A credit card reader is a device businesses use to accept credit card payments in person, whether in-store, tableside or at a pop-up event. The reader detects and transmits information on credit, debit or other payment cards — such as account number, authorization code or cardholder name — in order to complete a transaction.
Credit card processing companies typically offer card readers alongside processing services and other point-of-sale (POS) hardware. The best credit card reader for your small business depends on your budget, the features you need and whether you’re using it alongside a larger POS system.
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Here is our list of the best credit card readers and what they can do for your business.
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Square
Square Reader
NerdWallet Rating
5.0
Bonus Amount
20% off hardware
Requirements to qualify
Read Review
Learn more
on Square's website
Best Credit Card Readers for Small Businesses
Calculate your monthly cost estimate
Input your business’s monthly transaction details and we’ll help you sort from the best valueProduct | Cost Estimate | Payment processing fees | Cost Estimate | Learn more | ||
|---|---|---|---|---|---|---|
Square Reader Learn more on Square Reader's secure website | Get an estimated monthly cost for your business. | 5.0/5 Best for Overall card reader | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 Starts at $0/month for unlimited devices and locations. | Get an estimated monthly cost for your business. | Learn more on Square Reader's secure website |
Helcim card reader Learn more on Helcim card reader's secure website | 4.5/5 Best for Interchange-plus pricing | In-person: 0.4% + $0.08 Online: 0.5% + $0.25 Plus interchange | $0.00 | Learn more on Helcim card reader's secure website | ||
Clover Go Learn more on Clover Go's secure website | 4.0/5 Best for Using third-party payment processors | In-person: 2.6% + $0.10 Online: 3.5% + $0.10 | $0.00 Payments plan; $14.95 Essentials plan. | Learn more on Clover Go's secure website | ||
SumUp Plus Learn more on SumUp Plus' secure website | 4.0/5 Best for Compact card reader with a screen | In-person: 2.6% + $0.10 Online: 3.5% + $0.15 | $0.00 for card readers only; $99 for Connect Lite plan; $199 for Connect Plus plan; $289 for Connect Pro plan. | Learn more on SumUp Plus' secure website | ||
PayPal Zettle | 4.0/5 Best for Accepting PayPal and Venmo | In-person: 2.29% + $0.09 Online: 3.49% + $0.09 | $0.00 | |||
Square Terminal Learn more on Square Terminal's secure website | 5.0/5 Best for Low-cost handheld terminal | In-person: 2.6% + $0.10 Online: 2.9% + $0.30 | $0.00 Starts at $0/month for unlimited devices and locations. | Learn more on Square Terminal's secure website | ||
Toast Go 2 | 4.0/5 Best for Restaurant-specific terminal | 2.49% + $0.15 if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option. | $0.00 Starter Kit; $69 Point of Sale plan; custom Build Your Own plan. | |||
Clover Flex Learn more on Clover Flex's secure website | 4.0/5 Best for Terminal for a variety of industries | In-person: 2.6% + $0.10 Online: 3.5% + $0.10 | $0.00 and up. | Learn more on Clover Flex's secure website |
Our pick for
Overall card reader
Square’s selection of mobile card readers, including a free option, sets it apart from other providers and lets you start accepting card payments almost immediately. You can pair the free magstripe reader or the chip reader with the Square app on your smartphone to get started.
Square Reader
Learn more
on Square Reader's secure website
Monthly fee
$0.00
Starts at $0/month for unlimited devices and locations.
Square doesn't charge a monthly fee for use of its basic point-of-sale system, which makes this low-cost reader and its software an affordable and efficient option for business owners.
Pros
- Has a compact design.
- Accepts chip, swipe and contactless payments.
Cons
- Doesn't swipe credit cards.
- Takes roughly two to three hours to charge.
Our pick for
Interchange-plus pricing
If you’re looking for an alternative to flat-rate payment processing fees, Helcim is worth considering. Merchants pay each transaction’s interchange fee, which is set by card networks, plus Helcim’s set margin. This means your business saves when a customer uses a card with lower interchange rates.
Helcim card reader
Learn more
on Helcim card reader's secure website
Monthly fee
$0.00
Helcim’s card reader accepts chip, swipe and contactless payments, and it provides POS software with well-developed features.
Pros
- Has volume discounts.
- Has robust POS software features.
- Includes countertop stand, but is also portable enough to use on the go.
Cons
- Processing rates may increase if monthly transaction volume drops.
Our pick for
Using third-party payment processors
Most credit card readers require you to use their in-house payment processing services, but that isn’t the case with Clover. Other payment processing companies — including ones that offer individual merchant accounts, as opposed to aggregated — sell Clover hardware, too.
