When selecting a business credit card reader, the key considerations include compatibility, payment options, and overall ease of use. The Square Reader for Contactless and Chip Payments (2nd Generation) stands out as the best overall choice thanks to its reliable contactless and chip support. For those seeking a budget-friendly option, the Square Reader for Magstripe (USB-C) offers affordability with decent performance, while the SumUp Solo Card Reader excels with a built-in touchscreen for faster transactions. However, tradeoffs include feature set limitations and compatibility issues, which can impact efficiency for different business sizes. Keep reading for a detailed breakdown of each option to find the best fit for your needs.
Key Takeaways
- The best overall business credit card reader combines versatility, ease of use, and reliable contactless support.
- Budget-friendly options often sacrifice advanced features like NFC or integrated POS capabilities.
- Business size and transaction volume influence whether a simple magstripe reader or a full POS system is needed.
- Compatibility with your existing devices (smartphones, tablets, or desktops) is crucial for seamless operation.
- Premium models tend to offer faster processing, better security, and more robust connectivity options.
| Square Reader for Contactless and Chip Payments (2nd Generation) |  | Best Overall Portable Payment Reader | Compatible Devices: Android, iPhone | Power Source: Battery Powered | Connectivity Technology: Bluetooth | VIEW LATEST PRICE | See Our Full Breakdown |
| SumUp Plus Card Reader with Bluetooth & NFC for Smartphones |  | Best Value Bluetooth & NFC Card Reader | Connectivity Technology: Bluetooth, NFC RFID | Compatible Devices: Smartphone | Operating System: iOS, Android | VIEW LATEST PRICE | See Our Full Breakdown |
| Square Reader for Magstripe (USB-C) |  | Best Compact USB-C Magnetic Stripe Reader | Connectivity Technology: USB Type C | Data Transfer Rate: 1.5 Megabits Per Second | Compatible Devices: Apple and Android devices with USB Type C | VIEW LATEST PRICE | See Our Full Breakdown |
| Verifone VX520 Dial, Ethernet and Smart Card Reader (M252-653-A3-NAA-3) |  | Best for Secure EMV and Smart Card Transactions | Model: M252-653-A3-NAA-3 | Supported Technologies: Contactless EMV NFC, Apple Pay, Smart Card | Connectivity: Dial-up, Ethernet | VIEW LATEST PRICE | See Our Full Breakdown |
| Square Terminal – Mobile POS for All Payments |  | Best All-in-One Mobile POS Device | Product Dimensions: 5.6 x 3.4 x 2.5 inches | Item Weight: 14.7 ounces | Batteries: 1 Lithium Ion battery | VIEW LATEST PRICE | See Our Full Breakdown |
| Square Reader for Magstripe with Lightning Connector |  | Best for iOS Users Who Need Simple Magstripe Payments | Connectivity: Lightning connector | Compatibility: iOS 10.0.2 or later | Color: White | VIEW LATEST PRICE | See Our Full Breakdown |
| SumUp Solo Card Reader with Charging Station and Touch-Screen Interface |  | Best for Mobile Businesses Needing a Fully Functional, Portable POS | Printer Type: Thermal or Inkjet | Display Type: OLED Color | Print Resolution (Color): 200 x 200 dpi or 300 x 300 dpi | VIEW LATEST PRICE | See Our Full Breakdown |
More Details on Our Top Picks
Square Reader for Contactless and Chip Payments (2nd Generation)
This model excels as an all-around portable payment solution due to its ability to accept contactless payments, chip cards, and mobile wallets like Apple Pay and Google Pay. Compared with the Square Reader for Magstripe, it offers more versatile payment options and offline payment capability for up to 24 hours, making it ideal for busy environments without reliable internet. The enhanced security features and extended battery life add value, though it requires a compatible smartphone and its battery life can fluctuate with usage. This pick makes the most sense for small business owners who need a flexible, secure, and offline-capable card reader to handle various payment types on the go.
Pros:- Accepts multiple payment types including contactless and mobile wallets
- Offline payments for up to 24 hours without internet
- Enhanced security with 24/7 fraud prevention
Cons:- Requires compatible smartphone to operate
- Battery life may vary based on usage intensity
Best for: Small retailers or service providers needing versatile, portable payment acceptance with offline capabilities
Not ideal for: Businesses that prefer a standalone device without reliance on smartphones or those with high-volume transaction needs requiring faster processing
- Compatible Devices:Android, iPhone
- Power Source:Battery Powered
- Connectivity Technology:Bluetooth
- Batteries Included:1 Lithium Ion battery
Bottom line: This is a well-rounded choice for mobile businesses that prioritize flexibility and security in payment acceptance.
