9 Retail Payment Methods to Accept In-Store and Online (2026)

As a retailer, it’s common to accept cash and credit card payments. However, limiting payment options to these methods may result in missed opportunities to attract new customers and strengthen relationships with existing ones.

By exploring the various retail payment options available for both online and in-store purchases, you can decide which makes sense for your store and your customers. Then, with the help of a flexible retail point-of-sale (POS) system, you can accept multiple payment options with ease, creating better customer experiences and encouraging repeat business.

In this guide, learn more about different types of retail payment methods. We’ll cover the pros and cons of accepting each, along with payment trends paving the way in 2026.

Types of retail payment methods

According to a report by Pymnts, 70% of customers consider the availability of their preferred payment method very or extremely influential when choosing which store to purchase from. They increasingly expect easy access to their preferred payment method at checkout and may abandon their cart if it’s unavailable. That’s a lot of avoidable revenue left unrealized simply because you don’t accept certain payment methods.

In other words, the best option for retailers is to accept as many payment methods as possible. Let’s look at all types of payment options you can offer to customers:

• Cash
• Paper checks and e-checks
• Credit cards and debit cards
• Mobile wallet payments
• Gift cards and store credit
• Custom payments
• Cryptocurrency
• Buy now, pay later
• Loyalty points

Cash

Cash is the most basic payment method you can accept. It’s still expected as table stakes in retail, and there are several benefits to accepting cash:

• Convenience. This is especially true for those customers who prefer and carry it regularly (particularly important if you offer cash on delivery options).
• Speed. When customers pay with cash, their payment is in your hands (albeit not your bank account) immediately.
• No transaction fees. When you accept cash payments, you keep more of the actual money, because you don’t have to carve out payment processing and other fees that credit cards and other payment types usually incur.

There are some intricacies to handling and accounting for cash transactions:

• Customers can only carry around so much cash.
• You need a safe on site or must make frequent trips to the bank.
• Having lots of cash on site can make you a target for theft from both employees and outsiders.

In developing markets with low card penetration, instant payments are quickly replacing cash, but in card-dominated markets like the US, cash usage is expected to gradually decrease. One report suggests this retail payment method will account for just 9% of all POS transactions by 2030, down from 16% in 2017.

Paper checks and e-checks

Similar to cash, check usage has decreased, declining by about 5% over the past year. Retailers like Target are no longer accepting checks, citing “extremely low volumes” of customers who still use them, and suggesting this form of payment is nearing obsolescence. 

Even though accepting paper checks for your business may seem outdated, there are still a few benefits to keeping it as an option:

• No transaction fees. When you accept a paper check, you don’t have to worry about most merchant or payment processing fees, so you’re able to keep most, if not all, of the payment.
• People tend to use checks for larger purchases. Not offering this payment method could discourage some shoppers from completing larger purchases.

That said, accepting checks does have its downsides:

• You have to go to the bank to deposit a check, and it may take a few days for those funds to be accessible.
• People can write fraudulent checks, their checks can bounce, and they can stop payment, leaving you unpaid for your product or service.
• If checks are mailed for online orders, it may take a while for them to reach you.

E-checks 

An e-check is a digital version of a paper check. E-checks use the Automated Clearing House (ACH) to take money out of a customer’s checking account and deposit it directly into the merchant bank’s business account. E-checks act more like direct bank transfers, so they do carry a fee. But they are amongst the lowest fees of any payment options because there are no credit card interchange fees for e-check acceptance.

Some benefits to allowing your customers to pay by e-echeck:

• Fewer limits on transaction amounts. Bank-to-bank transfers of funds have little to no limits in terms of amounts. So you don’t have to worry about your customers’ credit limits or about them reaching their debit card limit. 
• Lower fees. Compared to other electronic payment services like credit and debit cards, the fees for accepting e-checks are usually significantly lower. 

Credit cards and debit cards

Credit and debit (bank-issued) cards remain a popular payment method. Worldpay’s Global Payments report predicts credit and debit cards will account for 56% of global consumer payment value by 2030.

