A Guide To Square Credit Card Readers And POS Bundles

 

Square made its name offering a free mobile credit card swiper, but the company has expanded so much in the past few years that there is now a massive array of hardware options, catering to all types of businesses. You can still get mobile card readers from Square if you don’t need more than just a phone or tablet and a swiper, but you can also get a countertop POS system complete with a customer-facing display, or a slim, portable credit card terminal with a phone-sized high-resolution screen and built-in receipt printer. And if you’d like to print paper receipts and have an automated cash drawer, Square offers a wide range of compatible hardware. You can even save some money by opting for one of Square’s ready-made bundles of hardware.

Let’s take a look at Square’s hardware options, including its mobile readers, POS systems, and POS kits. We’ll start with simplest options and move on to the most comprehensive kits. We’ll also talk about what you can do to control your costs and manage your cash flow with Square’s financing.

If you’re still curious about Square’s offerings, we also recommend checking out our complete, in-depth review of Square, which covers hardware as well as the software.

Square Mobile Card Readers

Square’s mobile card readers are meant to work with smartphones and tablets — unlike with some of the company’s “all in one” hardware solutions, if you go with a card reader it’s a “bring your own device” situation. Square’s mobile readers are ideal for businesses that are always on the go — farmer’s market stalls, service businesses, food trucks, etc. These card readers work with any of Square’s POS apps as well. However, compatibility with specific tablets or smartphones will vary — and you should check before you buy that a card reader is compatible with your device. Square has a helpful compatibility checker tool on its website for this purpose.

Square Magstripe Readers

Square has been offering free basic magstripe readers for years. The boxy design hasn’t changed significantly over the years and it’s simple to use. Recently, the company added a Lightning connector variant in addition to the 3.5mm headphone jack connector. Square used to sell a 3.5mm adapter, but that’s no longer available (because it’s no longer necessary). However, I will say that adapters from other makers will work for the same purpose.

New Square merchants get 1 free card reader; additional card readers sell for a very reasonable $10. Unlike PayPal Here, Square doesn’t impose any limits or restrictions on transactions processed with a magstripe reader — there’s no limit to the number of swiped transactions you can process before you trigger a hold. That’s a nice touch. However, if you do process large transactions or do a significant volume of credit card payments you should definitely look at upgrading to a chip card-capable reader.

Magstripe Reader Quick Facts 

  • Free for new merchants
  • $10 retail price
  • 3.5mm headphone jack or lightning port connectors
  • Supports magstripe transactions

Square Chip Card Reader

 

Square’s first chip card reader wasn’t particularly fancy, or even all that different from its elder sibling: it was boxy, with a headphone jack connector. And it has since fallen out of favor — partly thanks to Apple and its removal of the headphone jack on its iPhones. However, this entry-level chip card reader is still available at a reasonable price — ideal for merchants who want to accept chip cards but also save some money.

Square doesn’t offer a lightning connector variant for the Chip Card Reader, but as I mentioned, a Lightning to 3.5mm headphone jack adapter would work for iPhone users. This reader also requires the occasional battery charge because of the addition of the chip reader.

Chip Card Reader Fast Facts 

  • $35
  • 3.5 mm headphone jack connector
  • Requires battery charging
  • Supports magstripe and chip card transactions

Square Contactless + Chip Reader

Square’s Contactless + Chip Reader is a departure from Square’s earlier mobile credit card readers. First, it connects via Bluetooth. Second, it doesn’t support magstripe transactions at all. Instead, Square includes one of its free magstripe reader in the box as well. (To be honest, this design kind of disappoints me, but I figure that the Contactless + Chip Reader was designed to add EMV support to the Square Stand, which already has an integrated magstripe reader. So building magstripe support into the Contactless + Chip Reader was a moot point. Still, for merchants who don’t have a Square Stand, this might prove to be a small annoyance if the chip reader can’t read a card properly.)

Square also sells a charging dock, which can be plugged into a wall, or into the Square Stand’s USB hub. It sells for $29 separately. You can use it in a countertop retail environment and let customers insert their payment cards themselves, or you can set the dock aside and grab the reader by itself whenever you need to make a transaction.

Contactless + Chip Reader Fast Facts 

  • $49
  • Charging dock sold separately ($29)
  • Bluetooth connection
  • Supports chip card and contactless transactions
  • Basic magstripe reader also included

Square Countertop POS Devices

If you’d like something a little bit more permanent and stationary in your POS setup, Square offer options tailored to different environments. The offerings here get a little more complex, so bear with me!

Square Stand

The Square Stand has been one of the company’s core offerings for a long time — it is a tablet stand with a built-in card reader, all for a reasonable price (at launch, it cost $99). It swivels, it has minimal cords, and it looks good. Square has improved it slightly with the bundling of the Contactless + Chip Reader. That brings the price to $169.

Square doesn’t include a receipt printer for the Stand, but a printer is available in hardware bundles. Likewise, Square doesn’t include an iPad with the Stand, but you can purchase one directly from Square for an additional $329. Keep in mind that the current edition of the Square Stand only works for the most recent iPad models. If you have an older iPad, you can order a legacy stand from Square for $99, but the Contactless + Chip Reader requires iOS 9.3.5 or higher, and that version of iOS isn’t supported on an iPad 2 or other earlier models.

Because the Square Stand runs an iPad, it can also support merchants using Square Point of Sale, Square for Retail, or Square for Restaurants. There are an assortment of recommended hardware bundles for the Square stand, but if you prefer to build your own setup, you will be happy to know that the Square Stand supports USB, Ethernet, WiFi and Bluetooth printers, as well as other devices.

Square Stand Fast Facts 

  • Accepts magstripe, chip card, and contactless transactions
  • $169 (iPad sold separately)
  • Includes Contactless + Chip Reader (integrated magstripe reader in stand)
  • Compatible with Square Point of Sale, Square for Restaurants, Square for Retail, Square Appointments

Square Terminal

Square Terminal (read our review), the newest addition to Square’s lineup of hardware, takes the concept of the Square Stand and the traditional credit card terminal and combines them into one portable machine. The display is large enough to be a fully functioning POS (it runs Square Point of Sale, the free app). It accepts magstripe, chip card, and contactless transactions. It even has a built-in thermal receipt printer.

While you can operate Terminal by keeping it plugged in, Square promises the battery will last all day if you prefer to go wireless. You also get a cleverly-designed power brick and USB hub to connect accessories, such as the USB barcode scanner and cash drawer. Bluetooth accessories aren’t supported, so the USB hub will be important for some merchants.

While Terminal runs Square Point of Sale, it also offers some compatibility with the iPad-based premium POS app, Square for Restaurants. Specifically, Terminal can be used for tableside ordering and payments. It doesn’t support all of Square for Restaurant’s features, though, so it’s important that you make sure Terminal will really fit your needs.

Square Terminal Fast Facts 

  • Accepts magstripe, chip card, and contactless transactions
  • $399
  • $300 processing credit for new merchants
  • 2.6% + $0.10 per transaction
  • Compatible with Square Point of Sale (limited compatibility with Square for Restaurants)

Square Register

 

Square Register (read our review) definitely targets a higher-end market, with a price tag of $999 — not counting a cash drawer, receipt printer, or barcode scanner. However, for that price, you get a 13.25-inch screen running Square Point of Sale, as well as a 7-inch consumer-facing screen with integrated support for magstripe, chip card, and contactless transactions.

Square Register runs an Android-based version of Square Point of Sale, which means it’s not compatible with Square for Retail. However, you can take advantage of the back-end features if you opt to subscribe to Square for Retail. Specifically, that means access to the reporting features, including cost of goods sold and profitability reports. Square Register also integrates perfectly with Square Loyalty and allows customers to see the status of their loyalty accounts.

All in all, Square Register is an absolutely gorgeous piece of hardware that would look great in a retail space. The addition of the customer-facing display, combined with all of the supported hardware, brings Register on par with more traditional countertop POS systems.

Square Register Fast Facts

  • Accepts magstripe, chip card, and contactless transactions
  • $999
  • 2.5% + $0.10 per transaction
  • Compatible with Square Point of Sale (back end features compatible with Square for Retail)

Square POS Bundles

Square’s POS Kits are available for the Square Stand and Square Register — but if you’d prefer to use a different tablet stand for an iPad, Square also offers some alternatives. It would be a bit redundant and very overwhelming to go through every single bundle that Square offers, so let’s focus on what they offer, broadly speaking.

Square will first ask you to pick a category for your business. The options are limited — just food and beverages, beauty and wellness, or retail. However, those three categories cover a lot of industries. And honestly, you shouldn’t worry too much about picking the right category because the offerings will be similar. Check the options in each category and see which bundle you like.

After you’ve chosen an industry category, Square will also ask you about your Internet setup, specifically whether your business has a router. If you are relying on cellular data, obviously, there’s no router involved. But this question primarily affects what kind of printer Square includes in its bundles.

The biggest advantage to choosing a Square POS kit is the cost savings. Buying individual accessories from Square will cost more than buying a bundle. Square lists the prices as “starting at” for most bundles, but that’s usually because you have the option of purchasing an iPad direct from Square. (Note that you can only get the most recent model of iPad. Square offers POS bundles that support the iPad 2, for example, but you’ll have to acquire the iPad separately.)

Let’s start by looking at what the Square Register and Square Stand bundles look like, versus the alternative tablet stands.

Square Stand POS Kit

 

Square Stand on its own is pretty affordable, but if you opt for the bundle with the stand over buying individual components, you’ll save a small amount. Square suggests running the Stand with a router setup, which includes a USB hub for accessories, rather than wireless options. Your Square Stand Kit includes the following:

  • Receipt printer paper (25 rolls)
  • USB Receipt Printer
  • 16 in. Printer-Driven Cash Drawer
  • Square Stand for Contactless and Chip

If you decide against the Square Stand Kit, keep in mind that you can use any piece of hardware that works with an iPad running Square Point of Sale, as well as USB-enabled devices. That includes barcode scanners and receipt and kitchen printers in addition to cash drawers.

Square Register POS Kit

The POS kit for Square Register will add $530 to the cost, but it will save you $67 over buying the parts individually. (Also take note: You can’t order just the hardware bundle separate from the Register.)

In addition to the Register itself, the kit includes:

  • 16 in. USB Cash Drawer
  • USB Receipt Printer
  • Receipt printer paper (25 rolls)
  • Square Register

Square only recommends the Register kit for businesses with routers, not mobile setups. That’s not too surprising because it’s clearly not a mobile setup. Register does support some USB and Ethernet printers (and one WiFi printer), but it does not support as many devices as the Square Stand or just a standalone iPad. Square also offers compatible kitchen printers, which aren’t included in the bundles for food and beverage businesses, surprisingly.

Other Square POS Kits

If you’d still like to use Square on a tablet — but without the Register or Square Stand — you can get a selection of Heckler brand tablet stands designed for iPads, as well as Galaxy Tab A devices. They contain the following:

  • A tablet stand
  • A printer (Ethernet or Bluetooth)
  • Cash drawer
  • Receipt printer paper
  • Card reader (Magstripe or Contactless + Chip)

Prices vary by the tablet stand model, as well as whether the kit includes an Ethernet or wireless printer. Which card reader Square includes depends on the model of iPad (remember, early models of iPad can’t upgrade to the iOS version required to support the Contactless + Chip Reader). And again, you can mix and match tablet stands and other devices to create a custom setup, though you will ultimately pay more than if you chose one of Square’s pre-made bundles.

Other Square Accessories

When you check out Square’s hardware shop, you can also browse standalone accessories for Square’s products. I like that the site has added the ability to filter compatible accessories by the POS device. The available accessories include kitchen printers, USB and Bluetooth barcode scanners, WiFi routers, and more. However, these are far from your only options. Square actually supports an extensive array of hardware in addition to the options available directly through its own shop. And it’s great about publishing that list of confirmed, supported devices.

Should You Finance Your Square Hardware Purchase?

There’s one last factor to consider when shopping for hardware from Square: the cost. If you are worried about the price of Square’s hardware, or the overall price of accessories, you’ll be glad to know that Square offers financing on purchases of $49 or more. Generally, the limit is $5,000, but you can apply for an increased limit. Depending on the total sum you’re financing, Square offers payback terms of 3, 6, 12 and 24 months.

Square will deduct your payments from your total processing volume before disbursing funds to your bank, so you don’t have to worry about making monthly payments. Eligibility depends on a credit check, and the financing program isn’t available in all U.S. states yet. However, if you are eligible, this could be a great option.

Square’s markup for financing is incredibly reasonable, and the program is managed by Square directly so you don’t have to worry about a shady third-party stepping in. If you can’t afford the upfront investment in hardware, Square’s financing can help you manage your cash flow better. And I like that it’s not a leasing program — when you’re done paying off the hardware, you own it.

Which Square Hardware Is Right For You?

If your business is primarily on the go, you can get a cheap, affordable mobile card reader. If you’d like a countertop setup, there’s Square Terminal with its very small profile, Square Stand for a good entry-level piece of hardware, and of course, Square Register. Plus, the bundled kits from Square allow you to easily add a cash drawer, receipt printer, and any other hardware you need. The number of options can seem overwhelming, but it really comes down to how portable you need your hardware to be and what you can afford.

One of my absolute favorite things about Square is that the company offers a huge array of very affordable hardware for all types of businesses. Some companies might only offer a few options, use expensive leases, or charge an arm and a leg just for a single terminal. You don’t have to worry about that with Square. The price is right and there are hardware options to suit every business that work with all of Square’s Point of Sale apps. That’s a very powerful reason to go with Square already. Throw in the affordable credit card processing and the great customer service, and it’s easy to see why Square is a favorite among small businesses.

If you’re still just learning about Square, be sure to read our complete Square Review! You can also check out our Square Point of Sale, Square for Retail, and Square for Restaurants reviews to learn more about the point of sale systems.

Thanks for reading! Leave us your thoughts and your questions in the comments below!

The post A Guide To Square Credit Card Readers And POS Bundles appeared first on Merchant Maverick.

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The Complete Guide to PayPal’s Fees, Rates, and Pricing

As a consumer mobile wallet, PayPal is darn-near ubiquitous. But with more than 17 million merchants worldwide calling PayPal their payments processor, it’s also a massive force in the merchant services industry. So if you’re looking for a quick and easy way to get set up with credit card payments, whether for a POS system or online, PayPal is probably going to be on your radar, and with good reason.

But should you choose PayPal as your payments processor, and what will it cost? The good news is that PayPal offers transparent, pay-as-you-go pricing with no monthly fees, no account termination fees, or other hidden costs. You can predict fairly well what you’ll pay with PayPal, and all payment processing fees are deducted before PayPal deposits funds in your account.

