Best Credit Card Readers For Small Business

The Square Contactless + Chip Reader is a simple but effective peripheral for taking credit card information:

• EMV chip reader (except on free magstripe reader)
• NFC payments enabled (except on free magstripe reader)
• Connects through a lightning port or 3.5 mm headphone jack
• Sleep mode to conserve power
• Offline mode

This last feature — offline mode — is very important for sellers at craft fairs, markets, and conventions. Internet connections in these settings can be tenuous at best, and Square’s offline mode lets you take payments when you don’t have a working connection and then transmit them later when you do.

As for Square’s free mPOS package, it’s one of the best such offerings around. This is just some of what you’ll get:

• Customer engagement tools
• Reporting
• Inventory and team management
• Invoicing
• Gift card support

Square still offers a free magstripe reader with each new account, but this device is limited and quite obsolete in terms of payment security. You shouldn’t use it for anything more than very occasional payments or as an emergency backup card reader.

If you want a Bluetooth reader that can accept chip cards and contactless payments, Square offers the Square Reader for contactless and chip. The second generation contactless/chip reader sports a longer battery life and improved connectivity/security over the first generation model.

• Square Reader for magstripe: $0 for your first reader when you sign up; $10 thereafter
• Square Reader for contactless & chip (second generation): $59
• Dock for contactless & chip reader: $39

For mobile processing, you’ll pay a flat 2.6% + $0.15 for all card-present transactions. This type of flat-rate processing usually works out great for lower-volume sellers (processing under $10K/month) with smaller ticket sizes (such as coffee carts and food trucks). However, it can be relatively expensive for higher-volume businesses.

Square doesn’t charge a monthly fee for its standard services, although some optional advanced services have additional fees. Square also offers paid specialty POS packages for appointment-setting, restaurants, and large retail businesses.

You can use Square on a month-to-month basis without signing a long-term contract or dealing with early termination fees or monthly minimums, all of which is good news for merchants.

The flip side of this is that Square is a payment service provider (or PSP) and does not offer full individual merchant accounts. With PSPs, there’s always a higher risk of funding holds and account terminations. However, the advice in the guide we linked to above can help you minimize this risk.

Helcim’s single card reader is small and multifunctional.

• Takes chip, NFC, and PIN-enabled payments
• Connects via Bluetooth, USB cable, or Wi-Fi
• Has a display and PIN pad
• Comes with a free countertop stand
• Compatible with the OtterBox uniVERSE Case System for phones and tablets

Helcim’s POS offers the following:

• Email receipts
• Inventory and customer tracking
• Analytics and reporting
• Batch history
• Card on file
• Foodservice management

At $99, the Helcim Card Reader is a bit pricier than the competition, but it does come with a free countertop stand, available in several different colors.

Helcim’s card-present processing rates start at interchange fees plus Interchange + 0.15-0.40% + $0.06-$0.08, with a reduced rate for higher volume businesses. The more you process, the lower your rate.

Helcim is also one of the very few traditional merchant account providers that both a) charges no monthly fees and b) refunds your chargeback fee if you are found to not be at fault in the investigation. Each of these points highlights Helcim as a uniquely business-friendly merchant services provider.

Offering month-to-month agreements with no multi-year contracts, Helcim offers the contract flexibility of Square while offering the stability of a unique merchant account. Helcim is a remarkable deal for mid- to high-volume businesses.

• Clover Go reader accepts chip card and NFC/contactless payments
• Older magstripe-enabled Clover Go readers still available from some online retailers
• Connects via Bluetooth
• Micro USB for charging
• Compatible with iOS and Android

You’ll also get the following with the Clover Go POS:

• Card scanner for virtual terminal entries
• Clover Suite integration
• Tap-To-Pay on iPhone is available through the Clover Go app
• Virtual terminal
• Real-time sales tracking, advanced reporting, inventory management, and itemized orders available when you get a paid Clover Essentials plan through Clover.com

If you buy a Clover Go mobile payment reader directly from Clover.com, you’ll pay $49. If you buy the device through a merchant services provider, pricing may vary from free to over $100.

Clover is compatible with many payment processors, but should you buy directly from Clover.com, you can choose between Clover Payments for $0/month and Clover Essentials for $14.95/month. In-person transactions are charged a flat processing fee of 2.6% + $0.10.

Buy directly from Clover, and you’ll get month-to-month pricing with no long-term contracts required. If your sales volume is north of $5K-10K/month, however, you may be able to save money on processing and/or hardware/software with a reputable reseller.

The key word here is reputable. Sadly, there are quite a few shady Clover resellers out there that employ independent sales agents who will try to rope you into signing a long-term contract with onerous terms. Avoid these resellers! Instead, either buy from Clover directly or go with a reputable reseller like National Processing.

