors

Review the top payment gateways and processors available in Australia, weighing up the features that offer the greatest benefit to your business. Carefully compare the associated fees, including upfront costs, subscriptions, and per-transaction rates. Some payment service providers in Australia cost more than others, which affects your bottom line.

4. Sign up with your chosen payment processor

The precise sign-up process varies between platforms. The best global payment gateways have simple, intuitive interfaces that cater to everyday users. Nonetheless, expect to fill out various forms and comply with verification requirements. To receive funds in the correct place, you’ll need to link your business account.

5. Integrate the payment processor with your business

Again, this step varies widely between businesses and platforms. Sole-trading service providers, such as plumbers or consultants, could set up an invoice generator or a payment link that accepts bank transfers and credit cards. E-commerce stores might need to hire a web developer to integrate customised APIs with a payment gateway. Alternatively, some entrepreneurs prefer to work with existing Shopify integrations instead.

6. Ensure compliance

Businesses trading locally must comply with the Australian Consumer Law (ACL), a nationwide framework that outlines business responsibilities. For example, businesses must include the minimum surcharge in the final price if there is no way to pay without a surcharge.³ Businesses may also need to consider the Privacy Act when collecting customer data, as well as the Australian Guidelines for Electronic Commerce.

7. Test your payment system

Configure features such as currency conversions, recurring payments, and Buy Now, Pay Later (BNPL) schemes. With the payment system in test mode, you could try simulating transactions of varying sizes and types to ensure everything runs smoothly.

8. Launch your payment system

Upon launching an online payment system, most businesses monitor transactions to identify potential real-world issues. Periodically reviewing your user dashboard can help with tracking revenue or responding to disputes.

Ways to accept online payments for Australian businesses

There are many ways Australian businesses can receive money online.

Cards & digital wallets

Businesses can accept card payments and digital wallets through several methods, including payment gateways, invoices, payment links, and QR codes. Australian credit card fees typically range from 0.5% to 1.5%, while EFTPOS fees are usually below 0.5%. Most international transactions attract a 3% fee, often with an extra commission baked into the foreign exchange rate.

In Australia, a business cannot legally charge more for a card surcharge than it costs them.⁴

Bank transfers

The classic bank transfer, officially known as an EFT (Electronic Funds Transfer), is a common business-to-business (B2B) online payment option, especially for contractors and suppliers. Some business-to-consumer (B2C) retailers accept them as a cheap alternative to credit cards when selling big-ticket items like holidays or cars.

In Australia, bank transfers run through the New Payments Platform (NPP), which uses Osko by BPAY to allow near-instant transfers between most local banks. The platform also facilitates PayID, where users enter an easy-to-remember identifier, such as a mobile or email address, instead of a BSB and account number.

Direct debit

Businesses receiving recurring payments may prefer direct debit. After acquiring a signed Direct Debit Request (DDR) form, the business pulls funds directly from the customer’s account at an agreed-upon schedule – weekly, monthly, annually, etc.

Direct debits occur automatically until cancelled, making them more convenient for businesses and customers. The payment method is popular for recurring services such as utilities, streaming networks, software subscriptions, insurance, and gym memberships.

Invoices

Businesses big and small use digital invoices to bill clients online, often offering payment methods such as cards, digital wallets, and bank transfers. Accounting software can streamline invoicing by automating reminders, reconciling payments, and calculating GST.

For B2B payments, larger businesses often use e-invoicing, a time-saving system that reduces administrative costs. Upon creation, the electronic invoice is automatically delivered to the recipient through a secure direct connection, ready for processing and payment.

Payment gateways

Many businesses accept card-not-present (CNP) card and digital wallet payments through a payment gateway, a secure online portal that serves as an intermediary between the customer and merchant.

Aussie SMBs typically use hosted third-party gateways, which handle complex security and compliance requirements. From the user's perspective, a new window pops up during the transaction, which sometimes involves multi-factor authentication.

Payment links

Also known as a pay-by-link, the merchant sends a unique URL to the customer via SMS or email that directs to a secure payment page. This convenient method doesn’t require a website, merchant account, or Point of Sale (POS) terminal, making it an accessible choice for small Aussie businesses and sole traders.

The provider normally handles security and compliance. Payment links may support cards, digital wallets, and, in some cases, bank transfers.

QR code payments

The merchant prints and displays a QR code, often on restaurant tables or menus. Upon scanning it, the customer gets sent to a payment gateway to select their choices and finalise the transaction. Some businesses send QR codes electronically, usually through an invoice or email.

Static QR codes don’t change, meaning the customer must input a payment amount. Dynamic QR codes generate a unique code for each transaction, reflecting a specific amount.

Things to consider when accepting online payments

There are several factors a business can consider when accepting online payments in Australia, such as:

• Payment methods: Offering a variety of convenient payment methods could improve conversions.
• Fees: Customers may back out of a sale if they feel the payment fees are too high.
• Compliance: Online payments may need to meet regulatory standards, such as the Payment Card Industry Data Security Standard (PCI DSS).
• User experience: Streamlined, mobile-friendly checkouts can reduce cart abandonment rates.
• Integration: Do your chosen payment methods integrate with your accounting software and business account?
• Payout speed: Some payment methods settle quicker than others.
• Disputes: Fraudulent transactions can increase operating costs via frequent chargebacks.
• Cross-currency transactions: Already steep overseas transaction fees often include a hidden commission within the foreign exchange rate.

Wise Business: Accepting international online payments like a local

Australian businesses trading overseas lose money each month from international transaction fees and unfavourable exchange rates.

Expanding a business globally opens up exciting opportunities, but also new challenges like receiving payments across borders. Hidden foreign transaction fees and hefty currency conversions involved with international payments can eat into your profits and time.

Wise Business serves as a cost-effective solution where you can receive money from around the world at the speed and price of local payments.

Transform the way you receive payments with Wise Business:

• One-time fee of 65 AUD for local account details in 8+ currencies, including AUD, NZD, USD, and more—no recurring fees
• One account to hold, send, and convert money with no hidden fees or exchange rate markups
• Create and send professional invoices directly to your customers through Wise Business
• Create payment links to request money in specific currencies
• Seamlessly receive payments from customers, online sales, or PSPs like Stripe and Amazon.
• Wise is safe and secure - Trusted by 13 million people and counting

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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FAQs About Accepting Payments Online for Small Businesses

1. How can I accept payments online without a merchant account?
Small Australian businesses without a merchant account can receive payments online by creating a Wise Business account, which facilitates card payments through invoices, payment links, and QR codes.

2. What are the typical fees involved for small businesses accepting payments online in Australia?
Domestic card payments usually cost between 1.5 and 2.5%, plus a fixed transaction fee of around $0.30. International payments generally cost an extra 1% upfront, and many payment processors add a commission to the exchange rate.

3. How to receive payments online for free?
Small businesses can use invoices, QR codes, or payment links to accept free online payments via domestic bank transfers. Payments made by credit card or digital wallet will always attract fees.

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Sources:

1. Australia Post: eCommerce report
2. Business.gov: Setting up your business account
3. ACCC: Payment methods
4. ACCC: Card surchargers