Compare Credit Card Readers for Small Business

Credit card readers for small business

Compare these popular small business credit card readers to find the one that’s right for you.

*Prices collected independently by Nav on Feb. 26, 2026 and may be subject to change. Processing rates vary by industry, card type, transaction method, location, and account agreement. The ranges shown reflect standard advertised rates and may not represent your final approved pricing.

Most well-rounded overall: Clover Compact

The Clover Compact is a do-it-all countertop terminal that’s easy to use and durable. With a built-in receipt printer, tactile PIN pad, and access to Clover’s extensive app market, this reader is a strong choice for most types of businesses.

• Hardware cost: $349
• Processing fees: 2.3%-2.6%+$0.10
• Monthly fees: Rates vary depending on type of business
• Key features: Contactless, chip, and magstripe payments
• Compatibility: Proprietary Clover hardware
• Best for: Small business owners that need an affordable and user-friendly reader

For mobile sales: Square Reader (for contactless and chip)

The Square Reader is one of the most portable and straightforward card readers. There are two versions of the Square Reader, and we prefer the second generation, which accepts chip cards, contactless payments, and digital wallets. It connects to your smartphone or tablet using Bluetooth, and even without internet access, it can store offline payments for up to 24 hours.

• Hardware cost: $59
• Processing fees: 2.4%-2.6%+$0.15
• Monthly fees: $0 (Square Free), $49 (Square Plus), $149 (Square Premium)
• Key features: Contactless and chip payments
• Compatibility: iOs and Android devices
• Best for: Small business owners that need a card reader they can set up quickly and take anywhere

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Square

Accept payments quickly, easily, and securely. Meet customers where they are with the latest payments services. Square can help you process nearly any kind of payment, any way you want. Millions of brands of all sizes trust Square to accept payments, build customer relationships, and grow their business in-store and online.

Key Features

• POS systems
• Online store
• Inventory management
• Invoicing
• Loyalty program
• Gift cards

Cost/Fees

• Card present: 2.6% + 10 cents
• Card not present: 2.9% + 30 cents
• Keyed in: 3.5% + 15 cents

Types of Businesses Supported

• Food & beverage
• Retail
• Beauty
• Services
• and more

For restaurants: Toast Go 3

The Toast Go 3 is a handheld POS system for the hospitality industry. Made for restaurant conditions, this reader is built to handle drops, spills, and hot patios, holds a charge for over 24 hours, and weighs less than one pound.

• Hardware cost: $539.10 (Wi-Fi only), multiple pricing plans and financing options available
• Processing fees: 2.49%-3.69%+$0.15
• Monthly fees: $69 (Basic), $219 (Core), $578 (Growth), Toast also offers these plans at $0 per month with higher processing fees
• Key features: Contactless, chip, and magstripe payments
• Compatibility: Proprietary Toast hardware
• Best for: Restaurants, bars, food trucks, and outdoor venues

For e-commerce integration: Shopify Tap & Chip Card Reader

The Shopify Tap & Chip Card Reader is a mobile reader that connects with the Shopify ecosystem. If you sell products in-store and online, this reader keeps inventory and customer information up to date across both channels.

• Hardware cost: $49
• Processing fees: 2.4%-2.6%+$0.10
• Monthly fees: Start at $39 (Basic), $105 (Growth), $399 (Advanced), $2,300 (Plus)
• Key features: Contactless and chip payments
• Compatibility: iOS and Android devices
• Best for: Retailers that have e-commerce stores on the Shopify platform

Sell online, in-person, and everywhere in between

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Shopify

One platform that lets you sell wherever your customers are — online, in-person, and everywhere in between. It’s never been easier to set up your own online store and bring your brand to life with everything you need to sell online, and get an integrated POS system with everything you need to create seamless shopping experiences between your online and retail storefronts.

Key Features

• Integrated e-commerce & retail
• Creation your online store
• Marketing tools
• Inventory management

Cost/Fees

• Starts at $39/month
• 2.9% + 30¢ USD online
• 2.7% + 0¢ USD in person

Types of Businesses Supported

• E-Commerce
• Retail

For high-volume: Helcim Smart Terminal

The Helcim Smart Terminal is a countertop terminal with a built-in receipt printer and an impressive 6.7-inch HD display. Unlike many modern payment processors, Helcim uses an interchange-plus pricing model where fees are tied to the transaction’s actual interchange rate. That, and Helcim’s volume discounts, make this terminal excellent for businesses that process lots of sales.

