Credit card readers let businesses accept customer payments easily. These small devices connect to a payment system and read the information from a credit or debit card.
They’ve become essential for both large stores and small businesses that want to offer more payment options beyond cash.
Modern credit card readers come in many forms. Some are standalone terminals while others connect to smartphones or tablets.
Many newer models accept contactless payments, where customers can tap their cards or phones instead of swiping or inserting them. This technology has grown more popular as people prefer touch-free options.
When shopping for a credit card reader, transaction fees should be your main concern. Different providers charge varying rates that can significantly impact your profits over time.
Security features are also crucial – look for readers that offer encryption and comply with payment card industry (PCI) standards. Ease of use matters too, especially if you have multiple employees who need to process payments quickly.
We spent weeks testing and researching dozens of credit card readers to find the best options for businesses of all sizes.
Our goal was to identify readers that offer the best balance of affordability, security features, and user-friendly designs.
Best Credit Card Readers
We’ve gathered the top credit card readers for your business needs. These devices make accepting payments simple and secure, whether you’re running a small shop or a busy restaurant. Our list includes options for different budgets and business types.
Square Contactless & Chip Reader
We believe this versatile payment solution is worth buying for any business owner who wants a simple way to accept multiple payment types without hassle.
Pros
- Connects easily via Bluetooth with no daily re-pairing needed
- Accepts chip cards, Apple Pay, Google Pay, and all contactless payments
- Long battery life makes it reliable for full business days
Cons
- Requires a compatible smartphone or tablet to function
- Costs more upfront than plug-in readers
- Processing fees add up for high-volume sales
The Square Reader for contactless and chip payments has made our small business transactions much smoother.
We recently used it at our weekend craft fair, and it was a game-changer.
Setting it up took just minutes – we downloaded the Square app, turned on Bluetooth, and were ready to take payments. The reader stayed connected to our phone all day without any drops or issues.
What impressed us most was how many payment types it handled. When customers wanted to use Apple Pay, we just held their phone near the reader.
For those with chip cards, they simply inserted them. The transaction speed was quick, with approvals coming through in seconds. The battery lasted our entire 8-hour event without needing a recharge.
The free Square Point of Sale app that works with this reader does much more than just take payments.
We track our inventory, see what’s selling best, and can email receipts to customers right away. The money hits our bank account within two business days, which helps with cash flow.
For businesses just starting out, this reader provides a professional way to handle payments without the complexity of traditional credit card systems.
Square Reader for magstripe (USB-C)
The Square Reader for magstripe (USB-C) is an essential tool for any small business owner who needs a reliable, portable way to accept credit card payments.
Pros
- Extremely lightweight and easy to carry
- Simple plug-and-play setup with USB-C devices
- No monthly fees for basic use
Cons
- Only works with USB-C connections
- Requires Square app and account
- Some cards need multiple swipes to read
We recently tested the Square Reader for magstripe with USB-C connection at our small craft fair booth.
The tiny white device weighs almost nothing (just 0.23 ounces) but handled transactions all day without issues. Setup took less than five minutes through the Square app.
The reader plugs directly into any USB-C port on your phone or tablet. This newer connection type works great with modern devices, but you’ll need an adapter for older iPhones with Lightning ports. We appreciate that Square finally updated this reader for newer phones.
During our testing, most cards read on the first swipe, though a few needed a second try. The Square app processed payments quickly and sent receipts to customers by email or text.
For small businesses just starting out, this affordable reader offers amazing value, especially since Square often offers sign-up credits that effectively make it free.
Deftun MSR90 Card Reader
The Deftun MSR90 offers reliable card reading capabilities at a reasonable price point for small businesses and organizations that need a simple swipe solution.
Pros
- Super easy plug-and-play setup with no software needed
- Reads worn or damaged cards surprisingly well
- Durable build quality that lasts for thousands of swipes
Cons
- Configuration software only works with Windows
- Cannot write to cards, reading function only
- Some ID cards and licenses may not be compatible
We recently tested the Deftun MSR90 card reader in our office, and it impressed us with its simplicity.
Just plug it into any USB port, and it’s ready to go without installing drivers. The reader acts like a keyboard input device, entering card information wherever your cursor is positioned.
