The 5 Best Credit Card Readers & Terminals for Small Businesses

From EMV chip readers to traditional terminals, we picked the best credit card readers for processing transactions.
Best overall
square contactless chip and card reader
Square Contactless and Chip Reader
4.3 out of 5 stars
4.3
$49.00
  • Icon Pros  Dark
    Accepts chip and tap payments
  • Icon Pros  Dark
    Charges 2.6% *& 10¢ swipe fees
Best all-in-one POS
shopify start up bundle
Shopify Retail Custom Kit 9.7
4.2 out of 5 stars
4.2
$879.00
  • Icon Pros  Dark
    Provides complete POS solution
  • Icon Pros  Dark
    Works with iPad and iOS app
Cheapest reader
PayAnywhere Mobile Card Reader
PayAnywhere Mobile Card Reader
3.7 out of 5 stars
3.7
$20.00
  • Icon Pros  Dark
    Costs less than $30
  • Icon Pros  Dark
    Charges flat 2.69% swipe fees
Best terminal
Ingenico credit card reader
Ingenico iCT220 Dual Com Terminal
3.8 out of 5 stars
3.8
$178.00
  • Icon Pros  Dark
    Features user-friendly, portable design
  • Icon Pros  Dark
    Accepts swipe, chip, and tap payments
Most flexible
mag tek credit card reader
MagTek 21040145 SureSwipe Reader
3.5 out of 5 stars
3.5
$51.91
  • Icon Pros  Dark
    Powers up through USB port
  • Icon Pros  Dark
    Works with any USB-enabled device

There are hundreds of different card readers on the market—some are mobile and some are packed with point-of-sale features.

We chose Square’s Contactless and Chip Reader as our number one pick because it’s mobile and it connects you to Square’s top-notch POS system.

Whether you go with the Square reader or something else, this article will help you choose the best credit card reader for your business and point-of-sale (POS) system.

The best credit card readers for small businesses

Best credit card readers & terminals

Reader
Lowest price
Payment types accepted
POS system
Buy it
square contactless chip and card reader

Square Contactless and Chip Reader

$49.00

Chip & tap (swipe w/ separate included swipe reader)

Square mobile app (iOS & Android)

shopify start up bundle

Shopify Start-up Bundle 10.2"/Air 10.5"

$879.00

Swipe, chip, and contactless

Shopify mobile app (iOS & Android)

PayAnywhere Mobile Card Reader

PayAnywhere Mobile Card Reader

$20.00

Swipe

PayAnywhere mobile app (iOS & Android)

Ingenico credit card reader

Ingenico iCT220 Dual Com Terminal

$178.00

Swipe, chip & tap

Any compatible system

mag tek credit card reader

MagTek 21040145 SureSwipe Reader

$51.91

Swipe

Any compatible system

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

Square Contactless and Chip Reader: Best overall for small business

square contactless chip and card reader
Square
4.3 out of 5 stars
4.3
  • $49.00 per reader
  • Check
    Accepts chip and contactless payments
  • Check
    Includes free POS software and subscription
  • X
    Requires separate (but included) magstripe reader for swipe payments
  • X
    Requires iOS or Android device, app, and subscription

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

There’s a reason we picked Square as the best mobile credit card reader and app for small business—actually, there are several reasons. Square readers connect to any iPhone, Android phone, or tablet to accept payments from just about anywhere. And our favorite Square credit card reader is the $49 Contactless and Chip Reader. It’s light, it’s compact, and it can accept EMV chip cards and NFC payments.

No magstripe reader, you ask? Square also throws in a free swipe reader with your contactless and chip reader purchase. One potential drawback: you’ll need to use Square’s free mobile app to use the reader and pay Square’s transaction fees, which are 2.6% + 10¢ for swiped, dipped, and tapped transactions or 3.5% + 15¢ for keyed transactions.

Bell
Important processing terms

In this article, we discuss two specific kinds of payment acceptance.

  • Near field communication (NFC). Also called contactless payments, NFC technology allows customers to pay with smartphones and other devices using software like Apple Pay and Google Pay.
  • Europay, MasterCard, Visa (EMV). EMV is an internationally standardized method for making payments with microchip-enabled credit cards. EMV technology allows for greater security than traditional magstripe payments.

