So You Want To Accept Credit Card Payments On Your Phone

I can hardly believe it’s been a decade since I started feeling inundated with comments about how mobile is the future of everything. And I do mean everything. However, there is one area where that is absolutely, 100% true: credit card processing and point of sale (POS) systems. A Juniper Research study predicts that by 2023, mPOS (that is, mobile POS) systems will be responsible for almost a quarter of all POS transactions globally. That will be an estimated 87 billion transactions annually. The US and Canada are currently leaders in mobile POS/mPOS technology such as Square Payments, and it’s not going to go away any time soon, but plenty of other countries around the world will experience the same sort of surge in popularity as technology becomes more widespread and more affordable.

If you’re reading this, you likely want to be part of the action, and start accepting payments on your smartphone. Or your tablet. Or maybe even both! What next? Where do you start and how do you make a decision as to which software/payment processor to choose? As Merchant Maverick’s specialist for mPOS software, I’m here to help you figure out if mobile processing is right for you (spoiler alert, there’s a really good chance an mPOS could be a great choice for you). I’m also here to help you figure out which features are the most important.

We’re not including iPad POS systems in this post, in part because they don’t work on smartphones, and also because they tend to be more designed for countertop register setups than for mobile use. If that’s what you’re looking for, we recommend checking out our iPad POS reviews.

If you want a highly flexible POS that will run on a smartphone, read on! We’ll talk about software features as well as mobile credit card readers. And then we’ll discuss some of the best mPOS options available in the US at the moment.

See why Square is our #1 pick for iOS and Android smartphone credit card processing

Reader	eCommerce	Retail	Food Service
Free App & Reader	Square eCommerce	Square for Retail	Square for Restaurants
Get Started	Get Started	Get Started	Get Started
Free, general-purpose POS software and reader for iOS and Android	Easy integration with popular platforms plus API for customization	Specialized software for more complex retail stores	Specialized software for full-service restaurants
$0/month	$0/month	$60/month	$60/month
Always Free	Always Free	Free Trial	Free Trial

Who Needs Mobile Payment Processing?

You probably have a specific image in your head of who uses mobile processing apps and mobile card readers to accept credit cards. And you’re probably right — but whoever you’re thinking of, they’re not the only ones who rely on that technology. Here are some of the industries where mobile POS systems are popular, if not absolutely essential:

Arts & Crafts

Do you sell your wares at conventions, art shows, and other pop-up events? You could be an artist, an author, a quilter/seamstress, or a jewelry maker, just to name a few. If you rely on local events rather than a storefront to sell your wares, a mobile POS system designed for low-volume businesses with no monthly fee is ideal for your business, because it means you don’t need to pay for the software when you aren’t using it. You probably won’t need a lot of advanced features, but keep in mind that you can get pretty solid inventory management on a mobile system.

Direct Sales

If you’re in direct sales — that is to say, you are one of the independent consultants who sell makeup products, clothing, candles, kitchen products, and the like — you almost certainly rely heavily on parties to hawk your wares, in addition to selling online or at pop-up events. Instead of trusting your customers to bring cash, or having to wait and hope checks will clear, the ability to accept credit card payments on the spot can help ensure you get those last-minute impulse buys. A mobile POS with intermediate to advanced inventory, discounting, and flexible tax settings will make a world of difference.

Food Trucks & Farmers Markets

Having a small POS system is a must in the cramped quarters of a food truck. Whether you want a tablet stand with a small footprint, or you opt just for a smartphone and mobile reader, the point is that a mobile system is definitely the right choice. Being able to send digital receipts (SMS or email) means you don’t have to bother with a receipt printer taking up space — and you don’t have to worry about connecting it to the Internet either.

However, food trucks are far from the only food-related businesses that rely on smartphones and tablets. While I’ve definitely encountered vendors at farmers markets who only take cash, most of them have a mobile POS to accept card payments these days. A mobile POS system with multiple user logins is definitely an advantage if you have a team that sells at several different weekend markets, too.

Restaurants

Even established restaurants have adopted mPOS apps. A handheld device with the entire menu loaded on it can make taking orders more reliable, especially if, for example, the POS prompts you to input preferences for sides and toppings rather than assuming the default. Even casual restaurants where you might place an order at the counter are using mobile devices, with roaming servers who can stop by a table and place additional orders rather than requiring them to get up and go back to the counter.

