Looking For The Best Credit Card Reader For Small Business? Try These 7 Options

Get Started with Square POS

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Square Point of Sale is easily the most powerful free mobile processing app available. It offers not just mobile credit card processing but also inventory tracking, invoicing, advanced reporting, a free customer database, a free online store, a “buy” button to sell online without a website, and many other features. Square is always innovating and updating its software features, so new functions are added all the time.

Both the app and the portable credit card reader are free to use. Square will even send you a free headphone jack or lightning port reader to accept magnetic stripe credit card payments with your device. If you want a Bluetooth reader that can accept chip cards and contactless payments, Square offers the Square Reader for contactless and chip, pictured above, for $49.

As for mobile processing rates, you’ll pay a flat 2.6% + $0.10 for all card-present transactions. This type of flat-rate processing usually works out great for lower-volume sellers (processing <$10,000/month) with smaller ticket sizes (such as coffee carts and food trucks). However, higher-volume sellers will get a better deal if they get their own merchant account. After you process a payment with Square, funds are deposited in your bank account within one to two business days for no added fee. You can also pay a fee to receive an instant or same-day transfer to your bank account.

The best thing about Square is that it is completely risk-free to try out or to install as a backup POS in case your primary POS goes down. Even if you never use it, you won’t have to pay a monthly fee, and you won’t be out any money because the credit card reader itself is free. No matter what type of small business you own, it’s a good idea to have a Square credit card swiper in your back pocket — literally!

Read our guide to Square POS hardware for more information.

Pros

Free headphone jack/lighting port reader
No monthly fee
An inexpensive contactless and chip reader
Simple flat-rate processing

Cons

Not as cost-effective for high-volume sellers
Occasional fund holds

2. SumUp

SumUp

SumUp is a European company that opened up processing for US merchants in 2017. While it’s not as comprehensive as other options (for instance, it doesn’t include discounts or invoices), it does everything most merchants will need to do. It’s also worth noting that SumUp operates in quite a few countries across Europe (including the UK) as well as South America, which makes it an interesting global solution.

Similar to Square, there is no monthly fee for using the SumUp app, and transactions process at a flat 2.75% each. If you process many small transactions, this rate is better than Square’s because that extra $0.10 Square tacks on adds up for transactions under $10. Funds are deposited in your account in one to two days.

SumUp’s Bluetooth-connected mobile card reader, the SumUp Plus, is similar in appearance to Square’s and Clover’s readers and can accept swiped, tapped, or dipped payments. Additionally, the SumUp Plus has a PIN pad integrated, just like the company’s European reader.

You can get the SumUp reader for $19 in the US, which is a really good price for an all-in-one reader — I don’t think there is any cheaper NFC-capable reader. Outside the US, prices and card reader options vary. SumUp also recently introduced the SumUp Pro card reader for $59. This nifty-looking pocket reader comes with a built-in SIM card, free unlimited mobile data, and wi-fi connectivity.

Pros

Cheapest contactless reader
No monthly fee
International solution

Cons

Basic feature set
Some issues with holds on funds and account terminations

Get Started with SumUp

3. Stax By Fattmerchant Mobile

Stax By Fattmerchant Mobile

Get Started with Stax By Fattmerchant Mobile

While most mobile credit card readers are geared toward micro-merchants, Stax Mobile sets itself apart by offering mobile processing for larger businesses. In addition to mobile processing, Stax by Fattmerchant also offers a whole suite of integrated omnichannel payment options, including a virtual terminal and text payments. Stax can work for mobile-only merchants or for multichannel selling for merchants who need mobile and online selling channels.

Stax offers highly competitive 0% interchange-plus processing fees. Monthly pricing starts at $99/month for processing and software, with more feature-rich packages being offered for $159/month and $199/month respectively. Though $99/month is a high membership fee for processing compared to our other options, this is an excellent rate for higher-volume mobile merchants processing more than $10K/month, particularly if your average ticket size is at least $75. Plus, the 0% interchange-plus processing rate is hard to beat!

Stax offers a few different mobile credit card readers that work with the Stax Mobile app, starting at $75 apiece, with the pocket-size Bluetooth-connected swipe, EMV, and NFC reader Chipper™ 2X BT representing the most affordable NFC-capable option. These mobile readers are pretty basic and similar to the one PayPal Here uses. Still, they are fully capable of accepting Apple Pay, contactless cards, or any other credit card.

Using the Stax Mobile app, you can email receipts, add tips, send invoices, and more. In addition to processing payments with the reader or scanning credit cards with the app, you will also have the option to text customers a payment link so that they can pay remotely — which is ideal for socially-distanced selling.

The Stax Mobile app does not allow you to connect to any peripheral hardware (such as a cash drawer or hand scanner), so keep in mind that Stax Mobile is a mobile-only solution despite being designed for larger businesses.

Pros

0% + interchange-plus markup pricing
Text-to-pay option with a Pro subscription
Excellent deal for high-volume businesses with large tickets
Comes with your own merchant account

Cons

Expensive for low-volume and small-ticket merchants
Somewhat basic card readers

4. SwipeSimple

Payment Depot Mobile

Get Started with Payment Depot Mobile

SwipeSimple is a mobile credit card reader and app made by a company called CardFlight and is available through several merchant account providers. Here, we’re focusing on SwipeSimple from Payment Depot, as this provider has the best terms and fees for SwipeSimple.

SwipeSimple has all the core features mobile merchants need, plus a few extras, such as a virtual terminal. With Payment Depot, you can get the SwipeSimple app for just $10/month and transaction processing at 2.6% + $0.10 (a Merchant Maverick reader exclusive), with 24-48 hour deposits. These rates make this reader suitable for any low-volume mobile business.