• Hardware cost: $349
• Processing fees: Interchange+0.40%+$0.08 (or as low as interchange+0.15%+$0.06 with volume discounts)
• Monthly fees: N/A
• Key features: Contactless, chip, and magstripe payments
• Compatibility: Proprietary Helcim hardware
• Best for: Businesses with large monthly sales volume

For retailers: Square Register

The Square Register is a dual-screen terminal designed to provide a fast checkout process. It includes a 13.25-inch merchant-facing screen and a 7-inch customer-facing screen. Square Point of Sale software helps retailers stay on top of their operations with low-stock alerts, integration of in-store and online sales, and vendor sales reports. 

• Hardware cost: $899
• Processing fees: 2.4%-2.6%+$0.15
• Monthly fees: $0 (Square Free), $49 (Square Plus), $149 (Square Premium)
• Key features: Contactless, chip, and magstripe payments
• Compatibility: Proprietary Square hardware
• Best for: Retailers that need a checkout station with advanced POS integrations

For affordability: SumUp Solo

The SumUp Solo is a portable reader with an easy-to-use touchscreen. It’s an affordable choice, especially because SumUp doesn’t charge monthly fees and has competitive flat-rate pricing. This reader also has a built-in SIM card and free unlimited mobile data, a unique perk among credit card readers.

• Hardware cost: $99
• Processing fees: 2.6%+$0.10
• Monthly fees: N/A
• Key features: Contactless and chip payments
• Compatibility: Standalone
• Best for: Mobile vendors and small business owners looking for a professional and cost-effective option

Free option: Square Reader (for magstripe)

The Square Reader for magstripe payments is a rarity – a completely free credit card reader. The offer is limited to one per Square accountholder. This reader is also a breeze to set up and use, as you just plug it into your smartphone or tablet. However, it only accepts magstripe payments, which aren’t as secure as chip payments and leave merchants liable for fraud.

• Hardware cost: $0 (for your first reader)
• Processing fees: 2.4%-2.6%+$0.15
• Monthly fees: $0 (Square Free), $49 (Square Plus), $149 (Square Premium)
• Key features: Magstripe payments
• Compatibility: iOs and Android devices
• Best for: Small business owners who want to start out with a free card reader

How we chose these credit card readers

We made our picks using the following evaluation criteria:

• Accepted payment types: Readers that accepted all the most common payment methods scored higher than those with more limited payment options.
• Hardware reliability: Quality card readers need to be durable, able to handle frequent use without overheating, and have a long battery life.
• Connectivity and offline mode: Multiple connectivity options are a plus, but internet outages still happen, and card readers should have an offline mode to store and forward transactions.
• Software features: Intuitive software with useful features, such as inventory management tools, played a significant role in our rankings.
• Pricing transparency: We value transparent pricing without any hidden fees.
• Contract flexibility: Business owners, especially those just starting out, are better off with card readers that don’t lock you into a multi-year contract.
• Support: Not all payment processors are available outside normal business hours, but extended availability is a valuable extra.
• Integrations: Readers that integrate with the rest of your business software, such as your e-commerce platform and accounting tools, make managing transactions easier.
• Scalability: The best payment processors have a range of readers and tools that allow you to scale your business.

How to choose the best credit card reader for your business

Here are the steps you can follow to choose a card reader.

Consider your business type and sales environment

There are a few specific factors to consider:

• Mobility needs: Figure out if you need a portable card reader or a stationary terminal.
• Sales volume: High-volume businesses should look for card readers with fast processors and dedicated Ethernet ports, which provide better connectivity than Wi-Fi.
• Transaction types: A card reader that accepts swipe, dip, and tap payments is the most versatile, but not all businesses need this.

In most cases, retail stores are best-served by countertop terminals that can handle lots of transactions efficiently. Restaurants need POS systems with table management tools and portable card readers, so servers can process payments table-side. For food trucks, contractors, and other mobile businesses, mobile card readers are a must.

Evaluate pricing and fees

Hardware costs are the main upfront expense. However, your biggest ongoing expenses will be credit card processing fees. The most common pricing models are:

• Flat-rate pricing: The processor charges a flat rate for every transaction, such as 2.6%+$0.15.
• Interchange-plus pricing: The processor charges the actual interchange rate the payment network set for the transaction, plus a fee, such as interchange+0.40%+$0.08.