The build quality feels solid despite its lightweight design. During our testing, the green LED indicator provided clear feedback when connected and when cards were swiped.
We found it read credit cards consistently on the first swipe, even when trying cards with visible wear and tear.
For organizations tracking membership or customer information, this reader is a practical solution. However, we discovered it doesn’t work with all ID types – some driver’s licenses didn’t register properly.
The bi-directional swipe feature is convenient, allowing cards to be swiped in either direction. At this price point, the MSR90 delivers good value for basic card reading needs, though remember it can only read cards, not write to them.
ETEKJOY Card Reader
The ETEKJOY Magnetic Stripe Card Reader delivers reliable performance and ease of use at an affordable price, making it a solid choice for small businesses and individuals who process credit cards.
Pros
- Reads all three tracks of magnetic cards with high accuracy
- Simple plug-and-play setup with no software required
- Works with Windows, Mac, and other USB-capable systems
Cons
- Some units may need to be unplugged and reconnected occasionally
- Compact size can make it slide around without mounting
- No encryption capabilities for higher security needs
We recently tested this magnetic card reader in our office, and it made processing credit cards much faster.
The setup couldn’t be simpler – we just plugged it into a USB port and it was instantly ready to use. No drivers or complicated software installations were needed.
The reader has a nice, compact design that doesn’t take up much space on a desk. Its 145cm cord gives plenty of reach from your computer.
When swiping cards, the green LED blinks to confirm a successful read, which is a helpful visual indicator.
During our testing, cards read consistently on the first swipe. The reader works with standard text editors, spreadsheets, and POS systems.
We liked that it reads all three tracks on magnetic cards, making it versatile for various applications beyond just credit card processing.
For small businesses looking for an affordable card reader solution, this ETEKJOY model delivers good value. The build quality feels sturdy enough for daily use, and according to the specifications, it’s rated for over a million swipes. Just be aware that some units might need occasional reconnecting to maintain consistent performance.
MiniDX Magnetic Card Reader
The MiniDX MSR123 offers reliable card reading functionality at an affordable price point, making it a solid choice for small businesses needing basic payment processing capabilities.
Pros
- Simple plug-and-play setup with no software installation needed
- Reads all three tracks from various card types
- Works with multiple operating systems including Windows and Mac
Cons
- Occasional connectivity issues requiring computer restart
- Slower shipping times than advertised
- Some compatibility issues with QuickBooks Online despite claims
We recently tested the MiniDX MSR123 magnetic card reader in our office, and were pleased with how easy it was to get running.
After connecting it to our laptop via the included USB cable, the reader’s indicator light turned green immediately. No drivers or additional software were needed – it just worked.
The compact size makes this reader convenient for small workspaces. Its 145cm cord provided enough flexibility to position it where customers could easily swipe their cards.
During our testing, the reader accurately captured data from various cards, including both high and low coercivity types.
For the price, we found this to be a functional option for basic card reading needs. However, we did experience a few hiccups where the reader stopped responding and required a computer restart.
Some users might also be disappointed to learn it doesn’t work seamlessly with QuickBooks Online as advertised. Despite these drawbacks, the MiniDX offers good value for small businesses or organizations needing a simple magnetic stripe reader for payment processing, ID verification, or access control applications.
Shopify Tap & Chip Card Reader
The Shopify Tap & Chip Card Reader offers a reliable payment solution for small businesses looking to accept card payments anywhere.
Pros
- Easy Bluetooth setup with smartphones and tablets
- Accepts all major cards and digital wallets
- Versatile for both mobile and countertop use
Cons
- Requires an active Shopify account
- Reader goes to sleep after an hour of inactivity
- Higher transaction fees compared to some competitors
We tested the Shopify Tap & Chip Card Reader at several pop-up events last month, and it quickly became an essential tool for our business.
The setup process took just minutes – we downloaded the Shopify POS app, connected via Bluetooth, and were ready to take payments.
The included dock is more useful than we expected. It charges the reader while positioning it at a comfortable angle for customers.
During busy periods, we appreciated how the reader handled multiple transactions without lag. The battery lasted through entire day-long events without needing a recharge.
