Compare Credit Card Readers & POS Terminals
Compare and choose the best payment terminal for your business, how they work, the different models & how to choose the right one with our detailed guide.
Our selection of the best Credit Card machines
Clover is a cloud-based Android point of sale (POS) platform that launched in April 2012. The company is headquartered in California and provides a range of credit card processing products and services for small businesses. Read our review of Clover Flex.
- Works for countertop and mobile POS setups
- Supports multiple payment types
- Built-in receipt printer
SumUp is one of the leading companies in mobile payment terminals which revolutionized the market with affordable POS systems and are present in over 30 countries. Read our review of SumUp Plus.
- No subscription, no commitment
- Low-cost option
- Free and responsive customer support
Payanywhere enables U.S. retailers to take debit or credit card payments in your shop, web-store and also on the move. Read our opinion on Payanywhere Smart Terminal.
- Simple pricing model
- Free next-day funding
- In-house payment processing
Square is a San Francisco-based company that builds digital tools to help businesses and entrepreneurs to send and receive payments with debit, credit card or contactless payments anywhere. Read our opinion of the Square Terminal.
- Cheap and easy-to-use system
- Built-in thermal receipt printer
- Connects to accessories
PayPal Zettle (iZettle)
PayPal Zettle is a modern POS app that leverages PayPal for payment processing and offers a tablet- or mobile-based POS solution for small businesses. Read our review of the PayPal Zettle Terminal.
- No monthly fees
- No long-term contract commitments
- Daily deposits into your PayPal account
Toast is a point-of-sale system for restaurants. Its range of hardware options and features make it easy to accept, manage and track food orders, particularly useful if you’re in the food and beverage business. Read our opinion of the Toast Go 2.
- All-in-one Android-based POS
- Advanced reporting tools
- Advanced employee management
Shopify is a Canadian e-commerce platform that helps small businesses build an online store and sell online through retail POS systems. Read our opinion of the Square Terminal.
- Easy to use
- Bluetooth connection
- Accepts chip and contactless/NFC transactions
Helcim was launched in 2006 in Canada and has grown into a comprehensive payment processing platform, providing online and in-person payment processing services. Read our review of the Helcim Terminal.
- Cheap and easy-to-use system
- Built-in thermal receipt printer
- Connects to accessories
Clover is a cloud-based Android point of sale (POS) platform that launched in April 2012. The company is headquartered in California and provides a range of credit card processing products and services for small businesses. Read our review of Clover Flex.
Present in more than 30 countries, SumUp is one of the leading companies in mobile payment terminals which revolutionized the market with affordable POS systems. Read our review of SumUp Plus.
Payanywhere enables U.S. retailers to take debit or credit card payments in your shop, web-store and also on the move. Read our review of Payanywhere Smart Terminal.
Square is a San Francisco-based company that builds digital tools to help businesses and entrepreneurs to send and receive payments with debit, credit card or contactless payments anywhere. Read our review of the Square Terminal.
PayPal Zettle is a modern POS app that leverages PayPal for payment processing and offers a tablet- or mobile-based POS solution for small businesses. Read our review of the PayPal Zettle Terminal.
Toast is a point-of-sale system for restaurants. Its range of hardware options and features make it easy to accept, manage and track food orders, particularly useful if you’re in the food and beverage business. Read our review of the Toast Go 2 Terminal.
Shopify is a Canadian e-commerce platform that helps small businesses build an online store and sell online through retail POS systems. Read our review of the Shopify Terminal.
Helcim was launched in 2006 in Canada and has grown into a comprehensive payment processing platform, providing online and in-person payment processing services. Read our review of the Helcim Terminal.
Credit card machines: Your guide to choosing the right one
What is a credit card machine?
A credit card reader is an electronic device, the main function of which is to collect card payments (by inserting or swiping a customer’s debit or credit card or by simple NFC contactless payment).
Payment terminals are also referred to as card readers, bank card readers, credit card machines and other similar names, all performing the same function.