There are several pros to credit and debit card transactions for both consumers and retailers. A study from the University of Adelaide and University of Melbourne in Australia found that cashless payments, like credit cards, cause consumers to spend more.

In addition, credit and bank cards:

• Lend stores credibility. Accepting credit cards (specifically Visa, Mastercard, Discover, and American Express) is considered the norm; not doing so could impact your brand perception.
• Increase sales overall. With many consumers forgoing cash entirely, accepting credit card payments allows you to receive payments from more customers.
• Have cash flow benefits. Credit card payments, unlike cash, are often deposited into your bank account automatically. While the exact timing can vary from one payment processor to another, you can typically expect the money to hit your account soon after a sale is completed.

Caveats to these benefits are:

• Credit and debit cards come with numerous fees, including merchant fees and processing fees. While these fees can vary, they average between 1.5% and 3.5% of the total sale. 
• Credit card fraud could leave you responsible for fraudulent purchases.
• Data breaches may discourage customers from shopping at your store if they feel their information isn’t secure.

Mobile wallet payments

Another retail payment method experiencing rapid growth is mobile and smartphone payments, also known as contactless payments. These include common smartphone payment options like Apple Pay, Google Pay, and Samsung Pay. 

Digital wallet transactions are expected to reach $7 trillion globally by 2030. And the use of mobile payment apps like Apple Pay and Google Pay is expected to be the fastest growing payment method worldwide. 

There are some choice benefits for retailers that accept mobile and smartphone payments:

• Customer convenience. It’s easy and fast for customers to pay through mobile wallets.
• Cash flow. Mobile payments, similar to credit and debit cards, typically hit your bank account less than three days after the sale.
• Data availability. When customers pay with their smartphones, you can potentially receive and track customer data, including how frequently they shop with you and how much they spend. That helps you engage with customers throughout the in-store journey (by sending location-based updates on sales, discounts, and more).

Cons of mobile payments include:

• You’ll need to confirm your POS supports the major wallets your customers use.
• Data breaches may occur if customers don’t secure their smartphones with strong passwords.
• Brick-and-mortar shops need hardware that can accept mobile payments.

Gift cards and store credit

Gift cards and store credit are types of payment methods that can also help retailers build loyal customer relationships. 

Store credit enables retailers to deepen and continue existing customer relationships, while gift cards help introduce new people to your store in a low-risk way. 

There are other key benefits for retailers:

• Higher spending. Gift cards and store credit encourage customers to spend more because these payment methods operate outside of their bank accounts. According to Fiserv data, 42% of consumers spend more than a gift card’s value.
• Flexibility. When it comes to returns and exchanges, issuing gift cards or store credit in lieu of refunds enables you to be more flexible. For instance, you could boost the value of their exchange when you know that money will be spent in-store. 

Store credit and gift cards enable you to keep money in your ecosystem. Even if the gift card never gets spent or an item gets returned/exchanged, that sale stays with your business.

Disadvantages of gift cards and store credit include:

• There’s a risk of fraud since gift cards are typically purchased anonymously and are untraceable.
• Added expense to integrate software or hardware to accept gift cards as payment. Prevent this with a unified POS system like Shopify, which supports omnichannel gift cards; customers can buy online and use in-store (and vice versa).

Read: What Is Store Credit? How to Use It to Sell More

Custom payments

A good POS system offers you the flexibility to accept as many payment methods as you and your customers need. 

That includes custom payments such as:

• Split payments. The classic example here is when a group wants to split their restaurant bill among multiple credit cards. In a retail environment, this may look like two shoppers jointly purchasing a gift with two credit or debit cards.
• Split tender. For flexibility, shoppers may prefer to pay for part of their order in cash and put the rest on a credit card.
• Partial payments. For some retailers, it makes sense to accept a partial payment upfront and offer credit or payment plans (like layaway) to collect the rest. Alternatively, retailers can accept an initial payment in-store and have the customer pay the rest of the bill online, which can increase average order size.
• Zero payments or IOU. Similarly, some retailers may offer layaway or other payment plans without any upfront payment. Your POS needs to be able to account for these transactions.