To estimate total costs, multiply your monthly sales volume by the rate you expect to pay for transaction fees. This is easiest with flat-rate pricing, but processors with interchange-plus pricing often provide average rates on their websites, which you can use for your projections.

Check payment method compatibility

You don’t want to miss out on sales because you can’t accept a customer’s preferred payment method. Make sure your reader accepts the payment methods your customers use, whether that’s chip cards, contactless payments, digital wallets, or all of the above.

Assess software features and integrations

Most card readers have software that can help streamline operations. Depending on your business, you may want a reader with inventory management, analytics tools with actionable insights, or customer management features.

In addition, look for a card reader that integrates with the tools and platforms your business already uses–or plans to use. You can find readers that integrate with popular accounting software, such as QuickBooks or Xero, and e-commerce platforms to keep your in-store and online sales connected.

#1 accounting software for small business

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Intuit QuickBooks

Simplify your accounting with QuickBooks Online. Easily track income, expenses, and more with accounting software designed for all kinds of businesses. Save up to 50% on QuickBooks Online now!

Pricing

Starts at $30/month

Discounts

50% off for 3 months

Free Trial

Free trial for 30 days

Key Features

• Reporting
• Manage receipts, cash flow, and taxes
• Invoicing
• Track inventory

Review contract terms and flexibility

Many payment processors offer month-to-month contracts, but others require a long-term commitment. A month-to-month arrangement is usually better, particularly for small businesses that aren’t processing enough volume to negotiate a low rate on a long-term deal.

See if the contract has any cancellation fees, as these can also limit your flexibility. Check the equipment return policies to find out how long you have to change your mind. You may also want to look for rate lock guarantees. While uncommon, there are processors that offer this type of guarantee on processing fees.

Evaluate customer support and reliability

Key factors here are the hours of a company’s phone and chat support, its troubleshooting resources, and what kind of setup assistance it offers. A processor with support available outside of standard business hours and with high-quality troubleshooting content is a big plus.

Take some time to read reviews from other business owners, as well. Pay particular attention to hardware reliability and software uptime, as issues in either area could lead to issues accepting payments.

What is a credit card reader?

A credit card reader is a device that allows businesses to accept debit and credit card payments. Card readers process card information to capture customer payment data, and then transmit the data to the merchant’s payment processor to authorize the transaction.

Business owners have the option of standalone card readers and readers that function as part of integrated POS systems. A standalone reader only processes payments and is fine for businesses that don’t need other features. An integrated POS system processes transactions and performs other useful operations, such as recording customer information, tracking inventory, and uploading transaction data to business accounting software.

How credit card readers work

Here’s how the payment process works with credit card readers:

1. The customer presents their credit card.
2. The reader captures the card’s data.
3. The reader sends an encrypted transmission of that data to the payment processor.
4. The processor sends the payment request to the card network, which then asks the card-issuing bank if the card is valid and has sufficient funds for the transaction.
5. The card-issuing bank sends an approval or denial back through the payment network to the card reader.

Businesses have traditionally used merchant accounts to receive card payments. However, merchant accounts typically have a lengthy application process and charge monthly fees. Many modern credit card processing companies offer aggregated services where they manage a merchant account for their clients.

There are a few important security standards designed to keep payment information safe during this process. EMV chip technology generates a unique, one-time code for every transaction. Encryption protects card data as it’s transmitted from the reader to the payment processor. Card readers must also be PCI-compliant, following a strict set of rules for the payments industry.

Types of credit card readers

Several types of card readers are available, from portable options to high-end POS systems.

Mobile card readers

A mobile card reader is a portable device that connects to smartphones and tablets via Bluetooth or the headphone jack. This works well for businesses that need to process payments on the go, such as mobile businesses and pop-up shops. As the most basic option, mobile readers aren’t ideal for processing lots of payments and are more suited for low-volume sellers.

Popular mobile readers include the Square Reader and Clover Go.

Countertop terminals

A countertop terminal is a stationary device installed in a fixed location with a wired connection. Countertop terminals are a good fit for brick-and-mortar businesses with a dedicated checkout area, such as retail stores. Since they have a wired connection and fast processing, they can also meet the needs of high-volume businesses.

Standout countertop terminals include the Clover Mini and Square Register.

