Shopify blog
Credit card readers might look similar, but they vary significantly in terms of functionality and cost. When choosing a card reader, you’ll want to consider fees, features, connectivity, integrations, and compatibility.
This guide highlights the 11 best credit card readers for small business owners, including a side-by-side comparison that will help you evaluate your options using practical criteria.
The 11 best card readers for small businesses
Card readers aren’t one size fits all. Choosing the right one depends on your retail setup, budget, and payment needs.
Methodology
Each card reader was assessed based on features, pricing, payment methods, fees, integrations, and ease of use. The final list includes a range of options suitable for various retail businesses.
| Card reader | Payment processing fees | Monthly subscription | Hardware costs |
|---|---|---|---|
| Shopify POS | From 2.6% + 10¢ per transaction | From $5 monthly | From $49 |
| Square | From 2.6% + 15¢ per transaction | None | From $59; first magstripe reader is free for Square account holders |
| Clover Flex | From 2.5% + 10¢ per transaction | Bundled into hardware costs | From $699 or $35 monthly |
| PayPal Point of Sale | From 2.29% + 9¢ per transaction | None | From $29 |
| Toast Go 3 | From 2.49% per transaction | Free option available | Free for one terminal |
| Stripe Terminal | From 2.7% + 5¢ per transaction | None | From $59 |
| SumUp | From 2.6% + 10¢ per transaction | None | From $54 |
| Lightspeed | From 2.6% + 10¢ per transaction | From $89 monthly | From $399 |
| eHopper | No additional card processing fees | Free option available | Free terminal available |
| Helcim | From 1.83% + 8¢ per transaction | Free option available | From $199 |
| KORONA POS | No card processing fees | Bundled into hardware costs | From $59 monthly per terminal |
1. Shopify POS: Best overall for unified retail
Shopify POS is more than a credit and debit card reader. It’s an omnichannel point-of-sale (POS) system that helps you manage in-person sales with integrated POS hardware, software, and built-in payments wherever you sell.
There are three main ways to take card payments with Shopify POS:
- When paired with a tablet, the Shopify POS Terminal gives buyers a dedicated customer-facing display for in-store checkouts.
- A portable Tap & Chip Card Reader allows for on-the-go selling and supports tap and chip payments.
- With Tap to Pay, you can turn your smartphone into a card reader.
“The software itself, along with the hardware, is really easy to use,” says Corey Hnat, marketing and digital sales manager at Pepper Palace.
“Instead of troubleshooting our card readers, checkout is much smoother. We’ve shaved a good 10 to 20 seconds off each transaction, which adds up to big efficiency gains when you operate at our scale.”
Shopify POS features
- Omnichannel selling
- Staff management
- Customer management
- Reporting and analytics
- Inventory management
- Native payment processing, including offline payments
- Various hardware choices
Pros
- Multiple card readers to choose from
- Reliable connectivity to support the completion of every transaction
- Fully integrated with Shopify’s online store for a unified commerce platform
- Secure payment processing with Payment Card Industry Data Security Standard (PCI DSS) compliance
- 24/7 support from Shopify’s team of dedicated retail specialists
Cons
- Includes broader ecommerce capabilities that brick-and-mortar-only retailers may not need
Pricing
- Card reader hardware pricing starts at $49
- Shopify POS Terminal starts at $349
- POS plans start at $39 per month
- Processing fees start at 2.6% + 10¢ per transaction
2. Square Reader
Square offers a few kinds of standalone card readers. The Square Reader for magstripe accepts swiped card payments, while the Square Reader also accepts chip cards and contactless payments. Both devices support offline payments for up to 24 hours.
The magstripe reader plugs into the bottom of your device (and comes in USB-C, Lightning, and 3.5 millimeter headset jack versions), while the chip reader connects wirelessly via bluetooth.
Square Reader features
- Bluetooth-powered standalone card reader
- Offline payments
- Secure native payment processing
- Compatible with phones and tablets
Pros
- Multiple reader options for swipe, tap, and chip payments
- Compatible with USB-C
- One-year warranty
Cons
- Additional commerce services aren’t included in the price
Pricing
- Square Reader costs $59
- First magstripe reader is free for Square account holders; $10 per additional reader
- Processing fees start at 2.6% + 15¢ per transaction
3. Clover Flex
Clover Flex is a handheld wireless card reader with a receipt printer and barcode scanner built in. Clover also offers an even smaller Flex Pocket reader, which offers digital receipts through email or SMS.
