Credit Card Readers for Small Businesses

An Easy and Convenient Way to Pay

Most customers in the U.S. prefer using a debit card or credit card to cash. From the moment a customer completes a credit card transaction, information is sent to the payment processor, the customer’s bank, and back to the card reader in a matter of seconds. If the card reader detects that funds are available, the transaction is completed. Card readers are devices that don’t usually have storage space but take payments without saving information.

Whether you run a pop-up store, small retail store, restaurant, or another small business, you need a way to take credit card payments. There are many different credit card readers available today. The best one for your small business will be affordable, easy to use, and appropriate for your business flow and volume.

Types of card readers

Various types of credit card readers work in different ways:

A magstripe reader: This card reader reads the magnetic strip on a debit or credit card. Cards with magnetic strips are gradually being phased out because they are prone to counterfeit fraud; this involves collecting and storing a cardholder’s information and reprinting it on a different card.

EMV reader: The EMV standard is a globally used security technology created by Europay, Mastercard, and Visa. EMV cards store cardholder information on a chip instead of in a magnetic stripe. A primary benefit of this is that it prevents counterfeit fraud. The chips create a one-time-use code to process a payment instead of the card number printed on the card. The process of simulating a card number is called tokenization.

Contactless card reader: Cards with an RFID chip allow customers to make contactless payments. All they need to do is wave or tap the card on or hear the card reader. RFID technology uses radio waves to transmit data over short distances.

Benefits of a credit card reader

Credit card readers with point-of-sale (POS) apps are user-friendly, and you can process payments from different devices when using the right POS system.
Using the right credit card reader will help to keep your payments secure and sensitive information safe from cybercriminals. Securely handling customers’ money is the best way to build their trust.
If you can offer customers a way to make contactless payments, this provides them with convenience and a frictionless experience.
POS software tracks all the cards processed through your card reader. It can save time when researching transactions for bookkeeping purposes - for instance, if a customer issues a chargeback.

The best card readers for small businesses

The following mobile card readers are affordable and offer easy payment processing.

Square reader

The square reader provides an affordable, convenient way to accept credit card payments. It offers a free magstripe reader when you open an account. It can get the job done, but as mentioned above, cards with magnetic strips are being phased out. You can choose to purchase a square reader for a contactless chip that connects wirelessly with an iOS or Android device for a $49 fee.

Square charges no startup fees, monthly fees, or termination fees, although some optional advanced features come at an additional cost. The company makes its money by charging a percentage of every credit card transaction it processes. Flat rate processing is 2.6% + $0.10; this suits low-volume sellers but is too expensive for high-volume sellers.

Features integrated with the point-of-sale include:

• Inventory management.
• Reporting and insights.
• Payment protection.
• Customer service.

Clover Go

A Clover Go mobile credit card reader from Clover costs $49. You can make a sale from anywhere and get paid with a dashboard, mobile app, and virtual terminal. Accept any payment, such as swipe, chip, and tap. All payments are secure and traceable.

For a reasonable monthly price, you get the hardware, software, warranty, and upgrade options. Payment processing fees are priced separately. In-person transactions are charged a flat processing fee of 2.6% + $0.10.

You can customize rates for tips, discounts, or taxes directly through the dashboard on your smartphone.

The Clover Essentials plan offers features such as:

• Real-time sales tracking.
• Basic inventory management.
• Tax reporting.
• Sales reports.
• Client database.

Helcim Reader

The Helcim Reader costs $199. The reader is multi-functional with a magstripe reader and EMV chip and allows NFC payments. It also has a built-in pin pad to accept PIN debit cards. It connects via WiFi, Bluetooth, or USB cable.

Helcim has no monthly fee and bills on a month-to-month basis with no long-term contract. Its processing rates start at interchange fees plus 0.3% + $0.08. Higher volume businesses receive a reduced rate.

The reader comes with many features, such as:

• Customer management.
• Inventory tracking.
• Food service management.

Square is probably the best all-around mobile credit card reader of the three options mentioned above. It can work with almost any device and has both plugin and wireless credit card reader options. It is free and has the most features you will need for your small business.

Conclusion

Choosing the best card reader for your small business will depend on factors such as the type of business, affordability, and ease of use. Your card reader must accept the payment methods your customers use, and be appropriate for your sales volume. Offering customers secure, seamless ways to make payments can increase their trust.