The chief benefit of customer payments like these is that they enable retailers to be more flexible, often to the benefit of both the store and the customer. And for some brick-and-mortar retailers, custom payments like split payments and split tender are a necessity in order to cater to customer preferences and keep up with competitors. 

However, split payments between multiple credit cards may mean that your store incurs higher credit card processing fees. It’s important that you consider the costs of offering these custom payment options. It may require investment in a more versatile (and likely more expensive) POS system.

Cryptocurrency

Cryptocurrency is a digital payment method protected by cryptography, which is a secure communication technique that transmits information with encrypted contents. It’s nearly impossible to counterfeit because it exists on a decentralized network called a blockchain. 

Cryptocurrencies are being adopted more and more. PayPal found that almost four in 10 businesses already accept crypto at checkout, and 84% believe this payment method will become more common within the next five years.

Though accepting crypto currencies like Bitcoin is a newer type of payment option, there are benefits to adopting it:

• More secure than credit cards. With cryptocurrencies, there’s no need to worry about data breaches or identity theft because your customer’s information isn’t stored in any centralized place. It’s stored only on their crypto wallet.
• Lower fees and no international fees. Cryptocurrency exchanges come with lower fees than most other merchant fees. For example, PayPal charges close to 4% per transaction, while some Bitcoin exchanges offer fees of less than 1%. Also, cryptocurrencies don’t have international currency payment fees since they aren’t tied to any one country.
• Refunds are entirely in the business’s hands. Cryptocurrency transactions can only be refunded by the party receiving the funds. Customers cannot cancel the payment on their end or change their credit card number, so it’s easier for a business to keep track of its cash flow. 

A Gallup report found 14% of American adults already own crypto. Some demographics—like men aged between 18 and 49, college graduates, and high income earners—are more likely to have money in their crypto wallets. 

Part of creating a successful and lasting business is staying ahead of the curve. Offering a retail payment solution, like cryptocurrency, that caters to future customer needs is part of that equation. But there are downsides to be aware of:

• Cryptocurrency values can fluctuate dramatically.
• The IRS requires you to track the value of each cryptocurrency on the day it’s received and the day it’s sold, leading to significant paperwork.
• A high volume of refunds can create extra work since all transactions are permanent.

Buy now, pay later

Buy now, pay later (BNPL) is a payment method that allows consumers to purchase goods and pay in installments. 

BNPL is a rapidly growing payment method because it offers new financing options and is often interest-free. Research shows BNPL increases spending, even compared to credit cards. A smaller first installment further increases how much shoppers spend.

Consumers are also leaning less on credit cards and more on BNPL because it elevates shoppers’ purchasing power, as they get to purchase what they want from their favorite brands. Many BNPL platforms offer zero-interest payment plans, compared to credit cards that charge annual fees and interest when you carry a balance. Some BNPL platforms may also help users build their credit history over time.

As a retailer, pros of offering BNPL include:

• There are no upfront fees for consumers to use the service.
• It extends credit to consumers without credit cards, enabling more consumers to purchase from your store.
• BNPL entices casual shoppers to convert, which can lower cart abandonment rates.

Disadvantages of this retail payment method are: 

• BNPL providers tend to charge retailers higher percentages for using their services, which can create financial constraints.
• Customers may make more impulse purchases, which can result in higher and costly returns or exchanges.
• Customer service issues that may arise can put your customer experience and business reputation at risk.

Tip: Shopify integrates Shop Pay in online stores and Shopify POS systems, so you can allow customers to pay in full at checkout or pay for an order over time with Shop Pay Installments. This method gives customers the option to split a purchase into four equal payments with 0% interest, and it has no impact on their credit scores.

Loyalty points

Loyalty points allow customers to accumulate points from their purchases. They can then redeem those points to pay for a future purchase, get discounts, or redeem for free gifts and other insider perks.