What sets Payment Depot apart is that it will give you your own merchant account, whereas most of the others in this list use the third-party aggregating business model. That means SwipeSimple (by Payment Depot) carries less of a risk of an account hold or termination as long as you do not operate an inherently high-risk business. Yes, it’s a little more expensive than Square, but for businesses burned by a third-party processor in the past, that $10/month fee could be well worth it.

Payment Depot offers new merchants a free chip and swipe reader, the Swift B200, which connects via Bluetooth. If you’re interested in contactless payments, you can get a swipe, chip, and tap reader — the Swift B250 — for just $25.

Pros

Comes with your own merchant account
Less risk of account holds and terminations
Free Bluetooth chip card reader
$25 contactless reader

Cons

More expensive than Square (same processing rate, plus $10 monthly fee)
A somewhat basic feature set

5. Helcim

Helcim

Helcim is an excellent option for small to medium-sized businesses looking for interchange-plus pricing and a full suite of features. Helcim is also scalable in that you can use it either for mobile processing only or on a tablet or desktop. However, Helcim isn’t well suited to low-volume mobile merchants; it’s fine for merchants processing at least $5,000 to $10,000/month but ideal for businesses processing upward of $25,000. The more you process, the lower your rates.

Helcim is super transparent about its payment margins, which start at 0.30% + $0.08 for merchants processing $0-$25,000/month and reduces to 0.25% + $0.08 if you process $25,001-$50,000. If you process $50,001 to $100,000, you get another 0.05% price drop, and it keeps going down from there. Like popular payment service providers (PSPs) such as Square and PayPal, Helcim has no monthly fee and bills on a month-to-month basis with no long-term contract. However, the company offers a true, full-service merchant account, minimizing the chance that your account will suddenly be frozen or shut down. Helcim also comes with a slew of features, including customer management, inventory tracking, and foodservice management.

As for the reader itself, the NFC-friendly Helcim Card Reader is $199 with an optional $79 reader countertop stand. It works across devices, and while more robust than a traditional mobile card reader — it includes a PIN pad and everything — it is also fully mobile. Helcim is a great compromise for low-risk businesses that want the ease, flexibility, and transparency of a third-party processor (e.g., Square, PayPal Here, Shopify Lite, SumUp, etc.) but the stability of having your own merchant account, with interchange-plus pricing and no long-term contract.

Pros

Interchange-plus fee structure (cheaper for higher-volume businesses)
The mobile reader can accept debit cards
Mobile, tablet, and desktop-compatible
No monthly fees or long-term contracts

Cons

Higher upfront costs than a third-party mobile processor
Not for low-volume sellers

Get Started with Helcim

6. Shopify Lite

Shopify Lite

Get Started with Shopify Lite

Shopify Lite is an excellent mobile credit card processing solution for retailers who sell at craft fairs, pop-up events, or even on social media. While you’ll pay $79/month for the full-fledged Shopify POS designed for a countertop set up with a cash drawer and receipt printer, Shopify’s mobile solution, Shopify Lite, is offered for just $9/month.

Shopify Lite supports sales through social media and a buy button on your website and provides access to the mobile POS. The Shopify Lite plan also includes a mobile invoicing feature. Everything syncs between your in-person sales and any online sales through Facebook. In-person transactions with Shopify Payments process at 2.7%; payments typically arrive in your bank account after 24 to 72 hours.

The key POS features are the same in the Lite plan as other Shopify service plans; the big difference is the lack of hardware support, limited staff PIN access, and limited online selling options. Sellers with a brick-and-mortar retail store may prefer the Shopify POS package, which has an in-person processing rate of 2.5% and more advanced features, including a full-fledged Shopify online store.

You can buy a $29 Shopify Chip & Swipe reader when you sign up for Shopify Lite (or any Shopify plan), or you can upgrade to a $49 Tap & Chip Reader to accept contactless payments. Add a $19 case (pictured above) if you want to attach that reader to your iPhone X or Xs.

Read our guide to Shopify POS hardware to learn more.

Pros

The monthly fee is only $9
Simple flat-rate processing
Social media integration for online sales
Mobile invoicing

Cons

Doesn’t include a full online store
No foodservice features

7. PayPal Zettle

PayPal Zettle

Next to Square, PayPal Zettle is probably the best-known mobile credit card app on the market. It’s not as robust as Square, but it does have all the essentials that merchants need, plus invoicing. If you use PayPal to sell online, all of your data syncs up, which is a big draw. PayPal is entirely pay-as-you-go, with no monthly fees. Swiped, dipped, or tapped transactions process at 2.29% + $0.09 each. With its flat-rate pricing and lack of a monthly fee, PayPal Zettle can work great for any small, low-volume business, even if you’re not a PayPal seller. What’s more, transactions process at a lower rate than with Square.

Another major benefit of PayPal Zettle is instant transfers to your PayPal account, which you can use for immediate online spending. PayPal also has an instant transfer option to move funds to your bank for a 1.5% fee (the minimum fee is $0.25; the maximum is $15).

Since PayPal began offering Zettle as its mPOS app (its former mPOS system, PayPal Here, is no longer offered to new merchants), it has narrowed its card reader offerings down to one: the Zettle Reader 2. Your first reader will cost $29, with each subsequent reader costing $79.

$29 is a very reasonable price for a reader that accepts chip (EMV), contactless (NFC), and PIN payments. It doesn’t accept magstripe transactions, though this limitation becomes less significant with each passing day. You can also get a dock for the device for $49 if you don’t want to worry about your reader losing its charge during your sales day.

Pros

Cheaper than Square
Instant transfers to PayPal account
No monthly fee
Includes mobile invoicing

Cons

Some issues with holds on funds and account terminations
Not as many features as Square