The best credit card machine for your small business will depend on what you need for your business. Do you want a machine that is best for on-the-go payments? Then Clover is a great option. Would you rather have an all-in-one system? Then Aloha POS might be the better choice. How about a machine that has tap to pay for an iPhone? Shopify is one of the few options for this.
Read on to learn more about the best credit card machines for small businesses, including their costs, monthly fees and features.
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Best credit card machine for small business in 2024
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Our team of experts evaluates hundreds of business products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 20 companies reviewed.
- 19 hours of product testing.
- 760 data points analyzed.
Best credit card machine for small business comparison
When comparing credit card machines, it is important to look at the payment methods it accepts. Does it only accept credit and debit cards? Or does it also accept mobile wallets and payment plan companies like AfterPay and cryptocurrency?
Also, can you accept offline payments with the machine? You might also want to look for a company that offers free hardware if your business is on a budget.
We extensively research the key competitors within an industry to determine the best products and services for your business. Our experts identify the factors that matter most to business owners, including pricing, features and customer support, to ensure that our recommendations offer well-rounded products that will meet the needs of various small businesses.
We collect extensive data to narrow our best list to reputable, easy-to-use products with stand-out features at a reasonable price point. And we look at user reviews to ensure that business owners like you are satisfied with our top picks’ services. We use the same rubric to assess companies within a particular space so you can confidently follow our blueprint to the best point-of-sale systems.
The best POS systems have positive user reviews on customer review sites. POS system companies should provide customers with fast and reliable support. Using a combination of phone support, live chat and knowledge bases, customers should be able to quickly resolve issues 24/7.
POS systems should include robust software and hardware that allow businesses to accept payment for goods and services. Hardware and software should be affordable compared to competitors.
Software should meet the needs of the business with industry-specific features for restaurants and retail stores. Restaurant POS systems should provide table management features and retail POS systems should offer loyalty programs and gift card management features. POS systems should track inventory and create analytic-based reports to help owners stay up to date on the specifics of what they’re selling. Software should integrate with other business tools, including e-commerce sites to track sales across all funnels.
Various hardware options should be offered to meet the needs of different business models. Equipment bundles should be provided to help outfit your entire business, and multi-location support should be offered to help unify your operations across all locations. POS systems should allow companies to accept mobile and contactless payments as well as offer self-service capabilities for customers to check themselves out. And the best POS systems should offer free equipment, such as credit card readers, to help businesses begin accepting payments quickly and easily.
What is a credit card machine for small businesses and how does it work?
A credit card machine can also be considered a POS system. You use it to process payments from your customers. Typically, your credit card machine needs to be connected to the internet and a power source.
This machine handles payments from a customer to your business. This is called credit card processing. With credit card processing, there are a few steps. A customer will swipe, dip or tap their card — or their card information will be inputted manually — then the information will be sent to the customer’s acquiring bank through your credit card machine or software.
After that, the bank will need to capture the transaction and put it through to the customer’s bank for approval. Then, after it is approved, your credit card machine will let you know.
Benefits of a credit card machine for small businesses
There are many benefits to owning a credit card machine, like making the checkout process go quicker. However, there are some benefits you might not think about, like increasing your cash flow and having the ability to make sales while not connected to the internet.
- Streamline checkout. When you own a credit card machine for your small business, it can make the checkout process a lot quicker. Instead of only accepting cash, which a lot of people don’t carry anymore, or needing to give out their PayPal or Venmo information, a customer can quickly insert or tap their card for payment.
- Make sales offline. There are some instances where you might not have incredible Wi-Fi service. If that’s the case, you will want a credit card reader or machine that has the ability to take offline payments. This can be beneficial to your business because you can still make sales when having internet issues.
- Consolidate income flow. If your customers pay with a card, it can be processed quickly. Instead of using cash and needing to deposit that cash, you can have everything done electronically.
Who needs a credit card machine for small businesses?
If you own a small business and want to accept a wide variety of payment methods, you should invest in a credit card machine. If you’re on a budget, there are some companies that will allow you to download the POS software to your phone and take card payments that way, but typically, this only works on certain devices.
A credit card machine will allow you to accept customer payments for items you are selling. It is also secure for both you and the customer. As your business grows, it is best to purchase at least one credit card machine.
How to choose the best credit card machine for small business
Choosing the best credit card machine for your small business will depend on what your business needs. Do you need more security features? Do you need to accept certain payment methods and not others?
Key features to look for
Some of the features you should look for in a credit card machine include:
- Security. It is important for your credit card machine to have security measures in place to prevent hackers from obtaining your customers’ information. Most card machines now do have tokenization, which uses point-to-point encryption to hide any important information. It is not advised to choose a credit card machine company that doesn’t have security features.
- Payment options. You will want to make sure that your credit card machine takes multiple payment types. This can include online payments, credit and debit cards and even mobile wallet payments.
- Integrations. You can streamline a lot of processes if your credit card machine can integrate with other software, like QuickBooks. Typically, this is done through your credit card processor.
“Choosing a credit card machine for your small business should align with your operational needs, customer interaction and long-term financial strategy,” said Leo Smigel, founder of Analyzing Alpha. “Ultimately, the best decision balances immediate functionality with forward-looking growth and stability for your business.”
How much does a credit card machine for small business cost?
The cost of a credit card machine can vary depending on what your business needs. For smaller, more mobile card readers, you can pay anywhere from $49 to $99. If you are looking for more of a terminal, starting costs range from $99 to $599.
Frequently asked questions (FAQs)
Credit card processing fees will vary depending on the processing company you choose. It will also depend on whether you take the payment in person, online or manually. For example, if you choose Square, fees will start at 2.6% plus $0.10 per transaction, depending on the payment method.
Erply’s credit card processing fees start at 2.2% plus $0.10 per transaction, while PayPal’s POS fees start at 2.29% plus $0.09 per transaction.
A credit card machine will store data from the authorized transaction to process it later. However, many credit card machines, if not all, are PCI DSS compliant, which will help with security. Another way you can make sure a customer’s data is secure is by accepting chip payments.
You can also use 3D secure authentication to better secure your customers’ data.
No, not all credit card machines will need an internet connection to accept payments. You don’t need to have an internet connection for your credit card machine to work. However, the customers’ payment won’t be fully processed until you are connected to the internet once again.
Typically, your POS system will have an option to turn it offline, so you can accept payments and have them processed later. However, this does pose a larger threat to businesses. You could see more chargebacks and fraud when accepting payments offline. And, once you’re connected to the internet, if the payment is not accepted, you can’t get that money back.
Yes, you can accept credit card payments without a credit card machine. For instance, you can have your customers pay through PayPal Goods and Services, Venmo or even Zelle. There are also some companies, like Shopify, that allow you to utilize tap to pay if you have an iPhone (and if your POS software is downloaded on your device).
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