Clover Flex POS features
- Nearly 6-inch LCD color touchscreen
- Built-in receipt printer
- Wi-Fi and LTE connectivity
- 1D/2D barcode scanner
- Optional PIN entry aid
Pros
- Small and portable for on-the-go transactions
- Accepts digital wallets and contactless payment methods
- Up to eight hours battery life
Cons
- Starter plan includes only basic sales reports
- More expensive than other options on this list
Pricing
- Clover Flex costs $749 or $40 per month
- Flex Pocket costs $699 or $35 per month
- Processing fees start at 2.5% + 10¢ per transaction
4. PayPal Point of Sale
Point of Sale by PayPal, formerly known as PayPal Zettle, offers two hardware options: the Card Reader and the Terminal.
The Card Reader works with the PayPal POS App on a mobile device. The Terminal lets you manage inventory, accept payments, and scan barcodes when connected to a laptop or tablet. Both are portable and designed for in-person selling.
PayPal Point of Sale features
- POS app integration
- Wi-Fi and data enabled
- Power saving mode
- Barcode scanner (on upgraded terminal)
Pros
- No long-term commitment
- Accepts digital wallets and contactless payment methods
- Fast access to funds in your PayPal Business account
Cons
- Mobile card reader requires a compatible iOS or Android device
- Merchants who want inventory management and additional features may need the Terminal
Pricing
- First Card Reader costs $29, additional readers are $79
- The Terminal costs $199, or $239 for the POS Terminal with a built-in barcode scanner
- Payment processing fees from 2.29% + 9¢ per transaction
5. Toast Go 3
Toast Go 3 is a handheld POS built for restaurants. It can withstand spills and drops from counter height, and boasts all-day battery life.
The device can also process payments on the go. Toast Go 3 can process tap, dip, and swipe payments, with support for offline payments.
Toast features
- Integrated restaurant platform
- All-day battery life
- Lighter handheld design
- Flexible payment options
- Cloud printing for receipts and kitchen tickets
Pros
- Restaurant-grade durability
- Built for restaurants
- Cellular connectivity
- Accepts digital wallets and contactless payment methods
Cons
- Requires Toast hardware and software ecosystem
- Locked into Toast's payment processing
Pricing
- Starter Kit, which includes one terminal, is free
- Payment processing fees start at 2.49% per transaction
6. Stripe Terminal
Stripe Terminal offers a range of POS devices to accept payments on the go. This includes a cellular-capable smart reader (Stripe Reader S710), a compact mobile card reader (Stripe Reader M2), and Tap to Pay for Android and iPhone. Payments are processed through Stripe.
Stripe Terminal features
- Accepts Tap to Pay
- Customizable checkout
- Multiple card reader options
- 15 hours of active use battery life for the Stripe Reader S710
- End-to-end encryption
Pros
- Multiple card reader options
- Supports in-person payments across multiple countries
- Compatible with multiple devices
Cons
- Less plug-and-play than some all-in-one POS systems
Pricing
- Stripe Reader M2 costs $59
- Stripe Reader S710 costs $299
- Processing fees start at 2.7% + 5¢ per successful domestic card-present payment, plus 10¢ per authorization charge for Tap to Pay
7. SumUp
The SumUp Plus is a portable card reader that connects to a smartphone or tablet through the free SumUp app. It supports contactless, chip, and swipe payments, and works for mobile selling and simple countertop checkout.
SumUp features
- Compatible cradle bundle
- No monthly subscription
Pros
- Bluetooth-enabled and portable for mobile selling
- Accepts contactless, chip, magstripe, and swipe payments
- Processes more than 500 transactions on a single charge
Cons
- Requires a separate smartphone or tablet to accept payments; not a standalone device
- Lacks built-in receipt printing and on-device POS features available on SumUp’s higher-end terminals
Pricing
- SumUp Plus costs $54
- Payment processing fees start at 2.6% + 10¢ per transaction
- No subscriptions or monthly minimums
8. Lightspeed Mobile Terminal
Lightspeed’s Mobile Terminal is a portable device with built-in payment processing. The POS system has a touchscreen to ring up orders, as well as native inventory management tools powered by Lightspeed’s cloud POS system.