On the design side, the device consists of a screen and a keyboard. Although the devices remain quite similar, there are a few differences including the device:
- Weight and height
- Screen (black and white color)
- Printer integrated in the device or not
- Features included
The advantages of a credit card terminal
For both the customer and the merchant, the main advantage of a payment terminal lies in the security of transactions. As a merchant, you avoid risks (checks without sufficient funds, counterfeit notes) and also avoid collecting too much cash (risk of theft).
Transaction security
For both the customer and the merchant, the main advantage of a payment terminal lies in the security of transactions. As a merchant, you avoid risks (checks without sufficient funds, counterfeit notes) and also avoid collecting too much cash (risk of theft).
Convenient method of payment and collection
With the increasing use of contactless payments, card payments have never been easier for both businesses and customers with benefits including:
- Time savings per transaction
- Limited risk of errors
- Acceptance of multiple card types and providers
In the U.S, there are no set contactless limits by law, with limits set at the discretion of the card providers and financial institutions.
Simplified accounting and time savings
A payment terminal allows you to receive money directly into your bank account and is most often connected to your cash register software . All transactions, including refunds, can be exported or even directly connected to your accounting software , which greatly facilitates the management of your business.
On the downside, like any device, a payment terminal can break down, and obviously has a cost for the merchant, which we will detail later in this guide.
The different types of credit card readers
The traditional fixed payment terminal
These are the payment terminals most customers will be familiar with, the fixed payment terminal i.e. a box connected to a cash register with a cable, typically with a printer (classic) or without a printer (pinpad).
These terminals are efficient and capable of large numbers of daily transactions in complete security. Businesses can add a keyboard to facilitate the entry of the customer’s PIN code.
Among the best known are the Ingenico ICT220 and the Verifone VX520 terminals.
The portable terminal
The main disadvantage of a fixed terminal is that you cannot move it around your shop or restaurant.
Portable payment terminals were invented to solve this problem. Its design remains quite similar to the fixed terminal however the business owner has the freedom to carry the terminal over to a customers table/location in their store and take payment.
For these terminals, the convenience and mobility to accept payments at any in-store location will be important to the business owner. A GPRS connection will be required (i.e. a wireless data transmission typically via a SIM card).
Among the most common models used include the Clover Flex, Poynt Smart Terminals and Square Card Readers.
Good to know: All payment terminals are typically configured to a company’s merchant account, meaning any payments made are securely connected to your merchant bank. Once the payment has been approved, businesses will receive the funds into your business bank account within 1-3 days.
The mobile reader
Portable terminal must remain within a certain radius of its base in order to function. This is where mobile payment terminals solve this issue, particularly for businesses on the move including tradesmen, yoga instructors, massage therapists, delivery personnel and similar.
A mobile POS can be simple and lightweight. With NFC technology, you can run a cashless business in which your customers can quickly tap and go.
These devices operate through WiFi or via an integrated SIM card and examples include the Clover Go, Square’s Tap and Chip credit card reader and PayPal’s Zettle Chip and Tap Reader.
A mobile payment terminal is also particularly suitable for merchants with low turnover volumes, or very seasonal activity. If this is your case, you’ll be able to benefit from advantageous rates thanks to offers without monthly fees or commitment.
How does a credit card machine work?
If the use of a payment terminal is rather simple, as we will see later, its operation is slightly more complex. There are typically two ways in which payment terminals work: 1). Terminals with an integrated payment solution (new generation) and 2). Terminals with local operation.
Local operation
The local process relates to classic and portable terminals. In terms of operation, the payment terminal allows you to perform 4 steps:
- The transaction: Customer pays and reader recognizes a card and can read the information (such as identifying the cardholder).
- Authorization: The terminal communicates a request to the customer’s bank, which responds by authorizing or refusing the transaction. The terminal then records a transaction with the precise amount, date and time.
- Storage: Payment terminal stores the day’s transactions.