Integrated POS systems

An integrated POS system provides hardware and software to process payments and manage operations. It normally includes a card reader, inventory management features, and reporting tools. Choosing a POS system makes sense for businesses that need a comprehensive sales management solution beyond payment processing.

Shopify POS is a popular choice here. Many integrated POS systems are designed for specific industries. Toast and Lightspeed are two examples, as both offer POS systems for restaurants and retail.

Virtual terminals

A virtual terminal is a web-based payments solution that requires manually entering card information. It’s a suitable choice for businesses that don’t interact with customers in person and need to process remote transactions. It’s also common among service businesses and companies involved in B2B sales.

Payment methods accepted

Card readers may accept one or more of the following payment methods.

Magstripe payments

A magstripe payment involves swiping a card’s magnetic strip through the card reader. This is the traditional way of processing card payments, but it’s being phased out by payment networks and merchants for security reasons. Data on the magnetic strip isn’t encrypted, so magstripe payments are vulnerable to credit card skimming.

EMV chip payments

An EMV chip payment involves inserting a chip card into the card reader. EMV chip cards have an embedded computer chip that generates a unique, one-time code for each transaction. Because the code changes for each transaction, the payment information is secure, and any intercepted data is useless. Most modern card readers support chip transactions.

Contactless payments (NFC)

A contactless payment, also known as tap-to-pay, uses Near-Field Communication (NFC) technology to send payment information to a card reader. Contactless payments are available from cards equipped with this technology, as well as payment apps, including Apple Pay, Google Pay, and Samsung Pay.

While this is a relatively new way to pay, it’s now the preferred option among U.S. consumers. A 2026 study by S&P Global 451 Research found that 53% of U.S. consumers prefer contactless payments.

Manual entry

Manual entry is when the merchant manually types in the customer’s card information. Businesses may use manual entry for remote orders placed by phone or if other payment methods fail.

Credit card processing fees are higher for manually entered transactions because they carry a greater risk of fraud.

Credit card reader costs and fees

Credit card reader expenses include the cost of the hardware itself, card processing fees, and any extra fees the payment processor charges.

Hardware costs

Hardware costs typically range from:

• $50 to $150 for mobile readers
• $200 to $800 for terminals
• $1,000 and up for full POS systems

Some providers give you the option of paying off hardware in installments. There are also providers that offer free hardware, normally (but not always) with the caveat that you commit to a payment agreement with them.

Processing fees

Processing fees can depend on a range of factors, including the payment processor, your sales volume, your industry, and the types of transactions you accept.

The flat-rate pricing model is the simplest. Your business pays one flat rate for in-person transactions and another flat rate for online purchases. For example, Square charges 2.6%+$0.15 for in-person transactions and 3.3%+$0.30 for online transactions with its Square Free plan. Other processors use interchange-plus, adding a small percentage fee and fixed cash fee to the transaction’s interchange fee.

Card networks set interchange rates based on factors such as merchant category, card type, transaction method, and risk profile. Credit cards cost more in fees than debit cards, and rewards credit cards cost more than basic credit cards. If you choose a processor that uses interchange-plus pricing, your rates will vary depending on the type of card the customer uses.

Monthly and additional fees

Common additional fees include:

• Monthly service fees: A flat monthly fee for your account with the processor. Some processors offer multiple fee tiers, with higher tiers getting lower rates per transaction. Providers that offer plans with no monthly fees include Square, Helcim, and SumUp, at the time of this writing.
• PCI-compliance fees: Some processors charge fees to handle the PCI-compliance tasks for your business. If your business fails a security check, you could also incur penalty fees.
• Chargeback fees: If a customer disputes a transaction with your business, their bank will file a chargeback. Your payment processor will charge a fee, often ranging from $15 to $25, for its administrative costs. You pay this fee whether you win or lose the dispute, although some processors refund the fee if you win.
• Early termination fees: If you agree to a long-term contract with a payment processor, there will likely be an early termination fee. You can avoid this by choosing a processor that offers month-to-month contracts.

Setting up your credit card reader

The process to set up a credit card reader doesn’t take long. Here’s a step-by-step guide.

1. Sign up for a payment processing account

To use your card reader, you need a payment processing account. You can sign up on the provider’s website or app. The application will ask for your personal information, including your name, home address, date of birth, and Social Security number or individual taxpayer identification number (ITIN). In addition, you’ll likely need the following business information:

• Business name
• Business address
• Employer identification number (EIN), if you have one
• Estimated sales

You’ll also need a bank account to receive payments – business bank accounts are the best option.

