6 Best Credit Card Readers for Small Businesses in 2021

Business credit card readers are necessary for small business owners to accept credit payments from clients. It is important that businesses choose a reader that best fits their budget and goals, as the use of these devices will change how consumers make transactions in the future.

Credit card readers work in conjunction with point-of-sale (POS) software to take and process payments. Countertop terminals, transportable devices, and readers that connect to smartphones and tablets are all examples of credit card readers. The finest credit card readers provide a variety of payment choices, are inexpensive and simple to use, and integrate with point-of-sale software.

The credit card readers you have access to are often determined by the payment processor you use. As a result, we selected the top four payment processors that provide outstanding card reader options:

• Square is the best credit card reader for small companies in general.
• Payanywhere: This option is best for firms that offer low-cost merchandise.
• Shopify is ideal for firms that do both online and offline sales.
• Dharma is a low-cost alternative for enterprises that are already established.

If you just need a solitary card reader, we propose the following:

• Verifone is the best supplier of conventional credit card terminals.
• MagTek is the best magstripe add-on for Android and iOS POS systems.

How Did We Assess Credit Card Readers?

We whittled down our list of 26 credit card reader suppliers to 16 to compare in-depth. We then ranked the six best card readers for small companies based on payment processing costs, hardware choices and price, transaction fee simplicity, User-Friendliness, payment type possibilities, and user feedback.

After taking into account all of these considerations, we determined that Square is the best credit card reader for small companies. Based on the criteria outlined below, it received a 4.56 out of 5 rating. Card readers are also an excellent option for most people and small companies, based on my own experience with Square.

20% of the Total Points

We emphasized purchasing gadgets as well as payment processing services that don’t demand long-term commitments and provide transparent, low-cost, pay-as-you-go transaction costs.

25% of the Total Points

Card readers that allow offline transaction processing, accept a broad range of payment methods, and function with a variety of operating systems received excellent grades. Finally, we looked for suppliers who had straightforward transaction cost structures. This strikes a compromise between the convenience of flat-rate fees and the benefit of low transaction rates from interchange-plus pricing.

20% of the Total Points

We rewarded systems that provide quick payouts, flexible chargeback rules, and thorough sales data with points. Reporting and company management capabilities available via the card reader received bonus points.

15% of the Total Points

It should be simple to set up and use credit card readers. Premium points were given for the ability to connect and be mobile, and we made care to emphasize solutions that are easy to use in-store and on-the-go. We also awarded bonus points to systems that give help 24 hours a day, seven days a week.

20% of the Total Points

Finally, we considered our own personal experience operating card readers and interacting with each company’s customer support as well as evaluating each device’s overall performance to award points for any stand-out features, assessing the overall value each reader provides for the cost, reading user and critic reviews, and considering our own personal experience operating card readers and interacting with each company’s customer support.

Percentages based on total score

Square

Overall, the best credit card reader

PROS

• Hardware purchases may be made on a monthly basis with competitive prices and payment options.
• Chargeback issues are simple to resolve.
• Tools for POS, inventory, and customer administration are all available for free.

CONS

• Small transactions ((< $25) have hefty processing costs.
• It might be difficult to get in touch with customer support.
• Instability in your account (funds might be held at Square’s discretion)

Total Points 4.56 OUT OF 5

For small companies, Square provides the finest credit card reader and payment processing solution. It’s adaptable, with a number of credit card readers to choose from, whether you’re looking for an online, mobile, or countertop option. In addition, its robust POS system comes with complimentary company management features. It also features a fantastic chargeback dispute mechanism, which may be a game-changer for firms who have had to deal with unjustified chargebacks in the past.

With a total score of 4.56 out of 5, Square beat out all of our suggested credit card reader providers in our review. Users who sign up for Square’s free edition receive a free credit card reader and access to a wealth of POS tools. This combination offers almost unparalleled value for money and a great potential for small enterprises.

Square is also the greatest all-around POS system on the market, with the best merchant service for small companies.

Pricing

• Fee per month: $0
• 2.6 percent + 10 cents for swipe, chip, and contactless payments
• Payments entered by hand: 3.5 percent plus 15 cents
• Payments through e-commerce: 2.9 percent + 30 cents

Cost of a Square Card Reader

Interest-free monthly installment payment options are available in three, six, twelve, or twenty-four installments.

