Mobile credit card readers offer the ultimate flexibility to accept payments anywhere your customers are. You can take credit cards tableside, curbside, or in your client's homes.
When considering mobile point of sale (mPOS) apps for cell phones or portable all-in-one terminals, look for easy and reliable solutions. In this guide, we explore the types of mobile card readers and terminals you can use with payment processing platforms and how their functionality differs.
What is a mobile credit card reader?
Mobile card readers are portable payment processing solutions. The lightweight hardware turns a smartphone with compatible software into a secure payment terminal. Although the dongle cell phone attachment (via audio jack) typically comes to mind when we think of a mobile card reader, most solutions today connect via Bluetooth or offer a charging port option.
As small businesses reimagine mobility within their organization, the term "mobile credit card reader" can be applied more broadly. It extends to portable card readers like stand-alone hand-held devices.
A smartphone-connected card reader is a small, simple device with a pairing switch. The hardware has limited functionality because most processes occur within the mobile application. Square offers a free magstripe-only reader, whereas ProMerchant provides a complimentary Europay, Mastercard, and Visa (EMV)-compliant version. Other payment processors offer proprietary and third-party Bluetooth readers ranging from $29 to $125.
Alternatively, a mobile card terminal is a hand-held mobile unit with advanced features. All-in-one mPOS systems don't require a cell phone, and accepted payment methods vary by model. These readers are more expensive but sturdier than smartphones. Examples include Clover Flex and the Helcim Smart Terminal. Terminal prices range from $199 to $599.
[Read more: A Guide to Understanding Credit Card Processing]
Types of mobile credit card readers
There is a limited selection of affordable mobile credit card readers for small businesses. Most payment providers offer one Bluetooth-connected option and support a few hand-held versions. Helcim and Clover have branded hardware, whereas Stax, Payment Depot, and ProMerchant are Clover resellers. Vendors also sell SwipeSimple, Dejavoo, and Pax terminals.
Mobile credit card machines and readers include the following options:
- Swipe readers: These devices are less common and secure than chip readers. Square and Merchant One offer magstripe hardware for swiping credit and debit cards using your cell phone.
- EMV chip readers: Many processors provide EMV hardware, as it reads the credit card's embedded microchip. These readers may connect wirelessly to smartphones or be hand-held units.
- Smart readers: These portable machines offer POS functionality and may provide receipt printers, touchscreens, and barcode scanners. You can use smart readers without a mobile phone.
- NFC/contactless payment devices: Near-field communication (NFC) technologies are mobile card reader options, which support mobile wallets and contactless payments. This solution is available with chip-enabled terminals for phones and stand-alone units.
- Hand-held readers: These mobile devices support multiple payment methods and don't require a separate cell phone or tablet. Portable units offer basic functionality at a lower price than smart terminals or complete mPOS systems.
Before signing a contract, explore the terms and rates for devices, payment methods, and contracts.
How do mobile card swipers work?
Mobile card swipers work with payment apps and cell phones. During a mobile card swipe transaction, the physical reader captures card data through the magstripe. It transmits the information through Bluetooth, a charging port, or a headphone jack to your smartphone.
On the back end, the mobile payment app (provided by your payment processor) facilitates the sale. Within seconds, credit card networks and issuing banks respond, and an indication of approval or denial appears on your side. Alternatively, a hand-held mobile unit or smart terminal completes the mobile payment process through one device and doesn't require a phone.
[Read more: How to Choose a POS System for Your Small Business]
Top mobile card reader solutions for small business
The best mobile card readers are easy to use and process transactions quickly. We identified eight vendors offering small business payment options. To determine usability and speed, we compared mobile readers and terminals between reputable payment providers.
Consider the following mobile payment solutions:
- Helcim: Pair the Helcim POS app with a mobile card reader ($99) or smart terminal ($329) to accept chip, dip, and tap payments.
- Merchant One: Choose from an audio jack or EMV-compliant device for phones or stand-alone SwipeSimple and Clover options.
- Square: The free mobile credit card reader comes with a headset jack or Lightning connector, whereas the wireless version costs $59 and the Square terminal is $299.
- Clover: Use the Clover Go app on your phone with the Go card reader ($49), or run your business with the all-in-one Clover Flex ($599).
- Payment Depot: Choose from SwipeSimple, Dejavoo, and Clover models, starting at $49, or Payment Depot will reprogram compatible card readers or terminals for free.
- ProMerchant: Download the PayAnywhere app and use the Bluetooth card reader on mobile devices, or take orders and payments with the larger Pax A920.
- Stax: Order a SwipeSimple reader for your iPhone or Android device, Dejvoo touchscreen models, or the Clover Flex.
- PayPal Zettle: Get your first mobile card reader for $29, then $79 for additional devices, or select a portable terminal for $199 to $239.
How to pick the best mobile credit card reader
When choosing a mobile payment solution, consider who will use the hardware and what features you need. For phone-based setups, the virtual terminal or payment app is the star of the show and does the heavy work. Take time to test the app's functionality and read customer reviews.
For team members using portable mPOS systems or less-expensive payment terminals, it's important to consider how these devices look and feel when handled by customers. Request demonstrations to see the software in action, as this will provide a hands-on experience and a better understanding of its functionality.
Before signing a contract, explore the terms and rates for devices, payment methods, and contracts. While processors may offer free hardware, these often require long-term agreements that put you on the line for the total price if you or they cancel early. Lastly, choose a credit card processor that meets your expectations for customer support levels, reliability, and payout speeds.
[Read more: How Advances in Digital Payments Help Brands Enhance the Customer Experience and Reduce the Dreaded Wait in Line]
Benefits of using mobile credit card machines
Connecting a mobile card reader to your phone can reduce transaction rates and improve customer experiences. For instance, some credit card processors charge card-not-present fees when you pay via a virtual terminal or mobile app. But if you attach a card reader to your phone and customers swipe, dip, or tap, the rates are lower.
Some clients may feel uncomfortable sharing credit card information with (what appears to be) a personal cell phone. In this case, adding hardware can increase customer trust. Hand-held terminals feel more substantial and have large payment icons, showing consumers that the device is dedicated to payments.
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