- Remote collection: The payment terminal sends the data once a day to a bank server, ensuring the customer’s account is debited and the money ends up in your business bank account.
TPEs with integrated payment solutions
Unlike local operations, this type of payment terminal does not allow transactions to be stored directly on the terminal. At the time of each transaction (which is why a permanent connection is required), players such as Zettle send the transaction directly to a secure online server.
The main advantage is that if you damage your device, previous and as of yet uncollected transactions are already “validated”.
Payment terminal connection types
Payment terminals must send and receive data to allow you to collect payments. For this, it is essential that it has a connection. Several terminal connection types are available for owners depending on the constraints of your business activity:
- Connection via fixed telephone line (analogue): This consists of billing business owners for a call to a premium rate number for each transaction. Businesses must therefore have a telephone subscription. This process is the longest and can be expensive.
- GPRS/3G/4G connection via a mobile network: The payment terminal is equipped with an integrated SIM card and will depend upon the operator’s mobile network, as on your smartphone.
- ADSL/IP connection via the internet: Connected to your BOX, you will need an internet subscription in your shop to use your payment terminal.
Where and how to subscribe to a credit card reader offer?
Via a bank for fixed and portable terminals
Fixed payment terminals are offered by banks and specialized companies. The leader in this field is the Ingenico Group, capable of equipping entire fleets of stores.
They accept all means of electronic payment and offer business applications connected to these terminals. To equip yourself with a payment terminal through a bank, you will have to follow a cumbersome registration process involving multiple stages.
1 – The electronic payment contract
The bank will have you sign a “credit card payment acceptance contract” or payment contract. This contract is a commercial and contractual proposal that binds you with the bank and indicates the amount of commissions you will pay to the bank per transaction.
The principle is simple: the more you cash in, the lower the rate of commission you can negotiate.
Selecting the ‘right bank’ when choosing a payment terminal is often advantageous if your revenue collected by card exceeds a certain monthly amount. The set-up time will depend on each bank, but it is something to consider if you need to get your payment terminal quickly.
Good to know: Find out about the duration and terms of your payment terminal contract as some contracts can last up to 4 years.
2 – The maintenance contract
A bank can also offer you the option to purchase or rent the payment terminal.
Most companies choose to rent, ensuring they have access to the latest equipment. The rental price will then depend on the options chosen and in particular on the maintenance (installation, telephone or on-site support).
In this case, the price of the payment terminal can vary from $20 to $50 per month on average, according to the contract and terms without taking into account the fees per transaction.
Once these steps have been completed, you will be able to install and use your payment terminal. This option, although is a safe choice for merchants who have a higher revenue turnover and can negotiate rates with their bank.
New independent players
The payment terminal market has undergone big changes in recent years and businesses no longer have to go through a bank to find the best payment terminal. Among the new independent players, here is a selection to be considered on a case-by-case basis.
Zettle
Zettle offers a new generation payment terminal, with its flagship model Zettle Reader 2.
Zettle advantages include:
- Delivered ready to use in 48 hours
- Acceptance of contactless payments
- No monthly subscription or commitment
- Light, stylish and easy to use
- Possible to buy the Dock
- Accepts all payment cards (including international cards)
- Accepts remote payments (email, SMS, WhatsApp)
- Payment via Google Pay and Samsung Pay
- Direct integration with Zettle Go checkout software
SumUp
A direct competitor to Zettle, SumUp is undoubtedly the most reputable player on the modern payment terminal market, often cited as the best for its terminals.
SumUp advantages include:
- Delivered ready to use in 48 hours
- Acceptance of contactless payments
- No monthly subscription or commitment
- Light handset
- Payment processing with 3G
- accepts almost all payment cards
- Accepts remote payments (email, SMS, WhatsApp)
- Possible to transform the terminal into cash register software
Which credit card reader to choose for your business activity?
There are several different types of payment terminals, each one also has its differences (contracts, certain commitments, printer included or not) that make the choice difficult.