One thing to note is the reader automatically powers down after an hour of inactivity. You’ll need to remove it from the dock to wake it up, which can be slightly annoying during slow periods.
We also found the 2.6% + $0.10 transaction fee slightly higher than some competitors, but the seamless integration with our Shopify store made up for this small drawback.
QICARWOW 4-in-1 Card Reader
This card reader falls short of expectations with limited functionality and poor support that make it difficult to recommend for most users.
Pros
- Supports multiple card types (magnetic, chip, PSAM, contactless)
- Plug-and-play USB connection without driver installation
- Comes with sample cards and cleaning card in package
Cons
- Works only with Windows systems, not Mac compatible
- Limited to reading magnetic cards without write capability
- Requires technical knowledge and APDU commands for full functionality
We spent time testing this QICARWOW card reader and found its performance disappointing compared to other options on the market. The device appears promising with its 4-in-1 capability, but actually getting it to work proved challenging.
When we plugged it in, our Windows system recognized it, but the lack of included software meant we had to figure out how to use it on our own.
The reader handles several card types, which sounds good in theory. However, we discovered that magnetic card functionality is read-only, and working with chip cards requires knowledge of APDU commands. This makes it suitable only for developers or those with technical backgrounds – definitely not for casual users or small business owners looking for a simple payment solution.
Customer support for this product seems almost non-existent. When we had questions about implementation, finding help was difficult. The included manual provides basic information, but lacks detailed instructions for actual integration.
At this price point, we expected more comprehensive documentation and support. Unless you’re replacing an identical device or have specific technical requirements, we suggest looking at more user-friendly card reader options with better support.
Posunitech MSR90 Card Reader
The Posunitech MSR90 Swiper is a reliable, plug-and-play magnetic card reader that delivers excellent performance for businesses at an affordable price.
Pros
- Truly plug-and-play with no software installation needed
- Works with both Windows and Mac systems
- Can read worn or damaged cards surprisingly well
Cons
- Basic functionality with no special features
- Cable management could be better designed
- Limited documentation included
We tested the Posunitech MSR90 in our small retail shop last week, and it performed exactly as promised. After simply plugging it into our computer’s USB port, the device was instantly ready to use – the green light came on, and we could start swiping cards right away.
No drivers or complicated setup steps were needed, which saved us valuable time.
The reader’s compact size (just 3.5 inches long) makes it easy to place on any counter or desk without taking up much space. Its build quality feels solid despite being lightweight at only 3.5 ounces.
During our busiest period, we swiped over 200 cards, and it accurately read each one, even some cards with visible wear marks that occasionally cause problems with other readers.
For its price point, we were impressed with how well this device handles damaged cards. The 3-track reading capability gives it versatility for different card types.
While not the fanciest option available, this reader delivers reliable performance for small businesses, ID verification, or access control needs. The simple black design blends in with most setups, and we appreciate that it works across different operating systems without any compatibility issues.
WODEMAX USB Credit Card Reader
The WODEMAX USB credit card reader offers basic functionality at a budget price, though its performance isn’t consistent enough for high-volume business use.
Pros
- Simple plug-and-play setup with no drivers needed
- Works with multiple operating systems
- Supports bi-directional card swiping
Cons
- Noticeable delay between swipes and data input
- Bulky design that may not fit all USB ports
- Limited configuration options
We recently tested the WODEMAX USB credit card reader in our office for processing customer payments. The initial setup couldn’t be simpler – we just plugged it into our computer’s USB port and it was ready to use without installing any special software.
This reader works like a keyboard input device, automatically “typing” the card information into whatever application you’re using.
The reader handles most standard magnetic stripe cards and can read up to three tracks of information. During our testing, it recognized various card formats including standard credit cards and ID cards.
The bi-directional swiping feature is handy, allowing cards to be swiped in either direction at speeds ranging from very slow to quite fast.
One thing we noticed was an occasional lag between swiping and when the data appeared on screen. This delay might be frustrating in busy environments where speed matters.
The build quality feels adequate but not premium, with a somewhat bulky design that might not fit well in crowded USB ports or slim laptops. For occasional use or small business applications, this reader provides decent functionality at a reasonable price point, but high-volume users might want something more robust.