Lightspeed features
- Native inventory management tools
- Accounting, ecommerce, and marketing integrations
- Connects via LAN + iOS
- USB-C charging cable
Pros
- Portable card reader
- Accepts contactless and chip payments
Cons
- Requires Lightspeed POS system
Pricing
- Lightspeed’s Mobile Terminal costs $399
- POS software starts at $89 per month
- Payment processing fees start at 2.6% + 10¢ per transaction
9. eHopper
eHopper’s Pax Elys Workstation processes card payments from a main POS terminal. When you sign up for eHopper’s payment processing, you get a terminal and POS software for free.
eHopper features
- 14-inch touchscreen register
- Built-in receipt printer
- Barcode scanning functionality
Pros
- Integrated payment processing
- Free POS software offer for US merchants who sign up for eHopper processing
- POS software works on Android tablets, Windows PCs, and Poynt terminals
- Accepts contactless, chip, and magnetic stripe payments
Cons
- Free POS offer is limited to US merchants who use eHopper processing
Pricing
- The terminal is free
- No additional credit card processing fees
10. Helcim Card Reader
The Helcim Card Reader is a portable device that lets retailers accept tap and chip transactions. It has a touchscreen display and offers native payment processing through Helcim Payments.
Helcim features
- Secure card on file transactions
- Supports tap, chip, and mobile payments
- Built-in 4G/LTE data
Pros
- All-day battery life
- Low payment processing fees for Mastercard, Visa, and Discover
- Pairs with workstations, laptops, tablets, and phones
Cons
- Interchange Plus pricing means payment fees differ depending on the customer’s payment method
Pricing
- The Helcim Card Reader costs $199
- Payment processing fees start at 1.83% + 8¢ per transaction, plus an additional 10¢ fee per Tap to Pay transaction
11. KORONA POS
KORONA POS is an all-in-one POS system that allows retailers to process chip and contactless payments. They offer prebuilt bundles or individual hardware options to suit various retail businesses.
KORONA POS features
- Accepts chip and contactless payments
- Works with any payment processor
- Range of compatible POS devices
Pros
- Free trial available
- Multilocation support
- 24/7 customer support
Cons
- No built-in payment processor
- Some integrations require paid add-ons
Pricing
- Terminal monthly subscriptions start at $59 per month
- Optional extra add-ons cost between $10 and $50 per month per terminal
- No credit card processing fees
How to choose a card reader for your small business
Here are nine factors to consider when deciding which card reader is right for your business:
1. Unified commerce functionality
If you have online and physical stores, Shopify allows you to integrate your front- and back-end operations across both. You can sell omnichannel and manage your inventory, customer data, sales, and payments in a single platform—without relying on third-party APIs or software to sync your ecommerce platform and POS system.
According to an independent consulting firm, retailers using unified commerce platforms like Shopify POS achieve 22% lower total cost of ownership and 20% faster implementation time compared to other solutions.
Before turning to Shopify, luxury clothing brand Derek Rose struggled with a fragmented payment and inventory system that caused stock errors, didn’t integrate with its enterprise resource planning (ERP) software, and lacked a unified customer view. This made it difficult for the brand to optimize the customer experience and marketing efforts.
“Prior to Shopify, the reality was there were very few native omnichannel solutions,” says CEO Sacha Rose. “We needed an approach that worked seamlessly between our online and offline channels, and Shopify was able to provide that.”
By using Shopify’s POS to unify its data, Derek Rose doubled its retail footprint in just three months. It recorded a 7% increase in turnover generated by sales of website stock in-store and a 6% uplift in cross selling between store inventory.
2. Reliability and uptime
If your card reader has an unreliable network, a short battery life, or a tendency to break, your business won’t be able to accept payment. Choose a card reader with high uptime percentages (the total time a reader is operational), ideally above 99%. Look for reviews, testimonials, and case studies about the hardware’s reliability.
3. Check security features
Opt for a card reader that adheres to the latest PCI DSS requirements. Look for features like Europay, Mastercard, and Visa (EMV) compliance for chip cards, contactless payment encryption, and tokenization of payment data.
4. Evaluate pricing
To figure out pricing, you’ll want to look at your monthly revenue, count how many stores and employees will need a card reader, and determine what features you’ll need. With that information in mind, you can compare prices across card readers and providers.
Take a closer look at:
- Contract requirements. Is there a long-term commitment or a more flexible month-to-month option? What will this cost you in the long run?
- Hardware fees. How many card readers do you need? What kind? Do you need to buy the hardware outright, or is there a rental option?
- Processing fees. Look at the cost per transaction, including the percentage and the additional fee for each transaction.
- Monthly fees. Is there a recurring charge for using the service or system? What does the monthly fee cover?
- Hidden fees. Are there any fees that you don’t know about? Will you need to pay extra money for features you thought were included?
5. Review essential features
The right card reader should have all the essential features you need, and integrate easily into your full business management tool suite.