SumUp Plus Card Reader with Bluetooth & NFC for Smartphones
This device is designed for straightforward in-person payments through Bluetooth and NFC, making it a solid choice for businesses that value low transaction fees and compatibility with both iOS and Android devices. Unlike the Square Terminal, which offers an all-in-one POS experience, the SumUp Plus focuses solely on card acceptance at a low rate of 2.6% + $0.10, ideal for low-cost transactions. However, for high-volume or high-value merchants, transaction fees can add up quickly, and the lack of a dedicated POS or receipt printing could be a downside. This makes it suitable for small vendors or pop-up shops seeking an affordable, easy-to-use card reader that works with their existing smartphones.
Pros:- Accepts all major credit/debit cards with no hidden fees
- Low transaction rate (2.6% + $0.10 per payment)
- Works with both iOS and Android smartphones
Cons:- Transaction fees may increase for high-volume usage
- No dedicated POS features or receipt printer
Best for: Small-scale vendors or event-based sellers seeking cost-effective card acceptance via smartphones
Not ideal for: High-volume businesses needing integrated POS features or lower ongoing transaction fees
- Connectivity Technology:Bluetooth, NFC RFID
- Compatible Devices:Smartphone
- Operating System:iOS, Android
- Color:White
Bottom line: Ideal for small vendors prioritizing affordability and straightforward card acceptance with their smartphones.
Square Reader for Magstripe (USB-C)
This USB-C magstripe reader is a practical option for businesses that primarily rely on magnetic stripe cards and want portability. Compared with the Square Reader for Contactless and Chip Payments, it offers a simpler, more focused approach for magnetic card swipes, making it suitable for legacy card processing. Its integration with the Square Point of Sale app enables basic sales tracking and receipts, but it doesn’t support contactless or chip payments, limiting its versatility. Data transfer speed is somewhat slower than newer contactless readers, which could impact efficiency in busy settings. This pick suits merchants who handle mostly magnetic stripe cards and need a lightweight, USB-C-compatible device on a budget.
Pros:- Free Square Point of Sale app integration
- Portable and lightweight design
- Works with both iOS and Android devices with USB-C
Cons:- Limited to magnetic stripe card processing
- Slower data transfer rate compared to newer readers
Best for: Small businesses or mobile vendors handling mostly magnetic stripe transactions
Not ideal for: Businesses looking for contactless or chip card support, or high-speed transaction processing
- Connectivity Technology:USB Type C
- Data Transfer Rate:1.5 Megabits Per Second
- Compatible Devices:Apple and Android devices with USB Type C
- Operating System:iOS, Android
- Item Dimensions:4.5″ L x 0.62″ W x 4.5″ H
- Color:White
Bottom line: Best suited for merchants who mainly process magnetic stripe cards and prefer a compact, budget-friendly device.
Verifone VX520 Dial, Ethernet and Smart Card Reader (M252-653-A3-NAA-3)
This Verifone terminal is designed for businesses requiring robust security and multiple connection options, including dial-up and Ethernet. It supports contactless EMV NFC, Apple Pay, and smart card transactions, making it suitable for environments with strict compliance needs. Compared with portable options like Square or SumUp, the VX520 is more of a fixed terminal, ideal for retail counters or secure payment stations. Its reliance on dial-up or Ethernet means it’s less suited for mobile or remote sales. The absence of wireless options might limit flexibility, but for organizations prioritizing security and compliance, this device delivers proven performance. It’s best for established brick-and-mortar businesses with stable internet or phone lines.
Pros:- Supports contactless EMV NFC, Apple Pay, and smart cards
- Compliant with global security standards
- Includes dial-up and Ethernet connectivity options
Cons:- Limited to specific model compatibility
- No wireless Bluetooth or Wi-Fi options
Best for: Retail stores or secure payment points needing EMV and smart card support with wired connectivity
Not ideal for: Mobile vendors or businesses needing wireless or portable payment solutions
- Model:M252-653-A3-NAA-3
- Supported Technologies:Contactless EMV NFC, Apple Pay, Smart Card
- Connectivity:Dial-up, Ethernet
Bottom line: A solid choice for secure, wired payment processing in fixed locations with high security standards.