The one major drawback is that PayPal is a third-party processor, also referred to as an aggregator. That means the company essentially onboards merchants as sub-users of one, giant merchant account that includes the entirety of PayPal’s merchant base. This means that the company does minimal underwriting before approving an account. You don’t need to provide much info beyond confirming your identity to open an account. However, this does mean you face a greater amount of scrutiny after opening an account, and PayPal can terminate your account or place a hold on funds with no notice to you.

That sounds worrisome, but the reality is it only happens to a small percentage of merchants. You can also take steps to protect yourself by recognizing the common red flags that processors look for and avoiding them. Check out our article on how to avoid merchant accounts holds and terminations to learn more.

PayPal obviously isn’t the right choice for everyone. There are restrictions on the types of products merchants can offer, and it doesn’t support certain business models. High-risk businesses should look somewhere else for a merchant account. However, most merchants should be fine with a PayPal account for payment processing.

Read on for a closer look at what you can expect to pay with PayPal as your business’ credit card processor! You can also check out our PayPal and PayPal Here reviews for a focused look at the products and services.

Payment Processing Fees

The major concern for most merchants who use (or are considering using) PayPal are the payment processing costs, so we’ll start there. PayPal offers predictable, flat-rate pricing for all merchants. You don’t have to worry about higher interchange for American Express cards, or MCCs, or qualified vs non-qualified transactions. Your exact rate will depend on the type of transaction.

Merchants who use PayPal’s mPOS app, PayPal Here, or integrate with one of PayPal’s POS partners (such as Vend), will pay the following for in-person transactions:

  • 2.7% per swiped, dipped or tapped transaction
  • 3.5 + $0.15 per keyed transaction

For online transactions, including monthly subscription charges, donations, and digital invoices, PayPal charges the following:

  • 2.9% + $0.30 per online transaction

That’s it. Really. The simplicity of PayPal’s pricing is one of the biggest draws for merchants. You can predict fairly easily what your pricing will be and, because PayPal deducts its fees before depositing funds in your account, you don’t have to worry about an end-of-the-month invoice or going over a limit and incurring additional fees.

What About Alternative Payment Processing Rates?

If you’re wondering whether PayPal offers any sort of alternative payment plans, the answer is yes. Merchants with an average transaction size under $10 can opt for the micropayments plan. PayPal also offers a nonprofit discount for online transactions to qualified 501(c)(3) nonprofits.

  • Micropayments Plan: 5% + $0.05 per transaction. (Note: This rate applies to all transactions, even those above $10)
  • Nonprofit Discount (Online Only): 2.2% + $0.30 per transaction

If you integrate with one of PayPal’s partner POS systems, such as Vend or TouchBistro, you may be eligible for special discounts  (presumably volume-based) or other promotions. However, these offers aren’t clearly disclosed, just advertised on the POS software sites.

Other PayPal Fees For Payment Processing

While PayPal does charge a few extra fees relating to payment processing, they aren’t many. But these are what you might come across:

  • 1.5% Cross-Border Transaction Fee: For US merchants who accept online payments from buyers out of the country, or in-person transactions involving a card from outside the US, PayPal charges a 1.5% cross-border fee. That means, for example, that a US merchant accepting a Canadian card at a POS terminal will pay 4% of the transaction value to PayPal.
  • 2.5% Currency Conversion Fee:  If PayPal has to convert the currency before it deposits the funds in your account, you’ll pay another 2.5% conversion fee. Whether you have to pay the conversion fee depends on the customer’s bank and whether it will handle the currency conversion (usually at a cost to the customer).
  • $20 Chargeback Fee: Chargeback fees are pretty standard, and if a customer files a chargeback against you, PayPal will assess a $20 fee in addition to withdrawing the funds to cover the transaction amount.
  • Refund Fee: In the event of a refund, PayPal will refund the percentage-based fee from the transaction to you, but keep the fixed fee. For most in-person transactions that means you’ll pay nothing. However, refunds on keyed transactions mean you’ll pay $0.15. Refunds on online or invoiced transactions will cost $0.30. PayPal can be a bit confusing about how this works in its transaction summaries, but be aware that you will pay a fee for most refunded transactions, albeit a small one.
  • 1% Instant Transfer Fee: If you’d like to move your PayPal balance to a bank account immediately, you can do that — for a fee. PayPal charges merchants 1% of the transfer value, capped at $10 per transfer, but your funds will be available typically within 30 minutes (s0 long as your bank’s system isn’t incredibly slow). You’ll have to connect an eligible debit card to support instant transfers as well. However, if you prefer to have instant access to funds without paying a fee, don’t forget that PayPal offers a business debit card that’s linked to your PayPal balance, too.

Software Fees

One of the big draws for PayPal is the lack of software fees. Instead of paying a monthly fee for PayPal’s ecommerce features, you pay only the payment transaction costs (in most circumstances — but we’ll come back to this in a moment). While you’ll need to arrange for your own domain and web hosting, you can implement PayPal’s “buy” and “donate” buttons with no additional costs. You can send digital invoices for free and only pay the transaction cost when the invoice is paid.

Likewise, access to PayPal’s mPOS app, PayPal Here (read our review) is also free. However, if you opt to integrate PayPal into a POS app, invoicing software, or another platform, you’ll be responsible for those software costs. PayPal doesn’t charge anything for use of the integration.

Also, take note: PayPal doesn’t charge merchants any PCI compliance fees, account maintenance fees, customer service fees, or termination/account closure fees.

However, PayPal does offer a couple of advanced software options that come with additional costs:

  • PayPal Payments Pro: The “Pro” plan from PayPal has two advantages. One, it includes a virtual terminal to accept payments over the phone by keying in a card from a browser window.  Two, it allows merchants to keep the checkout process on their own website rather than redirecting to PayPal to complete a transaction. This does come with a couple of concerns. For one, you’re not automatically PCI compliant and you’ll need to take additional steps to handle your PCI compliance. Two, $30/month for a virtual terminal is pretty pricey considering you’ll still pay higher rates than swiped/dipped/tapped transactions. Square and Shopify both offer free virtual terminals. Also, opting for PayPal Payments Pro and the Virtual Terminal will mean a few different transaction fees to worry about:
    • 3.5% American Express Fee: Any Amex cards will process at the higher 3.5% rate if you’re on the Pro plan.
    • 3.1% + $0.30 Virtual Terminal Fee: Any transactions processed through PayPal’s Virtual Terminal process at 3.1% + $0.30, plus the international transaction fee if applicable.
  • Recurring Billing: If you’d like to sell subscriptions (software, gift boxes, etc.), PayPal does offer a set of recurring billing tools. Recurring payments are available with PayPal’s Express Checkout Option at no additional charge, but if you have PayPal Payments Pro and want advanced tools, they’ll cost you $10/month. This doesn’t apply to “Donate” buttons, which have their own option for donors to choose between a one-time or recurring donation.

  • Mass Payouts: If you need to distribute funds to multiple parties, PayPal’s Mass Payouts feature might be an appealing option. You have two options here: using PayPal’s API to handle the command, or uploading a spreadsheet. Which method you choose affects how much you pay — if you opt to upload a spreadsheet through PayPal’s website, you’ll pay 2% per transaction, capped at a maximum $1 USD, which is pretty reasonable. If you opt for the API, you’ll pay a flat fee of $0.25 USD per payment. This is a great way to distribute payments to contractors, for example, or manage marketplace payments if you use PayPal’s platform.

PayPal Hardware Costs

Unless you’re integrating PayPal with a POS system or using the free mPOS, PayPal Here, you won’t have to worry about hardware costs. But if you do, you’ll have a few options for card readers:

  • Chip & Swipe Reader: PayPal’s entry-level chip reader sells for $24.99. In addition to EMV capabilities it supports magstripe transactions, but no contactless payments. However, it does connect to phones and tablets via Bluetooth and comes with a convenient mounting clip.
  • Chip & Tap Reader: To get a credit card reader that supports magstripe, EMV, and contactless payments, you’ll need the Chip and Tap reader, which sells for $59.99. We’ve already reviewed this reader as well as the optional charging dock ($30 separately, or bundled for $79.99), with a very positive rating. Again, the Chip and Tap reader connects via Bluetooth. In addition to the charging dock, it comes with a convenient mounting clip.
  • Chip Card Reader: The Chip Card Reader was the first EMV-enabled card reader PayPal offered, and it’s still the only hardware option for merchants who want to integrate with one of PayPal’s POS partners. It sells for $99 on the PayPal site, with an optional charging dock. Given the price point, it shouldn’t surprise you to learn that this all-in-one reader connects via Bluetooth.

  • Mobile Card Reader: PayPal used to offer its entry-level swipe-only reader for free, but now it sells for $15 because PayPal, like most processors, really wants you to start accepting EMV. Use of the mobile reader comes with limitations on accounts, so if you do a decent volume of credit card transactions and don’t want to encounter any holds on your funds, you should avoid the mobile reader at all costs:

*Key-in transactions and sales over $500 in a 7-day period made with the Mobile Card Reader are subject to an automatic 30-day reserve where funds are held in your PayPal account to cover the high risk associated with these types of transactions. For increased protection from fraudulent transactions, we recommend using a chip card reader. All PayPal accounts are subject to policies that can lead to account restrictions in the form of holds, limitations, or reserves. Additional information about these policies can be found in the PayPal User Agreement.

Apart from the cardreaders, PayPal doesn’t offer any proprietary hardware. If you need a countertop register setup, you can choose from an array of tablet stands, receipt printers, and cash drawers. A few select models are confirmed to work, while many others are “unofficially supported” in that they’re likely to work in most cases. The PayPal Here app doesn’t officially support any external barcode scanners (it supports in-app scanning using the device’s camera), but Bluetooth-enabled scanners may work with your setup.

Is PayPal Actually a Good Value?

We’ve talked pretty extensively about the cost of using PayPal, but we haven’t really talked about value. Because value is so much more than just the actual, physical cost. Value encompasses convenience, customer service, and other extra factors that could easily justify paying more than the absolute lowest prices.

PayPal isn’t the absolute cheapest processor out there — especially not for businesses that handle more than $10,000/month in credit card transactions. Larger businesses may be eligible for merchant accounts with volume discounts. For low-volume businesses, PayPal often does offer more competitive pricing because of the lack of monthly fees. The flat-rate pricing, especially for in-person transactions, can mean cost savings over interchange-plus.

But the real value in PayPal is the massive consumer trust and convenience. Just about everyone recognizes the PayPal name, and with 200+ million consumer users around the world, it’s safe to say a lot of people have PayPal accounts. The barriers to entry are minimal — you don’t need a huge amount of technological experience to implement PayPal for in-person or online payments. As long as you aren’t using PayPal Payments Pro, you don’t even have to worry about PCI compliance. PayPal handles it for you, at no additional cost.

Apart from the issue of account terminations or funding holds, the only other consistent complaint about PayPal is its customer service, and reports vary. Some merchants say they’ve never had a problem with customer service. Others say that their support reps have been downright unhelpful when they’ve called in. Fortunately, PayPal offers extensive self-help resources so you should be able to deal with most technical issues without having to contact PayPal directly.

I can’t say unequivocally that PayPal is right for everyone. It’s not. But it is a really good option for a lot of merchants, especially low-volume businesses that are just starting out. For a closer look at PayPal and all its services, we recommend checking out our PayPal and PayPal Here reviews.

If you’re not sure PayPal is right for you, I suggest looking at our Square vs. PayPal article, as the two companies are fairly similar in their business models and offerings.

Thanks for reading! If you have any questions or comments, we’d love to hear from you, so please drop us a comment!

The post The Complete Guide to PayPal’s Fees, Rates, and Pricing appeared first on Merchant Maverick.

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The Cheapest Credit Card Processing Companies

Business owners today know that it’s more important than ever to be able to accept credit cards. Customers carry less cash, and rely on credit and debit cards for the majority of their purchases. If you’re an eCommerce merchant selling online, taking “plastic” is just about your only option. Unfortunately, you can’t accept credit cards unless you have a merchant account, and merchant accounts aren’t free. In fact, they can be very expensive – especially for a small business – if you choose the wrong provider.

The credit card processing industry can be very bewildering, especially for a first-time business owner. There are dozens of companies providing processing services, and each of them offers different processing rates, fees, and contract terms. A provider that’s a good deal for a very small business might be prohibitively expensive for a larger one, and vice versa. Naturally, merchants want to cut through the confusion and get a quick answer to the question “Which one is the cheapest?” There’s nothing wrong with wanting to save money, especially for a new business that has to count every penny. However, if you look up “cheap” in the Merriam-Webster Dictionary, you’ll note that while cheap can mean “charging or obtainable at a low price,” it can also mean “of inferior quality or worth.” If you’ve ever been disappointed with a product purchase when you thought you were getting a good deal, you know that these two definitions often go together.

Here’s a quick look at some of our favorite low-cost credit card processors. Some are free to use. You just pay for the transaction you process. We don’t cover all of these in-depth in this post, but you can check out our complete reviews for all the details. 

The Overall Cheapest Credit Card Processing Companies for 2018

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Best Choice For Small-ticket, Canada, Mobile, eCommerce  All businesses, Mobile, Retail eCommerce, Mobile Canada, Restaurants Large-ticket, All-in-one, Recurring billing
POS and Other Features Included Yes Yes Yes No Yes
Rate Matching/ Negotiable No Yes No Yes Yes
Pricing Structure Flat Rate Interchange-Plus Flat Rate Interchange-Plus Subscription
Retail Rates 2.75% 0.30% + $0.10 2.70% 0.20% + $0.10 0.00% + $0.08
Basic Monthly Fee $0 $0 $9 $9.95 $99

Before we delve into specific processors, there are two important points that you need to understand:

  1. The company offering the lowest processing rates or fees isn’t necessarily the cheapest. The total percentage of your credit card sales that you’ll have to fork over to your merchant account provider isn’t an easy thing to calculate in advance with any precision. Variable processing rates and hidden (or at least unanticipated) fees can easily result in you paying much more than you thought you were going to for processing. Companies offering flat-rate pricing fare much better in this regard, as their simple pricing structure makes it relatively easy to estimate your monthly processing costs.
  2. The “cheapest” processor isn’t necessarily the best one for your business. While you naturally want to be able to accept credit cards while paying the least amount of money for the privilege, companies offering the lowest rates often cut corners in other aspects of their service to make those low rates possible. Poor customer service, for example, is a common problem among the least-expensive processors. If you want the best overall, you might also check out our top picks for small business credit card processing.