Shopify Start-up Bundle 10.2"/Air 10.5": Best all-in-one POS solution

shopify start up bundle
Shopify
4.2 out of 5 stars
4.2
  • $879.00 per system
  • Check
    Accepts swipe and chip payments
  • Check
    Prints receipts and stores cash
  • X
    Works only with iOS devices
  • X
    Requires POS system subscription, starting at $29 per month

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

If you run a brick-and-mortar shop and are looking to upgrade from a simple mobile credit card reader and app, we recommend the Shopify Start-up Bundle 10.2"/Air 10.5". It’s the best all-in-one solution for accepting credit cards, securely storing cash, and printing customer receipts. The package includes a Shopify Tap & Chip Card Reader, a Chip & Swipe Reader, a Shopify Retail Stand for iPad 9.7, a bluetooth receipt printer, a cash drawer, and a barcode scanner.

Shopify’s POS software works on iOS and Android, but the kit only comes with an iPad stand, which means you’ll need to have or purchase an iPad. And at $879, the kit equipment is much more expensive than our other credit card reader picks. But if your store needs just one permanent solution for taking every type of customer payment, it’s an excellent value.

PayAnywhere Mobile Card Reader: Cheapest credit card reader

PayAnywhere Mobile Card Reader
PayAnywhere
3.7 out of 5 stars
3.7
  • $20.00 per reader
  • Check
    Costs under $30
  • Check
    Charges low transaction fees
  • X
    Doesn’t accept chip or contactless payments
  • X
    Has mediocre customer ratings

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

Moving from all-in-one with Shopify to one-and-done with PayAnywhere, the Mobile Card Reader is a simple and cheap way to take customer payments on the go.

One potential drawback of this reader is that it’s out of production. There are still a number of them left in inventory on Amazon and other sites, but the PayAnywhere website is no longer promoting the reader.

The reader also isn’t as sleek or functional as the Square device—you’ll have to pay extra for a chip and NFC reader, for example—but it comes with a price tag below $30 and an affordable 2.69% transaction rate. These low costs make the PayAnywhere mobile card reader a smart choice for food trucks, boutique storefronts, and pop-up retailers.

If you want the cheapest POS device, you better pick one of these up before they’re gone.

Ingenico iCT220 Dual Com Terminal: Best credit card terminal

Ingenico credit card reader
Ingenico
3.8 out of 5 stars
3.8
  • $178.00 per reader
  • Check
    Accepts swipe, chip, and contactless payments
  • Check
    Features user-friendly and private PIN pad
  • X
    Costs $178
  • X
    Doesn’t include POS or merchant processing

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

Mobile credit card readers and apps may be the fancy new kids on the block, but that doesn’t mean more traditional credit card terminals are entirely out of fashion. Ingenico is a reputable manufacturer of POS solutions, and its iCT220 Dual Com Terminal is one of the best credit card readers available. Customers can use EMV-enabled cards, use contactless payments like Apple Pay, or swipe their traditional magstripe cards.

The reader features a bright display, easy-to-read buttons, and a PIN-obscuring privacy shield for debit card transactions. You’ll pay more for a terminal than for most mobile card readers. But you can connect the iCT220 to almost any existing POS system—via ethernet cable or cellular communication—and use any major credit card processing provider.

MagTek 21040145 SureSwipe Reader: Most flexible credit card reader

mag tek credit card reader
MagTek
3.5 out of 5 stars
3.5
  • $51.91 per reader
  • Check
    Connects to any USB-enabled device
  • Check
    Allows swipes in any direction
  • X
    Requires separate POS terminal, device, and merchant account
  • X
    Doesn’t accept chip or contactless payments

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

For a simple, affordable, and versatile way to receive payments using a PC, Mac, or existing POS terminal, consider the MagTek 21040145 SureSwipe Reader. This credit card reader connects to any USB-enabled device (like a PC or POS terminal) and gets power through the same connection.

