💳 Save money on credit card processing with one of our top 5 picks for 2024
Square is the best free mobile card reader, but other payment processors have good hardware for small businesses, too.
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Expert Contributor
Last updated onUpdated
REVIEWED BY
Expert Contributor
Several years ago, the payments industry was awash in offers for free credit card readers as merchant services providers struggled to compete with Square’s novel smartphone-based mobile payments system.
While Square still includes a free, magstripe-only card reader with each account, most other companies do not. Instead, if you’re looking for the least expensive way to accept in-person credit/debit card payments from your customers, you’ll need to find a low-cost, EMV-capable mobile card reader.
In this article, we’ll review the best options for low-cost and free credit card readers that work well for a newly launched business (or one that only occasionally has to accept an in-person credit/debit card payment). We’ll also give you some tips on what to look for in selecting the best credit card reader (free or not) for your business.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
|---|---|---|
Square
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National Processing
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Clover Go
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Shopify Lite
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SumUp
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| Show More Options | ||
PayPal Zettle
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| Show Fewer Options |
Read more below to learn why we chose these options.
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A free (or low-cost) card reader is only as good as the features that come with it. In addition to the credit card reader, the best mobile processing systems are easy to use, include fully-featured apps, offer fair processing charges, and include reporting features and support for effective payment security measures. Our top choices are:
| Hardware Option | EMV | NFC | Magstripe | "Free" Option Available | Purchase Cost | |
|---|---|---|---|---|---|---|
| Square | Square Reader For Contactless & Chip | $59.00 | ||||
| National Processing | SwipeSimple B250 | $99.00 | ||||
| Clover Go | Clover Go Mobile Card Reader | $49.00 | ||||
| Shopify Lite | Shopify Tap & Chip Card Reader | $49.00 | ||||
| SumUp | SumUp Plus Card Reader | $54.00 | ||||
| PayPal Zettle | PayPal Zettle Card Reader | $29 for 1st unit; $79 for additional units |
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Cons
The venerable Square Magstripe Reader is, improbably, still available for free when you sign up for a Square account. It's available with either a headphone jack or a Lightning port to connect to your smart device and doesn't need charging. While it doesn't accept EMV cards, it's still useful for accepting the occasional magstripe-only card or as a backup to your EMV-compatible card reader.
You should, however, be aware that you'll be on the hook for any fraudulent transactions if you process an EMV-enabled card using the magstripe.
Square is an excellent choice for credit card processing if you're running a small, low-volume business. There are no monthly fees or long-term contracts, and you can sign up for an account online without going through the extensive underwriting process required to get a full-service merchant account. In-person transactions cost a flat 2.6% + $0.10 each, making it easy to predict your processing costs.
Be aware that Square isn't available to most high-risk businesses and can actually be more expensive than a traditional merchant account if you have a high monthly processing volume.
If you're going to use Square as your primary method for accepting credit and debit cards, we highly recommend that you upgrade to the Square Reader for contactless and chip. This reader adds EMV and NFC-based (contactless) capability and Bluetooth connectivity. It costs only $59 and includes a Square magstripe reader to use as a backup.
Square Contactless + Chip Card Reader (2nd Generation)
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Cons
National Processing is one of the few providers in the processing industry that specifically caters to the needs of small business owners. Products and services include robust support for low-cost mobile processing systems, as well as more traditional credit card terminals. The company's new flat-rate pricing plans are similar to Square's, but you'll receive a more stable full-service merchant account instead of being added to an aggregated account.
National Processing offers a "free" card reader or terminal if you sign up for a merchant account, but we recommend passing on this offer and purchasing your equipment outright. This way, you'll avoid the need for a long-term contract (with a $295 early termination fee) and enjoy true month-to-month billing with no long-term commitment. The company's most affordable option, the SwipeSimple B250 mobile card reader, has all the capabilities that many small businesses will need. The "free" equipment offer makes more sense if you need a traditional countertop terminal or POS system, which costs hundreds of dollars or more.
In any event, National Processing is much more lenient about enforcing its early termination penalty than most providers. Unless you're leaving the company and signing up with a competitor, you won't have to pay the ETF as long as you return your equipment promptly.