And of course, there’s another big advantage to having mobile card readers: the ability to process credit cards right at the table. No more needing to walk away with a customer’s card when the server can simply swipe it at the table and hand it back. Some restaurant-focused mobile POS systems now have a feature that let tablets function as self-service kiosks where customers can place their orders and pay their checks at the table without a server present, too.

Service & Mobile Businesses

If you don’t have a brick-and-mortar office or base of operation where customers visit you, having a mobile app and credit card reader is absolutely essential. Being able to accept payment on-site means you get paid faster than if you were to wait on an invoice or check, and it gives you a more professional image as well as greater credibility.

Just some of the service businesses that could benefit from being able to accept payment via smartphone or tablet include carpet cleaners, plumbers, lawn care, mobile dog groomers, exterminators, personal trainers, hairstylists and makeup artists, web designers, and many more. I even know a massage therapist who sets up her massage chair in the game room of a local game and hobby store one night a week, and she uses a mobile POS to take payments.

Retailers

Even businesses that do have brick-and-mortar shops are finding an advantage in using mPOS systems with mobile card readers. In many cases, a smartphone or tablet with a card reader can be used for line busting, or even allow customers to complete their purchases right on the sales floor rather than having to find a register.

How To Accept Credit Card Payments With Mobile Credit Card Apps

With mobile processing, it’s very rare that you, the merchant, can pick a mobile POS app and then choose who you want for a credit card processor. The two are very closely entwined, but keep in mind that some software providers do team up with multiple payment processors, so several companies might offer the same software on different terms. But let’s explore payment processing in more detail:

Businesses have two ways to accept credit card payments: applying for a merchant account or signing up with a third-party processor (also called an aggregator). Generally speaking, merchant accounts are highly stable and not prone to sudden holds or account terminations. The trade-off is that they can take a bit of time to set up, may require negotiation, and often want to see proof of an established business, ideally with a monthly processing volume upwards of $10,000/month.

A third-party processor, or aggregator, works by setting up one giant merchant account in the company’s name and signing up all merchants as sub-users of its merchant account. The vetting process is less intense than with a merchant account, usually only requiring you to verify your own identity, and you can be approved and set up to process payments in under a day. Typically you don’t need to have any sort of processing history or meet a minimum threshold. However, in exchange for that convenience, you do face a risk of sudden account holds or terminations.

Third-party processors rely heavily on machine learning to analyze and flag suspicious transactions, which can put a damper on your cash flow if something seems out of the ordinary. However, merchant account providers do occasionally hold funds if their systems spot an anomaly or red flag, too. Learn to protect your business regardless of which type of processor you choose with our article on how to avoid holds, freezes, and terminations.

Ultimately, it’s up to you to decide what kind of processor you want to work with. While yes, many merchant accounts are targeted at higher-volume businesses, that’s no longer exclusively the case.

Comparing Pricing Plans with Mobile Processors

One of the features I’ve come to expect with mobile processors is flat-rate pricing. That’s because it’s a pricing structure favored by third-party processors, who more or less pioneered the mobile POS industry. Flat-rate pricing is simple: you pay the same amount per transaction (2.75%, for example), regardless of the card type or the size of the transaction. It works out to be a bit of a numbers game: you pay more for some transactions than you might with other pricing plans (specifically interchange-plus plans), but you also save money on others (usually American Express or corporate/rewards cards). This kind of pricing tends to lead merchants with very small transaction sizes (under $10 on average) to save the most money.

Another type of flat-rate pricing is a combined percentage and set fee, such as 2.6% + $0.10. For merchants with large transaction sizes, this type of pricing tends to be most favorable, but those with small tickets will end up paying more than with just a percentage fee, assuming the quoted rates are similar enough. However, please keep in mind that I am speaking broadly about this trend, so when given the numbers you should do a bit of math to see what you’d actually end up paying based on your volume and transaction size.