Clover Go
Learn more
on Clover Go's secure website
Monthly fee
$0.00
Payments plan; $14.95 Essentials plan.
This credit card reader by Clover works with phones and tablets via Bluetooth. It accepts chip, swipe and contactless payments.
Pros
- Charges via standard USB charger.
- Uses passcodes for employees.
Cons
- Takes about 2 hours and 20 minutes to charge.
- Requires a monthly fee for advanced POS features.
Our pick for
Compact card reader with a screen
The SumUp Plus card reader includes a screen that lets customers know their total and when it’s time to tap their cards. It also has a touchscreen keypad that lets you manually key in credit card numbers instead of having to key them into your smartphone app in card-not-present transactions.
SumUp Plus
Learn more
on SumUp Plus' secure website
Monthly fee
$0.00
for card readers only; $99 for Connect Lite plan; $199 for Connect Plus plan; $289 for Connect Pro plan.
The SumUp Plus credit card reader works through Bluetooth with Apple and Android devices and promises more than 500 transactions on one charge.
Pros
- Accepts chip, swipe and contactless payments.
- Has a screen to display transaction details.
Cons
- Has less robust POS software features than other card readers.
Our pick for
Accepting PayPal and Venmo
PayPal’s card reader can be a good choice for businesses that need to accept alternative payment methods, like PayPal and Venmo. It also accepts Google Pay, Apple Pay and Samsung Pay.
PayPal Zettle
Monthly fee
$0.00
PayPal Zettle delivers the essentials at a relatively low cost with a small commitment. But consider other options if you want features like customer loyalty and email marketing programs. Although Zettle can expand through hardware, it doesn’t offer plan upgrades or those types of add-ons.
Pros
- No monthly software fees for accepting in-person payments.
- No long-term contract or termination fees.
- Accepts a variety of payment types, including Venmo and PayPal payments.
- Inexpensive card reader with a keypad, plus built-in payment processing and a free mobile app lets you quickly accept in-person payments on the go.
Cons
- Accepting online transactions involves additional monthly fees, depending on your gateway.
- No offline mode.
Our pick for
Low-cost handheld terminal
Handheld terminals, like this one from Square, take mobile card readers a step further by incorporating a screen and additional POS features. Compared to other portable terminals, Square's is one of the less expensive options at $299.
Square Terminal
Learn more
on Square Terminal's secure website
Monthly fee
$0.00
Starts at $0/month for unlimited devices and locations.
The Square Terminal is one of the lower-priced all-inclusive card readers. Couple affordable hardware with a fee-free software plan option, and Square makes great sense for a lot of businesses.
Pros
- Doesn't require a separate device.
- Shows transaction details.
- Is compact and easy to use.
Cons
- Can take over four hours to charge.
Our pick for
Restaurant-specific terminal
Toast's products are made specifically for businesses in the restaurant industry. The Go 2 lets employees take orders and cash customers out tableside to boost efficiency and lessen wait times.
Toast Go 2
Payment processing fees
2.49% + $0.15
if you buy hardware upfront; 3.09% + $0.15 for pay-as-you-go option.
Monthly fee
$0.00
Starter Kit; $69 Point of Sale plan; custom Build Your Own plan.
The Toast Go 2 allows you to submit orders at tables and accepts chip, swipe and contactless payments.
Pros
- Is designed specifically for restaurants.
- Offers 24/7 support.
- Is versatile and durable.
Cons
- Requires quotes for advanced monthly plans.
- Requires a contract.
Our pick for
Terminal for a variety of industries
The Clover Flex handheld terminal can be used in a range of industries, including retail, service-based and restaurants. And depending on your monthly plan, it can help you manage inventory, view sales data and set up individual logins for employees.
Clover Flex
Learn more
on Clover Flex's secure website
Monthly fee
$0.00
and up.
The Clover Flex is a small but powerful handheld credit card reader. It accepts chip, swipe and contactless payments. It can also scan bar codes and even print receipts.
Pros
- Works with Bluetooth.
- Paid plans have good POS features.
Cons
- Requires monthly plan for advanced features.
Square Reader
Best overall card reader
Why we like it: Square’s free magstripe reader is a convenient option for businesses making the occasional on-the-go sale. However, the company’s contactless and chip card reader gives you more flexibility by enabling you to accept cards with chips and digital wallets, such as tap-and-pay credit cards and smartphone apps, including Apple Pay and Google Pay. It uses Bluetooth technology instead of connecting directly to a device, which lets you keep your cell phone or tablet nearby — but not out all the time.