Square Handheld boasts a lot of features, including the basics as well as a few unique features you won’t find with most card readers:

• Accept dipped, tapped, and QR code payments
• Magstripe payments accepted with a Square Card Reader
• Built-in barcode scanner for easy inventory management
• Built-in camera to take photos of inventory or add client photos to profiles
• 7 modes, including Quick Service and Retail mode
• Offline mode

Square Handheld comes preloaded with Square’s proprietary POS software, which includes:

• Payment acceptance online and in-person
• Inventory management
• Employee management
• Reporting

You can purchase Square Handheld for $399, or you can take advantage of monthly payments if you want a lower upfront cost.

Square’s POS software is free and includes everything you need to get started. Upgraded plans for restaurants and retail shops, as well as add-ons for things like advanced team management and marketing, are available for a monthly fee.

Square Handheld uses Square’s standard flat-rate processing at 2.6% + $0.15 per transaction per in-person transaction.

Square offers month-to-month contracts. Since Square is a payment services provider, your account may be subject to holds or terminations.

The two SwipeSimple readers — the B200 and the B250 — offer a good amount of versatility between them:

• EMV chip payments (B200 & B250)
• NFC payments (B250)
• Magnetic stripe reader (B200 & B250)
• Optional dock (B250)

The SwipeSimple mPOS app has some solid features as well.

• Text and email receipts
• Basic inventory management
• Invoicing
• Offline mode

Unfortunately, HMS doesn’t disclose its pricing for the SwipeSimple B200 or B250 online.

Host Merchant Services offers interchange-plus pricing, which works to the benefit of merchants processing upwards of $5K-10K/month. Here are the per-transaction rates posted by HMS for lower-risk retail and restaurant businesses.

• Retail: Interchange + 0.25% + $0.10 per card-present transaction
• Restaurant: Interchange + 0.20% + $0.09 per card-present transaction

Bear in mind that the highest-risk merchants will have to pay higher processing fees than the posted rate for lower-risk merchants. This isn’t a mark against HMS — this is true for every credit card processor that offers payment processing for both low and high-risk businesses. However, you can still negotiate the best rate you can.

Additionally, HMS charges a $14.99 monthly account fee.

Low-risk merchants can get month-to-month contracts with no early termination fees, which we love to see. However, high-risk merchants may have to sign a three-year contract and agree to an early termination fee. Again, this is standard industry practice in the high-risk processing space — you almost certainly won’t be able to avoid signing such a contract if you want to accept credit cards as a high-risk merchant.

Always know what you’re agreeing to, and get a quote from a competing processor if you think you can get a better deal with another SwipeSimple reseller. The fact remains, however, that HMS is one of the most reputable high-risk specialists in the payment processing industry.

Square Terminal does a pretty good job bridging the gap between a mobile reader and a full POS system while making a few sacrifices in portability and screen size.

• Standalone touchscreen device
• Accepts chip, NFC, and magstripe payments
• Connects via Wi-Fi or Ethernet
• Contains a built-in receipt printer
• Excellent battery life
• Show your customers an itemized list of their purchases prior to completing the sale

You’ll also get all the POS features we mentioned in the Square Contactless and Chip Reader section.

Square Terminals cost $299, with Square offering financing for $27/month for 12 months. If you want to attach additional hardware to the terminal, you’ll need to purchase a Hub, which costs an additional $39.

Square Terminal uses Square’s default card-present pricing model. You’ll pay 2.6% + $0.15 per transaction. There’s no monthly fee for the base POS.

With Square, you’ll get month-by-month agreements. You’ll never have to sign a long-term contract or pay an early termination fee.

Here’s what the PayPal Card Reader does for you.

• Features a display
• Accepts chip cards
• Accepts contactless/NFC payments
• Accepts PIN payments
• Accepts PayPal and Venmo QR code payments

And here’s what the free PayPal POS gives you:

• Flat-rate payment processing
• In-app invoicing
• Same-day funding to your PayPal account
• Item library
• Reporting
• Discounts
• Refunds and partial returns
• Support for register setup

The PayPal Card Reader costs $29 for your first device and $79 for any subsequent devices you order.

PayPal Point of Sale software is free; there is no monthly fee. As for payment processing, you’ll pay 2.29% + $0.09 per card-present transaction and QR code transaction. This stands in contrast with PayPal’s online processing rates, which are quite high.

PayPal Point of Sale offers month-to-month agreements with no long-term contracts, early termination fees, or monthly minimums. Just remember that with PayPal, as with any PSP, you should take steps to minimize the risk of a funding hold or account termination.

SumUp offers two mobile card readers: the PIN-enabled SumUp Plus and the all-in-one touchscreen SumUp Solo.

