Want to know a secret? Every business owner can benefit from having mobile credit card readers. Whether you provide goods or services, run a brick and mortar, or operate as a mobile business, this type of reader allows you to easily accept credit card payments from clients wherever you are so you can get paid faster. Clients are more likely to choose your company if they can pay with ease, which means you’ll also get paid more. Simply put, having a mobile credit card reader gives your customers a better experience and lets you close more sales.
There are various mobile credit card readers for small businesses available, including several convenient payment options from Podium. Before you choose which one will be best for your business, let’s go over what options exist and how they work.
What is a mobile credit card reader?
A mobile card reader is exactly what it sounds like—a payment processing solution that lets you process credit cards or payments on the go. Mobile credit card readers are especially important for businesses that provide services in customers’ homes, operate outside of a physical location, or deliver to customers. They are also useful for companies that frequently set up booths at fairs or expos and mobile businesses such as food trucks.
Some of the biggest names you’ll see when looking for a mobile credit card reader include Square and Shopify, but there are lots of other viable options that are important to consider.
All of the options produced by industry leaders have their pros and cons. Square, for example, is known for being easy to use but charging a higher transaction processing fee. Shopify is particularly helpful for companies that already use Shopify for an online store. Podium has similar features but offers a more affordable monthly fee.
Types of Mobile Credit Card Readers
Mobile credit card readers are incredibly useful for nearly every business. They let you process credit cards from almost anywhere, which is convenient for both you and your customers. There are three main types of mobile credit card readers:
- Small mobile readers that pair to your phone
- Handheld card readers with a screen
- Stationary point-of-sale systems for checkout counters
Let’s take a closer look at how each of these three options works.
1. Small Readers That Pair With Your Phone
The benefit of a mobile reader that pairs with your phone is that you can accept payments anywhere your phone goes. Whether you’re in an office, traveling from house to house, or at an expo booth, as long as you have your phone you’re ready to start selling. Another advantage to this type of card reader is that setup is fairly minimal. Simply use Bluetooth to pair your payment device to your phone, and you’re in business.
2. Mid-sized Hand-held Reader
Mid-sized handheld readers are a good compromise between the main types of readers. They’re a bit bigger than small readers that pair to a smartphone, but they’re smaller than bulky stationary readers. They typically have their own touchscreen, so they’re a standalone system that doesn’t require any paired devices.
These kinds of mobile payment devices can be taken just about anywhere and accept all payment types. Another benefit to having a handheld reader is that it can double as a stationary reader at a checkout stand or front desk for days when you aren’t on the move.
3. Point-of-Sale Station
In-store readers are the bulkier options that you’ll usually find at a front desk in brick-and-mortar stores for in-person transactions. These card readers are not necessarily designed to be mobile (although there are options for portable credit card readers that are also appropriate for in-store use).
Some in-store card readers will need to connect to your internet via an ethernet cable or even to your landline. However, many can use the same wireless connection that mobile credit card readers use.
The advantage of a bulkier credit card reader is that the bigger size means more robust hardware, which often allows for more features. You also don’t have to worry about keeping this kind of reader charged. Most of them also either integrate with or include your POS system. The limitation is that bulky point-of-sale stations are not portable.
Some companies offer a free card reader as part of your monthly subscription fees. So, if you’re not sure which reader is right for you, check if there are any options available to you through companies you already work with. Just be sure to read the fine print on these offers as they may have higher transaction fees or monthly processing minimums.
4. Mobile Card Reader Alternative: Text-to-Pay
One of the newer alternatives to mobile credit card readers is text-to-pay. This is a simple process where you text a customer a link, they click on the link, and it takes them to your secure payment portal where they can pay using their preferred method. This method supports credit cards with ease.
While text-to-pay is designed for mobile payments when the customer is not present, it also works for in-person sales. In fact, it can be an alternative to NFC contactless payments when small businesses want to accept contactless payments for sanitary reasons.