Setup is just as simple: simply plug in the six-foot cable and launch your POS software—no separate drivers required. The biggest downside? The reader is for swipes only—no EMV or NFC payments allowed. Still, the SureSwipe is durable and flexible, and it can upgrade to just about any mobile POS system.

4 more credit card readers to consider

Our five faves we picked above aren’t the only credit card readers out there—they’re just our favorites. But if you’re looking for more options, we uncovered four more swipe-only credit card readers that might work with your POS system.

Reader
Lowest price
Buy it

2xhome POSMATE USB Mini Credit Card 3 Track Hi Lo Co Magnetic Reader Swiper

$20.98

Osayde OSAYDE605 Magnetic Card Reader

$79.00

PayPal Mobile Card Reader

$16.87

Symcode USB Magnetic Stripe Card Reader

$17.99

Data effective 6/17/21. At publishing time, pricing and features are current but are subject to change. Offers may not be available in all areas.

What’s the difference between a credit card reader and a credit card terminal?

A credit card reader is any device that can translate the encrypted data on a credit card into information that your POS system can use to process a payment.

Most credit card readers can read the information on magnetic stripe cards. Many readers can also accept EMV-enabled cards which are harder to steal information from thanks to their advanced microchip encryption. And nowadays, some readers can take contactless payments using NFC technology, allowing a customer to simply tap their smartphone or smartwatch to the reader.

A credit card terminal—or payment terminal—is a type of reader that typically features a digital display and PIN pad. Credit card terminals usually don’t include their own POS or processing systems but instead connect to a separate system using cables or wireless technology. Terminals are best for brick-and-mortar shops, especially those that have multiple customer registers.

Mobile readers are credit card machines that connect to smartphones or tablets to accept payments from anywhere you can take the reader. The readers often come packaged with a POS application and merchant services account. Mobile credit card readers are excellent for small businesses that need to take mobile payments, such as food trucks, farmer’s market merchants, or retailers with only one register.

Best POS Systems for Small Businesses
Square POS
Best POS system overall
Shopify POS
Best POS for retail
Revel Systems
Best loyalty program POS
Shopkeep
Best POS for inventory
Quickbooks POS
Easiest accounting POS
Learn more about our top brands.
Megaphone
Look out
In 2015, the liability for in-store credit card fraud shifted to banks and merchants that don’t adopt EMV chip technology. That means that if you can’t accept chip cards, you could be putting your business at financial risk!

The takeaway

Whether your small business is a traditional retailer, a roving food truck, or a nomadic pop-up shop, you need to accept customer payments on their terms. More customers than ever are going cashless, and new technology allows them to make payments without traditional credit card methods. One of our picks for the best credit card readers should let you help more customers and take more payments.

Now that you've picked out a credit card reader, you may want to consider a point-of-sale system. We've reviewed the top options in our guide to the best small-business POS systems to help you find the best method for processing and tracking payments.

Related content

Methodology

We examined many of the top credit card readers on the market looking for reliable devices that worked best for the greatest variety of business use cases. Pricing played a significant role in deciding which reader would be best as small business budgets can vary widely. Our top choices represent options for many budget sizes and business types.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources

  1. CNBC, “More Americans Say They Don't Carry Cash,” January 15, 2020. Accessed December 12 6, 2020.
Andrew Mosteller
Written by
Andrew Mosteller
For four years, Andrew has been writing copy to help business owners expand, manage, and advertise their unique brands. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew’s father, an equity fund manager, taught him the ins and outs of investment financing and owning and operating a successful business. Now he brings his expertise and experience to entrepreneurs as a regular contributor on Business.org.
Recent Articles
What is a POS Report?
What is a POS Report?
Learn more about how POS reports and sales data can help your business grow. Every...
Best Tablet and iPad POS Systems
Best Tablet and iPad POS Systems 2021
We’ve compared and analyzed the best tablet and iPad POS systems and narrowed the field...
EPOS definition
EPOS Systems: What Are They and How Do They Work?
Electronic point-of-sale systems are here to stay, so it’s crucial to know what they are...
The Pros and Cons of Using Self-Checkouts
The Pros and Cons of Using Self-Checkouts
Self-checkouts are becoming more widely used by consumers every year. In fact, 48.7% of consumers...