The other pricing plan sometimes provided with mobile credit card processing apps is interchange-plus, which is a pricing model commonly used with merchant accounts. In this case, you’ll pay the interchange costs and a small processor markup. The markup can be a mix of percentage and flat fees (such as interchange + 0.2% + $0.20) or just a flat transaction fee (interchange + $0.15). The latter is most common with subscription-based plans, where you’ll pay a larger monthly fee in exchange for a 0% markup.

Which brings me to the next point: software, subscription, and/or service fees.

In addition to the transaction fees for payment processing, some providers do charge a monthly fee — either for account maintenance or the software, or both. While no monthly fee is ideal for businesses that may not make sales on a regular basis, sometimes the software or the service can justify a monthly fee for an mPOS, especially if your monthly sales are fairly consistent (or trending upward steadily). If a processor charges a monthly fee for their mobile service plan, it usually starts around $9-10, and can go up from there. This is often a justifiable cost, and it shouldn’t deter you from choosing a provider with a monthly fee, so long as the features all meet your needs.

However, keep in mind that if you opt for a traditional POS that has a mobile app and plan to use both, your pricing will be very different.

Hardware Compatibility

Hardware is always one of the most expensive aspects of choosing a POS system, and that’s not any different when you’re looking to go mobile. Smartphones and tablets are just one part of the equation, albeit a big one. First, you need to check whether the app you want to use is an iOS exclusive or available on both iOS and Android, and from there, you can narrow down which sort of devices are available and which ones fit your budget.

Some mobile processors offer a tool to check whether a device is compatible. Square has an interactive compatibility checker but others may be as simple as a list somewhere in the self-help resources. If all else fails, you can contact customer support and ask if your device is supported.

Other Hardware Accessories

In addition to the smartphone or tablet, you might want a few hardware accessories — such as a cash drawer or a receipt printer. Most mobile POS apps support sending digital receipts and recording tips on the device screen, but some industries definitely still require the option to print paper receipts. And you might want the convenience of a printer-driver cash drawer that will open when a transaction finishes, rather than manually opening a cash box yourself each time. These features do require more counter space and they likely won’t work in mobile setups, but they can be useful for pop-up events or tradeshows. Prices (and supported devices) vary by provider. If you’re interested in any of these hardware add-ons, you should contact your mobile app provider to see what they recommend as far as brands and models, as well as where to buy them.

Mobile Credit Card Readers

So apart from the phones and any cash drawers or receipt printers, the last bit of hardware we need to talk about are the card readers themselves. For a long time, this meant a basic credit card swiper — a small little device with a dongle that plugs into the headphone jack of a phone or a tablet. While several providers still do offer a free card swiper for phones, the industry is moving toward more sophisticated readers that connect via Bluetooth. More importantly, they add support for EMV chip cards and sometimes tap-to-pay transactions.

I could talk a lot more about card reader design, but I’ve already done that. Check out my post on the best credit card readers for small businesses if you want the full story. For now, it’s most important that you understand that you should plan to get a chip card reader, which will help protect your business against the cost of any fraudulent transactions. While magstripe transactions aren’t likely to go away any time soon, EMV is becoming the default because it offers greater security for consumers.  (It also makes it harder for scam artists to use counterfeit cards.)

Unless a company says a device is only meant to be used on a particular platform, for the most part you can use any mobile reader on either iOS or Android — and switch between the two as much as necessary. The one exception is card swipers that have a Lightning connection, which work on iOS devices only.

The cost of a credit card reader can range from free to up to $100 depending on features and provider. Magstripe and EMV readers (usually called swipe-and-chip or something similar) are the cheapest, but higher-end models will support magstripe, EMV, and NFC (contactless) payments and usually cost more. Still, you can absolutely get a good deal one of these “all in one” readers if you look around.

Other Factors To Consider For Accepting Mobile Payments

Apart from the payment processing, software/service fees, and the hardware, merchants face a few other considerations that affect their pricing evaluations. They don’t necessarily change the pricing of the mobile POS or card processing, but they can affect your business’ overhead all the same.

Internet Availability

If you want to be able to process credit card payments, reliable internet is a must-have. Mobile POS apps can work on WiFi or cellular signal, so long as the smartphone or tablet is equipped for both. The tricky bit is making sure you have one or the other (or preferably both).