Square Terminal – Mobile POS for All Payments
This Square Terminal offers an integrated solution for processing all major card payments with minimal setup, combining a mobile POS, receipt printing, and fast chip processing. Compared to the Square Reader for Contactless and Chip Payments, it provides a more streamlined, all-in-one device that doesn’t require pairing with a smartphone, making it more convenient for busy retail or hospitality environments. The built-in battery supports cordless use, and funds are typically available by the next business day, which helps cash flow. The main tradeoff is the need for a subscription to Square services for full functionality, and its price isn’t listed, which may be a barrier for very small operations. This makes it ideal for medium-sized businesses that need a reliable, standalone POS device.
Pros:- All-in-one device for payments and receipts
- Accepts all major credit/debit cards with quick processing
- No long-term contracts and built-in battery for cordless use
Cons:- Requires subscription to Square services for full features
- Price is not specified, which could be a concern for small budgets
Best for: Retail or hospitality businesses seeking a comprehensive, cordless payment solution with integrated receipts
Not ideal for: Very small enterprises or those with tight budgets that want a lower-cost, basic card reader without a subscription fee
- Product Dimensions:5.6 x 3.4 x 2.5 inches
- Item Weight:14.7 ounces
- Batteries:1 Lithium Ion battery
- Batteries Included:Yes
Bottom line: Best suited for businesses that want a reliable, portable POS device with minimal fuss and fast payments.
Square Reader for Magstripe with Lightning Connector
This Square Reader for Magstripe with Lightning Connector stands out for its straightforward integration with iOS devices, making it an ideal choice for small businesses already using Square’s ecosystem. Compared with the Square Contactless and Chip Reader, this model focuses solely on magstripe cards, so it’s less future-proof but offers a streamlined experience for those relying on magnetic stripe payments. Its support for multiple major credit cards and features like sales tracking and email/text receipts add convenience, but the requirement for an iOS device and the additional fees for instant deposits can be limiting. The device’s lightweight design ensures portability, perfect for on-the-go sales. However, it doesn’t support chip or contactless payments, which could be a drawback as more customers move to EMV cards.
Pros:- Seamless integration with iOS devices and Square apps
- Supports major credit cards including Visa, Mastercard, Discover, and American Express
- Includes sales tracking and receipt management features
- Lightweight and portable for mobile transactions
Cons:- Limited to magstripe cards only, not compatible with chip or contactless payments
- Instant deposits cost extra, increasing transaction fees
- Works exclusively with iOS devices, restricting flexibility for Android users
Best for: Small business owners who primarily process magstripe payments on iOS devices and want an easy, lightweight solution.
Not ideal for: Businesses that need to accept chip or contactless payments or those using Android devices, as this reader is exclusive to iOS and magstripe cards.
- Connectivity:Lightning connector
- Compatibility:iOS 10.0.2 or later
- Color:White
- Weight:Lightweight
Bottom line: This reader is best suited for iOS users who rely on magstripe cards and need a simple, portable payment solution, despite its limited card type support.
SumUp Solo Card Reader with Charging Station and Touch-Screen Interface
The SumUp Solo Card Reader with Charging Station offers a versatile and portable option for business owners who need a full-featured device on the go. Its large touch-screen interface provides an intuitive experience, making transactions faster and more straightforward than simpler magstripe-only readers like Square’s Lightning connector model. Unlike the Square contactless and chip reader, the Solo includes a built-in charging station, which helps keep it powered during extended use, and comes with free mobile data, eliminating connectivity worries. However, this added functionality comes with a more complex setup process and a limited warranty, which may not suit less tech-savvy users. Its support for multiple payment types and portability makes it ideal for mobile vendors or service providers working across locations.
Pros:- Full touch-screen interface enhances ease of use
- Includes free SIM card and mobile data for payments anywhere
- Built-in charging station extends operational time
- Supports multiple payment methods, including contactless and chip
Cons:- Limited warranty coverage may not protect against all issues
- Setup can be complex for users unfamiliar with new devices
- Higher cost compared to basic magstripe readers
Best for: Mobile entrepreneurs and service providers who need a comprehensive, user-friendly payment device with excellent mobility features.
Not ideal for: Business owners seeking a simple magstripe-only solution or those with limited technical experience, due to setup complexity and limited warranty coverage.
- Printer Type:Thermal or Inkjet
- Display Type:OLED Color
- Print Resolution (Color):200 x 200 dpi or 300 x 300 dpi
- Print Resolution (Black & White):200 x 200 dpi or 300 x 300 dpi
- Warranty Type:Limited
- Compatible Devices:Smartphones
Bottom line: This device is ideal for mobile business owners who want a versatile, feature-rich POS with reliable power management despite a more involved setup process.
