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Business
Alana Rudder
Alana Rudder
Verified by an expert
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
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Updated 7:45 a.m. UTC Feb. 1, 2024
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Card readers offer a fast and convenient way to accept card payments for goods and services. But finding the best credit card readers among the many providers on the market means you’ll need to consider a few factors, including:
- Whether the card reader can accept your customers’ preferred forms of payment.
- If the company offers a fair payment processing rate.
- If the hardware is affordable and meets your business needs.
We’ve put together a list of the five best credit card readers, having reviewed and tested card readers from over 15 of the biggest payment processors.
Featured credit card processing offers
1
Stax
Via Stax’s website
Monthly fee
$99
Swiped transaction fee
7¢ to 10¢ + interchange rate
2
Merchant One
Via Merchant One’s website
Monthly fee
$13.95
Swiped transaction fee
0.29% to 1.55% per transaction
3
Payment Depot
Via Payment Depot’s webiste
Monthly fee
$79
Swiped transaction fee
7¢ to 10¢ + interchange rate
4
CardX
Via CardX’s website
Monthly fee
$29
Swiped transaction fee
0% credit card, 2.91% debit card
Best credit card readers
- Square: Best square readers for beginners.
- Lightspeed: Best card reader for established retail and restaurant businesses.
- eHopper: Best card reader for businesses on a budget.
- Clover POS: Best card reader for on-the-go payments.
- Shopify: Best card reader for e-commerce businesses.
Why trust our small business experts
Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 20 companies reviewed.
- 19 hours of product testing.
- 760 data points analyzed.
Best square readers for beginners
Square
Blueprint Rating
Get estimates from participating partners
Monthly fee
Free
Card-present transaction processing fees
2.6% plus $0.10
Free hardware
Yes
What you should know
Square offers a credit card reader and POS package for those just starting out as an entrepreneur or small business. You get a free magstripe card reader when signing up, allowing you to take in-person card payments as well as online and phone payments using its free POS system. While accepting only magstripe payments is quite basic and not as secure as the alternatives, Square ensures all transactions are protected and encrypted. Also, the chip and contactless card reader is available for $59.
Pros and cons
Pros
- Free magstripe card reader when you sign up with Square.
- Free point-of-sale (POS) software available.
- No long-term contracts required.
Cons
- Features like payroll and email marketing require separate monthly fees.
- The free card reader does not accept contactless or chip payments.
- Custom pricing is only available if you earn over $250,000 a year in card sales.
Best card reader for established retail and restaurant businesses
Lightspeed
Blueprint Rating
Via Lightspeed's website
Monthly fee
$89
Card-present transaction processing fees
2.6% plus $0.10
Free hardware
No
What you should know
Lightspeed’s POS services are designed for retail and restaurant businesses, offering a range of features including e-commerce, inventory management, marketing and reporting. It also has multiple hardware options tailored to retail and restaurants and dedicated customer support on certain plans.
However, Lightspeed is expensive, particularly if you want to take advantage of its full functionality. Smaller businesses are unlikely to need all the features available and will be able to find simpler card readers and POS systems for a lower price.
Pros and cons
Pros
- Dedicated products for retail and restaurant businesses.
- 24/7 customer support and an account manager for all retail plans.
- Inventory management features with thousands of products.
Cons
- Pricing plans can be expensive.
- No e-commerce, accounting or advanced reporting features on Lean plan.
- Long-term contract and you must contact sales to cancel.
Best card reader for businesses on a budget
eHopper
Blueprint Rating
Get estimates from participating partners
Monthly fee
Free
Card-present transaction processing fees
2.5% plus $0.10
Free hardware
Yes
What you should know
We recommend eHopper for businesses hoping to minimize spending while still having access to business management and payment processing features. It offers a free plan to help you get started that comes with a free POS system and payment terminal. Its OmniChannel plan is priced at $29.99 per month if you pay annually. eHopper’s surcharging and cash discount features mean you can reduce your credit card processing fees. In addition, there are no long-term contracts.
However, keep in mind that the free plan comes with limitations on products and transactions and doesn’t come with support options. It will likely be worth upgrading if you find eHopper’s payment processing works for your business.
Pros and cons
Pros
- Free payment terminal, POS software and account setup.
- No long-term contract and 14-day trial available.
- Surcharging and cash discounts let you avoid processing fees.
Cons
- Free plan is limited to 50 products and 300 monthly transactions.
- Limited integrations available.
- Free plan doesn’t come with customer support options.
Best card reader for on-the-go payments
Clover POS
Blueprint Rating
Via Clover's website
Monthly fee
$14.95
Card-present transaction processing fees
2.6% plus $0.10
Free hardware
Yes
What you should know
Clover offers a range of card reader and POS solutions, and we’d recommend Clover Go for businesses that need to take payments on the go, such as pop-up shops. With Clover, you can accept all types of card payments, including magstripe, EMV and NFC. So you won’t have to shuffle between card readers while you’re on the move. The Clover Go device allows you to take payments offline, and it can connect to your phone through Bluetooth for payments. However, you have to purchase a higher-tier plan if you want to receive free hardware.