Square Terminal Card Reader
The Square Terminal is worth every penny for small business owners who need a reliable, all-in-one payment solution that’s incredibly easy to use.
Pros
- Super simple setup and user-friendly interface
- Accepts all payment types securely
- Prints receipts directly from the device
Cons
- Doesn’t function well in direct sunlight
- Higher initial investment than basic readers
- Some users report receiving defective units
We recently tested the Square Terminal in our small retail shop and were impressed by how quickly we could get it up and running. The setup took just minutes, and we were processing payments right away.
The touchscreen is responsive and the interface is clean, making transactions quick for both our staff and customers.
The ability to accept all types of payments has been a game-changer for our business. Whether customers want to pay with chip cards, contactless methods, or even older magstripe cards, this device handles everything smoothly.
The built-in receipt printer is a nice touch that saves counter space compared to having separate devices.
Battery life has been solid throughout our busy days. We typically charge it overnight, and it easily lasts through an entire business day.
Just keep it away from direct sunlight – we learned this the hard way when one of our terminals stopped working after being left near a sunny window.
At $299, it’s definitely an investment, but the lack of hidden fees and the all-in-one functionality make it worthwhile for serious small businesses.
Square Card Reader
The Square Contactless + Chip Reader is a must-have payment solution for small businesses that need a reliable, portable way to accept all types of electronic payments.
Pros
- Accepts multiple payment types (chip cards, contactless, Apple Pay, Google Pay)
- No monthly fees or contracts with simple pricing
- Connects easily via Bluetooth to phones and tablets
Cons
- Battery needs frequent recharging with heavy use
- Occasional connectivity issues in busy environments
- Higher per-transaction fee compared to some competitors
We tested the Square Contactless + Chip Reader in our small craft shop, and it transformed how we handle payments.
The device is compact and lightweight, making it perfect for both our checkout counter and when we sell at local markets. Setting it up took just minutes – we simply connected it to our iPhone via Bluetooth and were ready to take payments.
The reader accepts practically every payment method our customers want to use. Chip cards, contactless payments, Apple Pay, and Google Pay all work seamlessly. This flexibility has helped us avoid those awkward moments when customers can’t pay how they want.
The transaction speed impressed us too – payments process quickly with just a tap or dip.
Square’s pricing structure keeps things simple for our business needs. We pay 2.6% plus 10 cents per transaction with no monthly fees or contracts.
Funds reach our bank account within 1-2 business days, though we sometimes use the Square Card for immediate access to our money.
The free Point of Sale app that works with the reader helps us track inventory and sales without extra cost. While the per-transaction fee is slightly higher than some competitors, the absence of monthly charges makes it worthwhile for our moderate sales volume.
Clover Compact Terminal
The Clover Compact Payment Terminal offers a solid solution for small businesses needing a reliable and versatile point-of-sale system.
Pros
- Space-saving design that doesn’t clutter counter space
- Accepts multiple payment methods (contactless, chip, swipe)
- User-friendly interface great for non-technical staff
Cons
- Requires new processing account through Powering POS
- Cannot be used with different payment processors
- Initial setup requires professional assistance
We recently tested the Clover Compact Payment Terminal in our office, and it made quite an impression.
The sleek design takes up minimal counter space while still providing all the functionality needed for modern transactions.
Setting up the terminal was fairly straightforward, though we did appreciate the follow-up call from the company to ensure everything was working properly. The customer service representative was patient and walked us through the final configuration steps.
What really stands out is how quickly this device processes payments. Our test transactions using various payment methods—chip cards, contactless, and swipes—all went through smoothly.
The ability to add surcharging options directly through the device helps offset processing fees, which can make a significant difference for small businesses.
The reporting features provide good insights into daily sales activity. We found the closeout reports particularly useful for end-of-day reconciliation. The gift card functionality is a nice bonus that many small businesses will appreciate for building customer loyalty.
Buying Guide
When looking for a credit card reader, it’s important to consider your business needs. We’ve put together this guide to help you make the right choice.
Payment Types
Consider what payment methods your customers use. Most modern readers should accept:
- Chip cards (EMV)
- Magnetic stripe cards
- Contactless payments (NFC)
- Mobile wallets (Apple Pay, Google Pay)
Businesses that need to accept multiple payment types should look for readers with versatile options.