Types Of Providers

With the advent of new, low-cost providers, there are now two broad categories of companies providing credit card processing services. These include traditional (or full-service) merchant account providers, and payment services providers, who offer credit card processing, but without some of the features of a full-service merchant account. It’s very important that you understand the difference between the two.

Payment service providers (PSPs) can process your credit card transactions, but they don’t provide you with a unique merchant ID number for your business. Instead, your account is aggregated together with other merchants. This lowers the cost of things like monthly account fees and PCI compliance, but it also means that your account is much more vulnerable to being suddenly frozen or shut down for the slightest hint of fraud. Getting your account working again is complicated by the fact that most PSPs provide little in the way of one-on-one customer service. For a very small business, a PSP may very well be more affordable than a full-service merchant account, especially since you won’t have to pay so many recurring fees just to keep your account open. Be aware, however, that you’ll constantly be running the risk of suddenly losing access to your account and not being able to accept credit cards at all with a PSP. If your business processes a high number of credit card transactions on a daily basis, the loss of business you’ll incur if your account is frozen is quite high. Popular PSPs include PayPal, Square, and Stripe.

Traditional merchant accounts include a number of features you won’t find with most PSPs. The primary distinction is that you will be assigned a merchant identification number that is unique to your business. This number automatically identifies you to processors, issuing banks, and credit card associations. While it might not sound like much, having a unique merchant ID number helps to lower the risk of fraud and improves the stability of your account. While you still might have to endure a hold on funds for an unusually large transaction, the chances of your account being completely frozen for no apparent reason are much less than they are with a PSP. Merchant account providers also offer a host of ancillary services, including PCI security scans, customizable payment gateways for online payments, support for ACH (eCheck) payments, and many others. These bells and whistles don’t come cheap, of course. You’ll pay more in monthly fees than you will for an account with a PSP. However, you’ll also pay lower processing rates, especially if your merchant account provider offers interchange-plus pricing. For many medium-sized and larger businesses, a full-service merchant account will actually be less expensive than a PSP.

How We Chose

We used a number of criteria to determine which processors offered the lowest overall costs and the best service in most situations, including the following:

  • Pricing: Since we’re profiling the cheapest processors in the industry, it should come as no surprise that pricing would be our top criterion. It isn’t that simple, however. Pricing can be very complex, and there are a lot of variables to analyze in making a cost comparison between one provider and another. Fortunately, flat-rate pricing is relatively easy to analyze, as there’s usually little or no variability in the processing rates. Interchange-plus pricing, on the other hand, is very complex, as there are a bewildering number of possible rates charged under the “interchange” portion of the processing rate formula. To get a better idea of just how complicated processing rates can be, check out our Complete Guide to Credit Card Processing Rates & Fees.
  • Contracts: No one wants to be stuck in a long-term contract with an expensive early termination fee if you close your account early, but that’s what many traditional merchant account providers will offer you. All the companies profiled here – including both PSPs and full-service merchant account providers – offer month-to-month contracts. You can close your account and switch to a different provider any time you want, and with no penalty.
  • Hardware: Unless you’re running an eCommerce-only business, you’re going to need some equipment to process your customers’ credit cards. Most of the companies profiled here offer a variety of EMV-compliant credit card terminals, POS systems, and mobile card swipers. Equipment is offered for sale at competitive prices – sometimes it’s even free! You can also buy your own equipment and have it reprogrammed to work with your provider’s service. Note that Stripe is eCommerce-only and PayPal only offers a mobile payment solution through their ancillary service, PayPal Here.
  • eCommerce support: Buying online continues to overtake traditional retail shopping, and all our profiled providers offer support for eCommerce. This includes both a payment gateway to send payment data to the processor and a virtual terminal to allow you to enter transactions on your computer or mobile device. Each provider also offers options for integrating your website with online shopping carts and developer tools for customizing the interface between your site and their services.
  • Customer support: While every provider offers customer support and service, some do a much better job at it than others. We looked for vendors that provided 24/7 telephone support, as well as an online knowledgebase that allows merchants to troubleshoot common problems on their own. As we’ve noted, some PSPs don’t provide very good customer support at all. That’s one of the trade-offs you’ll have to be aware of if you want to go with the “cheapest” option for credit card processing.

Remember, there isn’t a single processor out there that can offer the lowest costs to every merchant. What might be a very inexpensive solution for you might not be such a good deal for someone else. Also, paying the least amount of money for processing won’t be of much use to you if you have to worry about your account suddenly being frozen or shut down, or if the customer service behind your account isn’t adequate to solve technical problems for you when they arise. That said, here are our six top choices for the cheapest credit card processing companies:

Square Payments

Everyone has heard of Square (see our review) by now. With its free Square Reader, app-based payment system, and simple pricing structure, it’s one of the most popular processing services on the market for small businesses. Square’s pay-as-you-go system allows businesses that ordinarily couldn’t afford a merchant account to accept credit cards.

Retail businesses love Square for its low-priced card readers, which replace traditional credit card terminals with a smartphone-based system that’s both affordable and mobile. In addition to a card reader, you’ll need the free Square app, a smartphone, and an Internet connection. Square’s original card reader is free and you’ll receive one when you open your account. However, it can only read magstripe cards and requires a headphone jack to function. Most users will want to shell out a few extra bucks for a newer, EMV-compliant reader. The Square reader is only $49.00, and supports both EMV and NFC-based payment methods. It also uses Bluetooth to connect to your smartphone or tablet – no headphone jack required.

 

Cheapest Mobile Credit Card Processing Company

The Essentials:
✓ $0 monthly fee
✓ 2.75% for all card-present transactions
✓ Exceptional POS app included free
✓ Free credit card reader available
Proprietary software suite includes:
• Point of sale software
• Inventory management
• Mobile app
• Virtual terminal
• Invoicing/billing
• API for custom solutions
Visit the Square website
Read our Square review

Square’s pricing structure is about as simple as it gets. There are no monthly fees whatsoever for a basic account, and none of the types of “hidden” fees that traditional merchant account providers like to tack on. While some advanced features require a monthly subscription, these are entirely optional, and most businesses probably won’t need them. Square’s processing rates are also very simple:

  • 2.75% for all card-present transactions (including magstripe, EMV, and NFC)
  • 2.90% + $0.30 for all invoices and eCommerce transactions
  • 3.50% + $0.15 for all virtual terminal and keyed-in transactions

That’s it! You don’t have to worry about non-qualified transactions, batch fees, or anything else. Funds are deposited into the user’s account within 1-2 business days in most cases. Billing is month-to-month, so you don’t have to worry about long-term contracts and early termination fees. You can quit anytime you want without penalty.

This all sounds great – and it is – if you’re a small business that has to watch every penny and can’t afford to shell out a significant amount of money every month just to have a merchant account. For a larger business, however, Square’s pricing actually isn’t the best deal available. Flat-rate pricing is deliberately on the high side because it has to pay for all the other services that most providers bill you separately for. At a certain point (roughly $10,000 per month in processing volume), you’re actually better off going with a full-service merchant account provider that offers interchange-plus pricing. Yes, you’ll have to pay those pesky account fees, but your processing rates will be so much lower that you’ll save money overall.

Besides high processing rates, Square has a few other drawbacks as well. We’ve already mentioned that your account is much more likely to be frozen or terminated unexpectedly, but what makes this situation worse is that Square’s customer service isn’t so great. The company didn’t even have telephone support for several years after it launched, but it does now. Unfortunately, it’s only available during business hours, and the large number of complaints about it suggests that the quality of support you’ll receive if you call in with a problem is inconsistent at best.

But is it really the cheapest way to go? Well, it depends. For a very small business that doesn’t have a high processing volume, Square’s lack of account fees and predictable pricing can make it very affordable. On the other hand, a larger business with a high processing volume will end up paying much more under those flat-rate prices than it would with an interchange-plus pricing plan.

Square keeps costs low by aggregating accounts together rather than issuing each user a unique Merchant ID number. Because of this, you won’t get a true full-service merchant account. The trade-off is that there’s a much higher chance that your account will be frozen or terminated without notice if fraud is suspected. This might be a minor inconvenience to a retail business that mostly deals in cash and only occasionally takes credit cards, but it’s catastrophic to an eCommerce business where cash isn’t an option.

PROS:

  • No monthly account fees
  • Low-cost EMV-compliant card readers available
  • No long-term contracts or early termination fees

CONS:

  • Not a full-service merchant account; no unique Merchant ID number
  • Frequent account holds and terminations
  • Flat-rate pricing is more expensive than interchange-plus for larger businesses

For a more detailed look at Square, be sure to check out our full review.

Payline Data

Payline Data (see our review) covers all the bases for small business transactions, from mobile and online payments to in-store sales. They offer easy-to-understand pricing plans that are very affordable, especially for low-volume sellers. However, the company’s website fully explains all of the extra features and their associated costs, so you know up front what you’ll have to pay. Payline also stands out from the crowd for their corporate philosophy of charitable giving and support for non-profits through discounted pricing and their “Commercial Co-Venture” program.

 

Cheapest Merchant Account Provider

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pass-through pricing
✓ Outstanding $0 monthly fee option
✓ Exceptional ecommerce shopping cart compatibility
Proprietary software suite includes:
• Excellent mobile processing app
• Easy integration API for customization
• Virtual terminal
• Billing management
Visit the Payline website
Read our Payline review

For brand-new or mobile businesses, Payline Start is the most affordable plan. There’s no monthly fee, and pass-through markup rates are set at 0.30% + $0.10 per transaction. In addition to the free virtual terminal, you’ll also receive a free Ingenico GX5 card reader and the Payline Mobile app to go with it. If you’re looking for value, but want better equipment and lower rates, the Payline Shop plan might be right for you. This plan includes the same features as the Payline Start plan, but lowers your processing rate. The plan costs $10 per month, and markup rates are set at 0.20% + $0.10 per transaction. Mobile businesses and small to medium retailers will benefit the most from this plan.

For more information, see our complete Payline Data review.

CDGcommerce

No account setup fees. No PCI compliance fees. No gateway fees. No monthly minimums, either. There’s a lot of things that CDGcommerce (see our review) doesn’t charge you for, making them a very affordable option for small businesses and those just getting off the ground. They also offer month-to-month contracts with no early termination fee, so in the unlikely event that you aren’t happy with their service, you can close your account without penalty.

So, what do you pay for? Besides processing charges, you’ll only have to pay a $10.00 monthly account fee. This gets you both a full-service merchant account and a payment gateway. You can select either CDG’s own proprietary Quantum gateway or Authorize.Net. Either way, there’s no fee for using the gateway, and no additional per-transaction processing fee. While this is a great deal, you also have the option of adding the cdg360 security package for an extra $15.00 per month. It comes with customized security alerts, PCI-DSS vulnerability scans, and $100,000 in data breach/theft protection. It’s well worth paying a little extra for, especially for eCommerce merchants.

Good Option for Online Payment Processing

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pass-through pricing
✓ Free payment gateway option with activation within an hour
✓ Exceptional ecommerce shopping cart compatibility
✓ Over 20 years with excellent reputation
Proprietary fraud prevention suite includes:
• Automatic high-risk order detection
• Dialverify phone order verification
• Cardholder authentication (VbV/MSC)
• Chargeback defender
• Easy integration and API for customization
Visit the CDGcommerce website
Read our CDGcommerce review

We don’t recommend leasing a credit card terminal, but CDG has a program that’s very different from traditional leases, and is actually a good deal. For only $79 per year (for terminal insurance), CDG will provide you with a terminal and keep it updated. This works out to $6.58 per month, a fraction of what most terminal leasing companies will charge you. If you need a wireless terminal, you’ll also have to pay $20.00 per month for wireless data and an additional $0.05 per transaction in processing fees.

You won’t need to negotiate with CDG to figure out your processing rates. All their rate plans are interchange-plus and are fully disclosed on their website. The company offers a choice between Simplified and Advanced pricing plans, with Simplified pricing being designed for merchants processing less than $10,000 per month, and Advanced pricing being for those processing $10,000 or more per month. Here are their current rates:

Simplified Pricing:

  • Online: interchange + 0.30% + $0.15 per transaction
  • Retail (swipe or POS): interchange + 0.25% + $0.10 per transaction
  • Mobile: interchange + 0.25% + $0.10 per transaction
  • Non-profit: interchange + 0.20% + $0.10 per transaction

With very low account fees and competitive interchange-plus processing rates, CDGcommerce offers a great combination of price and value. If you’ve been using Square or PayPal and want to upgrade to a full-service merchant account, they’re an excellent option.

PROS:

  • Interchange-plus pricing
  • Month-to-month billing with no long-term contracts or early termination fees
  • Free payment gateway with virtual terminal
  • Excellent customer service

CONS:

  • Only available to US-based merchants

For more information, see our complete review here.

Dharma Merchant Services

Headquartered in downtown San Francisco, California, it should come as no surprise that Dharma Merchant Services (see our review) is far more socially responsible than just about any other merchant account provider in the industry. For you, that enlightened corporate philosophy translates into fair and transparent pricing, reasonable contract terms, and excellent customer support.

Because they don’t try to squeeze extra money out of struggling small business owners, you won’t have to pay an account setup fee or an annual fee. There’s no monthly minimum, either. You will pay a $10.00 monthly fee and a $7.95 per month fee for PCI compliance. Other fees (most of which are per-occurrence, such as chargeback fees) are fully disclosed on their website. Like many of our other favorite processors, Dharma doesn’t have long-term contracts, either. Billing is month-to-month, and there’s no early termination fee if you close your account.

Dharma Merchant Services review

Good Option for Nonprofits and B2B Payments

The Essentials:
✓ Provides discounted rates for nonprofits
✓ Exceptional customer service
✓ Transparent interchange-plus pass-through pricing
✓ Proven track record with nonprofits
Free MX Merchant Software includes:
• Level 2 and level 3 data for lower interchange rates on B2B processing
• Virtual terminal
• Invoicing/billing
Visit the Dharma Merchant Services website
Read our Dharma Merchant Services review

The company uses interchange-plus pricing exclusively and lists their rates right on their website. Here’s their current processing rate information:

  • Storefront: interchange + 0.25% + $0.10 per transaction
  • Virtual: interchange + 0.35% + $0.15 per transaction
  • Restaurant: interchange + 0.20% + $0.07 per transaction

If you need a terminal, Dharma will sell you either the First Data FD-130 or Verifone Vx520. They’ll also reprogram your existing terminal, if you have one. Need a POS system? Dharma offers the Clover Mini, and will sell it to you outright rather than leasing it. If you need a mobile payments system instead, Dharma offers the Clover Go for $99.00, plus a $10.00 monthly fee. For $139, you can upgrade to the Clover Go Contactless, which connects via Bluetooth instead of your phone’s headphone jack.