Many consumers expect brands to offer a loyalty program of some sort: 49% of US consumers say top brands should offer points or reward systems to keep them coming back.

Pros of loyalty point payments include:

• Incentivizes customers to return for more, building customer loyalty and retention.
• Can lead to more sales and lower customer acquisition costs (CAC).
• Provides insights about customer spending habits, making it easier to send targeted offers and deals.

Cons of loyalty point payments:

• Adds an extra layer of complexity compared to other payment methods.
• Can reduce short-term revenues.

With Shopify POS, your loyalty program automatically tracks rewards while providing insights into purchasing patterns—joining customer data across both online and in-store purchases. This unified commerce approach means you can:

• See which products drive the most loyalty program engagement
• Identify your most valuable customers across all channels
• Create targeted marketing based on complete customer data
• Drive repeat business with personalized offers

How retail payments work (processor vs. gateway vs. POS)

Payment processor vs. payment gateway: What each does

There are two technologies at play when processing payments either online or in your retail store:

• Payment gateway. The secure bridge between the customer and the business. It’s the gateway’s job to collect payment data, encrypt it, and send it to the processor. (If you’re collecting payments in person, your store’s POS system acts as the gateway.)
• Payment processor. Once the gateway has delivered the message, a processor like Shopify Payments does the heavy lifting behind the scenes to actually move the money. It communicates between the business’s bank and the customer’s bank to finalize the transaction.

What happens after checkout: Authorization, settlement, and funding

A few things happen after a customer taps their card or digital wallet before the money lands in your business bank account:

• Authorization. When a customer taps their card, the payment gateway asks the customer’s bank if they have the money to pay for the transaction. It validates that the card is valid and not reported stolen, then sends back an authorization code if approved. 
• Settlement. The stage when money is moved from the customer’s bank to your business account. This can take a few days as processors typically batch payouts.
• Funding. When money arrives in your bank account, minus any payment processing fees.

How to accept various retail payment methods

Before you can start accepting payments, you’ll need to complete the following steps.

Open a business bank account

The US Small Business Association (SBA) recommends that every business open a business bank account upon receiving an employer identification number (EIN), which is a federal tax ID assigned by the IRS to identify the business entity. 

Business bank accounts will provide you with limited liability protection, help you in your bookkeeping, and make things a little less complicated when tax season rolls around. 

The right business bank account will depend on the needs of your business. Some things to consider:

• Do they have any introductory offers? 
• What account features and services do they offer (e.g., online and mobile banking services, check-writing services)?
• What are their interest rates for savings and checking accounts?
• What are their transaction fees? (Do they charge by the week, month, year? Do they charge based on transaction volumes?)
• Do they have early termination fees?
• Do they have minimum account balance fees, and if so, what are they?
• Are they compatible with your other business software (e.g., payroll, accounting)?

Tip: With Shopify Balance, you can skip opening a business bank account and manage your finances in Shopify. Avoid monthly and hidden fees, earn cashback rewards on business purchases, get exclusive offers tailored to your business, and more.

Choose the right POS

There are a lot of different POS systems out there, but choosing the right POS system for your small business is key. 

Here are some things to consider when choosing a POS system:

• Is the system designed more for in-store or online usage? If you’re operating both in-person and online, it’s best if you can find a POS that can connect your in-store and online sales so your inventory is always updated in real time.
• Will it allow you to accept multiple payment methods? The more payments your POS is able to accept, the more business you can accept.
• Does it collect sales data and provide analytics? This will help you understand which products are selling and which ones are not. 
• Does it build customer profiles? This will show you what marketing campaigns work on what customers and what customer experience is bringing them back to your store.
• Does it integrate with your other tech? Check to see if your POS system has partnerships with other software and apps (e.g., your accounting software, the apps designed for your store).
• How much does it cost? You can find open-source POS systems that cost you nothing, as well as POS systems that require $1,000 monthly subscriptions. Make sure the system you choose has the right features and functionality at the right price point for you.
• Does this system have good support? Technical issues are inevitable, so choosing a company that has a good record for helpful customer and technical support will alleviate a lot of headaches for you in the future.