Mobile businesses have to contend with signal availability wherever they roam, which includes the occasional random dead zone even in suburban paradise. At convention centers with thousands of attendees and even in crowded downtown areas, cellular data can be spotty, as can public WiFi networks. Mobile businesses that might serve clients in rural areas have to worry about how strong their signal will be, too.

Even brick-and-mortar businesses need to make sure their internet stays operational at all times. In the case of mobile POS system, they need to make sure it reaches the entirety of their location. For restaurants, that could mean all the way out on the patio. For retail stores, that could mean covering every corner of the store if you have multiple checkouts — or if you give your employees handheld devices to check inventory.

Event venues usually have internet available for vendors to purchase, but that can be a costly expense for very low-volume merchants who typically only sell occasionally. But if that’s not available, the best backup is having a cellular provider with a strong presence in the area, which is also the best option for mobile businesses.

Mobile hotspots allow you to create a personal WiFi signal that will travel with you to overcome the challenges of dead zones, fortunately. And for storefront businesses, choosing a reputable internet provider and making sure that routers and extenders are in place to broadcast the signal is the best course of action.

Obviously, all of this comes with a cost, which you should factor into your selection process for your internet provider as well as which mobile devices and mobile app you choose. It’s definitely nice to have cellular data as a backup if WiFi ever fails, but it does mean a regular monthly cost, in addition to the cost of Internet services.

Taxes & Tips

Unless you live in one of the five U.S. states that don’t charge sales tax, you are almost always responsible for paying sales tax for your business on each transaction, which is usually anywhere between 6-10%. Some states also assess local sales taxes on top of the base rates. Between the credit card processing fees and sales tax, that’s anywhere between 8-13% of your revenue already claimed — which means you should be factoring that into your pricing.

Just about every mobile credit card swiper will let you add sales tax to the base purchase without requiring you to calculate it, which is handy if you’re not fond of math or just want the transaction to go more quickly. The more advanced mobile apps have flexible tax settings so you can choose to apply multiple taxes or choose from a pre-set list of taxes, or even disable sales tax entirely if you’re dealing with a tax-exempt transaction. This is ideal for mobile businesses who might find themselves in different cities, or even different states.

For example: I live in the Kansas City suburbs, on the Kansas side. If you’re not from the area you might be surprised to learn that most of the city itself is on the Missouri side. So it’s fairly common to cross the state line in either direction on a daily basis. The same vendors that might sell at a farmer’s market on the Missouri side are also selling at a farmer’s market on the Kansas side, and many of them use Square to accept card payments. So having multiple sales tax settings is essential for these businesses.

Also, if your business accepts tips, you need to understand that mobile processors will charge their transaction based on the entire transaction value — including any tax and tips you collect.

Time To Get Your Money

The old adage says time is money. For businesses, deposit times are crucial for maintaining a solid cash flow. Waiting on a deposit can be frustrating, so an important question to ask is, how soon can a processor get your balance in your bank? That varies depending on the processor, but at this point in time, there’s absolutely no reason you should wait more than two business days to have your money in your bank account. Some processors now offer next-day deposits, ensuring that funds from a given day are dropped in your account the morning of the next business day (functionally making the deposit time something like 12 hours depending on your close of business).

However, it is possible to access your funds almost instantly with some processors. For example, Square and PayPal both have an option to transfer funds directly to a user’s bank account for a 1% fee, and they also can deposit funds right away into a mobile wallet linked to a branded debit card, which incurs no fees. Keep in mind that they are both third-party processors. Most merchant account providers are limited to next-day transfers at the earliest.

Features To Look For In Your Mobile POS & Credit Card Reader

Features-wise, you can at least expect the basics to remain consistent across smartphone credit card swipers and mobile apps: you can swipe, dip, or tap cards, manually key them in, and issue receipts. Most apps have a quick sale mode as well as an inventory catalog. It’s the little things that will ultimately set one service provider apart from the rest.

Also, while these features are recommended, they’re by no means mandatory for all merchants. It’s more of a starter list to get you thinking about what you absolutely must have in a mobile processor.

Accounting Integrations & Reporting

An accounting integration with QuickBooks or Xero makes it easy to automatically sync your sales data with your bookkeeping program. No need to manually import data — the information syncs automatically so you don’t have to take any additional steps. This also reduces the potential for errors since the human element is removed. However, if you prefer to do things the old fashioned way, look for a provider with solid reporting features.