Dharma doesn’t have a minimum monthly volume requirement, but they do acknowledge that their fees and rates aren’t the lowest on the market for businesses that process less than $10,000 per month. You’re still free to sign up if you need a full-service merchant account, but they recommend either PayPal or Square if you don’t.

PROS:

  • Transparent interchange-plus pricing
  • Minimal account fees
  • Full range of services and equipment for both retail and online businesses
  • Great customer support

CONS:

  • Not a good fit for low-volume (less than $10,000 per month) accounts

For more information on Dharma, see our complete review here.

Helcim

Headquartered up in the Great White North, Helcim (see our review) provides outstanding service and affordable prices to both Canadian and US-based merchants. They offer interchange-plus pricing exclusively, and their website features one of the most detailed and transparent explanations of their rates and fees that you’ll find anywhere.

Transparency and honesty are major themes with Helcim, which is something you won’t often find with many other providers. Reading their website will give you a quick education on all the sneaky, misleading tricks that other companies use to squeeze more money out of their merchants. Fortunately, you won’t have to worry about this kind of behavior with Helcim. Not only do they fully disclose their processing rates, account fees, and contract terms, but they also provide all their services at fair, competitive prices.

 

Good Option for Canadian Businesses

The Essentials:
✓ No early termination fees
✓ Transparent interchange-plus pricing
✓ Exceptional reputation in Canada
✓ High-quality all-in-one payment platform
✓ Great educational material
Proprietary Helcim Commerce solution includes:
• Point of sale software
• Inventory management
• Billing and invoicing
• Virtual terminal
Visit the Helcim website
Read our Helcim review

Unlike many of their competitors, Helcim encourages merchants to buy their credit card terminals outright rather than leasing them. The company offers a number of popular models, most of which are EMV-compliant. For a little extra cash up front, you can also get an NFC-capable terminal that supports Apple Pay and other similar mobile payment methods. If you already have a terminal, they’ll reprogram it to work with their system for free. Unfortunately, Canadian EMV-compliant terminals are not designed to be transferred or resold, so Canadian customers will have to use the rental option or buy a new machine. Renting on a month-to-month basis (which is not the same as leasing) is usually the best choice for Canadian merchants.

Helcim offers three basic pricing plans: a Retail Plan, an eCommerce Plan, and a combined Retail + eCommerce Plan. The Retail Plan costs a flat $15.00 per month. This fee covers PCI compliance, and there are no account setup or statement fees. There’s also no monthly minimum. All swiped transactions are processed at a rate of interchange + 0.25% + $0.08 per transaction.

Helcim’s eCommerce Plan works the same way, but it costs $35.00 per month. This gives you access to the company’s proprietary Helcim Payment Gateway, which includes support for recurring billing, a customer information storage system, shopping cart integration, and a customizable payment gateway API. The plan also includes a virtual terminal that allows mail order or telephone order businesses to key in transactions on any computer. All online (i.e., card-not-present) transactions are processed at a rate of interchange + 0.45% + $0.25 per transaction.

The Retail + eCommerce Plan includes all features of the other two plans, and costs $50.00 per month. Processing rates are the same as for the other two plans.

There are few downsides to Helcim’s services. One way they’re able to keep costs so low is to exclude high-risk merchants from signing up. This policy lowers the company’s overall risk profile, but it also means you’ll be out of luck if you meet their high-risk criteria. Because they charge a monthly fee (albeit a very reasonable one), they’re also not quite as affordable as Square, PayPal, etc. if you’re processing below $2,500 per month. We’re also still waiting for the company to introduce an EMV-compliant mobile card reader. They currently offer a basic, magstripe-only reader that requires a headphone jack to communicate with your smartphone or tablet.

PROS:

  • Extremely transparent fee structure
  • Very competitive rates for businesses processing over $1,500 per month
  • Excellent customer service and support

CONS:

  • Not suited for very small businesses processing less than $1,500 per month
  • Not available for high-risk merchants
  • Mobile card reader isn’t EMV-compatible

For more information, see our complete review here.

Popular (But Less Reliable) Inexpensive Options

PayPal

Everyone has heard of PayPal (see our review). And just about everyone uses it. With an active user base of almost 200 million customers in 200 markets around the world, it’s a good bet that most of your customers use it, too. But can the company fill all your processing needs? The short answer is yes. PayPal has all the features you would need to run a business – either retail or eCommerce – using just their payment processing services and equipment. But would this be cost-effective? Here’s where it gets complicated. While the company offers flat-rate pricing and no monthly fees for its basic accounts, those flat-rate prices are kind of on the high side. Also, if you need features such as a virtual terminal, your account isn’t free. Instead, it’s $30.00 per month, plus your processing charges.

PayPal doesn’t offer true, full-service merchant accounts. Instead, they function as a payment service provider (PSP), which keeps costs relatively low, but also means that they’re quick on the trigger to freeze your account if they suspect that fraud has occurred. Like most PSPs, they don’t have long-term contracts and don’t charge early termination fees. Billing is month-to-month, and an account that doesn’t have a monthly fee is good for a business that only processes credit card transactions occasionally.

PayPal’s basic rate for online transactions is 2.9% + $0.30 per transaction. International payments and transactions processed through their virtual terminal cost more, while registered charities and mobile payments get a discount. PayPal fully discloses their rates on their website, so you’ll always know in advance what you’ll be paying.

While PayPal is designed primarily for eCommerce businesses, the company also supports retailers through integration with numerous third-party mobile POS systems and their own mobile payments system, PayPal Here. The latter now includes a Bluetooth-enabled EMV card reader. While many companies offer a free virtual terminal, but charge a monthly fee for the payment gateway needed to use it, PayPal does just the opposite. Their PayFlow Payment Gateway comes with no monthly fee, but if you also need a virtual terminal, you’ll pay $30.00 per month for it. There’s also a small additional per-transaction processing charge.

While these are all great features, there are also some not-so-great things about PayPal that you should be aware of before you sign up. Customer support through their telephone support line is very inconsistent. Some customer service representatives are quite knowledgeable and helpful, while others are not. Fortunately, the company provides an online knowledgebase that should help you solve common problems on your own. As we’ve mentioned, sudden account holds or terminations are also a possibility. If you simply can’t afford to lose access to your account temporarily, consider a different option.

For some businesses, PayPal is really all you need. If you don’t need a virtual terminal or any of the other features of the $30 PayPal Payments Pro plan, you can avoid monthly fees altogether and operate on a pay-as-you-go basis. For larger businesses and those with more specialized needs, PayPal makes an excellent secondary payment option on top of your regular merchant account.

PROS:

  • No monthly fees (for standard account)
  • Transparent flat-rate pricing
  • Most customers have a PayPal account

CONS:

  • High flat-rate processing charges
  • Frequent account freezes, holds, and terminations
  • Inconsistent customer support

For more detailed information about PayPal, see our complete review here.

Stripe Payments

Stripe logo

Just like Square is popular with small retail businesses, Stripe (see our review) is the darling of the eCommerce world. The company functions as a payment service provider (PSP), aggregating accounts and keeping costs low for their clients. There are no monthly fees, and their flat-rate processing plan is extremely simple.

Stripe is so focused on eCommerce that they don’t offer much of anything to retailers. There are no credit card terminals, POS systems, or even mobile payments systems for your smartphone or tablet. So, if you’re a retailer, you can skip right on ahead to the next company profiled below. Stripe is not for you.

eCommerce-only merchants, on the other hand, will find a very robust variety of services to help them sell online. Integration is the name of the game at Stripe, and their payments processing service works with just about every online shopping cart on the market. They also have a vast library of APIs that allow businesses to customize the interface between Stripe and their websites. If you’d like to sell your products through your own app as well as on your website, they offer an impressive in-app purchasing capability.

So, how much does all this techy goodness cost? The short answer is not much – at least under certain circumstances. Since all your transactions will be processed online without a physical card being swiped or dipped, Stripe charges a flat 2.9% + $0.30 for all credit and debit card transactions. eCheck (ACH) and Bitcoin payments are charged a mere 0.8% per transaction. This is the same rate that Square and PayPal also charge for online transactions. There are no additional account fees, although you will be charged $15.00 for each chargeback. Chargeback fees are unavoidable with any processor, but unlike most companies, Stripe will refund your money if the chargeback investigation comes out in your favor.

You also won’t have to worry about long-term contracts or early termination fees, as Stripe bills on a month-to-month basis. This is a useful feature for a growing eCommerce business, as Stripe’s flat-rate pricing suffers the same flaw that plagues Square and PayPal: for a high-volume business, their flat-rate pricing is actually more expensive than what a full-service merchant account can provide through interchange-plus pricing.

While Stripe has some very impressive features, it also has a few serious drawbacks. Like other payment service providers (PSPs), account holds and terminations occur frequently and without notice. Stripe uses a machine learning-enabled algorithm to scan accounts for possible fraud, and it’s definitely programmed to err on the side of caution. This wouldn’t be so bad if you could call up a human customer service representative on the phone and resolve the situation. Unfortunately, you can’t – Stripe doesn’t offer telephone support at all. Instead, you’ll have to contact the company through email and wait for a response. Judging from the many complaints about Stripe’s customer service, the quality of those responses leaves a lot to be desired.

Despite its shortcomings, Stripe is a good choice for a new eCommerce venture. You’ll enjoy pay-as-you-go service with no monthly fees, and you won’t have to worry about long-term contracts. The company’s extensive library of developer tools can offer you options that you might not be able to find with other providers. Just be aware that when your business grows beyond a certain point, you’ll need the security and reliability of a full-service merchant account. You’ll also save money on processing charges by switching to interchange-plus pricing.

PROS:

  • Simple flat-rate pricing structure
  • No additional fees or long-term contracts
  • Huge API library for developers

CONS:

  • Flat-rate pricing is more expensive than interchange-plus for high-volume merchants
  • Frequent account holds and terminations
  • No telephone customer support

For more information, see our complete review here.

Final Thoughts

As you’ve probably noticed by now, pricing for credit card processing is a ridiculously complicated subject. With dozens of interchange rates and a wild assortment of fees, trying to figure out how much accepting credit cards is going to cost your business inevitably comes down to guesswork. While you can make a reasonable estimation based on your processing history and your business type, it’s not realistic to expect that you’ll be able to come up with a precise figure. Fortunately, the companies we’ve profiled here fully disclose their processing rates and fees, making your job of estimating your costs much easier.

We’ve only listed six of the most popular and most affordable processors here, so be aware that the cheapest processor for your particular business might not be one of them. There are plenty of other providers out there who are also competing for your business, so check them out, too!

Here are a few very general rules of thumb regarding merchant account pricing:

  • If your business has a low processing volume, you’ll want to find a provider with low monthly and annual fees. One of the most appealing aspects of Square or PayPal is that they don’t charge any monthly fees. This is a great feature if your business is seasonal or you only occasionally have a need to accept credit cards. Processing rates won’t be as important for low-volume merchants.
  • If your business has a high processing volume, fees aren’t as important, and you’ll want to get the lowest processing rates you can find. Paying one or more monthly fees for a merchant account is an insignificant expense for a larger business, but higher processing rates can make a serious dent in your profits.
  • Carefully analyze both the percentage rate and the per-transaction processing fee when evaluating rates. While you’d ideally like them both to be low, which one is more important will depend on your average transaction size. If you process a lot of smaller transactions, a $0.30 per transaction fee can add up quickly. On the other hand, if your transactions are usually larger, you won’t need to be as concerned with the per-transaction fee, and should try to get the lowest percentage rate you can find.

While all the companies we’ve profiled here provide excellent service at an affordable cost, some are better suited to particular types of businesses than others. Square, for example, works best for very small retail businesses. PayPal and Stripe, on the other hand, are a better fit for small eCommerce merchants. Full-service merchant account providers like Helcim, CDGcommerce, and Dharma are more well-rounded, but CDG is a better fit for smaller businesses, while Helcim and Dharma work better with larger ones. For a side-by-side comparison of some of the companies listed here (and a few other excellent providers), please see our Merchant Account Comparison Chart.

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Best Choice For Small-ticket, Canada, Mobile, eCommerce  All businesses, Mobile, Retail eCommerce, Mobile Canada, Restaurants Large-ticket, All-in-one, Recurring billing

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The Best Credit Card Reader For Your Small Business

So you want to use your cell phone or tablet to start accepting payments for your business. Whether this is your first time around or you’re just wondering if it’s time to update that old credit card reader you’ve had for four years, there’s certainly a lot to consider. What kind of technology is out there? How much does a cell phone credit card reader cost? Should I get a credit card machine and POS instead? Which are the best credit card readers?

I’ve seen a lot of mobile card readers in my time. And the first thing to understand is that the card reader is tied to the mobile processing app (mobile point of sale, or mPOS for short). Sadly, we can’t just mix and match one card reader with another app. So before anything, you need to look at the software and make sure it’s a good fit for your needs. You should also check the processing rates and the cost of the hardware.

Apart from aesthetics, the reality is there aren’t a lot of differences between one card reader and the next. They all have the same core features, and they all use the same sort of security. Reliability is as much a product of the app design as it is the hardware design, sometimes moreso. So while you do want a good, affordably priced credit card reader, you should first narrow down the list of potentials using the software as your main criteria. Once that’s done, you can take a closer look at all the hardware.

If you are curious about what your hardware options are, read on! I’ve compiled a list of the most popular credit card readers and their specs. Make sure you read our reviews for each mobile app so that you understand the drawbacks and shortcomings of each as well as all the advantages.

But first, let’s set the record straight.

Credit Card Reader vs. Credit Card Machine: Know Your Terms

So what’s the difference between a credit card reader and a credit card machine? While it’s certainly possible that you might encounter some people who use the terms interchangeably, “credit card reader” is generally the term for small mobile devices that connect to smartphones and tablets and process transactions through a mobile app. This connection can be physical or wireless. However, the smartphone or tablet typically has to also have either cellular signal or a Wi-Fi connection.

A credit card machine (also called a credit card terminal) is larger, not mobile, and generally connects to a full-fledged POS. They may or may not have an integrated receipt printer or a PIN pad device for customers. Credit card machines require a connection to either a phone line or the Internet to function. Some machines are capable of wireless Internet connections, but they do add to the cost.

The biggest difference between a credit card reader and a credit card machine is price, though. A mobile card reader can cost anything from $10 to about $80, whereas the typical entry-level price for a machine is about $120. However, depending on what features are included, a credit card terminal can cost $600 or more.