To help you out with your research, rank card reader features like:
- Mobile integration
- Multipayment support
- User-friendly interface that’s easy for all your employees to navigate and use (including returns)
- Uptime and reliable performance
- Durable hardware that’s resistant to wear and damage
- EMV compliance to ensure secure chip card processing
- NFC capability to process contactless transactions and Tap to Pay
- PCI compliance to adhere to industry data security standards
- Battery life with long-lasting power for continuous use
- Receipts that offer physical and digital transaction receipts
- Warranty to get the most out of your equipment
6. Integrations
Choose a card reader that integrates with your existing retail toolstack. That may include:
- POS
- Accounting software
- Ecommerce platforms
- Inventory management system
- Employee management tools
- Customer relationship management (CRM) tools
- Payment gateways
- Marketing tools
- Data analytics and business intelligence software
- Security software
TIP: The Shopify App Store is home to more than 16,000 apps that add extra functionality to your commerce platform. Categories span inventory management, email marketing, and referral programs—so you have one centralized “business brain” to help you run your business.
7. Flexibility
If your business operates across various selling environments, opt for a card reader that adapts.
Shopify POS, for example, offers contactless payment technology to turn your smartphone into a card reader, so you can take payments anywhere in-store, without the need for a separate terminal or stationary checkout desk.
Customers can tap their mobile phone against yours to pay for their purchases in-person using digital wallets like Apple Pay, Google Pay, and Samsung Pay.
8. Evaluate payment methods
Pick a card reader that accepts the payment methods your customers use. This includes cash, all major credit cards, and digital wallets.
Evaluate the fees for each of these methods—some POS vendors face higher fees to process American Express cards, for example, which they pass onto their customers.
Pro tip: Track which payment methods are most popular amongst your customers with Shopify’s payments by method report.
9. Hardware needs
Every business is different, which means no one card reader is right for everyone.
At one end of the scale, a small business could be a sole proprietorship run by one person, making features like portability and device size more desirable.
On the other hand, it could be a handful of retail stores with several employees in each store, instead requiring multilocation POS devices that are quick to set up.
Nutrition Warehouse, for example, chose Shopify to help it unify more than 120 retail stores. All 600 staff were trained within three months, with each training session lasting just 15 minutes (compared to a full day on their previous POS system).
How much does a card reader cost?
Card reader costs involve hardware, software, and payment processing fees.
Hardware
Your POS hardware costs will depend on the number of stores you have and the number of people at each store who need a card reader. Costs can also vary significantly by brand and features. For example, hardware costs for Tap to Pay are nonexistent because the technology turns your existing device into a card reader.
POS software
Card readers integrate with POS software so you can manage payments across multiple sales channels and stores. Some providers offer free tiers with limited features, while others require monthly subscriptions with prices that vary based on functionality and the number of locations.
Payment processing fees
You’ll pay a processing fee every time you complete a transaction with a card reader, and they vary between credit card reader providers. Keyed-in transactions typically cost more than card-present payments, and some providers offer lower rates for high-volume businesses.
Shopify’s in-person payment processing fees start at 2.6% plus 10¢, while online transactions have a 2.9% plus 30¢ fee.
Find the best card reader for your small business
The best card reader depends on your business size, where you sell, the features you need, and how much you’re willing to pay in hardware and processing fees. Start by identifying your must-have features, then compare hardware costs, monthly POS fees, and payment processing rates to find the best fit.
Best card reader FAQ
What is the best card reader for a small business?
To determine the best card reader for your small business, you’ll want to consider how big your business is, where you sell, what features you need, and how much you have to spend. Consider options like:
- Shopify POS
- Square
- Clover Flex
- PayPal Point of Sale
- Toast Go 3
- Stripe Terminal
- Lightspeed
- eHopper
- Helcim
- KORONA POS
What is the best smart card reader?
No one card reader is the best choice for every business. Every store has different hardware needs, requirements, and budgets that dictate which card reader you’ll choose.
Is it worth getting a card reader?
A card reader is often needed to take tap, chip, swipe, and PIN payments for in-person transactions. However, newer options, like Shopify’s Tap to Pay, turn your smartphone into a card reader, allowing you to accept contactless payments anywhere without a separate terminal.
Can a card reader be used without a smartphone?
Some card readers are standalone devices with built-in screens, keypads, and connectivity, so they don’t need a smartphone or tablet. Others require pairing with a phone, tablet, or POS terminal to process payments.
What is the cheapest way to accept card payments?
The cheapest way to accept card payments is with Tap to Pay on a compatible smartphone. There is no additional hardware cost, since you’re turning your smartphone into a card reader. You will need to choose a POS app, such as Shopify POS, which charges payment processing fees.
