The best credit card reader depends less on the sticker price than on how you take payments. A mobile reader that pairs with a phone can cost under $60, while a standalone terminal can cost $199 to $249. Processing fees, device compatibility, offline payments, payout policies, and software lock-in can matter more than the hardware cost.
For most small businesses, the Square Reader for contactless and chip, 2nd generation is the easiest all-around choice. PayPal Card Reader has the lowest published flat rate among the mobile options compared here, while SumUp Solo is the better pick if you want a standalone reader without a phone. Businesses already using Stripe online should look first at Stripe Reader M2.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
Square Reader for contactless and chip (2nd Generation) | $47.20 | Buy on Amazon |
| 2 |
|
Square Reader for magstripe (USB-C) | $9.88 | Buy on Amazon |
| 3 |
|
Square Reader for magstripe (with Lightning connector) | $9.40 | Buy on Amazon |
Best credit card readers at a glance
| Best for | Reader | Hardware price | In-person processing |
|---|---|---|---|
| Most small businesses | Square Reader for contactless and chip, 2nd generation | $59 | 2.6% + 15¢ |
| Lowest published flat rate among these mobile readers | PayPal Card Reader | $29 for the first reader; $79 standard price afterward | 2.29% + 9¢ |
| Businesses already using Stripe online | Stripe Reader M2 | $59 | 2.7% + 5¢ |
| Standalone mobile reader | SumUp Solo | $99 | 2.6% + 10¢ |
| Custom software or marketplace integration | Stripe Terminal | $59 for M2; $299 for S700/S710 | 2.7% + 5¢ |
| Complete standalone POS | PayPal Terminal or SumUp Terminal | $199 or $249 | 2.29% + 9¢ or 2.6% + 10¢ |
Prices and fees are U.S. figures checked August 9, 2026. Providers can change pricing, promotions, eligibility requirements, and account terms.
Best overall: Square Reader, 2nd generation
Square Reader for contactless and chip, 2nd generation is the best starting point for many small businesses, independent contractors, market sellers, and service providers. It is inexpensive, widely supported, and connected to Square’s mature point-of-sale software.
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- Use the, easy-to-use, and customizable POS to get started.
- Accept contactless payments, chip cards, Apple Pay, and Google Pay from anywhere, with improved connectivity, extended battery life, and enhanced security. Pay one low rate for every tap or dip.
- No long-term commitments or contracts, no monthly fees- and with offline payments, keep taking payments for up to 24 hours.
- Safely and securely accepts payments anywhere. Plus, get data security, 24/7 fraud prevention, and payment-dispute management at no extra cost.
- Use the, easy-to-use, and customizable POS to get started.
- Price: $59.
- Processing: 2.6% + 15¢ for tap, dip, or swipe transactions.
- Payments: EMV chip cards, NFC contactless cards, Apple Pay, Google Pay, and Samsung Pay.
- Compatibility: iOS 16 or later and most Android devices running Android 7.0 or later.
- Software: Square POS includes receipts, reporting, inventory features, and tools tailored to industries such as retail, food and beverage, beauty, and services.
- Accessories: Receipt printers, barcode scanners, scales, and other compatible accessories are available.
- Warranty: One-year limited warranty.
The tradeoff is that this is a reader, not a complete payment terminal. It connects wirelessly to a phone or tablet and charges through USB-C. The optional Bosstab dock costs $39 and is sold separately.
Important Square offline-payment distinction
Do not assume every Square reader supports offline payments. Square’s support documentation says the first-generation contactless-and-chip reader does not support offline payments. Square’s current product page says the second-generation reader can continue accepting offline payments for up to 24 hours. Check the exact model before buying if you sell at fairs, outdoor events, or locations with unreliable internet.
Best published transaction rate: PayPal Card Reader
The PayPal Card Reader has the lowest published percentage-plus-fixed-fee rate among the main flat-rate mobile options compared here. It is a sensible choice for businesses that already use PayPal and want a low-cost Bluetooth reader.
- Price: $29 for the first reader under the current introductory offer; $79 standard price for additional readers.
- Card-present processing: 2.29% + 9¢.
- Manual entry: 3.49% + 9¢.
- Requirements: Bluetooth connection to an iPhone or iPad running iOS 14 or later, or an Android device running Android 8.0 or later.