Types of Credit Card Readers for Phone & Tablet

When categorizing credit card readers, you need to consider two criteria: how the device connects to your phone or tablet, and which payment methods the device accepts (we’re not talking about manual entry options just yet).

Phone Connection Options:

  • 3.5mm/Headphone Jack: Most of your entry-level credit card readers will connect to a phone or tablet via the 3.5mm headphone jack. However, it’s worth noting that this design is slowly fading out. Part of the driving force is Apple’s removal of the headphone jack from its iPhones, but I think it’s also a result of our overall shift toward wireless. It’s worth pointing out that both Square and PayPal have Lighting to 3.5mm headphone jack adapters that will allow you to continue to use their magstripe readers.
  • Bluetooth: Bluetooth readers are becoming increasingly common. They’re compatible with both iOS systems, they’re secure, and they allow for some sophisticated card reader designs. The one downside to Bluetooth readers is that they can run low on power quickly if they’re always connected without a “sleep” mode.

Generally speaking, credit card readers for smartphones and tablets support one of these connection methods, but not both. There’s always an exception to the rule, however. With Apple moving toward Lightning ports for everything, it’s worth getting a Bluetooth device, which will ensure that no matter what smartphone or tablet you get in the future, the card reader will be able to connect.

Supported Payment Methods

  • Magstripe: Until 2015, magstripe transactions were the only form of credit card payment commonly accepted in the US. Magstripe transactions (also referred to as swipe transactions because they are made by swiping the card through a terminal or card reader) are still supported, but becoming superfluous as other, more secure payment methods become available.
  • EMV: In October 2015, a major liability shift occurred, shifting responsibility for fraudulent swipe transactions onto merchants, if that card had an EMV chip and the merchant did not have an EMV-enabled credit card reader. As a result, you probably saw a surge of chip cards appear, and payment processors rushed to introduced new hardware capable of processing chip card transactions. Chip cards are more secure and can help reduce in-person fraudulent transactions.
  • NFC/Contactless: Apple Pay, Android Pay, Samsung Pay, and all of the other “Pay” apps you’ve seen rely on NFC (near-field communication) technology. Transactions are often called contactless or “tap” transactions.

All mobile card readers on the market accept some combination of these three payment methods. As a merchant, it’s important that you are able to process EMV transactions to protect yourself against liability for fraudulent transactions.

Card Readers for iOS vs. Card Readers for Android: Is There a Difference?

Generally speaking, mPOS apps tend to offer more features to tablet users, especially iPads. But apart from enhanced features for tablets, there usually isn’t much difference between apps for iOS vs. apps for Android.

The same goes for mobile card readers. Unless the app itself is built to function only on one operating system, a card reader for iPhone or iPad works with an Android phone or tablet. So if your business has a mix of Android and iOS devices, you can use your hardware on both. You’ll just have to worry about pairing and re-pairing any Bluetooth devices as needed.

Now that we’ve identified the defining traits of credit card readers, let’s look at the mobile card readers from the most popular mPOS systems: Square and PayPal.

Square Credit Card Readers

Square (read our review) is definitely a leader in the mPOS industry, both for its software and hardware. It was one of the first mobile systems to embrace chip cards and it seems to put a high priority on keeping its hardware affordable.

The one piece of Square hardware that we haven’t included here is the Square Register, which is more of a full-fledged POS than a mobile system. Check out our full review of Square Register for a closer look at the system.

Square Magstripe Reader

If I wanted to be extremely hyperbolic, I would say that Square’s magstripe reader is synonymous with mobile processing. Instead, I’ll just say that the white and boxy device certainly is iconic. The overall design hasn’t changed in years. Available for free if you order directly from Square or $9.99 at retail stores such as Staples (Square will reimburse you later), this entry-level device connects via the headphone jack, and as the name says, handles magstripe transactions only.

  • Cost: Free ($9.99 reimbursed if bought at a retail location)
  • Connection: 3.5mm
  • Payment Types Supported: Magstripe

Square Chip Card Reader

If you just glance at the Square Chip Card Reader (read our unboxing review), you might not notice any immediate differences between the magstripe reader and the chip card reader. That’s because Square didn’t exactly reinvent the wheel. The Chip Card Reader is slightly thicker than the original, with an extra slot for inserting the chip end of a credit or debit card. Unlike the magstripe reader, you need to periodically charge this model. Square sells the Chip Card reader for $29, which is, all considered, a pretty good price for a device that can handle magstripe and EMV transactions.

  • Cost: $29
  • Connection: 3.5mm
  • Payment Types Supported: Magstripe, EMV

Square Contactless & Chip Card Reader

The Contactless and Chip Card Reader from Square doesn’t exactly break the mold as far as design: White, boxy, with Square’s logo set into it. What’s that expression? If it isn’t broke, don’t fix it?

Unlike the previous two card readers, the contactless and chip card reader relies on a Bluetooth connection to process transactions. And it doesn’t support magstripe cards at all. To get around this, Square includes a magstripe reader in the package as well.

The contactless and chip reader sells for a very reasonable $49, but if the upfront investment makes you cringe a bit, Square also offers an installment plan that will allow you to pay off a portion of the cost each week. Expect to pay a little bit more in the long term as a trade-off for the convenience of the installment plan, but it’s nowhere near as bad a hardware lease program from a traditional merchant account.

The contactless and chip reader is a slim, slick little device and you can certainly use it in a handheld mobile situation. But Square also sells a clever little dock to charge the device and still allow you to use it. The dock goes for $29 on its own, but it is optional.

  • Cost: $49 (dock available for additional $29)
  • Connection: Bluetooth
  • Payment Types Supported: EMV, NFC/Contactless (separate magstripe reader included)

Square Stand

The Square Stand isn’t really a card reader — it’s an iPad stand with an integrated magstripe reader. But it was one of the devices that helped make Square so popular with merchants. These days Square sells the stand with a contactless and chip card reader plus the dock. But it merits a mention here because it shows that mobile card readers can also be used in countertop/retail setups. Square even sells bundles and kits with everything you need to get set up.

The Square Stand plus the card readers will run you $169, which is less than you’d pay for all the individual components — the stand ($99 originally). The contactless and chip card reader ($49), and the dock ($29). Bundles that include a cash drawer and receipt printer start upwards of $500, not including the iPad.

  • Cost: $169
  • Connection: Bluetooth
  • Payment Types Supported: EMV, NFC, Magstripe (integrated into tablet stand)

PayPal Credit Card Readers

The other major name in the mPOS space (and commerce in general) is PayPal. The company’s mobile processing app, PayPal Here (read our review), isn’t quite as full-featured as Square, but you’ll find a lot of similarities between the two, especially as far as business model.

PayPal Mobile Card Reader

PayPal’s mobile card reader is a standard magstripe reader with a headphone jack connector. While the color has changed from PayPal blues to black, the overall shape hasn’t: it’s still a simple and quite stable triangle that connects via a headphone jack. There’s no frills or fuss here.

PayPal used to offer the mobile card reader for free through its website, but that’s no longer the case. It’ll cost you $14.99 to get started, though it’s worth the extra money to upgrade to at least an EMV reader.

  • Cost: $14.99
  • Connection: 3.5mm
  • Payment Types Supported: Magstripe

PayPal Chip & Swipe Reader

PayPal’s Chip and Swipe reader is a step up from its Mobile Card Reader, with a sleek rectangular design. It’s about the size of a credit card and slim at just half an inch thick. Plus, $24.99 for a Bluetooth device that accepts both EMV and magstripe, makes it one of the more affordable options for card readers, especially if all you need is mobile support.

  • Cost: $24.99
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV

PayPal Chip & Tap Reader

If you want more than just magstripe and EMV support, PayPal also sells a Chip and Tap reader that allows you to accept Apple Pay, Android Pay, and other contactless methods. The Chip and Tap reader looks quite a bit different from the Chip and Swipe reader. Though it’s still black, it’s boxy and measures 0.75 inches in depth.

I actually hate to say this, but the PayPal reader reminds me a bit of Clover Go’s all-in-one reader, just more refined. And unlike the Chip and Swipe reader, this design is meant for both mobile and countertop use — and PayPal offers a charging dock for those who are interested in a countertop setup.

Alone, the reader sells for $59.99, but a bundled kit with the reader and dock sells for $80 (PayPal indicates that’s a markdown from $89.99 on its website). I don’t see the dock listed for sale separately, but I would assume it would sell for $30 on its own.

  • Cost: $59.99 (bundle available for $79.99)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

PayPal Chip Card Reader

PayPal’s Chip Card Reader was actually the first EMV-enabled reader the company offered, and it wasn’t PayPal’s own design. The reader is actually a branded Miura M010, which has also previously been offered by Square, and is still available from Shopify as well.

The Chip Card Reader is a handy little mobile reader, but you can get a dock for it and mount it in a countertop setup (at least, until PayPal possibly phases this device out of its lineup). Despite its rather bland name, this reader accepts magstripe, EMV, and NFC/contactless payments. However, it comes at a steep price $79, which is still less than the original $150 it sold for. It’s worth noting that despite the PIN pad, it doesn’t support PIN entry because PayPal Here doesn’t support debit transactions.

  • Cost: $79
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

Alternatives to Square & PayPal Readers

While Square and PayPal are certainly two of the biggest names, they’re not the only options if you need a mobile credit card reader. Let’s take a look at some of the other processors and what hardware they offer.

Shopify

Shopify is mostly associated with eCommerce, but it’s moved toward an all-in-one approach that includes a POS (read our review). The full-fledged POS package is designed for a countertop setup and syncs with your Shopify store. However, for a very reasonable $9/month, you can get the Shopify Lite plan, which supports sales through social media and a buy button on your own website, as well as access to the mobile POS. Keep in mind that this is designed almost exclusively for retail environments. For mobile users, though, Shopify offers two readers.

Shopify Tap, Chip & Swipe Reader 

I mentioned before that PayPal’s Chip Card Reader is actually made by another company and is called the Miura M010. Shopify licenses the same device and calls it the Tap, Chip and Swipe reader.

Again, you have a Bluetooth connection with support for magstripe, EMV, and contactless transactions. Shopify sells the reader for $89, which is on the higher end of things. The dock sells for $39. However, the reader is well designed and very functional, and if you want to accept Apple Pay and other “Pay” apps with Shopify, it’s the only option.

  • Cost: $89 (dock available for $39)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

Shopify Chip and Swipe Reader 

Shopify’s Chip and Swipe Reader is a sleek white device. As the name implies, the reader can handle both magstripe and EMV transactions, but not contactless/NFC. I like that it comes with a dock charging dock by default, instead of as a pricey add-on.

The retail price for the reader is listed as $29, but as I am writing this, Shopify is offering it for free. The Chip and Swipe Reader is easily one of the more beautiful card readers I’ve seen, as well as innovative and well priced.

  • Cost: $29
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV

Payline Mobile

Payline Data is a traditional merchant account processor, but its Payline Mobile app (read our review) is actually a viable standalone processing option even for low-volume and seasonal merchants. The company offers a standard magstripe reader (the Ingenico G5X) that isn’t particularly interesting. Its other mobile reader, though, is the Ingenico RP457c, and it is definitely one of the more innovative card reader designs I’ve ever seen.

For starters, the RP457c can connect to cell phones and tablets through the headphone jack or Bluetooth, which is very uncommon. It also supports magstripe, EMV, and NFC transactions all in one. The device is designed to clamp onto phones or rest in a dock for use as a wireless reader.

Payline doesn’t disclose its current pricing for the RP457c, in part because some merchants may be eligible for a free device. However, I was able to confirm that the reader retails for $150, which is quite expensive.

  • Cost: $150
  • Connection: 3.5mm, Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

SumUp

SumUp (read our review) is a European company that opened up processing for US merchants in 2017. While it’s not as comprehensive as other mPOS options, it does everything most merchants will need to do. It’s also worth pointing out that the SumUp mobile card reader, called the SumUp Air, actually won an award for its innovative design.

The SumUp Air shows its European sophistication with its sleek white minimalist design. It relies on a Bluetooth connection to process magstripe, EMV, and contactless transactions. If you want more information, check out our unboxing review of the SumUp card reader.

  • Cost: $69
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

Clover Go

Clover Go (read our review) is the mobile extension to the Clover family of POS products developed by First Data. It functions best as an extension of Clover, but it can be a standalone POS option. However, pricing for the hardware as well as payment processing can vary significantly depending on which reseller you go through, and you should be wary of sales gimmicks and possible contracts with early termination fees.  However, don’t forget that anyone selling Clover products is just reselling First Data’s processing services.

Clover Go Reader 

Clover’s basic “entry level” reader is a headphone jack reader that supports magstripe and EMV transactions. The design is overall larger than most comparable devices, but Clover does include a clamp to help stabilize the card reader while attached to a phone or tablet.

Pricing for the Clover Go reader will depend on resellers. Some may even offer it for free. Unlike its all-in-one sibling, you can’t get this reader through the Apple Store and if you sign up with First Data directly you’ll probably be offered the All-In-One Reader first and foremost.

  • Cost: Varies according to reseller
  • Connection: 3.5mm
  • Payment Types Supported: Magstripe, EMV

Clover All-In-One Reader

I said earlier that the PayPal Chip and Tap Reader reminded me of Clover Go. That’s because Clover Go is also a square, boxy device with very similar dimensions. However, whereas PayPal’s is black, Clover Go’s is white.

You’ll also find the All-In-One Reader comes with a dock. It’s not the most elegant design, but it will allow you to charge the device or keep it on a countertop while still processing card transactions.

Unfortunately, pricing for this card reader varies depending on which company a merchant chooses to sign up with. You can get it direct from First Data (or the Apple Store) for $39.95, not counting the dock, which sells for $34.  

  • Cost: $39.95 (through First Data or Apple Store; other prices vary according to reseller)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

Intuit/QuickBooks GoPayment

Intuit’s mobile payment solution, QuickBooks GoPayment (read our review) appeals mostly to a small but viable niche — QuickBooks Online customers who need an easy way to take payments in person. While the app isn’t loaded with advanced features, it will work pretty well for merchants with simple needs. Intuit offers two readers to address merchant needs.

Chip and Magstripe Reader

Intuit’s Chip and Magstripe reader is a small, gray, unassuming device. It doesn’t have quite the sophistication of some other readers (I might even call it bland), but the design is overall good. The curves have a sort of friendliness about them rather and prevent it from looking boxy like other devices. As the name implies, this card reader supports magstripe and EMV transactions. It connects to a phone or tablet via Bluetooth.