To choose the one that will make your daily life easier and that best suits your business, here are our tips.
Fixed shops and boutiques
If your activity is stationary and your customers pay “at the checkout”, the fixed payment terminal is the most suitable for you, for businesses including:
- Bakeries
- Quick service restaurants (QSR’s)
- Clothing stores and boutiques
- Pharmacies
- Beauty salons
In catering, it may be useful to have a mobile payment terminal to quickly take customers payments, for businesses including:
- Restaurants
- Bars
- Tea rooms
- Cafes
Other professions
For certain professions, if you work in a practice where you receive your patients, fixed readers are perfectly suited for you including:
- Doctors
- Physiotherapists
- Osteopaths
- Psychologists
Alternatively, if you offer your services at home, equip yourself with a mobile payment terminal instead, useful for those working as home nurses and home medical aides.
Professionals on the go
Some professionals constantly on the go require a complete payment solution wherever they travel to. Mini POS terminals are perfect for such professions including:
- Market vendors
- Commercial vendors
- Sales at fairs, concerts and pop-up events
- Catering with delivery and payment at home
- Farmers and winegrowers who sell at a property or market
- Associations that organize events
- Door to door salespersons
Transport professionals
For taxi drivers and chauffeurs confronted with cashless customers, mobile terminals are a good solution, in particular thanks to the number of cards accepted by players such as Zettle.
Craftsmen
For craftsmen who offer their products at markets or fairs, we recommend this type of terminal.
Associations
Many associations collect donations online, but also during events and gala dinners and often forget that one or more payment terminals can be a very good ally for collecting donations quickly.
How to choose a credit card machine?
Here are the main selection criteria to take into account to choose the best payment terminal for your business activity.
Usage
The first criteria for choosing your payment terminal will be how you intend to use it. If your business is static and you conduct transactions at the counter, a fixed terminal connected to your point of sale (or portable with a base) will work perfectly fine.
If you are on the move with your customers, then you should opt for a mobile device.
Payment terminal functions
Although most terminal functions are offered by all the major players, be careful to look carefully at the exceptions, specific to your business activity.
Here are the main functions that your payment terminal should provide, as well as cases and sectors of activity where these functions are necessary:
- Contactless payment: All payment terminals accept contactless payments however not necessarily payments from certain virtual wallets such as Apple Pay, Google Pay or Samsung Pay.
- Credit cards accepted: Accepting all VISA, MasterCard, American Express cards is important depending on your average client.
- Restaurant tickets meal cards: For catering professionals, being able to accept meal cards in a restaurant is an advantage.
- Option to tip: Not all terminals offer this feature
- Printer facilities: Some payment terminals do have printing options and others don’t, relying on cheaper terminals with receipts sent via email or SMS.
- Payment in installments: Useful for professionals selling high-priced products or services.
- Taking a deposit: This is useful for many professionals in accommodation and property rentals.
Virtual wallets like Apple Pay, Google Pay and Samsung Pay are increasingly used.
Supplier
The choice of your supplier is an important step due to the lock-in nature of the contract over a number of years.
Be careful to look carefully at the conditions of the contracts that are offered to you. Three types of suppliers can supply professionals with payment terminals
Vendor | Pros | Cons |
Banks | Most comprehensive solutions | Payment contract |
Modern FinTech players | Ease of purchase and installation | Some can have limited features |
Banks are the historical partners of all merchants with almost all means of payment accepted. If you have a good commercial relationship with your bank and your activity involves a high volume of transactions, even in 2022, banks remain an advantageous solution in terms of costs.
On the other hand, the banks will impose a certain administrative burden and complex pricing on business if we take into account the rental, electronic money flow, maintenance and commission costs.
The so-called “specialized” distributors offer many models and offer businesses support in the installation, configuration and maintenance of their device. Their strength lies in the upstream advice they can give and the wide range of assistance they can provide.