- Payments: Chip and PIN, contactless cards, Apple Pay, Google Pay, Samsung Pay, and QR-code payments through the connected device.
- Battery: Up to eight hours, or more than nine hours and over 250 transactions in power-saving mode.
- Warranty: 12 months from shipment.
The $29 price is a promotion for one first reader per new business user, not the normal ongoing hardware price. It can change or end without notice.
PayPal’s U.S. product is now called PayPal Point of Sale; it was formerly known as PayPal Zettle. Existing accounts continue to operate under the same system.
PayPal also says transactions may be reviewed and funds may be held or delayed. That policy is worth considering if predictable cash flow matters more to you than saving a few cents per transaction.
Best for Stripe users: Stripe Reader M2
Stripe Reader M2 makes the most sense when your business already processes online payments through Stripe, uses a compatible third-party POS, or has a developer who can build the checkout experience.
- M2 price: $59.
- S700/S710 price: $299.
- Domestic card-present processing: 2.7% + 5¢ per successful transaction.
- International cards: Additional 1.5%.
- Tap to Pay: Additional 10¢ per authorization.
- Optional point-to-point encryption: Additional 5¢ per authorization.
- Cellular-enabled readers: $10 per reader per month.
Stripe Terminal supports JavaScript, iOS, Android, and React Native SDKs, along with server-driven and third-party POS integrations. Stripe says Terminal transactions are end-to-end encrypted by default and its readers are pre-certified and EMV certified.
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- Get your money as soon as the next business day.
- Get set up quickly with no long-term commitments. Download the Square Point of Sale app for free, create an account, and start taking payments anywhere.
- Run your business all in one place with the free Square Point of Sale app. Track your sales, manage inventory, accept tips, send receipts digitally, and more.
- Works with Apple devices with a Lightning connector.
This is not a plug-and-play reader that works with any payment app. Stripe Terminal requires a supported Stripe reader and a Stripe Terminal SDK, server-driven integration, or compatible POS system. The S700 and S710 can run a customized POS app on the device, unlike the basic phone-connected M2.
Stripe’s documentation supports offline payments, but availability depends on the particular reader and integration. In the U.S., the Stripe account and reader location must also be in the same country, and Terminal processes in local currency.
Best standalone mobile reader: SumUp Solo
SumUp Solo is a better fit than a basic Bluetooth reader if you want a touchscreen device that can process and track payments without pairing to a phone or tablet.
- Price: $99.
- Processing: 2.6% + 10¢ per in-person payment.
- Payments: Major debit and credit cards, contactless, chip, swipe, Apple Pay, and Google Pay.
- Phone requirement: None for processing or tracking payments on Solo.
- Account requirement: SumUp must complete and approve your account setup and business registration before the device can accept payments.
- Delivery: SumUp currently states four to five business days for the reader.
SumUp also sells the SumUp Plus for $54 on its current comparison page. Plus requires a smartphone or tablet, with iOS 12 or later and Bluetooth 4.0, or Android 6.x or later and Bluetooth 4.0.
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Best complete standalone POS: PayPal Terminal or SumUp Terminal
A standalone terminal is useful when employees should not use a personal phone, customers need a built-in screen, or checkout should not depend on a separate mobile device.
PayPal Terminal
- Price: $199, or $239 with a built-in barcode scanner.
- Processing: 2.29% + 9¢ for card-present transactions.
- Connectivity: Built-in Wi-Fi and cellular connectivity; PayPal says mobile data is included.
- Battery: Up to 12 hours, or four to six hours with intensive use.
- Payments: Chip and PIN, contactless cards, Apple Pay, Google Pay, Samsung Pay, and native QR-code payments.
The major limitation is platform lock-in: PayPal Terminal runs PayPal POS software only and cannot be used with other POS systems.
SumUp Terminal
- Price: $249.
- Processing: 2.6% + 10¢ per transaction.
- Software: Item and order management, discounts, printed receipts, refunds, custom tax rates, parked orders, inventory tracking, and real-time online-store synchronization.
- Contract: No monthly minimums or binding contract.
How much do the processing fees cost?
On a $20 card-present sale, the published rates produce these approximate fees:
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- Pay one transparent rate per swipe for Visa, Mastercard, Discover and American Express.