• Both readers accept contactless and chip card payments
• The SumUp Plus also accepts magstripe payments
• The SumUp Solo comes with a free charging station and can be ordered with an optional built-in receipt printer
• The SumUp Plus can be bundled with a charging station for $10 extra

The SumUp POS app includes some basic features as well.

• Item library
• Product variants
• Cash recording
• Tipping
• Basic analytics
• Multiple tax rates
• Email and text receipts
• QR code payments

Here’s what you’ll pay for SumUp’s card readers.

• SumUp Plus: $54
• SumUp Plus Cradle Bundle with charging station: $64
• SumUp Solo: $99
• SumUp Solo Printer Bundle: $169

There is no monthly fee for using the SumUp POS app, and transactions are 2.6% + $0.10 for in-person transactions.

As is typical with a PSP, SumUp offers month-by-month arrangements with no long-term contracts, no early termination fees, and no monthly minimums.

With a profile similar to that of a smartphone, the Toast Go 2 gives you the following:

• Takes chip card, NFC/digital wallets, and magstripe payments
• Designed to be tucked into your back pocket or apron
• Spill-proof, drop-proof, and dust-proof, according to Toast

Your restaurant POS features will vary depending on which of the many subscription plan variations you get from Toast, but a full suite of ordering, takeout, delivery, employee management, payroll, and scheduling tools are available.

Toast Go’s pricing can vary substantially depending on which plan you sign up for and whether you need multiple units.

When you get the Handheld Kit with the Starter Kit that includes the Toast Go 2 reader, you can get the device for free and pay no monthly fee if you agree to a higher payment processing rate. If you choose the plan with a lower processing rate, you’ll pay $799.20 up-front for the device/software and pay $69/month on an ongoing basis.

Just know that with both plans, you’ll have to sign a two-year contract, and with the no-monthly-fee plan, there’s an $85/month “inactivity fee” if you don’t accept a payment for a 90-day period.

Other plans are offered that include full countertop POS systems and support for eateries with several locations.

Processing fees for the free plan are 3.09% + $0.15 per card-present transaction and 2.49% + $0.15 per card-present transaction for the standard plan.

The standard plan costs $69/month and $9/month for each additional employee. If you want online ordering, delivery, and takeout features, you’ll need the Growth plan, which costs $165/month. This plan lets you get the hardware setup of your choosing.

Pricing for the most advanced plans and for custom plans is quote-based.

Unfortunately, Toast requires users to sign two-year contracts. These contracts include an early termination fee. That, plus the $85/month inactivity fee that applies to the pay-as-you-go plan, is far from ideal.

Toast has a lot to offer a wide variety of eateries, but if you sign up with the company, know what you’re signing up for. Read your contract very thoroughly before agreeing to anything, and try to negotiate with the company regarding any disadvantageous conditions if at all possible.

The Shopify Tap & Chip Reader offers the following:

• Takes chip card and NFC/contactless payments
• Designed to fit in your hand comfortably
• Connects to your phone or tablet via Bluetooth
• Optional dock available

As covered in our Shopify POS review, Shopify’s basic POS offers limited functionality, including limited staff access, simple customer profiles, and returns at the original purchase location. Serious retailers will need Shopify POS Pro, which offers:

• Unlimited staff with staff rolls and permissions
• Rich customer profiles
• Customer loyalty insights
• Returns and exchanges at any location
• Inventory management
• Professional retail reports
• Omnichannel selling

The Shopify Tap and Chip Card Reader costs $49. You can purchase a charging dock for it for $40.

The new Shopify POS Go device, an all-in-one touchscreen card reader + barcode scanner that runs Shopify POS natively, costs $299.

You can get access to the basic POS for $5 with the Shopify Starter plan, but this plan has two big drawbacks. The first is that you won’t get a full online store; the second is that your card-present processing rate will be an eye-popping 5% per transaction.Shopify offers month-to-month agreements with no early termination fees. However, if you opt to pay annually and you cancel your subscription before the year is up, you won’t get a partial refund.

If you process payments with any regularity and/or you want to connect your in-person operations to an online store, you’ll need at least a Shopify Basic plan, which costs $39/month with a month-by-month plan and $29/month if you pay annually. Your card-present processing rate with Shopify Payments will then be a much more reasonable 2.7% per transaction. Merchants with small average tickets will appreciate the lack of a $0.10 fixed fee here.

Shopify POS Pro will set you back $89/month/location. Separately, Shopify’s two more advanced online store plans ($79/month and $299/month respectively when paid annually) offer discounted in-person processing rates of 2.5% and 2.4% per transaction, respectively.

Payments typically arrive in your bank account after 24 to 72 hours.

Shopify offers month-to-month agreements with no early termination fees. However, if you opt to pay annually and you cancel your subscription before the year is up, you won’t get a partial refund.