Approval timelines depend on the processor, with many offering instant to 24-hour approval. In some cases, approval can take a few business days.

1. Connect your hardware

If you have a card reader that connects to your smartphone or tablet, download the provider’s app, and pair the device via Bluetooth. If you have a standalone card reader, connect it to your business’s internet via Wi-Fi or Ethernet. Make sure to fully charge your reader, as well.

1. Configure settings and preferences

The settings are where you customize your checkout experience and ensure tax compliance. Here are a few settings to review:

• Receipt preferences: Choose digital receipts or paper receipts and decide how you want them to look.
• Tax rates: Enter the sales tax percentage to apply to transactions.
• Tipping: If your business accepts tips, enable this feature. Set default tip percentages to streamline the tipping process.
• Inventory setup: Add your products or services, with prices, to your card reader. Your employees can then select products during checkout instead of manually entering prices.

1. Test your first transaction

Run at least one test transaction before going live with customers. Most processors offer a test mode, but the most effective approach is to process a real transaction.

Use your reader to charge a $1 transaction to your own credit card. Check that the transaction goes through quickly and that you receive a receipt. Once you’ve confirmed that everything is working correctly, refund the transaction.

Credit card reader security and compliance considerations

When your business accepts credit cards, it’s important to understand the security requirements and features that keep your customers safe.

PCI DSS compliance

The Payment Card Industry Data Security Standards (PCI DSS) are security requirements for companies that process, store, or transmit card payments. Any business that accepts card payments may be subject to a PCI DSS audit to ensure it’s compliant. If your business fails an audit, it could lead to fines, higher processing rates, and even the loss of your ability to accept card payments.

Most modern card readers support PCI DSS compliance through encryption and tokenization features, but merchants remain responsible for completing required compliance steps.

EMV chip technology

EMV chip payments are much safer than magstripe payments, and this security difference is a key factor in fraud liability. Since 2015, the party with the higher level of security is protected from liability for fraudulent transactions.

In general, when a chip-enabled card is processed using a chip-capable terminal, liability for certain types of counterfeit fraud may shift to the party with the lower level of security. It’s important to have a card reader that accepts chip payments to reduce the risk of fraud.

End-to-end encryption

Encryption turns data into a string of text that can only be deciphered with a specific digital key. Modern card readers offer end-to-end encryption that protects data during the entire transaction process.

The reader immediately encrypts card data at the point of capture, when the customer swipes, taps, or dips their card. The data remains encrypted until it reaches the payment processor.

Fraud prevention features

Payment processors also provide fraud prevention features for online transactions. Some of the most common include:

• Address verification (AVS): The billing zip code provided by the customer must match what’s on file with the card-issuing bank.
• CVV checks: The customer must provide their card’s three- or four-digit CVV code as a way to verify that they have the card in their possession.
• Chargeback protection: The processor automatically flags or declines suspicious activity, such as unusually large orders or multiple failed transaction attempts from the same account.

Alternatives to traditional credit card readers

You may want to consider these options instead of traditional card readers.

Payment links and invoicing

You generate a secure payment link with your payment processor, and then send it to the customer via email or SMS. Your customer enters their card information to pay for the transaction. If you don’t need to process in-person payments, you can get paid without any physical hardware this way.

QR code payments

You generate a QR code connected to a payment page. You can then print the QR code and display it at your business or pull up the QR code digitally. Customers scan the QR code and enter the payment amount for a convenient, contactless checkout.

Buy now, pay later integration

Traditional card readers only accept payment in full. Many modern POS systems allow you to integrate buy now, pay later (BNPL) services, such as Afterpay, Klarna, and Affirm. Customers may have the option of splitting purchases into installments, which are sometimes interest-free depending on the provider and plan.

Cash and check payments

Federal law does not require private businesses to accept cash, although some states and municipalities have enacted local cash acceptance requirements.

However, it’s still a common payment method at certain types of businesses. Retailers and restaurants often get the occasional customer who wants to pay in cash. Checks or ACH payments are popular for large transactions, such as rent, contractor payments, and B2B payments, to avoid processing fees.

Most POS systems let you record cash and check payments if you decide to accept one or both methods.

Frequently asked questions