A POS system with integrated payment processing, like Shopify POS, allows retail businesses to: 

• Process sales and take payments
• Offer flexible returns, exchanges, and store credits (e.g., buy online, return in-store)
• Provide flexible payment, purchase, and delivery options
• Gain full visibility into your inventory across all locations, updated in real time
• Access robust analytics and reports
• See customer profiles, order histories, and loyalty program status
• Leverage app integrations to extend your POS system’s capabilities
• Easily integrate with your business tech stack (e.g., marketing, accounting software)

Retailers using Shopify POS also see an average 9% increase in revenue.

Purchase the right hardware

Retailers need hardware to process payments like tap to pay. Many times, the POS company you choose will offer hardware as part of a package deal with its POS software, or it will recommend hardware that is compatible with its POS software. 

Common hardware you’ll need includes the following: 

• A POS terminal, which is the device your POS software runs on. You can also install mobile POS software on a tablet, smartphone, desktop, or laptop with an internet connection. 
• A tablet or smartphone to process transactions and accept payments anywhere in-store. This hardware also helps staff count and adjust inventory on the go.
• A cash drawer to safely store cash people use to pay for products. 
• A barcode scanner to read an item’s product details and ring up sales. Shopify POS lets you scan a product’s barcode using your tablet or smartphone camera, rather than using a barcode scanner. To get started with barcodes, you can try Shopify’s free barcode generator.
• A credit and debit card reader to accept debit and credit card payments. This hardware lets customers swipe, tap, or use an EMV chip to make a purchase.
• A receipt printer, in case customers prefer paper receipts over emailed ones.

Finding the right hardware for your business can be a balancing act. Figure out which payment methods are popular with your client base and the type of hardware you’ll need to invest in so you can process those payment methods. 

Tip: Shopping for a POS system and hardware can feel tedious. Before you decide what’s right for you, we recommend learning which factors influence how much a POS system costs.

Select a payment gateway (for ecommerce)

A payment gateway is a software application that authorizes an online payment and connects it with a bank. This allows your customers the convenience to pay for their purchases from a computer or mobile device. 

Here are some things to consider when choosing which payment gateway to go with:

• Does the gateway integrate well with your POS system?
• What types of payment methods does the gateway accept? Make sure to find the gateway that works with your customer base’s preferred payment methods.
• What type of pricing options does the payment gateway offer? There are a number of ways a processor can structure its pricing options. Choose the one that works best for your business.
• Does this gateway provide 24/7 customer support? Technical issues with your gateway are going to stop sales from coming in, so make sure whatever gateway you choose has good customer support.

With e-retail sales projected to reach $6.8 trillion by 2028, finding the right payment gateway for your online sales is going to be an important aspect of making your business a success.

How to choose a retail payment processor

Not all payment processors are created equal. To prevent switching further down the line, choose the right one for your retail business by evaluating:

• Reliability. If the payment processing system is offline, even briefly, it can hurt sales. Check the processor’s uptime statistics to know how well it performs. Note the frequency and duration of a system failure, so you can monitor lost purchases during the downtime and how much. If downtime becomes frequent, consider a more reliable provider to avoid losing sales.
• Security. Make sure the processor complies with industry security standards, such as the Payment Card Industry Data Security Standard (PCI DSS), to ensure safe transactions for your business and customers.
• Fees. Understand and compare fee structures, reviewing each provider’s transaction costs, setup fees, monthly charges, chargeback fees, foreign exchange rates, additional fees for international transactions, and any hidden fees. Then, choose a solution that aligns with your budget and sales volume and supports popular local payment methods in your target markets.
• Scalability. Find a payment processor that can scale with your business as it grows, can handle sudden spikes in transaction volume, and offers the features you’ll need as you expand, without significant fee jumps.
• Integration. Check how well the processor integrates with your existing tech stack, including your POS system and accounting software, to streamline operations and reduce errors. Request a trial or demo to test compatibility firsthand. Shopify Payments, for example, offers seamless integration with more than 100 payment gateways worldwide, so you can offer multiple payment methods and enhance the customer experience.
• Customer support. Reliable customer support ensures you resolve payment-related issues quickly and minimize downtime and customer frustration. Check whether the processor offers 24/7 support and multiple contact channels, like phone, email, and live chat. Read reviews or testimonials and ask for referrals to gauge the quality of the processor’s support team.