Text-to-pay is incredibly popular due to its convenience—you don’t have to be in the same location as a customer in order to accept a payment. Customers can pay for a product or service from the comfort of their homes. This takes contactless payments to the next level.
The only caveat to keep in mind is that this will count as a card-not-present transaction, which likely comes with slightly higher payment processing fees than a card-present transaction. However, the convenience of being able to accept credit cards for transactions regardless of a customer’s location makes those fees worth it. And the potential increase in business due to the ease of this kind of payment will likely make up for the slightly higher fees.
The 8 Best Mobile Card Readers
Your terminal is so much more than a chip reader. Or a “credit card machine.” Choosing one involves looking at how it will enhance your overall customer journey. Here are eight of our favorite options for local businesses. We’ll explain what each offers, its features, its pricing, and its pros and cons.
1. Podium.
Podium’s reader lets you accept every type of payment.
- Pros? It offers text-to-pay, automatic reconciliation and advanced fraud protection, and outstanding subscription and financing support.
- Cons? You pay higher monthly fees.
2. Square
A Square reader costs up to $49 and accepts magnetic stripe, contactless credit cards, Google Pay, Apple Pay, Cash App, and gift cards. Their processing fee is 2.6%, with an added 10-cent rate.
- Pros? They offer a free plan, throw in free POS software, and support omnichannel sales.
- Cons? You have to upgrade to use core management tools.
3. Clover Go
Clover Go’s hardware will also run you about $49 and the same processing fees as Square. It accepts magstripe cards, EMV chip cards, Samsung Pay, and Apple Pay.
- Pros? It provides extra security through encryption and tokenization, and it doesn’t have any fees to cancel.
- Cons? Their monthly plans are a bit costly and have some transparency issues.
4. Shopify
Shopify’s reader is also $49 and accepts Magstripe, chip, and contactless payments. Their processing fee is 2.4% to 2.9% with the addition of 30-cent rates.
- Pros? This reader syncs with your Shopify online store and offers fully featured POS software. So, it’s perfect for Shopify users.
- Cons? You pay around $29-$299 in monthly fees and it’s not really helpful for non-Shopify users.
5. Stipe M2
This reader is popular for small businesses that sometimes have international pop-up events or shows. The reader costs $59 and has no monthly software fee. Stipe M2 charges 2.7% + 5-cent rate per transaction (swipe) (and 2.9% + 30-cent rate for tap/contactless; international payments add 1% to this.)
- Pros? You can use this reader in 135 countries.
- Cons? This solution is a bit more DIY than others. You need a custom-built POS, so you’ll need to hire someone to build this or acquire the skills yourself.
6. PayPal Zettle
This reader is a bit more costly, running you $29 to $79. It accepts contactless, Apple and Google, Cash App, gift cards, PayPal, and even Venmo. It runs a processing fee of 2.29% with an additional 9-cent rate.
- Pros? No monthly fees! And, as you can see, it accepts the whole gamut of payment options.
- Cons? It doesn’t accept magstripe and you incur additional fees for international transactions.
7. SumUp
This reader costs $39 and is highly portable, making it a go-to for pop-ups and markets. The card-present transaction fee is a bit high, $2.75, but doesn’t have an added flat fee.
- Pros? No additional flat fees and high mobility/functionality.
- Cons? High-risk businesses can’t use this solution (some customers have complained that their funds have been held/frozen.)
8. Helcim
Helcim’s card reader is the only one on this list that will run you over a $100 (109). However, it has the lowest processing fees: 2.16% plus a 16-cent rate.
- Pros? Low processing fee and automatic volume discount, so it’s great for local businesses on the smaller side.
- Cons? Doesn’t accept swipe payments.
Benefits of Mobile Card Readers
Simply put, using mobile credit card readers lets your small business accept more payment methods in more places. Understandably, this helps you attract more customers and exceed expectations more often. Getting a credit card swiper for your store and investing in a text-to-pay system lets you accept in-person payments as well as payments via mobile device when your customer isn’t present.