Pros and cons
Pros
- Clover Go supports all card payment types.
- You can use Clover Go offline, and it connects through Bluetooth.
- You’ll get 24/7 live customer support.
Cons
- You must purchase a higher-tier plan to receive free hardware.
- Overall pricing is more expensive than alternative providers.
Best card reader for e-commerce businesses
Shopify
Blueprint Rating
Via Shopify's website
Monthly fee
$5
Card-present transaction processing fees
2.7% plus $0.00
Free hardware
Yes
What you should know
If your business is set up on Shopify and you want to start selling in-person, it will make sense to stick with Shopify and make use of its POS services. You’ll pay a flat fee for processing in-person payments and there is no extra cost per transaction. Also, Shopify’s Tap & Chip reader clocks in at under $50. In addition, qualified merchants that are new to Shopify and use its payments service can get a free card reader.
Keep in mind that Shopify can be a little expensive, so it won’t be the most cost-effective option unless you’re already making use of its e-commerce features.
Pros and cons
Pros
- A custom online store with all plans.
- No per-transaction credit card processing fee for in-person transactions.
- A Tap & Chip card reader is available for taking payments anywhere.
Cons
- The credit card processing fee for the basic plan is relatively expensive.
- The starter plan has 5% fees for credit card processing.
- Only eligible merchants qualify for free hardware.
Featured credit card processing offers
1
Stax
Via Stax’s website
Monthly fee
$99
Swiped transaction fee
7¢ to 10¢ + interchange rate
2
Merchant One
Via Merchant One’s website
Monthly fee
$13.95
Swiped transaction fee
0.29% to 1.55% per transaction
3
Payment Depot
Via Payment Depot’s webiste
Monthly fee
$79
Swiped transaction fee
7¢ to 10¢ + interchange rate
4
CardX
Via CardX’s website
Monthly fee
$29
Swiped transaction fee
0% credit card, 2.91% debit card
Best credit card readers comparison
| Free hardware | Accept all payment types | POS free trial | 24/7 customer support | |
|---|---|---|---|---|
| Square | Yes | No | Yes | Yes |
| Lightspeed | No | Yes | Yes | Yes |
| eHopper | Yes | Yes | Yes | Yes |
| Clover POS | Yes | Yes | No | No |
| Shopify | Yes | No | Yes | Yes |
Methodology
We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.
We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the best credit card readers.
The best credit card readers have positive user reviews on customer review sites and app stores. Credit card reader companies should provide customers with fast and reliable support. Using a combination of phone support, live chat and knowledge bases, customers should be able to quickly resolve issues 24/7.
Credit card readers should allow companies to accept mobile and contactless payments as well as offer self-service capabilities for customers to check themselves out. Hardware should integrate with robust software and apps that allow users to manage numerous aspects of their business, including inventory management, reports and analytics, loyalty programs and gift card management.
And the best credit card reader providers should offer affordable or free equipment to help businesses begin accepting payments quickly and easily.
What are credit card readers and how do they work?
Credit card readers are hardware that allow businesses to accept credit and debit card payments for their goods and services. The credit card reader collects the customers’ card details and communicates data between the parties involved to verify and settle payments.
The following steps form the process of taking credit card payments:
- The customer uses their card: Whether they swipe, insert or tap the card, the card reader will collect the required information, including the card and account number, the cardholder’s name and the expiration date.
- The payment is verified: When the data is collected, details of the payment request are sent to the payment processor, which passes it onto the merchant bank. The merchant bank communicates with the card issuer (the customer’s bank) to verify that the details are correct and the funds are available.
- The payment is approved: The card issuer approves the payment and communicates with the card reader that the payment is accepted.
- The payment is completed: With approval granted, the required sum of money is sent from the cardholder’s account to the merchant’s account. This is sometimes done in batches where funds for multiple payments are sent at the same time.
Most modern card readers are able to accept card payments made by swiping the magstripe, inserting the card and reading the EMV chip or tapping the card and reading the NFC chip. However, EMV chip payments are by far the most common. In 2022, they made up over 87% of all card-present transactions, up by more than 5% compared to 2021. They are significantly more secure than swiped payments and are processed much faster.
“EMV Chip technology provides a foundation for reliable, familiar and trusted contact and contactless payments,” said Joy Huang, EMVCo Executive Committee Chair. “These benefits are reflected in the consistent and sustained growth in deployment and adoption around the world.”
How to choose the best credit card reader for your business
Finding the best credit card reader for your business means you need to consider a range of factors, including your budget, how you accept payments and what features you need in a reader.
