The Best Credit Card Processing Apps For Small Retail Businesses
Say you have a small retail business. You don’t have a lot of money to invest in a super-complicated POS, and you don’t want to deal with a multi-year processing contract. Frankly, the idea of trying to narrow down the options in both categories at the same time is a little bit daunting. But enter another option: an app for a tablet (or even a smartphone) that bundles payment processing and POS software all in one go, with no contract or commitment. A single app with all (or at least most) of the features a brick-and-mortar storefront could want. But what are the best credit card processing apps for small retail businesses?
Cost is definitely part of the consideration, but more than that you need to make sure any software you use actually delivers the features you need to run your business. Most processing apps tend not to be as full-featured as a full POS, but they are capable of delivering on core needs. After we go over which features should be a priority, we’ll get into the most promising apps that let you process credit cards and run your business together.
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Credit Card Processing Apps For Small Retailers
In addition to choosing apps based on the most useful features, we had two other criteria in choosing the apps: first, they had to be mobile apps for tablets (and preferably smartphones). Second, they must offer a bundled payment solutions. A couple of the options on the list allow you to bring your own processor if you want, but they do offer their own payment option as a default.
In no particular ranking, here are my favorite picks for retail-focused credit card processing apps:
Square (see our review) does have a specialty POS app for retailers, called Square for Retail. That one doesn’t actually make the cut because it’s designed for larger businesses and it actually lacks many features found in the basic free app, Square Point of Sale.
Point of Sale has definitely come a long way from just a basic mobile POS app, and it’s absolutely a solution that will grow with your business. Its clear, transparent pricing strategy (2.75% for swiped/dipped/tapped transactions) and robust app make it an attractive option for retailers. But then there’s the assortment of add-on services (email marketing, appointment scheduling, loyalty, payroll and more) that all integrate seamlessly. Combined with the huge assortment of supported phones and tablets, and the wide mix of supported hardware, and it’s hard not to see the appeal.
While Square does offer payroll and employee management, these features will cost you more — $5 per employee per month for each.
Something I do want to point out: Square does have many iPad-only features, but much of its hardware is equally compatible with Android devices as it is iPads, which is a major departure from most apps that favor the Apple ecosystem.
PayPal is an obvious choice for a lot of retailers, especially those who sell online as well as in person. If you’re not interested in eCommerce, PayPal is still a good option because it does integrate with some very well known POS systems. PayPal also has its own credit card processing app, PayPal Here (see our review).
While PayPal Here is not quite as robust as the other options on this list (especially regarding inventory), it’s a very stable app with great pricing (2.7% per swipe/dip/tap) and a wide array of supported devices and compatible hardware. It’s the only app on this list to support Windows devices at all, and the phones on your tablet or phone doubles as a barcode scanner for both Android and iOS. Plus, you get up to 1,000 free employee accounts.
Plus, near-instant access to funds through your PayPal account is a pretty awesome deal, especially if you get the PayPal Debit card. Add in free sub-user accounts with restricted permissions (something Square will charge you monthly for), and you can see why PayPal makes the cut.
Shopify (see our review) started as an eCommerce offering but these days it’s added a powerful POS app that also works on smartphones as well as tablets. Everything syncs up nicely for a seamless experience whether you’re selling online, in a store, or even on the go, and while the smartphone version of the app is more limited, it’s still quite functional. Shopify’s features definitely line up more with a full-fledged POS than just a mobile POS.
Unsurprisingly, that means it’s a bit more expensive than the two previous options on this list. Shopify’s plans start at a very reasonable $29/month for its online store. If you want the countertop retail solution, that’s a $49 add-on per month, but you don’t need to purchase additional licenses to add more devices, which definitely ups the value.
You can also create staff PINs without creating staff accounts — which means if only a few of you need admin privileges but you do have a large staff and want to track who is running the register, you can get PINs without paying for additional accounts.
However, I do want to call attention to an underplayed solution Shopify offers: its Lite plan. For $9/month, you can sell on Facebook and other social media platforms, add a buy button to your blog, and use the POS app. The caveat is that you can’t add the retail package to it — which means while you have the app, you don’t have support for the receipt printer or cash drawer.
Like Shopify, ShopKeep (see our review) is more of a full-fledged POS than a mobile unit. But unlike Shopify, it’s not an eCommerce solution. It’s an iPad POS targeting all kinds of small businesses: retailers, yes, but also restaurants and quick-service environments. ShopKeep specifically targets small and medium-sized businesses, whereas many of these solutions are happy to tout that they work for businesses of all sizes.
ShopKeep’s user interface is highly intuitive, but also feature-rich, which is a major contributor to its popularity. In addition to its advanced inventory tracking tools, you get employee time-keeping, customizable reporting, and more. It also has a record for excellent (unlimited) customer support via email or live chat.
