How To Choose A Credit Card Machine Or Payment Terminal

Learn more about the types of credit card machines and how to choose the right one.

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Last updated onUpdated July 19, 2026

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Key Takeaways

Credit card machines accept card payments, while POS systems also manage sales, inventory, employees, and reporting.
Choose a payment processor before selecting hardware, since pricing, contracts, and compatibility matter most.
Look for EMV, contactless payments, fair equipment costs, and compatibility with your POS system.

A credit card machine is a device used to accept card payments. It may also be called a card reader, payment terminal, POS system, or smart terminal.

This guide explains the main types of credit card machines and how to choose the right one for your business.

Table of Contents

What Are Credit Card Machines?
How Do Payment Terminals Work?
Types Of Credit Card Machines & Terminals
Credit Card Machines VS POS Systems
How To Choose The Right Credit Card Machine Or Payment Terminal For Your Business
The Bottom Line On Credit Card Machines
Credit Card Machine FAQs

What Are Credit Card Machines?

Credit card machines capture a customer’s card information and send it to the payment processor for authorization.

Depending on the model, they may support chip cards, magnetic-stripe cards, contactless payments, PIN entry, digital receipts, and signatures.

How Do Payment Terminals Work?

When a customer taps, inserts, or swipes a card, the terminal securely sends the payment information to the processor, card network, and issuing bank for authorization.

The issuing bank approves or declines the transaction based on factors such as available funds and fraud checks. Approved payments are then submitted for settlement, and the funds typically reach the merchant’s account within a few business days.

As long as you do the work of preventing chargebacks, you’ll likely see very few interruptions to your business’s cash flow.

Types Of Credit Card Machines & Terminals

Credit Card Machine Types	Key Features	Best For
Traditional Terminals	Basic countertop devices with chip, swipe, and tap payments	Retail stores and service businesses
Smart Terminals	Touchscreens, built-in POS tools, and contactless payments	Businesses that want more than basic payment acceptance
Mobile Card Readers	Compact readers that connect to a phone or tablet	Mobile businesses, startups, and occasional sellers
Wireless Terminals	Portable devices that connect through Wi-Fi or cellular service	Restaurants, food trucks, events, and curbside sales
Integrated Terminals	Connect directly with POS software and business systems	Businesses that want payments and sales data synced
Virtual Terminals	Let merchants enter payment details through a browser or app	Phone, mail-order, invoice, and other remote payments

Several types of credit card terminals are available, ranging from basic countertop devices to full POS systems.

Traditional Terminals

Traditional terminals are countertop devices that connect through Ethernet, Wi-Fi, or a phone line. They typically accept chip, swipe, and contactless payments, and some include PIN pads or receipt printers.

Smart Terminals

Smart terminals combine payment acceptance with touchscreen POS features such as receipts, inventory tools, and reporting. Many are portable and include built-in printers.

Mobile Card Readers

Mobile card readers connect to a phone or tablet and work with a payment app. They are affordable, portable, and well-suited to new or low-volume businesses.

Wireless Terminals

Wireless terminals use Wi-Fi or cellular service, allowing businesses to accept payments away from a fixed checkout counter. They are useful for restaurants, events, food trucks, and mobile businesses.

Integrated Terminals

Integrated terminals connect directly with POS software, allowing payment, sales, inventory, and customer data to sync automatically.

Virtual Terminals

Virtual terminals let businesses enter card information through a browser or app. They are commonly used for phone, invoice, and other remote payments, which typically cost more to process than card-present transactions.

Credit Card Machines VS POS Systems

A credit card machine primarily accepts card payments, while a POS system can also manage sales, inventory, employees, customers, and reporting.

POS systems usually include or connect to a payment terminal. Standalone credit card machines can process payments without full POS software.

How To Choose The Right Credit Card Machine Or Payment Terminal For Your Business

Choose your payment processor before choosing hardware. Processing rates, contract terms, software compatibility, and equipment restrictions often matter more than the terminal itself.

Consider the following:

Payment Processor

Look for transparent pricing, fair contract terms, and hardware that fits your business. Ask whether existing equipment can be reprogrammed, and avoid long-term equipment leases.

Payment Types

Choose a terminal that accepts EMV chip cards and contactless payments such as Apple Pay and Google Pay. Magnetic-stripe support is still common but should not be the machine’s primary capability.

Cost

Credit card machines range from inexpensive mobile readers to advanced POS systems costing hundreds of dollars or more. Consider both the upfront hardware price and ongoing software fees.

POS Integration

Businesses with higher sales volume may benefit from a terminal that automatically syncs payments with inventory, sales reports, and bookkeeping. A standalone terminal may be enough for businesses that process only a few transactions each day.

The Bottom Line On Credit Card Machines

The payment processor matters more than the credit card machine itself. Many processors offer similar hardware but differ significantly in pricing, contracts, support, and equipment restrictions.

Choose a processor with fair terms first, then select a compatible terminal that fits your payment methods, budget, and POS needs.

Credit Card Machine FAQs

What do credit card machines do?

Credit card machines serve as the starting point of card transactions by reading and transmitting card data to your business’s processing provider.

Once the information has been transmitted and the transaction approved, the transaction moves into the submission and settlement phases before it is completed and funds are deposited into your business’s merchant account.

How much do credit card machines cost?

The cost of credit card machines varies based on the type of machine you choose. Basic card readers generally stay under $100, while full-fledged integrated card machines cost upwards of $1,000.

How are credit card machines and card readers different?

Credit card machines and card readers are the same, with card readers being a very basic type of credit card machine. Both credit card machines and card readers are designed to read and send off card information as a part of the authorization stage of credit card processing.

What is a portable card machine?

A portable card machine may be a wireless card machine, mobile swiper, or basic card reader. Each of these credit card machines enables businesses to accept card payments on the go and rely on Wi-Fi to handle data transmission.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

View Erica Seppala's professional experience on LinkedIn.