Your budget
Basic card readers are predictably cheaper, while the ones with more advanced features can cost over $1,000. Some providers even offer free hardware when you sign up for their full POS package — but this might not always offer the best value.
You’ll need to think about the cost of the hardware and any associated equipment you might need, as well as the payment processing fees charged by the provider. Be sure to think about long-term costs and scalability too, taking into account your current transaction volumes and projected growth.
How you’ll accept payments
Many modern card readers are capable of accepting all types of card payments, but not all are. Some basic card readers might be limited to one or two types. Consider the type of card payments you’re likely to receive from your customers, so you can ensure your chosen card reader can accept them. Your options include:
- Magstripe: This is the magnetic stripe that runs the length of some cards and is swiped through the card reader to make payment. It’s the least-secure method of payment for card readers and is gradually being phased out.
- Chip: Europay, Mastercard and Visa credit cards have an EMV chip that reduces the fraud risk on these transactions. Over 93% of credit card payments globally in the last three months of 2022 were made through the EMV chip method.
- Contactless: Many credit cards offer NFC capability, and most modern smartphones are also NFC-equipped, offering a faster and more convenient way of paying for goods and services.
Whether you need advanced features
Smaller businesses with a lower transaction volume might benefit from a basic card reader alone. However, more complex businesses may require additional features found in a complete POS system, such as:
- Inventory management tools.
- Location management features.
- Marketing tools and customer loyalty programs.
- Analytics and reporting capabilities.
When evaluating providers, ask the following questions:
- Is it secure? Look for card readers that offer end-to-end encryption and tokenization to ensure your customers’ data stays protected.
- Is there a long-term contract? Some providers offer monthly rolling contracts or even pay-as-you-go options, which offer more flexibility than long-term contracts.
- Is the software easy to use? Keep in mind how straightforward it is to use the card reader and associated software. A complex system won’t be helpful if you only need basic card reading capabilities.
- How fast is funding? If speed is a priority, you’ll likely want a card reader that offers instant or next-day deposits.
- Does it work offline? Certain card readers can still accept payments if the network is down, processing them once the connection has been restored. This can be a useful feature for businesses on the go.
- Is customer support reliable? 24/7 customer support is the best scenario, especially for 24/7 businesses. Live chat and phone options are usually the fastest way to get your questions answered.
How much do credit card readers cost?
| Cheapest card reader | High-end card reader | Monthly fee | |
|---|---|---|---|
| Square | Free | $59 | Free |
| Lightspeed | $99 | $519 | $89 |
| eHopper | Free | $509 | Free |
| Clover POS | Free | $1,799 | $14.95 |
| Shopify | $49 | $399 | $5 |
The cost of a credit card reader can be broken down into the actual hardware costs, whether paid up-front or through a monthly lease, and the fees involved in processing payments. Some payment processors offer free hardware when you sign up for their payment processing plans, so you’ll only pay a monthly fee.
Featured credit card processing offers
1
Stax
Via Stax’s website
Monthly fee
$99
Swiped transaction fee
7¢ to 10¢ + interchange rate
2
Merchant One
Via Merchant One’s website
Monthly fee
$13.95
Swiped transaction fee
0.29% to 1.55% per transaction
3
Payment Depot
Via Payment Depot’s webiste
Monthly fee
$79
Swiped transaction fee
7¢ to 10¢ + interchange rate
4
CardX
Via CardX’s website
Monthly fee
$29
Swiped transaction fee
0% credit card, 2.91% debit card
Frequently asked questions (FAQs)
Yes, some providers offer free credit card readers when you sign up with their service, including some on our list, such as Square and eHopper. However, even if there’s no up-front cost, you might have to pay a monthly fee to use it.
Credit card readers can come with certain recurring costs, often related to the reader itself as well as transactions made through it. The first cost you’ll need to consider is a leasing fee, which is where you pay monthly to use a card reader rather than an up-front bulk payment.
Then there are payment processing fees, which come in a variety of shapes and sizes. These include:
- Monthly service fees: These cover the cost of using the payment processing software as well as maintenance and support.
- Per-transaction fees: The most common way credit card processing companies charge is an interchange-plus model. This is where you pay a percentage of the transaction value plus a small fixed fee.
Credit card readers are more secure than they used to be, thanks to the shift from magstripe transactions to EMV chips and, eventually, to contactless transactions. Magstripe payments are more easily duplicated because the payment code assigned to each transaction stays the same.
EMV transactions are encrypted, and every transaction is assigned a unique payment code, so they are much less susceptible to credit card fraud. This is also the case with contactless payments, but these are processed faster.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
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Mehdi is a writer and editor with many years of personal finance expertise under his belt. He's a spirited money-saver, with a passion for making personal finance accessible and manageable. When he isn't writing, Mehdi likes to read about history and travel, hike along coastlines and in forests, and watch his beloved team Manchester United underperform.
BLUEPRINT
Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.
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