Features

• Point-of-sale: Square offers a feature-rich POS software that is second only to Shopify, which charges a monthly subscription. You may add inventory for speedier checkout, divide sales across several payment methods, enable customers to leave tips, and print, text, or email receipts with Square. Square functions offline, so you can take credit card payments even if you don’t have access to the internet.
• Invoicing, appointment booking, personnel administration, and client email marketing are all included in Square’s business management capabilities. Square also connects with a variety of other company applications, including accounting and delivery management.
• Square puts cash into your bank account in one working day (or two days if the transaction happens after your regular business hours). A 1.5 percent charge applies to instant transactions.
• Chargeback policy: Square offers the best chargeback management system. Chargebacks may be seen and disputed using an online interface. Even if you miss the deadline, Square will automatically challenge the charge based on the information in the system. If your dispute is unsuccessful, the cardholder’s bank will charge you a fee. Unlike many of the other suppliers, however, Square does not impose any additional fees.
• Customer service is accessible Monday through Friday from 9 a.m. to 9 p.m. Eastern time through phone, chat, and email.

Payanywhere

For transactions under $25, this is the best option.

PROS

• Small transaction costs are quite modest.
• EMV (chip) card reader for free
• Chargebacks are not subject to an additional cost.

CONS

• Fees for keyed-in transactions are exorbitant.
• For firms processing more than $10,000 per month, the price structure is opaque and costly.
• International credit cards are not accepted.

Total Points 3.99 OUT OF 5

Payanywhere, like Square, provides low-cost credit card processing with no upfront or monthly fees. Payanywhere’s flat-rate of 2.69 percent is beneficial for firms who offer low-cost products. Payanywhere, for example, would save you roughly 25% in processing costs if your average transaction size is $10, compared to Square, which charges 2.6 percent + 10 cents each transaction.

Payanywhere, on the other hand, does not include all of Square’s advanced payment services, such as ecommerce, appointment booking, gift cards, and email marketing. Payanywhere, on the other hand, is a trustworthy solution for firms that just require a credit card reader to get the job done. It offers a solid chargeback policy and customer service that is simple to contact.

In our evaluation, Payanywhere scored a total of 3.99 out of 5, with high marks for User-Friendliness and a perfect score for card reader specific-features. And while Payanywhere’s flat-rate fees are highly competitive, the lack of ecommerce and business management tools kept this provider from earning more points to claim the top spot.

Pricing

• Fee per month: Fee per month: Fee per month: Monthly fee: $0
• Payments via swipe, chip, and contactless: 2.69 percent
• 3.49 percent + 19 cents for keyed-in payments

Features

• Point-of-sale: The Payanywhere POS app includes all of the essential functionality, including: Customers may add tips and digitally sign receipts on the tablet or terminal, and receipts can be printed, emailed, or texted. Because the software works offline, you can process credit cards even if you don’t have access to the internet.
• Send invoices or set up regular payments with autopay using the internet.
• Payout time: Funds are deposited into your bank account in one business day via Payanywhere.
• Chargeback policy: Chargebacks may be seen and disputed online, much as Square. There are no upfront expenses for disputing a chargeback, but if the challenge is unsuccessful, there is a $25 fee.
• Customer service is accessible Monday through Friday from 8 a.m. to 8 p.m. Eastern time through phone, chat, and email. My queries were swiftly addressed throughout my examination.

Shopify

It’s ideal for both in-person and online sales.

PROS

• Rates that are competitive for firms who sell more than $10,000 per month
• Website builder for ecommerce
• Delivery management, email marketing, and a variety of additional features are included.

CONS

• A monthly charge is required.
• Doesn’t function when the computer is turned off.

Total Points 3.99 OUT OF 5

If you run a company that sells things both online and in person, you’re up against some particular obstacles. Across different selling channels, you must find out how to manage inventory, handle returns, and provide store credit. Shopify tackles this problem by merging online and offline sales into a single platform. This comprises a credit card reader and POS in-store, as well as a full-fledged online ecommerce business.

While Shopify does charge a monthly fee and has standard processing charges, its greatest strength is in its feature set. You can manage your inventory, order fulfillment, POS, and online shop all in one place instead of utilizing several platforms. Shopify is thus an excellent credit card reader for multichannel merchants, pop-up stores, and enterprises that sell at trade exhibitions or local markets.

To sum up our evaluation, Shopify also earned a total score of 3.99 out of 5, tied with Payanywhere for second place, and gained high marks for pricing, User-Friendliness, and Expert Rating. Shopify exceeds Payanywhere in the areas of ecommerce and business management tools. However, its lack of offline processing features prevented this provider from earning a higher rating.

Pricing

• Fees start at $29 per month.
• Payments via swipe, chip, and contactless: 2.7 percent
• 2.9 percent + 30 cents for online and keyed-in payments

Additional Shopify plan choices are available, which have a higher monthly charge but reduced per-transaction expenses.