- Works in conjunction with most downloadable Square point-of-sale apps on your device. Customers can pay, tip and sign directly on your device. Track payments in cash, gift cards and more. Also lets you send receipts via e-mail or text message, makes it easy to apply discounts, keeps a data and sales history log and more.
- Accepts magstripe credit card payments, including those from Visa, Mastercard, Discover and American Express (fees apply).
- App sends deposits to your bank account within 1 to 2 business days, or enjoy instant deposits (fees apply).
| Provider | Fee on a $20 sale |
|---|---|
| PayPal | 54.8¢ |
| Stripe | 59¢ |
| SumUp | 62¢ |
| Square | 67¢ |
The difference between PayPal and Square is about 12.2¢ on a $20 transaction. The fixed fee becomes especially important for low-dollar sales. For example, a business selling $5 items will feel a 9¢ or 15¢ fixed charge much more than a business processing $100 invoices.
However, the lowest transaction fee is not automatically the lowest total cost. Software, accessories, cellular service, refunds, chargebacks, payout delays, and the value of inventory or reporting tools can change the calculation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to check before buying
- Confirm tap and chip support. A current reader should accept EMV chip cards and NFC contactless payments. Do not assume a cheap magstripe reader also supports chip cards or mobile wallets.
- Decide whether you need a phone. Square Reader, PayPal Card Reader, SumUp Plus, and Stripe M2 generally pair with another device. SumUp Solo, SumUp Terminal, and PayPal Terminal operate independently.
- Verify offline payments by model. Square’s first-generation reader does not support them, while the second-generation model advertises up to 24 hours. Stripe supports offline payments in its Terminal documentation, but the feature depends on the integration.
- Compare keyed-entry rates. Manually entering a card number is usually more expensive. PayPal lists 3.49% + 9¢ for manual entry compared with 2.29% + 9¢ for card-present transactions.
- Look for platform lock-in. PayPal Terminal works only with PayPal POS software. Stripe Terminal requires Stripe-certified hardware and a Stripe Terminal integration.
- Check your phone or tablet’s operating system. Square’s current second-generation reader requires iOS 16 or later. PayPal requires iOS 14 or later or Android 8.0 or later. SumUp Plus lists iOS 12 or later or Android 6.x or later.
- Review payout and account policies. A low processing rate is less useful if your provider’s review process interrupts access to funds. PayPal explicitly says transactions may be reviewed and held or delayed.
Common mistakes in credit card reader comparisons
- Using the old PayPal Zettle name: The U.S. product is now PayPal Point of Sale.
- Claiming every Square reader works offline: The first-generation contactless-and-chip reader does not.
- Comparing only hardware prices: The total cost may include fixed transaction fees, optional docks, software plans, cellular charges, accessories, and chargebacks.
- Treating a Stripe reader like a universal POS reader: Stripe hardware requires the appropriate Stripe integration or compatible POS.
- Confusing a reader with a terminal: A reader commonly relies on a phone or tablet. A terminal combines payment hardware and POS software in one device.
FAQ
What is the best credit card reader for a small business?
The Square Reader for contactless and chip, 2nd generation is the best general-purpose choice for many small businesses because it costs $59, accepts chip and contactless payments, and works with Square POS tools without a monthly fee or long-term commitment.
Which credit card reader has the lowest processing fee?
Among the flat-rate mobile options compared here, PayPal Card Reader has the lowest published in-person rate at 2.29% + 9¢. On a $20 sale, that equals about 54.8¢. The hardware promotion and account-review policies should also be considered.
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Can I use a credit card reader without a phone?
Yes. SumUp Solo, SumUp Terminal, and PayPal Terminal can operate independently. Square Reader, PayPal Card Reader, SumUp Plus, and Stripe Reader M2 generally require a paired phone, tablet, or integrated POS system.
Do credit card readers work when the internet is down?
Some do, but offline support depends on the exact model and software configuration. Square’s second-generation reader advertises up to 24 hours of offline payments, while its first-generation reader does not support offline payments. Stripe supports offline payments in Terminal documentation, subject to the integration.
The Bottom Line
Choose Square Reader, 2nd generation if you want the safest all-around option for a small business. Choose PayPal Card Reader if the lowest published mobile processing rate is your priority and you are comfortable with PayPal’s account policies. Choose SumUp Solo if you need a standalone reader without a phone, and choose Stripe Reader M2 if your business already runs on Stripe or needs a custom integration.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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