The Chip and Magstripe Reader goes for $19 normally, but Intuit is offering the reader free for new merchants. That puts it at the lower price end, especially for a Bluetooth enabled device with EMV. You can also connect the device to computers running QuickBooks Desktop Pro 2018 and future versions of the software.

  • Cost: $19 (free with signup for new merchants)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV

All-In-One Card Reader

Intuit’s newer card reader is an all-in-one device that connects via Bluetooth. But unlike its sibling, this device supports magstripe, chip card, and contactless transactions. By default, it’s meant to nest in a charging dock.

Intuit sells the all-in-one reader for $49, which is not a bad price at all considering that the dock/cradle is included at no extra charge. It has the same sort of nondescript gray finish, but Intuit has embraced a curvy aesthetic that is easy on the eyes.

  • Cost: $49 (including dock)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

PayAnywhere

Last on the list is PayAnywhere (read our review). While the name isn’t as recognizable as some of the alternatives, PayAnywhere’s mPOS does have some good features and interesting hardware. Its biggest shortcoming is simply the quality of customer service and some practices involving its Storefront plan.

PayAnywhere offers merchants a choice of two readers for merchants, though they still leave me a bit perplexed in terms of design.

PayAnywhere 2-In-1 Reader

PayAnywhere’s entry-level reader is a 2-in-1 device with magstripe and EMV support and Bluetooth connectivity. It looks pretty simple, and it actually reminds me of PayPal’s Chip and Tap reader with its shape and coloring.

There’s not much more to say about this little device except that PayAnywhere offers it free for new merchants. Additional 2-in-1 readers run for $30.

  • Cost: $29.95 (free for new merchants)
  • Connection: Bluetooth
  • Payment Types Supported: Magstripe, EMV

PayAnywhere 3-In-1 Reader

I think the most interesting thing about PayAnywhere’s 3-In-1 Reader is that it’s the only mobile card reader I’ve seen that supports NFC and connects via a headphone jack. (The Ingenico RP457c can connect via headphone jack OR Bluetooth, so I don’t count it in the same category.) It looks shiny and futuristic with its black finish and lights, which is ironic for a device that uses a dying connection method.

PayAnywhere offers its 3-in-1 device for $40, but on the website you’ll also see an offer for free processing on your first $5,000 in Apple Pay transactions (valued at $135). However, an offer like that should not be the deciding factor in choosing a processor.

  • Cost: $39.95
  • Connection: 3.5mm
  • Payment Types Supported: Magstripe, EMV, NFC/Contactless

Is a Mobile Credit Card Reader Absolutely Necessary?

You don’t actually have to have a mobile credit card reader to process payments with a mobile POS system.

Flint Mobile, a mobile processor that works through Stripe, has no credit card readers at all. Instead, the app relies on a device’s camera to scan cards. The camera doesn’t actually snap a photo of the card, which would be a huge security issue. But the app is able to open the camera and scan a card the same way QR code readers are able to access the camera to open QR code links. Flint has a couple of filters it applies to the camera for added security.

That said, Flint isn’t the only mobile option with this ability. PayPal Here and Intuit GoPayment also include the camera scanning feature.

Not only that, but most mPOS apps also include a feature that allows you to manually key in transactions. These process at a higher rate that swiped/dipped/tapped transactions because they’re processed as card-not-present, like ecommerce transactions. But it’s a useful alternative when the card reader is being glitchy or the card is very worn. The notable exception to all this is SumUp, a company that started in Europe and doesn’t support manual entry for cards except through its virtual terminal.

Of course, if you don’t want to pay extra for manually entering transactions, it might be best to spend a little extra money and buy a backup card reader or two in case one starts to misbehave.

Are Free Credit Card Readers Worth It?

Several mobile POS options (including Square) provide an incentive for potential customers in the form of a free credit card reader. This can certainly make it more tempting to try out a payment processing service, but it shouldn’t be the deciding factor.

For one, free card readers tend to be pretty basic. Some have EMV support, but none of the free card readers on this list support contactless payments. Contactless support may not be mandatory for everyone, but EMV support should be a mandatory feature for every merchant. A reader with a Bluetooth connection will also ensure it’s future-proof no matter what phone or tablet you upgrade to later on.

Two, a free mobile card reader will absolutely not offset a processor’s shortcomings, such as poor customer service or missing features. It’s smarter for merchants to make a decision based on the quality of the mobile app, its features, and the processor’s customer support.

So while the ability to try some mPOS options without any upfront investment is nice, please don’t let a free credit card reader be the reason you pick one processor over another. Make sure you explore all of your options.

Don’t let a free reader be the determining factor in choosing an mPOS.

Final Thoughts

I’m not going to try and convince you that mobile credit card readers are the world’s most fascinating subject (even if I could probably talk your ear off for a couple of hours about all the different designs and features and how they embody the philosophies of the companies that sell them).

But if nothing else, you should take away a few key ideas that will prepare you to choose a mobile point of sale app and a credit card reader:

  • Software is more important than the hardware. Make sure the app has what features you need before you set your heart on a device.
  • Make sure the card reader you choose has EMV support. In 2018, there’s no reason why you shouldn’t be taking such a basic step to protect yourself and your business.
  • Prices for credit card readers range from totally free to upwards of $75. How much you want to spend is entirely up to you, but you will generally pay more for Bluetooth connectivity and for NFC support. Don’t be suckered in by the offer of a free reader, because there are lots of other criteria you should consider first.
  • You don’t technically need a mobile reader to take payments on a phone or tablet. However, you will pay more to process manually entered transactions in your mPOS app, so it’s a good idea to get one anyway.

Thanks for reading! If you’re ready to choose an mPOS app, a great place to start is our mobile processing comparison chart! Otherwise, if you have questions, feel free to leave us a comment!

The post The Best Credit Card Reader For Your Small Business appeared first on Merchant Maverick.

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Shopventory VS Square For Retail


Let’s get right into things. Today we’re looking at Shopventory vs. Square for Retail. Why? Because if you need more inventory support than the basic Square Point of Sale app offers, they are your two best bets. Square (see our review) has been a pivotal force in the mPOS space since its beginning, but lately it has also been edging into the tablet POS market with an ever-growing number of features. Shopventory is newer, but it’s carved a niche out for itself as a supplement to not just Square, but also PayPal Here, Clover, and now even Shopify.

While Square dominates the mobile space as far as features, it lags behind tablet-based systems, particularly in terms of inventory. But now there’s Square for Retail. If you need more comprehensive inventory features, you’ll get them with an upgrade to Retail.

Shopventory is a monthly service that integrates with your Square account. While Square for Retail is a full-fledged POS, Shopventory is strictly an inventory-focused add-on for Square for Point of Sale. It replaces most of the in-app inventory management with its own web browser but it does keep the inventory lists automatically synced and generates reports.

A really quick disclaimer before we get onto the comparison: We’re not looking at the full Square for Retail app here (which I’ll also refer to as just “Retail” or “the Retail app”). We’re just focusing on how its inventory management tools stack up against Shopventory’s. It’s important to consider whether the cost of either service justifies its use. Retail offers many of the same features as Shopventory, but also includes employee management. However, it could be a more costly service given that the subscription is monthly per register. Shopventory offers monthly inventory management for three locations for less than the cost of one Square for Retail register subscription.

You don’t get everything that the standard Point of Sale app offers either, such as offline mode. In fact, the Retail app is more of a pared-down version of the POS app, but with more beefed up inventory and reporting. That’s not to say Shopventory offers all the inventory tools you could ever need, either. But it certainly seems to have the upper hand in terms of capabilities and pricing.

I think for the most part that either of this will do well. Although they might not be perfect, they’re both capable. But in the end, Shopventory has more features and more competitive pricing. I would test it out before upgrading to Square for Retail.

For more information, I encourage you to check out our full Shopventory and Square for Retail reviews. Otherwise, read on for our Shopventory vs. Square for Retail comparison and see how they stack up in the great battle for inventory management!

Features & Services

Winner: Shopventory

Both of these services offer enough that they merit full reviews in their own right. Our comprehensive reviews of Square and Shopventory explore the advantages and limitations of each. For simplicity’s sake, I am going to focus on three core aspects of inventory management and see how they stack up: inventory tracking, reporting, and purchase order/vendor management.

Inventory Tracking

With both Shopventory and Square for Retail, merchants get the ability to count inventory and have each sale deducted from total stock numbers. Both offer location management as well. You’ll be working with Square’s standard item listings, which means you can include all of the following: product name, photo, SKU/barcode, item description, and item variants with the option to set different price points.

Shopventory Inventory Tools

Screenshot of Shopventory home page

Shopventory works by syncing with Square. It pushes its inventory data (item prices, bundles, etc.) into the POS app and pulls sales data from Square into its own dashboard reports and updates the inventory counts in real time. Once you get inventory set up, you manage everything inventory-related through Shopventory, NOT Square. It might take some merchants a while to get used to that, especially if they’re used to relying on the Dashboard.

Shopventory’s pricing plan, which I’ll cover in the next section, focuses on the number of locations you use, not the number of registers or products. And setting up multiple locations is actually very easy. When you log into Shopventory, the dashboard asks you to create a location and then add an integration (that is, link to your POS). It works a little bit differently for each software, but here’s what you need to know for Square.

If you have separate Square logins for each location, that’s fine and you can connect each Square account to each location. However, if you take advantage of Square’s free location management instead, Shopventory will ask you to select a location from your list of Square locations after you connect the POS. (That means you should set up your locations in Square before you setup Shopventory.) If you’re using employee management and device codes to run multiple registers, it doesn’t matter. Shopventory tracks everything at the location level.

After you’ve created your locations and linked your POS systems, Shopventory will ask you to enable two major settings: “sync items and variants” and “sync item quantities.” This will establish the connection and effectively make Shopventory your primary inventory service.

Once you’ve set up Shopventory, you’ll continue to use Square POS as usual. Just make sure that you log into Shopventory to pull inventory and sales reports. This is especially important if you’re using the Shopventory-specific inventory features like bundles. Everything is synced in real time so you can log in and check whenever.

Here’s a quick run-down of Shopventory’s features:

  • Bundles: Square doesn’t support bundling, but this feature allows you to track raw ingredients, deduct gift basket items from main inventory stock and even keep track of goods sold at wholesale versus retail. It also allows for tracking of items by partial quantities (yards of fabric or goods sold by the pound, etc.) The bundling feature even includes bundle variants. None of this is currently supported by Square for Retail.
  • Low-Stock Alerts: You can set a custom threshold for each item, so you know when it’s time to reorder something.
  • Automatic Restocks On Refunds: You’ll have to enable this feature, as it isn’t turned on by default. It also doesn’t work on partial refunds in Square.
  • Multi-User Access: Shopventory also allows you to create multiple accounts with different permissions. Enable your managers and staff to better manage store inventory while ensuring accountability.
  • Inventory Transfers Between Locations: Is one location out of a product while another has too much of it? Use the Shopventory dashboard to keep track of internal transfers of merchandise.
  • Inventory History: Shopventory keeps a log of your inventory history, including when counts go up or down. When you manually adjust stock counts you can add a note to indicate why (theft, damaged goods, etc.). We’ll get a little bit more into some related features when we talk about reporting.
  • Inventory Reconciliation Tools: If you’re a bit old-fashioned, Shopventory does offer an easy downloadable reconciliation sheet for inventory. Just the basic details that you need, not a lot of extra information, which you can download via printable PDF or spreadsheet. However, Shopventory has also introduced a barcode scanner mobile app for inventory reconciliations. Each Shopventory user can download the app and scan and update inventory counts through the app, and Shopventory will keep a record of when and who was responsible. This is actually a pretty awesome tool.
  • Barcode And Label Printing: Shopventory lets you chose from a Dymo or Brother label printer, as well as computer printing on Avery label sheets.

Square For Retail Inventory Tools

Screenshot of Square for Retail home page

Square for Retail works pretty similarly to Square Point of Sale. Everything is controlled from the Square Dashboard or the app, though the dashboard gives you the most functionality. Even though the app (or at least parts of it) will look very different from the free version, your dashboard should look pretty much the same and the data entry process will be the same.

If you have a lot of inventory (and if you’re looking at this article, you probably are), the odds are good you don’t want to create each inventory item one by one. That’s where Square’s Bulk Upload feature comes in. You can download the spreadsheet template, populate it with your inventory, and upload your item library all at once. Likewise, you can also export your library to a spreadsheet if you need that data elsewhere.

Your item descriptions are nearly identical to the standard Square offering. Even though Square for Retail doesn’t display photos in the app, you can upload them for viewing the back end. Check out Square’s how-to video for creating items manually.

Technically, Square for Retail gives you access to the Inventory Plus features, but these are really (mostly) reporting tools or PO/Vendor management. So some of these features are actually just Square’s inventory features.

  • Low-Stock Alerts: You can set a custom threshold for each item so you know when it’s time to re-order something. (This is a standard Square feature.)
  • Employee Management: Square includes employee management at no additional charge with a Square for Retail subscription. So if you have a lot of employees this could end up being a good deal for you. You can set different user permissions, track time, and more.
  • Inventory Transfers Between Locations: Square initially required you to manually add or subtract inventory at different locations to record transfers, but that’s no longer the case with the Retail app. Now you can record merchandise transfers in the app.
  • Inventory History: Another feature that wasn’t present at Square for Retail’s launch, inventory history will show you all your sales, transfers, received shipments, etc. to show why your inventory count is what it is.
  • Barcode And Label Printing: Like Shopventory, you can choose to use one of two select label printers (A Dymo or a Zebra) or print from a computer onto standard Avery labels.
  • Vendor Library: All items associated with a particular vendor (as well as their prices) are stored in each vendor’s data file.

Note the lack of bundling features here and all that this entails: no bundles, no raw ingredient tracking, no partial ingredient tracking. This is one of the biggest limitations to Square’s inventory.

However, Square also doesn’t offer any sort of inventory reconciliation. You could download your inventory for export and modify the spreadsheet, but it’ll take a bit of work on your end to make that happen.

But that’s just for inventory management. We’ve still got to talk about reporting and purchase orders/vendor management.

Reporting Tools

First of all, Square’s reporting tools, overall, are pretty robust. (Check out the list of reports.) Shopventory’s reports exist mostly as an extension of Square’s, not a replacement for them. This makes sense given that Shopventory is an extension of Square, not a standalone app. In addition to some identical reports, Shopventory offers several reports that Square doesn’t — and a couple that Square for Retail doesn’t, either.