The reader must be charged, but the charging dock can double as a support for the reader for a counter or table. You can also charge it with a USB charger.
Square also offers Tap to Pay on iPhone, which lets merchants accept card payments using only a regular iPhone with the Square point-of-sale app. Customers hold their cards or their own iPhone wallets near the merchant's phone to pay. Read our full Square review.
Style: Free magstripe reader plugs into a smartphone or tablet; the contactless and chip reader connects to a compatible phone or tablet via Bluetooth.
First magstripe card reader is free; additional readers cost $10 each; contactless and chip reader costs $59; $39 for optional dock.
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square Appointments Plus plan.
- $69 for Square Appointments Premium and Square Restaurants Plus plans.
- $89 for Square Retail Plus plan.
- $165 for Square Restaurant Premium plan.
- Custom pricing for Square Retail plan.
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.5% plus 15 cents for manually keyed transactions.
- 3.3% plus 30 cents for invoices.
» MORE: What is a point-of-sale system?
Clover Go
Best for using third-party payment processors
Why we like it: This credit card reader by Clover works with iOS and Android phones and tablets via Bluetooth. It also processes every type of credit card payment your customers could want: magstripe-only cards, chip cards and contactless payments.
You can choose between the starter plan or the standard package. Both provide basic payment processing with 24/7 live support. However, the standard plan includes added features such as sales tracking, detailed reporting, inventory management and itemized orders. Read our full Clover review.
Style: Connects to compatible phone or tablet via Bluetooth.
$49 for reader.
- $0 for Payments plan.
- $14.95 for Essentials plan.
- 2.6% plus 10 cents for in-person transactions.
- 3.5% plus 10 cents for online or keyed-in transactions.
SumUp Plus
Best card reader with a screen
Why we like it: Powerful and compact, the SumUp Plus credit card reader works through Bluetooth with Apple and Android devices and promises more than 500 transactions on one charge. In addition to having a screen to show transaction details, the reader comes with a few helpful POS software features that allow you to manage products in your catalog, track sales, send digital receipts and manage employee accounts. However, you might find that the overall POS is lacking when compared with the more robust options on the market. Read our full SumUp review.
Style: Connects to compatible phone or tablet via Bluetooth.
$54 for reader; $64 with cradle; $99 for SumUp Solo touchscreen reader; $169 for SumUp Solo Printer Bundle.
$0
- 2.6% plus 10 cents for in-person transactions.
- 2.90% plus 15 cents for online invoice transactions.
- 3.5% plus 15 cents for card-not-present transactions.
Helcim Card Reader
Best for interchange-plus pricing
Why we like it: Helcim’s card reader accepts chip and contactless payments, but it can’t read magstripe cards. Because it connects through Bluetooth, it needs to be charged. It also provides POS software through the Helcim app with features that include customer management and inventory tracking plus analytics and reporting. A standout feature is its self-service portal, which allows customers to log in to see their payment information and purchase history.
Helcim bases its fees on the type of card and interchange fees, which are set by card networks. It also offers volume-based discounts. The processor doesn’t require you to sign a contract, pay a monthly fee or pay to cancel your service. Read our full Helcim review.
Style: Connects to compatible phone or tablet via Bluetooth; can also be plugged into a desktop computer.
$99 for the reader.
$0
- Interchange plus 0.4% and 8 cents per in-person transaction (if $50,000 or less in monthly card transactions).
- Interchange plus 0.5% and 25 cents per online or manually keyed transaction (if $50,000 or less in monthly card transactions).
- 0.5% plus 25 cents for ACH payments (capped at $6).
PayPal Zettle
Best for accepting PayPal and Venmo
Why we like it: PayPal’s Zettle accepts chip and contactless payments, but it doesn’t read magstripes. It does, however, let customers pay with QR codes on PayPal and Venmo platforms. Its POS software offers sales reports, inventory management, tracking sales performance and more.
Transaction fees generally fall in line with competitors. All funds go into your PayPal account rather than a bank account. You’ll need to request a transfer to move the funds to your business bank account before you can use them outside of PayPal. Read our full PayPal Zettle review.
Style: Connects to compatible phone or tablet via Bluetooth.
New customers can get their first card reader for $29; additional readers are $79.
$0
- 2.29% plus 9 cents for in-person and QR code transactions.
- 3.49% plus 9 cents for manual-entry card transactions.
- 2.99% plus 49 cents for invoicing (payment made with card).
- 3.49% plus 49 cents for invoicing (payment made with PayPal).