SwipeSimple B250 Card Reader
Get Started With National Processing
Pros
Cons
The Clover Go mobile card reader is best for merchants looking to accept it all — contactless, chip cards, and magstripe (as a last resort). This Bluetooth reader has a great battery life with an optional countertop dock, and with a merchant account through National Processing, the Clover Go could cost you nothing.
The price of the Clover Go reader depends on where you buy it — several processors use Clover as their line of hardware options. However, we have negotiated a deal with National Processing for our readers to get a free Clover Go device. If you want this chip card reader for free, you can get it from National Processing upon opening an account using our links on this page. Get your free reader here. Otherwise, it is $49 when you buy from Clover directly.
If you sign up directly with Clover, you'll pay just $14.95/month and have a simple, flat-rate pricing plan (usually 2.6% + $0.10/in-person transaction). Billing is month-to-month, and there are no long-term contracts or early termination fees.
Clover Go Mobile Card Reader
The Clover Go's rechargeable battery is good for approximately 160 swipe or chip card transactions. A micro-USB charger is included with each device.
Shopify Lite |
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Pros
Cons
Although it's best known as an eCommerce platform, Shopify also supports retail merchants with a variety of terminals and mobile card readers. At just $49, the company's proprietary Shopify Tap & Chip Card Reader is the ideal product for a small business looking to get a fully-featured mobile card reader for the lowest possible price (short of free, that is).
As the name implies, the Tap & Chip Card Reader accepts both EMV and contactless payment methods and connects to your smart device via Bluetooth. However, it doesn't accept magstripe payments. It's also one of the very few mobile card readers that comes with a charging dock included at no extra cost.
As for credit card processing, Shopify uses a very simple, flat-rate pricing plan. In-person transactions will cost you 2.7% each, while manually keyed-in sales will process at 2.9% + $0.30 per transaction. There's also a monthly fee to use the Shopify platform itself, with the Shopify Basic plan being the most affordable at $39/month. There are no long-term contracts or early termination fees of any kind.
Shopify Tap and Chip Card Reader
Pros
Cons
UK-based SumUp is a relatively new entrant to the US payments processing scene, but it has a lot to offer small retail businesses.
If you just want to accept credit cards on your smartphone or tablet, the SumUp Plus mobile card reader will set you back just $54 ($64 when bundled with a charging dock). The SumUp Plus supports magstripe, EMV, and contactless NFC payments (including Apple Pay and Google Pay) and uses Bluetooth to connect to your smart device of choice.
Like Square and PayPal, SumUp is a payment service provider (PSP), so the chances of having your account suddenly frozen or terminated are higher than they are with a fully underwritten merchant account. Pricing is fully disclosed and uses a flat-rate pricing model. All retail transactions cost 2.75% each (2.6% + $0.10 with the SumUp POS system), and billing is pay-as-you-go, with no recurring monthly fees or long-term contracts.
Overall, SumUp is an excellent choice for a small, retail-only business that wants to be able to accept credit and debit cards for the least amount of money. One word of caution: SumUp doesn't offer a payment gateway or support for eCommerce, so it's not suitable for businesses with an online sales channel.
SumUp Plus Card Reader
PayPal Zettle |
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Pricing
No monthly feeContract
NoneEquipment Cost
$29 for your first card readerPros
Cons
The PayPal Zettle Card Reader is PayPal's mobile card reader, which you can use in conjunction with the PayPal Zettle app and your PayPal credit card processing account. It's modern, easy to use, and as close to "free" as you can hope for with a credit card reader.
The card reader operates using a built-in rechargeable battery that can last for up to eight hours (or 100 transactions) on a charge. You can recharge the reader using an included USB cable or an optional charging dock. With Bluetooth connectivity, you won't have to worry about having the right connector on your phone or tablet.
The PayPal Zettle app has most of the basic features you'll need day-to-day, including support for manually keyed-in transactions, logging cash payments, Venmo transactions, and QR code payments. It supports EMV and NFC-based payment methods (including Apple Pay, Google Pay, and Samsung Pay) but doesn't accept magstripe payments.
