10 Things To Look For In A Credit Card Reader

A credit card reader lets your business accept in-person card payments. This guide explains what to look for so you can choose the best reader that fits your payment methods, POS system, and budget.

Choosing A Credit Card Reader For Your Business

Consider the following factors when choosing your card reader:

• Monthly processing volume: Businesses with higher processing volume may save money with a traditional merchant account and interchange-plus pricing, while newer or lower-volume businesses may prefer a payment service provider such as Square or Shopify.
• eCommerce features: Choose a card reader and POS platform that can sync in-person and online sales, inventory, customers, and reporting. Businesses that sell only in person may not need eCommerce features.
• Industry: Restaurants and retailers may need readers that work with industry-specific POS features, accessories, and payment workflows.
• Backup usage: If you have a full countertop system already, a low-cost mobile reader can provide another way to accept payments, but it should support EMV chip or contactless transactions whenever possible.

10 Things To Look For In A Credit Card Reader

Here’s what to look for before purchasing a credit card reader for your business:

• Offline payment support: Some readers let you accept payments during an internet outage and submit them later. Check the limits, reconnection requirements, and merchant liability for declined transactions.
• Flexible contracts: Pay-as-you-go or month-to-month billing gives you more flexibility than a long-term contract. Review cancellation terms, equipment obligations, and early termination fees before signing.
• POS software: Evaluate the app that comes with the reader, including its usability, inventory tools, reporting, tipping, invoicing, integrations, and monthly cost.
• EMV chip support: Choose a reader that accepts chip cards to reduce counterfeit fraud risk and avoid liability that may apply when chip cards are processed using less secure methods.
• Contactless payments: NFC support lets customers pay with contactless cards and mobile wallets such as Apple Pay and Google Pay.
• Battery life: Choose a reader that can last through your typical sales day. Actual battery performance depends on usage, connectivity, and device age.
• Funding times: Compare standard deposit schedules, weekend availability, first-deposit delays, and instant-transfer options. Instant transfers often cost extra.
• Customer support: Review support hours, contact methods, response times, and whether emergency payment assistance is available when your business is open.
• Device compatibility: Confirm that the reader works with your phone, tablet, operating system, and POS app. Bluetooth does not guarantee compatibility with every device.
• Alternative payment options: Depending on how you sell, you may also need payment links, QR code payments, digital wallets, invoicing, or Tap to Pay.

Getting Started With Credit Card Readers

With all the different models and types of credit card readers out there, there’s one for just about any business that takes physical payments from customers.

Once you know what a credit card reader is and how a card reader can benefit your business, you’ll be equipped to accommodate your customers’ evolving payment preferences. It also helps to understand how card reader fees work and which type of pricing scheme for processing best fits your business model and processing volume.