Best Card Reader for Small Business in 2025

Looking for the best card reader for your small business in 2025? With cashless transactions on the rise, choosing the right payment solution is crucial for seamless sales and customer satisfaction. Discover the top card readers that offer secure, fast, and cost-effective payment processing.

A reliable card reader is essential for small businesses in 2025, as cashless transactions continue to dominate the market. The right card reader for small business enables seamless payments, enhances customer experience, and ensures business growth. 

With multiple options available, selecting the best card reader requires evaluating cost, features, security, and compatibility with existing business systems.

This article examines the best card readers for small businesses in 2025, covering their key features, benefits, and factors to consider when choosing one.

How to Take Card Payments for a Small Business

A small business can accept card payments by using a credit card machine or a mobile card reader. These devices are provided by a payment processor or merchant services provider. They connect to a payment gateway, which manages the transaction and ensures that the money is sent to the business bank account.

The best way to accept credit card payments depends on the needs of the business. In most cases, using a credit card machine or a mobile card reader is the most efficient and secure method. These devices allow businesses to accept different types of payments, including credit cards, debit cards, and mobile wallets such as Apple Pay and Google Pay.

Visa and Mastercard are the most widely used credit card networks, processing around 80% of credit card transactions. Most card machines accept one or both of these. However, businesses that want to accept American Express or Discover cards may need to choose a provider that supports these payment options.

The price of a card reader depends on the provider and the type of device. It is uncommon to buy a separate credit card reader that does not work with a point-of-sale (POS) system. Usually, the card reader is included as part of the overall hardware and software package offered by the POS provider.

For example, the company Toast charges between $60 and $250 per month for its software. Some providers offer free card readers when businesses sign up for their payment processing services. However, there are also one-time hardware costs, which typically start at $700.

When a customer makes a payment, their card information is securely sent from the card machine to the payment processor. The payment processor contacts the customer's bank to approve the transaction. If the payment is authorised, the money is transferred to the business’s bank account. The business receives the payment after transaction fees are deducted by the payment processor.

Factors to consider when choosing a card reader

1. Payment methods supported: Modern card readers should support multiple payment methods, including:

• Chip and PIN
• Contactless (NFC) payments
• Magnetic stripe transactions
• Mobile wallet payments (Apple Pay, Google Pay, Samsung Pay)

2. Compatibility: It is important to check if the card reader works with the business’s existing devices and point-of-sale (POS) system. Some card readers work with both iOS and Android devices, while others are designed for a specific operating system.

3. Transaction fees: Card reader providers charge a fee for each transaction. Understanding these costs is important, as they can affect overall profits. Some providers offer lower rates for businesses that process a large number of transactions.

4. Connectivity: Card readers connect in different ways, such as through Bluetooth, USB, or Wi-Fi. Businesses should choose a card reader that suits their work environment and ensures smooth transactions without disruptions.

5. Security and compliance: A reliable card reader should meet Payment Card Industry Data Security Standard (PCI DSS) regulations. This helps to protect customer data and prevent fraud.

6. Portability: For businesses that operate in different locations or need to take payments while moving, a small and wireless card reader is the best option.

Best Card Readers for Small Businesses in 2025

1. Square Reader: Square Reader is a budget-friendly and easy-to-use card reader for small business owners who need a simple way to accept card payments. It supports different payment methods and works smoothly with Square’s POS system, making it suitable for businesses of all sizes.

Best for: Affordability and ease of use.

Features:

• Accepts chip, contactless, and mobile wallet payments.
• No monthly fee; businesses only pay per transaction.
• Works with Square POS for inventory management.
• Supports offline payments.

Pros:

• No monthly cost.
• Easy to set up and use.
• Competitive transaction rates.

Cons:

• Limited customisation for large businesses.

2. SumUp Air: SumUp Air is a small and wireless card reader for small business owners who want low transaction fees without monthly charges. It connects with different POS systems and supports various payment methods.

Best for: Low transaction fees.

Features:

• Compact and wireless design.
• Charges a single transaction fee with no monthly costs.
• Integrates with various POS systems.
• Supports contactless, chip, and PIN payments.

Pros:

• Affordable for small businesses.
• No hidden fees.
• Long battery life.