Square Terminal
Best low-cost handheld terminal
Why we like it: Square Terminal lets you accept all three methods of credit card payments: chip, contactless and magstripe. It’s less expensive than some competitors and doesn’t require a long-term contract. Read our full Square review.
Style: Handheld POS terminal.
$299 or $27 per month for 12 months.
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square Appointments Plus plan.
- $69 for Square Appointments Premium and Square Restaurants Plus plans.
- $89 for Square Retail Plus plan.
- $165 for Square Restaurant Premium plan.
- Custom pricing for Square Retail plan.
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.5% plus 15 cents for manually keyed transactions.
- 3.3% plus 30 cents for invoices.
Toast Go 2
Best restaurant-specific terminal
Why we like it: The Toast Go 2 allows you to submit orders at tables and accept all three styles of payment. It's also spill-proof, will hold a charge for 24 hours and has a 6.4-inch touchscreen for quick checkout. The free version of Toast’s POS software comes with basic features, including point-of-sale and payment processing, but advanced features are available with paid plans. One downside: The company requires long-term contracts. Read our full Toast review.
Style: Handheld POS terminal.
$799.20 for Handheld Starter Kit (but $0 if you agree to a higher processing fee).
- $0 for Starter Kit plan.
- $69 Point of Sale plan.
- Custom plans available.
- 3.09-3.69% plus 15 cents per transaction, if you choose a pay-as-you-go plan.
- 2.49% plus 15 cents for card-present transactions, if you pay for hardware upfront.
- 3.50% plus 15 cents for card-not-present transactions, if you pay for hardware upfront.
Clover Flex
Best terminal for a variety of industries
Why we like it: The Clover Flex is a small but powerful handheld credit card reader. It can process all three credit card payment types, scan barcodes and print receipts. Read our full Clover review.
Style: Handheld POS terminal.
$599 for reader or $35 per month and up (for hardware + software) for 36 months.
- $0 for Clover Go Payments, Retail Starter and Personal Services Starter plans.
- $14.95 for Clover Go Essentials, Professional Services Starter and Standard and Home & Field Services plans.
- $49.95 for Retail Standard, Personal Services Standard and Advanced and Professional Services Advanced plans.
- $59.95 for Quick-Service Dining Starter and Standard plans.
- $69.90 for Retail Advanced plan.
- $79.90 for Quick-Service Dining Advanced plan.
- $89.95 for Full-Service Dining Starter plan.
- $109.90 for Full-Service Dining Standard plan.
- $129.85 for Full-Service Dining Advanced plan.
- 2.3% plus 10 cents for in-person transactions for most plans, though rates may also vary by hardware type.
- 2.6% plus 10 cents for in-person transactions on Retail Starter, Personal Services Starter and Professional Services Standard plans, as well as Home & Field Services Standard and Advanced plans.
- 3.5% plus 10 cents for online or keyed-in transactions.
In addition to simple, portable credit card readers you can take anywhere, there are also more built-out options available, including full countertop POS systems. Here are some top picks from each category:
- Clover Mini: 4 stars. Small countertop POS systems with built-in card readers, like the Clover Mini, are ideal for businesses that take most of their orders at the counter and need a solution with a small footprint. Read our full Clover review.
- Square Stand: 5 stars. The Square Stand comes with a built-in card reader — you just need to pair it with an iPad and download Square’s POS software. It’s a good solution for small brick-and-mortar or pop-up businesses that need a system they can use at the counter or carry around. Read our full Square review.
- Clover Station Solo: 4 stars. This stationary countertop system has a built-in card reader and can be paired with other hardware, like a cash drawer and tabletop receipt printer. Read our full Clover review.
Small businesses that experience long lines and accept tips may want a customer-facing screen to help speed things along. These screens offer gratuity options and often feature built-in readers that let customers tap or dip cards themselves.
- Square Register: 5 stars. The Square Register is the company’s fully integrated countertop POS system that can accept magstripe, chip card and contactless forms of payment. It boasts two screens — one for the employee and one for the customer to show transaction details — for a seamless experience. Read our full Square review.
- Clover Station Duo: 4 stars. The Clover Station Duo ups the game with a combination of a 14-inch screen for you and an 8-inch screen for your customers. This makes it easier for customers to confirm orders and pay however they want — credit card, debit card, and contactless payment methods. Designed for retail stores, restaurant environments and service businesses, the Station Duo offers the same features of the Station Solo with more power. Read our full Clover review.