How We Picked
These products were evaluated based on performance, build quality, ease of use, compatibility with devices and operating systems, and overall value. We prioritized solutions that support multiple payment types—contactless, chip, and magstripe—since versatility is essential for business flexibility. Reliability and transaction speed were also key factors, along with user interface simplicity for fast checkout experiences. The ranking reflects a balance between feature set, price point, and potential for scalability, ensuring options suit a variety of business sizes and needs.Factors to Consider When Choosing Business Credit Card Readers
Choosing the right business credit card reader involves considering several factors beyond just price. Understanding your transaction volume, preferred payment methods, and device compatibility will help you select a device that enhances your operational efficiency. Avoiding common mistakes, like purchasing a device with limited payment support or poor connectivity, can save you time and money in the long run.Payment Method Support
Ensure your chosen reader supports the payment types your customers prefer, whether contactless NFC, chip cards, or magstripe. Missing out on contactless support can lead to slower transactions and frustrated clients, especially as contactless payments become more popular. Think about your typical transaction volume and whether a single-device solution can handle the demand or if a more robust system is necessary.
Device Compatibility
Verify that the reader seamlessly integrates with your existing hardware, such as smartphones, tablets, or desktops. Some readers are designed specifically for iOS or Android, which can influence your choice. Compatibility issues can cause setup headaches, delays, or require additional adapters, so matching the device ecosystem is a smart step.
Connectivity Options
Consider whether the device uses Bluetooth, USB, or Ethernet. Bluetooth models offer mobility and wireless convenience, but they may have connection stability issues in busy environments. Ethernet or USB connections typically provide more stability, suitable for high-volume or fixed locations. The right choice depends on your business environment and transaction volume.
Security and Compliance
Security features like encryption and EMV compliance protect your business and customers against fraud. Devices that support EMV chip reading are essential for safeguarding transactions and reducing liability. Don’t overlook this aspect, as it directly impacts your business’s reputation and legal compliance.
Price and Scalability
While budget models may suffice for small businesses, consider whether investing in a more feature-rich device makes sense for growth. Premium options often include faster processing, better security, and additional features like integrated POS systems. Evaluate your future needs against your current budget to avoid costly upgrades later.
Frequently Asked Questions
Can I use a single card reader for both in-person and online payments?
Most business credit card readers are designed primarily for in-person transactions, but some, like the Square Terminal, support both in-person and online payments via integrations. If you need a device that handles online orders and in-person sales seamlessly, look for a model with robust software support and compatibility with your e-commerce platform. Consider whether the device’s software ecosystem aligns with your online sales channels for a smoother experience.
Is it necessary to get an EMV chip reader, or are magstripe readers enough?
While magstripe readers are cheaper and simpler, EMV chip readers provide greater security and are increasingly required by payment processors and regulators. Using a chip-enabled device reduces your liability for fraud and ensures compliance with card network standards. If your business handles a high volume of credit card transactions, investing in an EMV-compatible reader is a wise choice for both security and customer trust.
How important is device compatibility for my existing POS system?
Compatibility is vital to avoid setup headaches and operational delays. If your POS system is based on iOS, Android, or desktop software, choosing a reader specifically designed for that platform simplifies integration. Mismatched devices can lead to connectivity issues, data loss, or delays in processing, which can impact customer satisfaction and transaction flow. Always verify compatibility before purchase.
Should I prioritize speed or cost when choosing a card reader?
Speed can significantly influence customer experience, especially in high-traffic settings. However, faster devices often come with higher costs. For small or infrequent transactions, a more affordable magstripe reader might suffice, but for busy environments, investing in a faster, contactless-enabled model can improve efficiency. Balance your transaction volume and speed needs against your budget for the best outcome.
What features should I look for if I want a future-proof device?
Look for a card reader that supports multiple payment types, including NFC, EMV chip, and magstripe. Wireless connectivity options like Bluetooth or Wi-Fi add flexibility, while built-in security features such as encryption and tokenization protect transactions. An upgradeable firmware and compatibility with new payment standards are also signs of a future-proof device, helping your business stay compliant and efficient over time.
Conclusion
For small businesses just starting out or those with low transaction volumes, a simple magstripe or contactless reader like the Square Reader for Magstripe offers affordability and ease of use. Growing businesses that need reliable contactless and chip support will find the Square Reader for Contactless and Chip Payments to be a versatile, all-in-one solution. For larger or more sophisticated operations, devices like the Verifone VX520 provide robust connectivity and security, though at a higher price point. The Square Terminal makes a compelling case for businesses seeking an all-in-one mobile POS system, especially if ease of use and speed are priorities. Ultimately, your choice depends on your transaction volume, device ecosystem, and security requirements—consider these factors carefully to select the best fit.