Sadly, there’s no smartphone app support for processing, but ShopKeep does offer integrated payments. Merchants get an interchange-plus plan based on their volume, which is pretty awesome considering there’s no contract involved, either. Everything is on a month-to-month basis. There’s also an additional $69 monthly charge per register.
Honorable Mention: SumUp
While SumUp (see our review) has a few limitations — it lacks, for example, the ability to process simultaneously on multiple devices — it is overall a solid credit card processing app. The app supports a solid item library and variants, plus convenient tax settings. While there’s no offline mode and no invoicing, SumUp does have an interesting feature in its SMS payments. The app allows you to send a text message to a phone, with a link embedded. Customers can open the link, enter their payment information and complete the transaction.
Pricing is identical to Square for retail transactions: 2.75%. There is no keyed entry option within the app, but the low-priced virtual terminal (at 2.9% + $0.15, even below Square’s rate) is a workaround, though not one you should use for the bulk of your processing.
While new to the US market, SumUp has been operating in Europe for a few years, so it definitely has experience in the processing industry, and so I expect it to see fewer growing pains than other new solutions.
Must-Have App Features for Retailers
It’s safe to say what app features a business needs tends to vary from one business to the next. But there are definitely commonalities — solid inventory management or the ability to print receipts, for example. Check out our comprehensive comparison chart below to see how these systems compare to one another.
|Integrated Processing||Yes||Yes||Yes (Other options available)||Yes (other options available)||Yes|
|Processing Rates (for Most Swiped/Dipped Transactions)||2.75%||2.70%||2.70%||Interchange-Plus based on volume||2.75%|
|Monthly Fee||$0||$0||Plans start at $9/month||$69 per register||$0|
|Number of Devices||Unlimited||Unlimited||Unlimited||1 (additional registers $69/month)||1|
|Tablet Support||Apple, Android||Apple, Android, Windows||Apple, Android||Apple||Apple, Android|
|Smartphone support||Apple, Android||Apple, Android, Windows||Apple, Android||N/A||Apple, Android|
|Email/SMS Receipts||Email/SMS||Email/SMS||Email Only||Email Only||Email/SMS|
|Receipt Printer Connectivity||Bluetooth, Ethernet, USB||Bluetooth, LAN, Wireless||Bluetooth, USB, LAN||Bluetooth, Ethernet||Bluetooth, LAN|
|Cash Drawer Connectivity||Yes (Tablet Only, With Printer Connectivity)||Yes (With Star Printer Connectivity)||Yes (iPad Only, with Printer Connectivity)||Yes (With Printer Connectivity)||Yes (with Printer Connectivity)|
|Barcode Scanner||Yes (Bluetooth for iPad only; USB for Android)||Yes (USB for windows, device camera for iOS/Android)||Yes (Bluetooth)||Yes (Bluetooth)||No|
|Offline Processing Mode||Yes||No||Very Limited||No||No|
|Full and Partial Returns||Yes||Yes||Yes (including store credit)||Yes (Check store credit)||Full Only|
|Sub-User/Employee Accounts||Yes (monthly fee)||Yes (free)||Yes (PINS/accounts)||Yes||Yes (Limited)|
|Discounts by $ or %||Yes||Yes||Yes||Yes||No|
|Bulk Item Upload||Yes||No||Yes||Yes||No|
|Create Item From App or Dashboard||Yes||Yes||Yes||Yes||No (App Only)|
It’s worth mentioning that many of these systems have FAR more features that we don’t cover in this chart (think: virtual terminals, eCommerce support, supported integrations, etc.). If you really want to learn what a system is fully capable of, I recommend checking out our complete review of each credit card processing app.
Processing with Square or PayPal Here? Up Your Inventory Game with Shopventory
With retail environments, inventory is usually a major concern. Shopventory is a monthly add-on that works with Square, PayPal Here, and the Clover system (except Clover Go). It allows for inventory tracking and reporting, bundling, variants, and more. The biggest difference will be that you’ll no longer be using your credit card processing app for inventory reports or management. Everything will be done through Shopventory’s dashboard. Check out our Shopventory review for more information.
When it comes to software and processing, there isn’t a good one-size-fits-all solution for merchants. Every business’s needs are unique, so what works best for one business may not be good for another. Many of the credit card apps we’ve listed here have no monthly fees, and others offer free trials or a free pricing quote. They are all top-rated offerings, as well. The biggest difference you’ll find is the feature sets and little differences in the user interfaces.
If you’re on the fence about which to choose, I recommend checking out our full reviews of each product. Got questions? We’re always here to help, so please leave us a comment!
As always, thanks for reading!