Cons:

• Limited advanced features.

3. Zettle by PayPal: Zettle by PayPal is a good choice for businesses that often use PayPal for payments. It links directly with PayPal accounts and provides a flexible POS system designed for small businesses.

Best for: Businesses using PayPal.

Features:

• Seamless integration with PayPal and e-commerce platforms.
• Accepts all major credit and debit cards.
• Competitive transaction fees.
• Custom POS options for business needs.

Pros:

• Direct access to PayPal business accounts.
• Multiple payment options.
• Strong security features.

Cons:

• Requires a PayPal account for full functionality.

4. Clover Go: Clover Go is a flexible card reader for small business owners who need advanced POS integration. It supports different payment methods and offers cloud-based reporting to help with financial management.

Best for: Scalability and advanced POS integration.

Features:

• Accepts chip, contactless, and swipe payments.
• Custom POS software for business management.
• Cloud-based reporting and analytics.
• Works with iOS and Android devices.

Pros:

• Suitable for growing businesses.
• Secure and PCI-compliant.
• Good customer support.

Cons:

• Higher initial cost.

5. Stripe Terminal: Stripe Terminal is made for e-commerce businesses that want to start accepting in-person payments. It works directly with Stripe’s online payment system and supports multiple currencies.

Best for: E-commerce businesses with in-person sales.

Features:

• Fully integrated with Stripe’s online payment system.
• Accepts chip, contactless, and mobile payments.
• Custom API options for business automation.
• Supports multiple currencies.

Pros:

• Excellent for online businesses expanding to physical sales.
• Competitive pricing.
• Reliable security features.

Cons:

• Requires technical setup for customisation.

Final thoughts 

Choosing the right card reader for small business depends on factors such as business size, budget, and payment processing needs. Square Reader and SumUp Air are excellent choices for affordability, while Clover Go and Stripe Terminal provide advanced features for businesses that are expanding. Making sure the card reader is compatible with existing systems, secure, and cost-effective will help businesses manage payments smoothly and improve customer satisfaction.

By selecting the most suitable card reader for small business, businesses can work more efficiently, process payments seamlessly, and remain competitive in today’s digital payment world.

FAQs

1. What is the best card reader for small businesses in 2025?
The best card reader for small business depends on what the business needs. Options such as Square Reader, PayPal Zettle, Clover Go, SumUp Plus, and Stripe Terminal are among the top choices. Each offers different features, including mobile compatibility, low transaction fees, and strong security measures.

2. How much does a card reader cost for a small business?
The price of a card reader for small business varies based on the brand and features. Basic mobile card readers cost between £15 and £40, while more advanced models with built-in screens and receipt printers range from £80 to £400. Businesses may also need to pay transaction fees, which are typically between 1.5% and 3% per sale.

3. Is a merchant account required to use a card reader?
Most modern card readers for small business work with third-party payment processors such as Square, PayPal, and Stripe, removing the need for a traditional merchant account. However, businesses that process a high number of transactions may prefer a dedicated merchant account to benefit from lower fees and greater control over payment processing.

4. Can a card reader be used with a smartphone or tablet?
Yes, many card readers for small business connect to smartphones and tablets using Bluetooth or a headphone jack. Providers such as Square, PayPal, and SumUp offer mobile apps that allow businesses to accept payments, track sales, and issue digital receipts directly from their devices.

5. What security features should be considered when choosing a card reader?
Security is extremely important when processing card payments. A reliable card reader for small business should include features such as EMV chip technology, NFC (contactless) payments, PCI compliance, encryption, and tokenisation. These security measures help protect customer data from fraud and cyber threats.

6. Are there any monthly fees for using a card reader?
Most card readers for small business do not charge a monthly fee. However, some providers, such as Clover and Stripe, offer premium plans that include extra features like advanced sales reports and employee management tools, which may come with a monthly charge.

7. Which card reader is best for businesses with high transaction volumes?
For businesses that process a large number of transactions, card readers such as Clover Flex, Stripe Terminal, and Square Stand are better suited. These models integrate well with POS systems, process payments faster, and often have lower transaction fees. They are ideal for retail shops, restaurants, and service-based businesses.