Credit card readers gather, transmit and verify customers’ card information to complete transactions. Some card readers connect to your smartphone via Bluetooth while others are plugged into a more built-out POS register. Most often, you’ll see card readers that allow customers to swipe, dip or tap their cards to pay. Usually, they need to be paired with a mobile app or POS software to function and record your business’s sales.
Learn more about credit card processing
Credit card readers play a crucial role in payment processing. Dig into all the parties involved in the process and where card data travels to and from.
Types of credit card readers
To estimate the total costs associated with using a credit card reader, you’ll want to factor in more than the price tag on the physical device itself. Start by taking the following components into account.
Hardware
The upfront cost of a credit card reader varies depending on its functionality. A simple swipe or chip card reader for your iPhone or Android device is typically the cheapest option, ranging from $0 to $60 or more.
Mid-range options include handheld card readers, which can often scan barcodes, print receipts and even operate as a mobile POS system, in addition to reading cards. These can range from around $100 to $650 or more.
Full register and countertop POS systems also include card readers. These systems can cost closer to $800 and up.
Software
If you opt for a more robust hardware option, like a handheld or countertop POS system, you may need to pay a monthly POS software fee. These software subscriptions typically allow you to collect sales data, sync it with your accounting software, run reports and track inventory, among other features. Some providers offer basic software plans or mobile apps for free, but if you need more sophisticated features, expect to pay closer to $60 or more per month.
Payment processing
Regardless of your hardware and software expenses, your business will owe credit card processing fees. Oftentimes, credit card reader providers also offer in-house payment processing services. Otherwise, you may have to integrate with a third-party processor. While in-house options are usually the most convenient, you’ll have to calculate your business’s monthly sales volume to find the cheapest credit card processing company for you.
The following payment processing companies offer free card readers to new customers, though terms may apply:
- Square: Our pick for the best overall credit card reader also takes the cake for best free card reader. The Square magstripe reader plugs directly into your smartphone, so it doesn’t have to be charged, and is free when you sign up with Square.
- National Processing: Businesses subscribing to National Processing’s subscription plans may qualify for a free credit card terminal, depending on their processing volume and credit, but you need to reach out for further details.
- PaymentCloud: Businesses signing up for a merchant account through PaymentCloud may be eligible to receive one free piece of POS equipment. The company also works with businesses in high-risk industries.
- U.S. Bank Merchant Services: Businesses working with U.S. Bank Merchant Services can order a free Ingenico Moby/5500 card reader that connects to your smartphone via Bluetooth. It’s a good option for businesses that want to use the same company for banking and payment processing. You can read more about U.S. Bank Merchant Services in our best merchant services roundup.
To pick the best credit card reader for your small business, consider the following questions:
How much do you want to spend?
A card reader without a screen is the cheapest option, and sometimes free. But depending on brand, type and the features you want, you could pay hundreds of dollars. In addition to hardware and software fees, remember to keep processing costs in mind, too: If a payment processing company offers a free card reader but charges more per transaction, it may cost your business more in the long run than a reader with an upfront cost but lower transaction fee.
Does your credit card reader need to be mobile?
If you mostly accept payments at pop-up events, you may only need a mobile credit card reader that works with your smartphone. Businesses with a storefront, however, will probably opt for a countertop register with a cash drawer and receipt printer. If your storefront deals with long lines, you might consider purchasing a countertop register in addition to a portable handheld card reader that can accept payments from anywhere in the store.
What features are you looking for?
If you want to simply accept magstripe, chip and contactless payments, a basic card reader that pairs with your smartphone can likely do the job. There are also a variety of payment apps that let you accept contactless payments with just your smartphone — no additional hardware required. These options may work for freelancers, service-based businesses and other vendors that sell mostly at pop-up events. But if you're looking for more sophisticated features, like barcode scanning, receipt printing or gratuity screens, a standalone, handheld POS device could be a better fit.
Brick-and mortar businesses that need inventory management or advanced sales analytics, along with a cash drawer, should consider a comprehensive, countertop POS register as opposed to a card reader only.
What integrations do you need?
Being able to centralize all of your sales information in one system is important. Businesses that have a brick-and-mortar location plus an online store, for example, should be able to sync data from both places using their POS software. To do so, be sure that your card reader integrates with your POS software and payment processor.
In addition to simple, portable credit card readers you can take anywhere, there are also more built-out options available, including full POS systems and handheld terminals. Here are some top picks from each category:
Last updated on July 15, 2024
Methodology
NerdWallet’s ratings of payment processing providers rewards companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including overall cost, hardware and software options, system capabilities, customer service, contract requirements and integrations. Learn more about how we rate payment processing providers.
These ratings are a guide, but fees, hardware, software and contract requirements can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