Finally, the new so-called “fintech” players offer a more flexible offer. The subscription is done online and is very fast. There is no need to establish a contract with your bank.
You will thus have the possibility of going through any business bank. Choosing one of these players including SumUp is making the choice of collection with ease.
The payment terminal that you will receive comes quickly, typically in a few days and is ready to use with offers that are often subscription-free (commissions of between 0.4% and 1.75%).
To summarize, banks offer complete solutions whilst Fintech players offer more agile, but less complete service offerings.
Purchase or rental
Another selection criteria and a question that is often asked: Should you buy or rent your terminal? The answer is that it all depends on your needs:
- If you exceed a certain monthly revenue threshold per card: $10,000 for example, renting your terminal from a bank can prove to be financially advantageous, given the lower commissions that you can negotiate.
- If you collect more limited/seasonal revenues: Or if you operate on the move, buy a payment terminal from an actor like SumUp.
- The middle ground: Between these two offerings, other players offer rented modern terminals with advantageous commission rates.
New or used?
Banks will offer you both new and second-hand terminals for rent. If you choose to purchase a terminal, you will have the choice.
Be aware of the risks however associated with buying second-hand terminals, especially if the model is somewhat dated.
How much does a payment terminal cost?
Depending on the options we mentioned above, the price varies a lot even for the payment terminals in our comparison:
- For purchase: A payment terminal costs from a few tens of dollars for a mobile payment terminal to several hundred dollars at traditional players.
- For rental: Count between $20 and $50+ per month depending on the model and the contract (duration in particular).
In both cases, it will also be necessary to add the commissions on the transactions.
It is now possible to save money, especially by choosing a payment terminal like SumUp for example or other mobile terminals.
How to use an electronic payment terminal?
On the customer side, payment is very simple, particularly with the preference for contactless transactions in recent years.
On the merchant side, using a payment terminal at the time of collection is very simple, even if you have never used one before. Once configured, all you need to do is:
- Type in the amount of the transaction
- Hand the payment terminal to the customer
- Let the customer pay via contactless or using the card reader
- Wait for authorization (requested from the customer’s bank)
- Hand the customer their receipt and retain your merchant ticket
Once the collection has been made, the transaction is stored on the terminal and will be sent via daily remote collection (in the case of traditional terminals).
Following this, you will receive the money in your bank account. As for terminals like Zettle or SumUp, they do not store transactions and transmit them directly. Thus, business owners will always need a connection however these can be monitored in real time.
This avoids risks compared to a conventional terminal (in the event of theft or breakage, recovering the money is more complicated). Finally, in some cases, you may have to enter the transactions manually into your cash register software if it is not already directly connected.
Alternatives to a credit card reader?
For traveling professionals who no longer wish to bother with a “physical” bank card reader , there are also other solutions.
This includes virtual payment terminals, which operate with the same principle as a payment on an ecommerce site except it is not necessary to have subscribed to a contract for the seller.
Your customer has 2 solutions to pay including:
- Electronic purse: This involves having a user account with your company or with a third party such as Paypal. The merchant then sends a request for payment for the required amount by notification.
- Payment page: This involves entering the customers credit card details into a dedicated webpage, which may be a less practical solution for some.
Other virtual payment terminals simply use your smartphone. The principle is simple: Your phone must have a mobile application.
Then, your customer can pay you by simple contact with his NFC bank card or via smartphone (Apple Pay, Google Pay). Your mobile will then become your only tool for accepting payments, an instant and secure method.
FAQs
What is a credit card reader?
A credit card reader is a device whose main function is to collect payments by bank card (by inserting it for chip and pin cards or via swiping it for cards with magnetic stripes or by simple NFC contact).
How to get a credit card machine?
Businesses can either rent or buy payment terminals, from different players including banks, distributors or new players such as iZettle or SumUp.
What is the best payment terminal?
There is no “best payment terminal” solution for everyone. Some credit card readers are mobile, others are fixed. Companies should consider their business activity needs and budget to find the best card reader.