Features

• Shopify provides the most sophisticated point-of-sale system of all the suppliers we looked at. Shopify inventory management can handle all of the variations and complexities that come with a bigger store. You can easily divide purchases between multiple payment methods, execute full or partial store credit refunds, and manage returns and exchanges. However, Shopify cannot take card payments without an internet connection, which is a significant disadvantage.
• Shopify is an ecommerce platform that is one of the most popular on the market. It includes easy-to-use tools for setting up a professional online shop as well as Amazon, Facebook, and Instagram connections.
• Shopify puts money into your bank account within one to three days after receiving your order. There are no same-day payments available, unlike Square and PayPal.
• Chargeback policy: Shopify, like Square, has a solid chargeback dispute procedure in place. There’s a web portal where you can add proof and fight chargebacks, and if you forget, Shopify will submit the dispute for you using the information in your system. There are no expenses to fight a chargeback upfront; however, if your protest is rejected, you will be charged $15.
• Customer service is accessible 24 hours a day, 7 days a week by phone, live chat, and email.

Dharma

Best for Companies That Process Over $20,000 Per Month

PROS

• Larger transactions have very low costs.
• Funds in a traditional merchant account are unlikely to be frozen.
• Customer service that is highly regarded

CONS

• The application procedure is really strict.
• Card readers are costly.
• Chargebacks can’t be disputed online.

Total Points 3.73 OUT OF 5

Unlike Square and Shopify, which provide a wide range of capabilities on their platforms, Dharma focuses solely on one thing: inexpensive credit card processing prices. It is substantially less costly than any other suppliers, particularly when it comes to large purchases, since it charges the interchange rate + 0.15 percent + 7 cents. Dharma, for example, will cost you nearly half as much as Shopify or Square if your typical transaction amount is $200.

On the other hand, companies must apply to create an account with Dharma, and they are quite picky about who they allow. A $20 monthly fee is charged, there is no chargeback assistance, and there are few POS or inventory management tools. When you have a separate POS or ecommerce system and merely want a payment provider that can give the best prices, Dharma is the best option.

All things considered, Dharma earned an overall rating of 3.73 out of 5, earning near-perfect marks for pricing and User-Friendliness. However, lack of an affordable credit card reader option and easy access to chargeback disputes prevented Dharma from earning a higher score.

Pricing

• Fee per month: $20
• Interchange + 0.15 percent + 7 cents per transaction for swipe, chip, and contactless payments
• Interchange + 0.2 percent + 10 cents per transaction for keyed-in payments

Dharma does not impose a fixed transaction cost, unlike the other providers analyzed. Instead, the exchange rate + 0.15 percent + 7 cents is charged. The interchange rate is the cost charged by the credit card or debit card company to conduct a transaction. It varies depending on the kind of card used, such as Visa or American Express, and the type of transaction, such as swiped or keyed-in.

Features

• Dharma offers a simple point-of-sale software named MX Merchant Express. You may collect payments with tips, on-screen signatures, and email receipts if you use the mobile card reader. You may also browse a client database, take online payments, and produce reports. MX Merchant Express, on the other hand, lacks the inventory management and ecommerce capabilities of full-fledged POS systems like Shopify or Square.
• Ecommerce: Dharma does not have an integrated ecommerce system. However, you can link Dharma with a variety of eCommerce platforms utilizing the Authorize.Net payment gateway.
• Dharma puts money into your bank account within two working days after receiving your payment. Account-holders may also request for money the following day.
• Dharma does not provide a web interface for contesting chargebacks, unlike all of the other businesses we looked at. Chargeback notifications are sent and may be challenged by fax or email. In addition, there is a $20 nonrefundable charge.
• Customer service is accessible via phone and email from 7 a.m. to 7 p.m. Eastern time Monday through Friday.

Verifone

PROS

• Most classic point-of-sale systems are supported.
• For various company sizes, there are a variety of card reader solutions.
• Portable and simple to operate

CONS

• Card terminals may be rather costly.
• Pricing is discreet.

Total Points 4.57 OUT OF 5

Verifone is noted for its large selection of pin pad card terminals. It integrates with a number of well-known merchant account providers and point-of-sale applications. Its most recent enhancements include devices that work with POS systems based on iOS, Android, Windows, and Linux, as well as USB and WiFi connectivity choices. Users may also use Verifone’s “fall back mode” to process payments and retain information until an internet connection is restored.