Invoicing

Invoicing lets you handle custom orders, itemized breakdowns of services, or provide documentation for large orders. With a built-in invoicing feature, you can often send an invoice directly from within the mobile app, so if a customer requests a custom item you can complete the transaction right then and there rather than waiting until you’re near a computer. Invoices can provide a degree of protection on large and custom orders, and many providers now include features such as tipping or being able to attach files and contracts to the invoice. However, if you rely heavily on invoices in addition to mobile sales, you should look for more advanced invoicing software that ideally integrates with your payment processor.

Virtual Terminal 

A virtual terminal allows you to manually enter payment information via a web portal. It’s not the same as keying in a card number in the mobile POS app, mainly because virtual terminals are browser-based. Commonly, this feature allows merchants to accept payments over the phone, but it can also be used to take payments in an office environment where a terminal isn’t really feasible. Advanced virtual terminals can store payment data for later charges, but this is by no means universal. Also take note, you’ll pay higher processing rates to use the virtual terminal instead of swiping, dipping, or tapping a payment in the mobile app.

Want to know more? Here’s a quick rundown on virtual terminals

Customer Database 

A customer database is one of those features that started in POS systems and is now trickling down into more mobile systems. You can save customers’ names, phone numbers and even addresses in your systems and associate that entry in your database with purchases, so you know who your most loyal customers are and what they buy. If you rely on invoicing a lot, most systems with both invoicing and a customer database are linked, as well. Even if the mobile app doesn’t have a full-fledged customer database, it might have the ability to save customers’ phone numbers or emails to send digital receipts. You won’t necessarily be able to look them up, but providers can keep that info on file to make sending receipts easier. Even better, it doesn’t necessarily have to be that the customer has shopped with you previously — just shopping with another merchant using the same processor/software can be enough.

Inventory Management

The most basic mPOS apps have very limited inventory management. A quick-sale mode where you can put in an amount is common, but as far as an item library, a basic app might offer the ability to create an item and include a photo, a price, and a description. More advanced inventory management includes barcodes and SKUs, inventory quantities, item variants, and add-ons or modifiers. Also keep an eye on the ability to offer variable pricing points, bulk uploads for your inventory, and flexible tax settings at the item level. Being able to run accurate, automated sales reports saves you time and prevents you from having to rely on possibly inaccurate impressions of what is selling well and what is not, but a third-party inventory integration can fill out the gaps in features if necessary.

Permissions For Multiple Users

Do you have several employees? Or maybe just a friend who helps out when you’re working events? The ability to create sub-user accounts for multiple users comes in handy here, whether you’re worried about being able to check out multiple people at once at a tradeshow booth, or you have entire teams of roaming or mobile employees. With the sub-user account features, you can enable employees (or a helpful booth assistant) to accept payments without giving them full access to your account (and all the associated sales reporting, refund/void permissions, etc.). You can also use this feature to track sales by individual and other data. Some apps allow you to set custom permissions based on their role in the organization, so only select people can be authorized, for example, to handle returns.

The Best mPOS Apps & Mobile Card Readers For Small Businesses

Now that we’ve gone over what you need to know before you start even looking at taking credit card payments with your phone, let’s look at some of the biggest names in the business and the benefits and disadvantages to each. Every mPOS app has strengths and weaknesses, so consider your business’s unique needs in evaluating the options.

Square

Square (read our review) sits at the top of almost every list of mobile POS apps/mobile processors for a reason: It offers predictable pricing for card payments, no monthly fees, no contacts, and a huge suite of free software that covers many aspects of your business. If you’re willing to pay a little more, you can add-on additional services such as loyalty and marketing to further extend that feature set. Square really blurs the line between an mPOS system and a full-fledged iPad POS.

Square Point of Sale, as the free app is called, offers a powerful set of features:

• Inventory management with quantity tracking
• Multiple locations at no additional charge
• Customer database
• Flexible tax settings
• Customizable employee permissions
• eCommerce integrations and free basic web store
• Free virtual terminal
• Invoicing from in-app and web dashboard

And that’s just to name a few. Plus, Square offers affordable EMV-enabled hardware with financing available for orders above $49. If you need more specialized features, Square also offers premium POS apps: Square for Retail (read our review) and Square for Restaurants, as well as Square Appointments (read our review) for teams who need a scheduling feature. Square’s add-on features also work seamlessly with these premium POS apps, as well.