With the right card reader, you can eliminate errors (the reader gets the information directly from the card), offer greater convenience, track your card transactions more easily (giving you a larger window into your data and records, which can help you improve future transactions and inventory management), and mobility (the right reader allows you to use wi-fi, a wired connection, a mobile network, or even, temporarily, nothing at all).
How do mobile credit card readers work?
Because they have to be small and easy to transport, mobile credit card readers typically don’t have any screens or buttons other than a pairing button or on-of switch. They usually connect to your phone via Bluetooth, but some of them can also plug directly into your phone.
Typically, an app on your phone will act as the user interface. You simply enter in the amount to charge on the app, then the app prompts you when it’s time to insert or tap the card. Modern readers have the ability to tap or insert a card, and some of them even accept mobile wallets such as Apple Pay or Samsung Pay.
Because mobile readers are small and have limited hardware, they typically don’t print receipts. Instead, the corresponding app will give the ability to text or email receipts to customers.
Considerations for Choosing Mobile Credit Card Readers
On top of the usual considerations for choosing a credit card reader, there are certain features to keep in mind.
Scalability
Because your business will continue to expand, you need flexible payment technology that will grow with you. If you anticipate quick growth, selecting a solution that lets you choose your MSP might be preferable to one with a flat rate that could end up costing you more as you grow.
Internet Access
This is important to consider, especially if your location has unreliable Wifi. Some of the solutions we covered allow you to make payments offline so that even when your wi-fi is down, you can carry out a transaction and process the payment later.
Alternative Payment Options
Does it accept Android and iphone ios? Chip cards? Debit card? American Express? As we mentioned, customers are paying with a number of different methods: swipe, chip, contactless, PayPal, Venmo, Apple, Google…the list goes on. Make sure you have a reader that offers a range of payment options to meet customer expectations.
Usability
It might seem obvious, but having a solution that’s easy to set up and use, for both you and your customers, is a total game-changer. Especially if it integrates with multiple credit card processing apps. Podium’s mobile card readers allow you to take payments in the field and on the go so that you never miss a transaction or an opportunity to satisfy a customer.
All-in-One Payment & Growth Solution
Podium Payments offers a world-class, all-in-one payment and growth solution by supporting all of the above types of transactions with its card readers and payment features. With Podium, you can manage all of your transactions in a single platform while offering customers the choice to pay with their preferred method, whether that is by credit card, Google Pay, or something else. And with the right tools, you can not only get paid faster but also grow and drive more revenue at the same time.
Podium Payments helps you:
✅ Double your monthly review volume in <60 days.
✅ Get 11x more inbound leads.
✅ Get paid faster and more securely via text.
A good payment experience is the cherry on top of great customer service, and your customers will thank you for it. Try Podium for free today.
FAQs
Any questions? We’re here to help.
- Is a credit card reader necessary? For local businesses aiming to serve the modern customer in today’s age, we would say yes. Mobile credit card readers allow you to offer ultimate convenience and give your customers the options they need to feel comfortable transacting with you. For the growth and continued stability of your business, card readers are a must.
- What is the best credit card reader? There really isn’t a “best” reader so much as a “right” fit. And this really depends on your type of business and the unique needs of your organization. Do you do less sales, or more on a typical business day? Do you operate internationally on occasion? Could your customers benefit from text-to-pay? What payment method do most of your customers use? Do you use an iPad? Credit card processing app? Mobile app? Weigh all of the factors and assess your top priorities as a team to choose the best fit.
- How much does a mobile credit card reader cost? The options we covered range from $29-$109, so chances are you’ll be spending around $50 to get the hardware you want. However, don’t pick a reader just because it has the cheapest hardware–make sure to take into account continued transaction fees and other monthly costs. The cheapest reader might end up being the most expensive option.
For more help choosing what’s right for your business, or how to use card readers with desktop, check out our complete guide to card readers.