Connectivity Options
Your reader needs to connect to process payments. Common connection methods include:
| Connection Type | Best For |
|---|---|
| Bluetooth | Mobile businesses, easy pairing with devices |
| Wi-Fi | Stable connection for fixed locations |
| Cellular | On-the-go businesses without reliable Wi-Fi |
| USB | Direct computer connection for desktop setups |
Software Compatibility
The reader must work with your existing point-of-sale system. Check if the reader integrates with your current software before purchasing.
Transaction Fees
Different readers come with various fee structures. Look at:
- Per-transaction fees
- Monthly service fees
- Hardware costs
- Setup fees
Lower upfront costs might mean higher transaction fees, so calculate your expected volume.
Portability Needs
Think about where you’ll use the reader. Mobile businesses need lightweight, battery-powered options. Fixed locations might prefer more robust countertop models.
Security Features
Protection should be a top priority. Look for readers with:
- End-to-end encryption
- PCI DSS compliance
- Tokenization features
These features help protect your customers’ sensitive information and your business.
Frequently Asked Questions
Credit card readers come with varying features, costs, and compatibility options that can impact your business operations. These common questions address key considerations to help you choose the right payment solution.
What are the compatibility requirements for a credit card reader with iOS and Android devices?
Most modern credit card readers connect to smartphones and tablets via Bluetooth or through the audio jack.
For iOS devices, readers typically require iOS 10.0 or later. Android devices usually need version 6.0 (Marshmallow) or newer.
Connection types vary by manufacturer. Square readers use Bluetooth or Lightning connections for iOS, while PayPal and SumUp offer readers that work with both operating systems through Bluetooth.
Always check the specific reader’s requirements before purchasing, as some premium models may have additional system requirements.
Are there any credit card readers available at no initial cost?
Yes, several providers offer free credit card readers as part of their merchant services.
Square provides its basic magstripe reader at no cost for new merchants who sign up for an account.
PayPal sometimes runs promotions offering their basic card readers for free. However, these no-cost readers typically only accept magstripe cards, not chip cards or contactless payments.
Remember that while the hardware might be free, you’ll still pay transaction fees ranging from 2.6% to 3.5% plus a per-transaction fee.
What options are available for processing credit card payments online?
For online payments, businesses can choose from payment gateways like Stripe, PayPal, and Square.
These services integrate with websites and e-commerce platforms through APIs or plugins.
Virtual terminals allow businesses to process card-not-present transactions by manually entering card details. This works well for phone orders or invoicing.
Shopping cart integrations with WooCommerce, Shopify, or BigCommerce provide seamless checkout experiences. Most processors charge slightly higher rates for online transactions due to increased fraud risk.
Which applications are recommended for turning a smartphone into a credit card reader?
Square Point of Sale is highly recommended for its ease of use and comprehensive features. It works with Square’s hardware for complete payment processing.
PayPal Here offers solid functionality with detailed sales reporting and inventory management. It integrates seamlessly with existing PayPal accounts.
Clover Go provides robust reporting tools and works well for businesses already using Clover systems. Other strong options include SumUp, Shopify POS, and Toast for restaurants.
How do the costs compare between various credit card readers for small businesses?
Hardware costs range from free basic readers to $300+ for advanced terminals.
Square’s chip and contactless reader costs about $49, while full POS terminals from Clover start around $500.
Transaction fees typically fall between 2.6% and 3.5% plus $0.10-$0.30 per transaction. Some providers charge monthly fees ($10-$60) for advanced features.
The total cost depends on your sales volume and average transaction size. High-volume businesses should prioritize lower per-transaction rates, while occasional sellers might prefer no monthly fees.
What features should one consider when choosing a mobile credit card reader?
Payment acceptance capabilities are critical – ensure the reader accepts magstripe, EMV chip, and contactless payments including digital wallets.
Battery life matters for mobile businesses. Look for readers that last at least 8 hours on a charge, with some premium models offering up to 2-3 days of use.
Connectivity options should match your business needs. Consider whether you need offline transaction capability or if your reader requires constant internet connection.
Additional features like receipt printing, inventory management, and customer loyalty programs can provide significant value depending on your business type.