Reader	eCommerce	Retail	Food Service
Free App & Reader	Square eCommerce	Square for Retail	Square for Restaurants
Get Started	Get Started	Get Started	Get Started
Free, general-purpose POS software and reader for iOS and Android	Easy integration with popular platforms plus API for customization	Specialized software for more complex retail stores	Specialized software for full-service restaurants
$0/month	$0/month	$60/month	$60/month
Always Free	Always Free	Free Trial	Free Trial

Square Point of Sale Quick Stats

• Works on iOS and Android devices
• 2.75% per swiped/dipped/tapped transaction
• No monthly fee
• Contactless + Chip Reader available for $49
• Includes invoicing and virtual terminal

Shopify Lite

Shopify started as just an eCommerce provider, but these days the company has a similar set of offerings as Square. But where Square’s focus is on its free Point of Sale Shop, Shopify’s primary concern is still its ecommerce offering, to the point that Shopify POS is included at no additional charge with Shopify’s Basic plan and higher tiers.

However, if you’re not so much interested in selling online and just want a versatile mobile point of sale system, you can sign up for the Shopify Lite plan (read our review), for $9/month. With it, you get Shopify POS for Android and iOS, as well as the ability to sell your wares through a Facebook store. Shopify Lite does give you access to:

• Advanced inventory management (including item counts and variants)
• In-app and dashboard invoicing
• Discounts
• Customer database
• Online order fulfillment in-app
• Synchronization across sales channels

For payment processing, Shopify defaults to its own native solution, Shopify Payments; this is a white-label Stripe product, which makes it a third-party processor akin to Square. Cards process at 2.7% per in-person transaction, and 2.9% + $0.30 for keyed and invoiced. There are no monthly minimums or any other fees.

The app works on iOS and Android, though unsurprisingly an iPad gets you access to the most features. Shopify even offers a free Bluetooth-enabled magstripe/chip card reader (retail price $29) for merchants. However, it’s also worth noting that you can’t connect a printer or cash drawer for a countertop POS setup without upgrading to one of the higher plan tiers. You’ll also get other advanced features with the upgrade, such as staff PINs for logins.

Mobile	POS	Online	Social Media
Mobile App + Free Card Reader	Point of Sale	Online Store	Social Media Selling
Get Started	Get Started	Get Started	Get Started
Low-cost POS for iOS and Android with free hardware	All-purpose POS integrated with all sales channels	Build a store or integrate with your current website	Sell on Facebook and other platforms
Starts at $9/month	Starts at $29/month	Starts at $29/month	Starts at $9/month
Free Trial	Free Trial	Free Trial	Free Trial

Shopify Lite Quick Stats

• Works on iOS and Android devices
• 2.7% per swiped/dipped/tapped transaction
• $9 monthly fee
• Free Chip and Swipe card reader
• Includes invoicing

Payment Depot Mobile

Payment Depot (read our review) generally works on a subscription-based pricing plan with a monthly fee and a small per-transaction fee instead of a percentage markup. However, PD now offers a mobile-exclusive plan for low-volume businesses, including the SwipeSimple app. You can check out our review of the mobile service for more information.

Payment Depot’s mobile plan is a Merchant Maverick exclusive, so you’ll need to use the links we provide in this article or in our review to sign up. There’s no monthly minimum, and just a $10 monthly fee for the software. Transactions process at 2.6% + $0.10 per swipe, dip, or tap.

With the SwipeSimple app you’ll get all the following features:

• Inventory library with item counts
• Customer directory
• Store customer card information on file
• Offline mode
• Discount & tipping features
• Virtual terminal included

The SwipeSimple app runs on both Android and iOS, and it even has a free demo mode so you can test-drive some aspects of the app before you get started. Payment Depot offers a choice of two card readers with the plan: The Swift B200, a Bluetooth-enabled magstripe and chip card reader, and the Swift B250 (read our review), which has a similar design but also adds support for NFC contactless payments. It’s available for $25, which is just about the best price you can get for an all-in-one card reader.