Verifone also sells mPOS devices, such as the e280, which can be used with any POS program that is compatible with iOS and Android. It also contains a 2D laser scanner, allowing you to perform sales in-aisle or from a kiosk across the shop.

As a purely hardware provider for card reader devices, Verifone ranks as the best option for traditional credit card terminals, earning a total score of 4.57 out of 5. Subscription features aside, this provider took top marks for Specifications for Card Readers, User-Friendliness, and Expert Rating, while expensive retail pricing (as well as undisclosed direct pricing) is the main downside for this product.

Note that although you may buy Verifone devices on Amazon and other retailers’ websites, you’ll need to link them to a merchant account to accept payments. Choose your merchant account first, since each one has its own set of regulations for what hardware it will accept. It’s possible that your merchant account will need you to buy hardware from them directly.

Pricing

• Fee per month: Fee per month: Fee per month: Monthly fee: $0
• Payments via swipe, chip, and contactless rely on the payment processor.
• Payments entered by hand: This is dependent on the payment processor.

Cost of a Verifone Card Reader

Pricing is based on Amazon’s price lists.

Features

The following functionalities may or may not be available depending on your merchant account:

• Verifone’s countertop and mPOS card terminals are both compatible with the most common point-of-sale applications. Meanwhile, Verifone has created its own software that allows POS operators to sell, redeem, and inquire about value-added services including airtime, cash vouchers, and power.
• Verifone provides integrated POS systems that establish individualized customer interaction and link to value-added applications that increase brand loyalty and reveal new income possibilities. Its mPOS gadget has extensive reporting capabilities, allowing users to view real-time information through their backend portals.
• Verifone also offers an omnichannel gateway with customizable checkout pages, omnichannel reporting, data and analytics, and fraud protection.
• Customer care is accessible from 9 a.m. to 6 p.m. Eastern time, according to Finder. Technical assistance is provided through live chat 24 hours a day, seven days a week, and emailed inquiries are answered within one to two business days.

MagTek

PROS

• Hardware that is dependable
• At a lesser price range, the device is offered at retail.
• Most countertop POS systems are plug-and-play.

CONS

• Magstripe readers that are tethered (stationary)
• It might be costly to upgrade an equipment.

Total Points 4.01 OUT OF 5

For consumers that prefer the classic swipe technique for receiving credit card payments, we recommend MagTek. It’s a plug-and-play gadget that works with any Windows-based POS as well as Android and Mac in keyboard mode. This means that consumers simply need to attach the card reader to their POS equipment where keyboards are typically connected, and it’s ready to use. It employs MagTek’s unique encryption technology and can read card swipes in either way. Its readers are also noted for having one of the industry’s top first swipe read rates.

MagTek also provides mobile card readers, including chip and contactless card readers. However, the price tag might be pretty high, and consumers would save more money by using Square, which already comes with a free software subscription. Hardware is accessible straight from the provider’s website, but a short internet search reveals that it’s also available at a lesser price at retail stores.

MagTek received a 4.01 out of 5 rating based on our assessment criteria for hardware-only card readers. While direct price may be a key issue for this supplier, your merchant services provider may be able to provide reduced pricing.

If you buy a MagTek reader, you’ll still need a separate merchant account to handle payments, much like Verifone. “Please ensure with your payment processor or merchant service provider that MagTek readers are compatible with your payment environment,” according to the MagTek website.

Pricing

• Monthly fee: varies according on the payment processor.
• Payments via swipe, chip, and contactless rely on the payment processor.

The price of a MagTek Card Reader

All prices are taken from the MagTek website. Your merchant services provider may be able to offer you lower costs.

Features

• MagTek doesn’t have its own point-of-sale system, but it does have a payment app. QwickPAY is an online, touch-free invoicing platform and a standalone kiosk that enables users to collect payments on the move. Fast payment acceptance, cloud-based storage for transaction data, receipts, and sales reports, fake card detection, fraud warnings, and data encryption are just a few of the features.
• Customer service: Technical assistance is accessible via phone from 5:30 a.m. to 5 p.m. on weekdays. It may also be contacted by email.

Conclusion

The top payment processors usually provide the best credit card readers. Many companies will provide you a free standard credit card reader so you may start taking magstripe cards right away. However, if you choose one with EMV chip compatibility or an all-in-one card reader that also supports contactless and mobile payments like Apple Pay, you’ll be more secure (and your clients’ cards will be as well).

Square’s credit card readers and processing costs are both kept low, making it the ideal option for small companies. You won’t have to pay a monthly charge, and you won’t have to worry about fluctuating prices from month to month.