Square’s inventory reports are somewhat lacking. Specifically, something that merchants have been clamoring for is cost of goods sold (COGS) reporting. Square for Retail finally offers this feature, but thus far it hasn’t impressed. Editing the item costs isn’t easy to begin with, and the information isn’t available at key points in the Retail app experience. And all of that’s left merchants understandably upset. However, you can also keep a record of additional costs associated with a purchase (such as shipping or handling fees) that are added to your COGS tracking. That’s helpful.

In addition to COGS reporting, Square for Retail introduces a profitability report and an inventory by category report that lists the value of the items, projected profit, and profit margins in each category. This last report is more a combination of several other reports, but it’s nice to see.

On the other hand, Shopventory’s COGS reporting is a bit more advanced. Accessing pricing information seems a bit easier than with Square for Retail. Shopventory also tracks lot costs in addition to default costs. For advanced users, Shopventory has a cost averaging feature.  You can even back-fill lot costs using the default cost feature.

But apart from cost and profitability reporting, there’s another feature I like that Shopventory offers: a dead inventory report. You can print off a list of every item that hasn’t sold recently, and specify just how “recently” you want — whether it’s a week, a month, six months, etc. This is pretty handy because “slow” for one business isn’t slow for another.

It’s hard to ignore the fact that Shopventory outclasses Square for Retail in terms of reporting — it offers everything that Retail does, plus more. I’ve found that Shopventory and Square dashboards are both fairly intuitive and easy to use, so they’re evenly matched in that regard.

Purchase Order & Vendor Management

Since the upgrades to inventory and reporting tools are relatively small in Square for Retail, it’s nice to see that the additions in this category are actually pretty big game-changers. With the Retail app, it’s now possible to create purchase orders from within the Square dashboard and send them via email. You can also receive inventory from within the Square for Retail app.

If I’m being honest, Square for Retail and Shopventory are well matched in this category. There are a few differences — for one, with Shopventory you can only receive inventory through the web dashboard, not the app. But I think that, overall, their feature sets are pretty similar.

Square PO & Vendor Management

While you’ll need to use the Square dashboard to create purchase orders, you can receive stock from a PO directly in the Square for Retail app, which is nice. With Shopventory, everything has to be done from the dashboard, which is a major trade-off. However, it shouldn’t be a dealbreaker.

A few other features from Square that I like: You can create a new vendor listing from within a purchase order, whereas with Shopventory you must have all of your vendors already entered. You can also edit and cancel purchase orders as needed, and Square keeps an archived file.

I mentioned previously that Square does have an item library associated with a vendor, but I don’t think it’s the most effective display. When you add an item to the PO it is added to the vendor’s item library, but you can’t browse the item library while creating a PO. Instead, you need to search for the items you want in a drop-down menu. I know that some merchants have been frustrated that Square can’t auto-populate a PO using low inventory items. Others are also frustrated that they can’t see how many of an item are in stock. Instead, these merchants wind up flipping between tabs or screens to formulate a list of what is needed.

Shopventory PO & Vendor Management

Shopventory has a handle of the same shortcomings that Square for Retail does in this regard. Namely, you can’t auto-populate a PO based on low inventory, and you can’t view stock levels in the PO.  However, you can clearly browse every item associated with a vendor and select which ones you want to add to it. This kind of display seems kind of obvious, and it should be, but it’s not.

This might be the one area where I think Square has a modest upper hand. For one, Shopventory lacks the ability to edit POs or archive them to clear them out of your way while preserving the information. (The company says it’s working on this last bit.) But you can save as a draft, just like you can in Square. So if you’re not sure or you’re not ready, you don’t have to send the purchase order out into the world. With Shopventory, you also need to create your entries for vendors before you start the PO.

Pricing

Winner: Shopventory

Square for Retail’s pricing is very simple: $60/month per register. No tiered packages, no add-ons, no extra fees for priority phone support.

Square for Retail Pricing

That’s fairly competitive for an iPad-based POS system. But as we noted in our full review, Square for Retail actually removes several of the features available in the standard (and free) Point of Sale app. It’ll be up to you to decide whether the new interface and new inventory tools justify the cost.

Thinking more broadly, you’ll also need as many iPads as you have registers ($350+) and likely a Square Stand with a reader ($169) as well as any cash drawers, printers, and bar scanners you want for each device.

However, there is one caveat: Square for Retail provides employee management for an unlimited number of employees. With the standard Square plan, that cost is $5 per employee per month. So if you have 12 employees and one register, you actually break even on costs.

Shopventory’s pricing plan is focused not on the number of devices or the number of users, or even the number of transactions. Pricing is based just on the number of locations. There’s a limited free plan that provides analytics, but the paid plans start at a very reasonable $30/month.

Here’s what you can expect:

  • Starter ($29/month): 1 location, 1 year order history, 1 year reporting
  • Standard ($59/month): 3 locations, 2 years order history, 2 years reporting
  • Professional ($199/month): 10 locations, unlimited order history, unlimited reporting
  • Elite ($499/month): 25 locations, unlimited order history, unlimited reporting

If you want access to purchase orders, vendor management, and the bundling features, you’ll need to get the standard plan. The starter doesn’t support these capabilities at all. In addition, the higher-tier plans throw in a few other perks (free QuickBooks syncing, otherwise $30/month; access to beta features, phone support).

Keep in mind that you still need hardware and devices to run the Square app — and an iPad is the most full-featured option. But you could use Android tablets or smartphones too. You have a lot more options and no charge for using multiple devices at the same location. So at three locations, ignoring costs of hardware, you’re already saving $120 with Shopventory. (That’s the cost of 24 employee management subscriptions, by the way.)

You can also save a bit of money if you opt to pay for Shopventory on an annual plan instead of a monthly one, which is nice. I think designing an inventory system whose pricing focuses on locations is the smart option.

While I think Shopventory’s pricing is definitely better, I can’t say definitely that it’s the better value overall. For one, Square for Retail is optimized for businesses with very large inventories. And if you’re dealing with hundreds and hundreds of items you might prefer the search-and-scan based user interface that the app offers. But if you have a small inventory, or you’re not a retail business, and still want all the management tools? If you don’t care about the UI but want some of the Square POS features like offline mode or open tickets? It’s pretty obvious that Shopventory is the better solution. What’s right for you will depend on your priorities and your budget, so check out our complete reviews of both services before you commit to anything.

Web Hosted Or Locally Installed

Winner: Tie

Both of these solutions are web-hosted, which is awesome. Yay for the cloud! Don’t forget that you’ll also get some in-app reporting capabilities if you don’t want to log into a web browser, but they aren’t inventory driven, and they’re far more limited than using the web dashboard.

Customer Service & Technical Support

Winner: Tie

Apart from a small team on the Square Seller Community (a forum for online merchants), Square for Retail doesn’t have any exclusive support channels that are separate from regular Square support. So you should expect business as usual in this regard.

Square’s been plagued by complaints of shoddy customer service pretty much since the beginning. But honestly, I think most of those complaints are rooted in Square’s tendency to freeze or terminate accounts. For most technical (not account-related) issues, Square does seem to offer more reliable support. There’s email and live phone support, as well as a very comprehensive self-service knowledgebase. And the Seller Community is honestly a great resource as well.

But I find that the amount of information and how-to’s concerning Retail specifically to be troubling. There’s not a lot. Square has tons of videos but they seem to gloss over showing how to use the Retail app. If you want to know about specific features before you sign up, you should get on the Seller forum and ask. Otherwise, the only way to find out is to test-drive Square yourself.

Not only that, but it certainly seems like the process of obtaining a code to access phone support requires more effort than some merchants are willing to put forth. I get it. I loathe automated menus that make you jump through hoops to get to a real person as much as anyone else. And I’ve heard a smattering of complaints about email support. I think Square’s support is mostly good, but occasionally something does go wrong.

If you one of the merchants who’s felt frustrated at Square’s support, you’ll probably be pleasantly surprised at the quality if Shopventory’s. Phone support is only available for higher-tiered plans, but the chat option is great and the knowledgebase is extremely helpful as well. (I know. I’ve tested both.) The chat option isn’t quite live chat because it might take a few to get someone to answer your question, but once you get one of the reps to respond, it is a live conversation. I shouldn’t have to say this about any customer support, but sadly I do: I like that you get to talk to a helpful person who isn’t going to shoehorn you into a script.

Shopventory isn’t quite large enough to have the kind of active forum that Square has for support, but the knowledgebase is easily as detailed as Square’s. I find the video tour is super useful as an orientation to Shopventory, despite how much I absolutely hate watching video tutorials longer than about one minute.

It’s worth noting that you’ll still have to deal with Square for payment- and account-related issues if you use Shopventory. But for inventory-related issues, you can deal with Shopventory instead.

Negative Reviews & Complaints

Winner: Shopventory

At this point, merchants’ biggest point of contention with Retail is that in some ways is a step back from the standard Point of Sale app. A few features are lacking in the Retail app. Plus, I’ve seen complaints that features Square promised at launch (or at least showed in screenshots) haven’t actually appeared yet.

Some of the complaints about Square for Retail we’ve seen include:

  • Problems With Cost Of Goods Recording And Reporting: This is a big one and it manifests in a lot of ways. Currently, the only way to update costs is to upload a spreadsheet. The app itself doesn’t allow you to manually edit individual item costs, and Square’s current reports don’t list item costs on everything. Merchants who were expecting to finally get COGS reporting haven’t been thrilled, though Square does say it’s on their list of improvement to make, so we may see some enhancements.
  • Lack Of Features: Specifically, with Retail, you lose access to Square’s offline mode and the open tickets capability. You can upload images as part of the item listing, but they don’t display in the app. Merchants have complained about their removal. I haven’t been super thrilled about how Retail feels like a step back from the Point of Sale application in terms of interface and features, either. And one big missing feature that I’ve seen a lot of chatter about is the ability to auto-populate purchase orders based on low inventory (or even the ability to see the inventory count in the same window as the PO).

There’s a lot less user chatter about Shopventory overall (which makes sense with a smaller customer base). I think users who integrate with PayPal or Clover will probably be more dissatisfied than Square users, honestly. I think some merchants will dislike the same sort of shortcomings you find in Square for Retail: missing features like the ability to view inventory levels while creating a purchase order, or the ability to edit purchase orders. Overall, the comments I see from merchants are positive.

Positive Reviews & Testimonials

Winner: Tie

Square gets a lot of love overall for its payment processing. Signup is quick and easy, rates are fair and affordable, and the hardware is good and fairly priced. But the Retail app seems to be less popular overall. In theory, it fills a niche that businesses with a high quantity of inventory have been needing. I know a lot of merchants were excited at the prospect when it launched, but I haven’t seen as much talk about it since then.

I don’t see a whole lot of chatter around the web about Shopventory. The website has a couple testimonials and I’ve seen the Square Seller Community talk about it, too. The discussions I’ve seen a focus on the good customer service and its fair pricing.

I’m calling it a draw here. Both options are good ones and serve their purpose, but there isn’t enough of a discussion to say which one has more positive coverage.

Final Verdict

Winner: Shopventory

I can’t say definitely that Shopventory trounces Square for Retail in every regard. One is an inventory management add-on, the other is a full-fledged POS with inventory management. So I can draw apples-to-apples comparisons about some things and say that yes, Shopventory has more and better quality inventory features. Its pricing is way more competitive if your only concern is inventory tracking. It will work great as an add-on to Square Point of Sale.

But Square for Retail has a search-optimized UI and free employee management tools that might be deciding factors for some merchants. So you could potentially get a better value with Square for Retail if you have a lot of employees and want easy time tracking along with the ability to manage large inventories.

The good news is we’re looking at two companies that are both committed to adding new features all the time. So in six months or a year, we could be looking at two majorly improved products. We’ll have to see how they stack up then.

Check out our complete reviews for Shopventory and Square for Retail to get a closer look at each. Also, both Square for Retail and Shopventory offer free 30-day trials, so you can test drive both of them (preferably not at the same time) and see which one works better. Thanks for reading and good luck with your search!

The post Shopventory VS Square For Retail appeared first on Merchant Maverick.

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The Best Credit Card Processing Apps for Small Retail Businesses

small-business-credit-card-processing-app

Say you have a small retail business. You don’t have a lot of money to invest in a super-complicated POS, and you don’t want to deal with a multi-year processing contract. Frankly, the idea of trying to narrow down the options in both categories at the same time is a little bit daunting. But enter another option: an app for a tablet (or even a smartphone) that bundles payment processing and POS software all in one go, with no contract or commitment. A single app with all (or at least most) of the features a brick-and-mortar storefront could want. But what are the best credit card processing apps for small retail businesses?

Cost is definitely part of the consideration, but more than that you need to make sure any software you use actually delivers the features you need to run your business. Most processing apps tend not to be as full-featured as a full POS, but they are capable of delivering on core needs. After we go over which features should be a priority, we’ll get into the most promising apps that let you process credit cards and run your business together.

Credit Card Processing Apps For Small Retailers

In addition to choosing apps based on the most useful features, we had two other criteria in choosing the apps: first, they had to be mobile apps for tablets (and preferably smartphones). Second, they must offer a bundled payment solutions. A couple of the options on the list allow you to bring your own processor if you want, but they do offer their own payment option as a default.

In no particular ranking, here are my favorite picks for retail-focused credit card processing apps:

Square

Square business model and mobile credit card processingSquare does have a specialty POS app for retailers, called Square for Retail. That one doesn’t actually make the cut because it’s designed for larger businesses and it actually lacks many features found in the basic free app, Square Point of Sale.

Point of Sale has definitely come a long way from just a basic mobile POS app, and it’s absolutely a solution that will grow with your business. Its clear, transparent pricing strategy (2.75% for swiped/dipped/tapped transactions) and robust app make it an attractive option for retailers. But then there’s the assortment of add-on services (email marketing, appointment scheduling, loyalty, payroll and more) that all integrate seamlessly. Combined with the huge assortment of supported phones and tablets, and the wide mix of supported hardware, and it’s hard not to see the appeal.

While Square does offer payroll and employee management, these features will cost you more — $5 per employee per month for each.

Something I do want to point out: Square does have many iPad-only features, but much of its hardware is equally compatible with Android devices as it is iPads, which is a major departure from most apps that favor the Apple ecosystem.

PayPal Here

PayPal Here review: One of the top Square alternativesPayPal is an obvious choice for a lot of retailers, especially those who sell online as well as in person. If you’re not interested in eCommerce, PayPal is still a good option because it does integrate with some very well known POS systems. PayPal also has its own credit card processing app, PayPal Here.

