How To Choose a Credit Card Reader for iPhones

A mobile credit card reader transforms your iPhone into a powerful point-of-sale (POS) terminal, enabling you to accept payments anywhere your business takes you. These compact devices attach to your phone and pair with mobile point-of-sale apps, allowing you to process customer payments online, in a store, or on the go.

Whether you’re running a food truck, setting up at a pop-up market, or managing a retail store, iPhone credit card readers offer the flexibility to accept multiple payment methods and never miss a sale. There are many types of iPhone credit card readers, all with different transaction fees, upfront costs, and features to compare before choosing the right one for your business.

When are credit card readers useful? 

iPhone credit card readers are useful when you need to sell products away from a checkout counter. This includes businesses like food trucks, pop-up markets, craft fairs, or special events. Instead of limiting yourself to cash-only transactions or losing potential sales, these readers let you offer customers the payment flexibility they expect.

Many readers accept debit cards, credit cards, and contactless payments, ensuring you can serve every customer’s preferred payment method. Some established retailers—like the Apple Store and Sephora—even use mobile card readers in their physical locations. The ability to process payments anywhere on the retail floor, rather than requiring customers to wait in traditional checkout lines, helps streamline the customer experience.

Switching to handheld POS machines is relatively easy and affordable. The card reader itself usually costs less than $100, and it’s attached to equipment that you and your employees may already own. Many devices even offer offline mode, making it possible to process payments without an internet connection—perfect for outdoor markets or events with spotty WiFi.

What to look for in a credit card reader for iPhone

• Integrated platforms
• Security features
• Clear pricing that fits your budget
• Fast payouts

The best iPhone credit card readers offer the following features:

Integrated platforms

Today’s entrepreneurs need a central system to track everything in one place. This allows them to make better decisions based on comprehensive customer and inventory data, and prevents mistakes like selling inventory that’s out of stock.

Your credit card reader app should integrate with your existing POS software. This can help you sync inventory, orders, and customer information between retail channels—and potentially save money in the process. Small businesses that use Shopify’s unified commerce platform, for example, lower their operating costs by 22%.

Security features

POS security is crucial when accepting card payments from your mobile device. To ensure you’re protecting customer data and shielding your business from fraudulent chargebacks, look for readers that offer end-to-end encryption and EMV compliance.

Many top providers also include tokenization, which ensures card data is never stored on your device. Some readers offer extra layers like biometric login or transaction alerts. Choosing a PCI-compliant reader helps ensure your business stays aligned with industry security standards.

Understanding how security varies between card types helps you make informed decisions:

• Magstripe cards store static data that’s easy to copy, making them more vulnerable to fraud. 

• EMV chip cards use dynamic encryption for each transaction, offering much stronger protection against counterfeits and data theft. 

• NFC (near-field communications) payments (tap to pay) use technology similar to EMV chip cards to keep card details safe. 

If you can choose between accepting chip or NFC cards versus magstripe payments, opt for the former. These options are not only safer, but also allow your business to accept contactless payments, like Apple Pay, benefiting both you and your customers. 

Clear pricing that fits your budget

Your credit card reader should come with transparent pricing that clearly explains upfront and ongoing costs. Some plans offer a free card reader, but don’t let the enticing role of a freebie overshadow the fine print—you’ll likely want additional readers as your business grows.

Mobile card readers typically involve these costs:

• Per-transaction fees calculated as a percentage of the total transaction plus a fixed dollar amount. In-person payments usually come with the lowest transaction fees, starting around 2.5% + 30¢, while online payments tend to cost a bit more. Manual card entry typically costs around 3.5% + 30¢.

• Monthly fees determined by the number of readers you have and where you plan to use them. This fee may start around $10 to $15 a month, but it varies with each provider, and you’ll pay more when adding features and staff accounts. 

• Hardware costs, which usually ranges from $49 to $99. Optional accessories, like card reader docks, may be available for purchase as well.

To determine whether a card reader fits your budget, consider which transaction types you expect to handle. If you typically accept in-person payments, for example, compare this type of fee across multiple providers. Also, consider whether you’ll pay a monthly fee or if your needs are basic enough for a free version. 

Fast payouts 

When comparing credit card readers, consider how quickly you’ll receive your funds after a sale. Most providers deposit funds within one to three business days, but some offer same-day or instant payouts for a fee. Choose options that match your cash flow needs—if you manage inventory or need to cover daily expenses, faster access to funds can be invaluable.

Some providers, including Shopify, offer accelerated payouts when you use their internal tools (like Shopify Balance). Always check the standard deposit time, fees associated with expedited transfers, and whether your bank supports faster payouts.

Best credit card readers for iPhone 

• Shopify
• Square
• Vagaro
• Stripe M2
• Clover Go

Here are the best credit card readers on the market and what they offer: 

Shopify

Shopify’s card reader integrates seamlessly into its broader ecommerce ecosystem, allowing merchants to unify in-person payments with online sales. As soon as the card reader processes a payment, Shopify automatically updates your inventory levels, customer data, and orders across all platforms. This integration makes Shopify’s card reader ideal when you operate both a physical retail business and an online store and need all the features working together. 

Pricing:

• Monthly fee: Shopify’s Starter plan starts at $5 

• Payment processing fees: In person: 2.6% + 10¢; online: 2.9% + 30¢

• Card reader: Starts at $49

Square

Square’s reader offers a free plan for its POS system. The basic version offers one free card reader (specifically a magstripe reader), no monthly fees, and a clear per-transaction fee menu.

To accept contactless payments and chip credit cards (in addition to magstripe payments), you’ll need to incur the extra cost and upgrade to the $59 Square reader. Both readers come with features that allow you to track sales, accept payments offline, and more.

Pricing:

• Monthly fee: $0

• Payment processing fees: In-person: 2.6% + 15¢; online: 2.9% + 30¢

• Card reader: Free magstripe card reader with first order; $59 for a chip and tap-to-pay reader

Vagaro

Vagaro is designed specifically for solo entrepreneurs in the beauty, wellness, and fitness industries. The software comes with a scheduling feature that allows customers to make appointments and earn loyalty points. Merchants that process payments above $4,000 monthly pay lower transaction fees but are responsible for a $10 monthly subscription and other fees. Smaller merchants pay a higher transaction fee but avoid monthly charges.

Note: Vagaro’s mobile reader does not support offline credit card processing.

Pricing:

• Monthly fee: $10 per month for larger merchants; $0 for smaller merchants 

• Payment processing fees: Small merchants: 2.6% + 10¢ per transaction; large merchants: 2.2% + 19¢ per transaction

• Card reader: $100

Stripe M2

Stripe M2 offers integration with your existing ecommerce POS terminal. Whether you take payments in person or online, the M2 syncs your data across platforms and allows you to consolidate transactions in one place.

Pricing:

• Monthly fee: None

• Payment processing fees: In-person and online: 2.9% + 30¢ for domestic cards

• Card reader: $59

Clover GO

Clover GO offers two plans: The free package includes basic reporting tools for tracking sales and transaction history, plus employee profile management. The reader costs $199. The upgrade, at $14.95 per month, offers advanced payment processing tools like detailed sales reports, tax reporting features, payments categorization, employee profiles management, and customer engagement features.

Pricing:

• Monthly fee: $0 for basic package or $14.95 per month for upgrade

• Payment processing fees: 2.6% + 10¢

• Card reader: $199