All in-person credit and debit card transactions cost a flat rate of 2.29% + $0.09 per transaction. While the PayPal Zettle Card Reader isn't free, it's a very affordable $29 for your first unit. Additional readers are $79 each, and the optional charging dock is $49. There are no monthly fees, and all billing is on a pay-as-you-go basis, with no long-term contracts or early termination penalties.
PayPal Zettle Card Reader
Get Started With PayPal Zettle
Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.
When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.
For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:
15
Years reviewing payment processors
100+
Providers evaluated
25
Attributes and features assessed per vendor
40+
Years combined experience
In selecting the best processing hardware for your business, it’s important to distinguish between credit card readers and credit card terminals, as they’re not quite the same thing.
A credit card reader is a mobile device that’s designed to work with a smartphone or tablet app to accept payments anywhere you can connect to the internet. It’s often a minimalist device with no display or keypad, relying on the app for these functions. Today, most card readers use Bluetooth to connect wirelessly to your mobile device. Card readers can also be used with a virtual terminal to accept in-person payments using a laptop or desktop computer. Credit card readers are cheap (usually under $100/device) but not so inexpensive that companies can give them away for free.
A credit card terminal, on the other hand, is usually a countertop device that includes a display and a built-in keypad. While it may need to be plugged into a wall outlet, many modern terminals can also run on battery power. Modern credit card terminals now include “smart” features such as color displays, wireless connectivity, and the ability to install business-specific apps. Credit card terminals are significantly more expensive than card readers, often costing $300/device or more. If your credit card processor offers you a “free” terminal, be aware that there will always be strings attached. Terminals are simply too expensive to give away.
Over the years, Square has lured thousands of small businesses away from more traditional merchant service providers by making credit card processing simpler and more affordable. The company’s competitors have responded in different ways, with many trying to offer a Square-like mobile card reader while still relying on the long-term contracts, high transaction charges, and multiple account fees that they’ve always used to turn a profit. Consequently, you’re likely to run across providers offering a service that looks a lot like Square at first glance but, in reality, will cost you a lot more.
One common feature is the “free” credit card reader offer. Knowing that business owners often don’t want to lease their equipment or purchase it upfront, providers will offer a “free” credit card reader with each merchant account you open.
However, this equipment is never truly free. There will always be a tradeoff with this type of offer. You’ll often have to give up a month-to-month contract in exchange for a long-term contract with an expensive early termination fee. The value of the free equipment might also be recouped through a higher monthly fee, higher processing rates, or a combination of the two.
While “free” credit card terminals can sometimes be a good deal for certain businesses, we strongly encourage you to read the details of your contract very carefully before signing up to see what you’re giving up in exchange for that “free” terminal.
There isn’t a single provider that can offer the lowest costs to every merchant. What might be a very inexpensive solution for you might not be such a good deal for someone else. Also, paying the least amount for processing won’t be of much use if you have to worry about your account suddenly being frozen or shut down or if the customer service isn’t adequate to solve technical problems when they arise.
Here are a few things to keep in mind when choosing which card reader is best for your small business:
These questions will help you keep track of the basics and identify the most important details when choosing a credit card reader.
With EMV now being the standard method of in-person card acceptance in the United States, Canada, and Europe, magstripe technology is well on its way to obsolescence. While you might occasionally need to process a magstripe payment, a card reader that only accepts magstripe is of very limited utility.
Modern card readers for mobile processing systems typically accept EMV and connect via Bluetooth to get around the disappearance of headphone jacks from most recent smartphone models. These additional features have driven the price of the readers up to the point where providers can no longer include them as a “free” feature of a new account (at least, not without some trade-off to compensate for the value of the reader). Because of these factors, most business owners will have to either purchase a low-cost reader or find a “free” one that comes with trade-offs they can live with.
All of the companies we’ve profiled above can set you up with a good-quality reader and mobile app that will allow you to start accepting credit cards. While each company has its limitations, they all provide excellent service for small businesses like yours. Some, however, are a better fit for certain industries than others, so be sure to do your research before selecting the best provider for your business.
For more information on mobile processing, check out the best mobile credit card readers for iPhones & iPads or the best mobile card readers for Android phones & tablets. If you want to upgrade to a traditional countertop credit card terminal, our post on the best credit card machines and terminals for small businesses can help.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.
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