Payment Depot Mobile Quick Stats

• Works on iOS and Android devices
• 2.6% + $0.10 per swiped/dipped/tapped transaction
• $10 monthly fee
• Free Swift B200 card reader (chip and swipe)
• Includes customer directory and virtual terminal

PayPal Here

PayPal (read our review) is a powerhouse option for online merchants because of its massive userbase. But PayPal’s merchant services offerings are designed to accommodate brick-and-mortar businesses too, from POS integrations to its own mobile processing app, PayPal Here (read our review). While it certainly doesn’t stack up against a full-fledged point-of-sale, PayPal Here should more than meet the needs of most mobile businesses that don’t have complex inventory.

PayPal’s merchant services have no monthly fees or monthly minimums. Everything is strictly pay-as-you-go, with PayPal charging 2.7% per swiped, dipped, or tapped transaction. The mobile app’s features include:

• Item library with barcode scanning
• In-app invoicing
• Sales tax management
• Discount and tipping features
• Employee sub-user accounts

PayPal offers a choice of several card readers, though it has stopped offering a magstripe reader the way Square does. Instead, the magstripe readers cost $14.99 and come with account restrictions above a certain volume. However, through December 31, 2019, PayPal is offering its Chip and Swipe reader to new merchants for free.

PayPal Here Quick Stats

• Works on iOS and Android devices
• 2.7% per swiped, dipped, or tapped transaction
• No monthly fee
• Invoice feature available directly from app

Final Thoughts

If yours is the kind of business where you’re frequently on the move, an mPOS and mobile card reader offer some major benefits. For starters, if you can accept credit card payments on the spot, you’ll get paid a lot faster compared to waiting for a check or invoice. For small businesses that are just starting out and may not be pulling in large volumes, there are providers who have no monthly fees and no payment processing minimums, and won’t subject you to extensive underwriting. But even large, established businesses doing a high volume can implement mobile POS systems that will scale with them, affording both more flexibility and more mobility.

I say this a lot, but before you start shopping for software and a payment processor, you need to have an idea of what is most important to you. This is not always the case, but you often have to make a trade-off between account stability and a brief, no-fuss setup. To that end, ask yourself if you are looking for a stable merchant account or simply want to get going with a third-party processor quickly.

Even after you’ve decided what kind of processor you want to go with, you need to look at the software they provide, too. What features do you need? What kind of credit card reader is available, and how much does it cost? These are questions that you’re best equipped to answer, so it’s important that you have a shortlist of features you must have and others you’d like to have, but may not be strictly necessary.

I hope I’ve helped shed some light on the topic and put you in a good place to get started! If you’re ready, check out our mobile processing comparison chart for more great smartphone-friendly mPOS options.

Have questions about how to take credit card payments on your phone? Want to know more about how to accept mobile credit card payments? Let us know in the comments.

Heading	Square	Lightspeed POS	Payment Depot	Payline	Shopify	Fattmerchant	ShopKeep
	Review Visit Site	ReviewVisit Site	Review Visit Site	ReviewVisit Site	ReviewVisit Site	ReviewVisit Site	ReviewVisit Site
Key Features	All-In-One Solution, Upgrade Potential	Advanced Features	Free Chip Reader, All-Purpose	Versatile, Works With Many POS Systems	Free Chip Reader, Integrate Online Sales	High-Volume, Large Ticket	Advanced Features
Pricing Model	Flat Rate	Varies	Flat Rate	Cost-Plus	Flat Rate	Cost-Plus (Subscription)	Flat Rate
Entry-Level Monthly Fee	$0	$99	$10	$10	$9	$99	$60+
Standard Retail Rates	2.75% total	Varies	2.60% + $0.10 total	0.30% + $0.10 markup	2.70% total	0.00% + $0.25 markup	Varies
Standard eCommerce Rates	2.90% + $0.30 total	Varies	3.20% + $0.10 total	0.50% + $0.10 markup	2.90% + $0.30 total	0.00% + $0.25 markup	Varies
Free Trial	Always Free	14 Days	Demo available	None	14 Days	None	None