Security and compliance checklist (PCI DSS v4.0.1)

Every business has a legal obligation to protect customer data. Payment information, in particular, is heavily regulated. Customers also need to trust you with this data before they buy from you. 

Choose a retail payment processor that meets PCI DSS security standards by looking for features like:

• Data encryption. This ensures data is encrypted the moment it hits the card reader and isn’t decrypted until it reaches the processor, so hackers can’t eavesdrop on data transferred between systems.
• Regular security updates. Protecting systems against malware is just one PCI DSS requirement. Check your processor offers regular security updates to patch any vulnerabilities in the software. 
• Fraud detection. Address verification service (AVS) checks whether the customer’s billing ZIP code matches the card owner’s. Some gateways also use IP fraud scoring to flag suspicious orders before you take payment. 

Trends in retail payment methods

Staying up to date with new payment technologies can help ensure your business continues to meet your customers where they are.

AI-assisted and agentic payments

Artificial intelligence (AI) is becoming a tool for one-quarter of consumers to research products. But they’re not just relying on apps like ChatGPT for inspiration: 32% of consumers said they have used or would use generative AI for shopping. 

Shopify’s Agentic Storefronts, built using Universal Commerce Protocol (co-developed by Google), give you control over how your product catalog is presented to AI agents powering apps like ChatGPT, Microsoft Copilot, and Google AI Mode. 

Agents can surface product data mid-conversation and allow shoppers to:

• Submit discount codes
• Apply loyalty rewards
• Set subscription billing preferences 

Once those logistics are taken care of, the UPC protocol works with a payment processor—including Shopify Payments—for customers to complete their purchases, either in-app or in a separate tab. 

“Today’s shoppers expect to go from search to purchase in a single conversation,” said Nayna Sheth, head of product for agentic payments at Microsoft. “With Copilot Checkout, Shopify merchants can meet customers exactly when intent peaks while remaining at the center of every interaction and in control from start to finish.” 

Local payments

Thanks to the democratising effect of mobile phones, local payment methods (LPMs)—like digital wallets, account-to-account (A2A) payments, BNPL offerings, and carrier billing—are gaining a share of checkout over global card schemes. 

Local payments allow customers to pay with methods available only in that area of the world, such as:

• FedNow in the US
• Alipay and WeChat Pay in China
• Pix in Brazil
• UPI in India
• iDEAL in the Netherlands

Analysts estimate LPMs will reach 58% of all ecommerce transaction value globally by 2028. A2A payments or real-time bank transfers will be the fastest-growing LPM for ecommerce, with an expected 18% growth in transaction volumes by 2028. 

QR code payments

QR code payments are becoming increasingly popular as a quick, easy, and low-cost way to pay for goods and services. 

Market research shows the QR codes payment market is expected to witness notable growth, reaching $35.07 billion by 2030. This will be driven largely by the ease and accessibility of smartphones and surge in faster connectivity.

Shoppers need only scan a QR code with their phones, enter the amount to be paid, and authorize payment through a mobile wallet to complete the transaction. 

For retailers, QR code payments are a great way to meet customers’ growing expectations for more touch-free ways to complete their purchases. Plus, they ensure speedy bill payment as funds are deducted from customers’ accounts in near real-time.

Choose the right payment options for your business

When you have a POS system that makes it effortless for you to accept varied payment options, there are really no drawbacks to accepting all of the payment types your customers want to use.

Offering customers the payment flexibility they’re looking for means they spend more and enjoy a better customer experience, and opens up the opportunity for you to deepen and sustain long-term loyal customer relationships.