While PayPal Here is not quite as robust as the other options on this list (especially regarding inventory), it’s a very stable app with great pricing (2.7% per swipe/dip/tap) and a wide array of supported devices and compatible hardware. It’s the only app on this list to support Windows devices at all, and the phones on your tablet or phone doubles as a barcode scanner for both Android and iOS. Plus, you get up to 1,000 free employee accounts.

Plus, near-instant access to funds through your PayPal account is a pretty awesome deal, especially if you get the PayPal Debit card. Add in free sub-user accounts with restricted permissions (something Square will charge you monthly for), and you can see why PayPal makes the cut.

Shopify

Shopify started as an eCommerce offering but these days it’s added a powerful POS app that also works on smartphones as well as tablets. Everything syncs up nicely for a seamless experience whether you’re selling online, in a store, or even on the go, and while the smartphone version of the app is more limited, it’s still quite functional. Shopify’s features definitely line up more with a full-fledged POS than just a mobile POS.

Unsurprisingly, that means it’s a bit more expensive than the two previous options on this list. Shopify’s plans start at a very reasonable $29/month for its online store. If you want the countertop retail solution, that’s a $49 add-on per month, but you don’t need to purchase additional licenses to add more devices, which definitely ups the value.

You can also create staff PINs without creating staff accounts — which means if only a few of you need admin privileges but you do have a large staff and want to track who is running the register, you can get PINs without paying for additional accounts.

However, I do want to call attention to an underplayed solution Shopify offers: its Lite plan. For $9/month, you can sell on Facebook and other social media platforms, add a buy button to your blog, and use the POS app. The caveat is that you can’t add the retail package to it — which means while you have the app, you don’t have support for the receipt printer or cash drawer.

ShopKeep

Like Shopify, ShopKeep is more of a full-fledged POS than a mobile unit. But unlike Shopify, it’s not an eCommerce solution. It’s an iPad POS targeting all kinds of small businesses: retailers, yes, but also restaurants and quick-service environments. ShopKeep specifically targets small and medium-sized businesses, whereas many of these solutions are happy to tout that they work for businesses of all sizes.

ShopKeep’s user interface is highly intuitive, but also feature-rich, which is a major contributor to its popularity. In addition to its advanced inventory tracking tools, you get employee time-keeping, customizable reporting, and more. It also has a record for excellent (unlimited) customer support via email or live chat.

Sadly, there’s no smartphone app support for processing, but ShopKeep does offer integrated payments. Merchants get an interchange-plus plan based on their volume, which is pretty awesome considering there’s no contract involved, either. Everything is on a month-to-month basis. There’s also an additional $69 monthly charge per register.

Honorable Mention: SumUp

While SumUp has a few limitations — it lacks, for example, the ability to process simultaneously on multiple devices — it is overall a solid credit card processing app. The app supports a solid item library and variants, plus convenient tax settings. While there’s no offline mode and no invoicing, SumUp does have an interesting feature in its SMS payments. The app allows you to send a text message to a phone, with a link embedded. Customers can open the link, enter their payment information and complete the transaction.

Pricing is identical to Square for retail transactions: 2.75%. There is no keyed entry option within the app, but the low-priced virtual terminal (at 2.9% + $0.15, even below Square’s rate) is a workaround, though not one you should use for the bulk of your processing.

While new to the US market, SumUp has been operating in Europe for a few years, so it definitely has experience in the processing industry, and so I expect it to see fewer growing pains than other new solutions.

Must-Have App Features for Retailers

It’s safe to say what app features a business needs tends to vary from one business to the next. But there are definitely commonalities — solid inventory management or the ability to print receipts, for example. Check out our comprehensive comparison chart below to see how these systems compare to one another. 

Square for retail review logo imageSquare PayPal Here Shopify Shopkeep SumUp
BASICS
Integrated Processing Yes Yes Yes (Other options available) Yes (other options available) Yes
Processing Rates (for Most Swiped/Dipped Transactions) 2.75% 2.70% 2.70% Interchange-Plus based on volume 2.75%
Monthly Fee $0 $0 Plans start at $9/month $69 per register $0
Number of Devices Unlimited Unlimited Unlimited 1 (additional registers $69/month) 1
Tablet Support Apple, Android Apple, Android, Windows Apple, Android Apple Apple, Android
Smartphone support Apple, Android Apple, Android, Windows Apple, Android N/A Apple, Android
Email/SMS Receipts Email/SMS Email/SMS Email Only Email Only Email/SMS
Receipt Printer Connectivity Bluetooth, Ethernet, USB Bluetooth, LAN, Wireless Bluetooth, USB, LAN Bluetooth, Ethernet Bluetooth, LAN
Cash Drawer Connectivity Yes (Tablet Only, With Printer Connectivity) Yes (With Star Printer Connectivity) Yes (iPad Only, with Printer Connectivity) Yes (With Printer Connectivity) Yes (with Printer Connectivity)
Barcode Scanner Yes (Bluetooth for iPad only; USB for Android) Yes (USB for windows, device camera for iOS/Android) Yes (Bluetooth) Yes (Bluetooth) No
FEATURES
Split Tender Yes Yes Yes Yes No
Offline Processing Mode Yes No Very Limited No No
Full and Partial Returns Yes Yes Yes (including store credit) Yes (Check store credit) Full Only
Sub-User/Employee Accounts Yes (monthly fee) Yes (free) Yes (PINS/accounts) Yes Yes (Limited)
Discounts by $ or % Yes Yes Yes Yes No
Customizable Receipts Yes Yes Yes Yes No
Generate Invoices Yes Yes Yes No No
INVENTORY
Bulk Item Upload Yes No Yes Yes No
Item Counts Yes No Yes Yes No
Item Variants Yes Yes Yes Yes Yes
Item Photo Yes Yes Yes No Yes
Create Item From App or Dashboard Yes Yes Yes Yes No (App Only)

It’s worth mentioning that many of these systems have FAR more features that we don’t cover in this chart (think: virtual terminals, eCommerce support, supported integrations, etc.). If you really want to learn what a system is fully capable of, I recommend checking out our complete review of each credit card processing app.

Processing with Square or PayPal Here? Up Your Inventory Game with Shopventory

With retail environments, inventory is usually a major concern. Shopventory is a monthly add-on that works with Square, PayPal Here, and the Clover system (except Clover Go). It allows for inventory tracking and reporting, bundling, variants, and more. The biggest difference will be that you’ll no longer be using your credit card processing app for inventory reports or management. Everything will be done through Shopventory’s dashboard. Check out our Shopventory review for more information.

Final Thoughts

When it comes to software and processing, there isn’t a good one-size-fits-all solution for merchants. Every business’s needs are unique, so what works best for one business may not be good for another. Many of the credit card apps we’ve listed here have no monthly fees, and others offer free trials or a free pricing quote. They are all top-rated offerings, as well. The biggest difference you’ll find is the feature sets and little differences in the user interfaces.

If you’re on the fence about which to choose, I recommend checking out our full reviews of each product. Got questions? We’re always here to help, so please leave us a comment!

As always, thanks for reading!

The post The Best Credit Card Processing Apps for Small Retail Businesses appeared first on Merchant Maverick.

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The Best Credit Card Processing Apps for Quick-Serve Restaurants

It’s time to upgrade the POS for your coffee shop, but you haven’t got a clue what to look for. Maybe you’re not sure you need a full-fledged POS, or you’re worried about the cost — or you don’t want to be locked into a multi-year credit card processing contract. Where do you even start looking for the right solution?

As far as technology needs go, quick-serve businesses like bakeries, cafes, and ice cream parlors straddle the line between retail shop and restaurant. What POS features work for a retail business won’t quite cut it, but there’s no need for many of the features found in a full-service restaurant POS. Credit card processing apps combine the convenience of a POS and a merchant account into one single solution, with the convenience of a flexible (even mobile) setup.

We looked over the options for quick-serve businesses and put together a list of the best options. But first, a few criteria!

Choosing the Best Apps for Quick-Serve Businesses

A lot goes into choosing a credit card processing app — the cost, of course, as well as features. Our primary criteria, the non-negotiable elements, were that the app was a true app, something available on a tablet (and ideally a smartphone), and that it had a built-in payment processing option offered by default. A couple apps on this list do allow you the choice of integrating your own processor, though you should make sure the rates are competitive if the app charges any additional fees.

Additionally, we narrowed down the options based on whether the apps offered features essential for quick-serve businesses like cafes and ice cream parlors to function. There’s no one-size-fits-all approach, but there are some core themes to look out for. Check out feature comparison chart below for more information, or read on for our top picks for credit card processing apps!

Toast POS

toast pos reviewToast is an award-winning POS targeting all sorts of restaurants, including quick-serve businesses. It runs exclusively on Android tablets, with an intuitive user interface. It’s definitely feature-rich, with several add-on programs you can opt for (inventory, loyalty, online ordering), making Toast even more functional.

Toast only allows you to use its processing services, and your rates will vary. Plans start at $79/month and allow you up to 2 registers; with higher-tier plans (starting at $99/month), you get unlimited registers. It’s also worth noting that Toast, like Square and PayPal, requires you to use its processing services, and your rates will vary.

Breadcrumb POS

Whereas Toast is entirely Android-based, Breadcrumb POS is an iPad-exclusive system that works as part of Upserve’s larger restaurant management ecosystem. Feature-rich and designed to accommodate many types of businesses, Breadcrumb even integrates with GrubHub for online ordering and delivery.

Breadcrumb’s payment processing arm offers interchange-plus plans for merchants: you’ll pay interchange rates plus a $0.15 fee per each transaction. For very small-value tickets, this could wind up being more expensive than a percentage-based transaction, which is worth taking note of. However, an interchange-plus plan on a month-to-month contract is a good deal.

Breadcrumb’s monthly service fee might make to think twice compared to some of the other options on this list, but the value of the features you get is absolutely worth considering. The Core plan will start you at $99/month, with the mid-tier plan starting at $249.

Square

Square business model and mobile credit card processingSquare‘s free mPOS app, Point of Sale, remains hugely popular with all kinds of businesses. But with its inventory management and reporting, as well as custom tipping features, it has the core features most bakeries, cafes, and other quick-serve businesses need to thrive — plus multiple add-ons (such as loyalty and payroll) to make management even easier. The eCommerce integration even allows people to place orders online and pick them up in person, and there’s a delivery system through Caviar.

Without a doubt, one of Square’s biggest draws is its clear, transparent pricing. A solid 2.75% per swipe is very reasonable and the lack of a per-transaction fee keeps the costs down for businesses with low ticket values. There are no mandatory monthly fees, either — you pay only for the transactions you process, and any add-on services you opt into.

PayPal Here

PayPal Here review: One of the top Square alternativesPayPal’s mPOS solution, PayPal Here, isn’t quite as robust as the full-fledged POS systems that PayPal also integrates with. But it’s a highly mobile app available on multiple platforms, including Windows devices. The app doesn’t have a glut of features the way Square does, but it has all the essentials, from tipping to discounts.

Like Square, one of the big draws — especially if you have a small average ticket size — is its pricing: 2.7% per swipe, with no monthly fees. PayPal’s easy integration with all sorts of eCommerce services and instant access to funds also tend to be big draws for merchants.

ShopKeep

Rather than build a solution that appeals to businesses of all sizes, ShopKeep opted to tailor its POS software to small and medium-sized businesses, a decision that continues to define its capabilities. However, the company does cater to small and medium businesses in a variety of industries, including quick-serve businesses.

Feature rich and highly intuitive, ShopKeep even offers advanced inventory and timekeeping at no extra charge, which definitely adds to the value.

ShopKeep’s payment processing arm offers interchange-plus plans based on your monthly volume, which means possible per-transaction fees. ShopKeep charges $69/month per register, but has no contracts or other monthly fees, all of which are a great deal for merchants.

Must-Have Features for Quick-Serve Businesses

Apart from being a tablet app with integrated processing, I looked at some other features in creating my list. Menu creation is important — and while variants are great, the presence of categories and add-ons was more important. Tipping, kitchen receipt printing, and location management also merited consideration. Check out the table below for detailed information.

Toast Breadcrumb reviewBreadcrumb Square for retail review logo imageSquare PayPal Here Shopkeep
BASIC TECH
Integrated Processing Yes Yes (other options available) Yes Yes Yes (other options available)
Processing Rates (for most swiped/dipped transactions) varies interchange + $0.15 2.75% 2.70% Interchange-Plus based on volume
Monthly Fee $79 and up $99 and up $0 $0 $69 per register
Number of Devices 1-2 for base plan, unlimited for higher plans 1 ($50/additional) Unlimited Unlimited 1 (additional registers $69/month)
Tablet Support Android Apple Apple, Android Apple, Android, Windows Apple
Smartphone support N/A N/A Apple, Android Apple, Android, Windows N/A
Email/SMS Receipts Email/SMS Email Only Email/SMS Email/SMS Email Only
Receipt Printer Connectivity LAN Wi-Fi, Ethernet Bluetooth, Ethernet, USB Bluetooth, LAN, Wireless Bluetooth, Ethernet
Cash Drawer Connectivity Yes Yes (With Printer Connectivity) Yes (Tablet Only, With Printer Connectivity) Yes (With Star Printer Connectivity) Yes (With Printer Connectivity)
FEATURES
Split Tender Yes Yes Yes Yes Yes
Offline Processing Mode Yes Yes Yes No No
Sub-User/Employee Accounts Yes (free) Yes (free) Yes (monthly fee) Yes (free) Yes (free)
Tips by $ or % No (By % only) No (By % only) Yes Yes Yes
Add Tip after Signing Yes Yes Yes (iPad only) No Yes
Customizable Receipts Yes Yes Yes Yes Yes
Kitchen Ticket Printing Yes Yes Yes (iPad only) No Yes
Multi-location management Yes Yes Yes No Yes
MENU
Bulk Item/Menu Upload No Yes Yes No Yes
Item Counts With Inventory add-on Yes Yes No Yes
Item Add-Ons/Modifiers Yes Yes Yes Yes Yes
Item Photo No No Yes Yes No
Create Item from App or Dashboard Yes Yes Yes Yes Yes
Item Grouping/Sub-categories Yes Yes Yes Yes Yes

You can also browse our restaurant POS software and mobile payments categories for more solutions!

Final Thoughts

There’s never one right answer to the question “which software is right for me?” The best we can do is say “This is a good choice for lots of businesses” and explain the caveats. As far as credit card processing apps for quick-serve businesses, you need to have a firm number in mind for how much you’re willing to pay, and know which features or abilities the app must have, and go from. Our top picks — Toast, Breadcrumb, Square, PayPal Here, and ShopKeep are all targeted at the industry and so they do have some similarities and core capabilities. But you’ll also find major differences in costs and some features (inventory being a noteworthy one). So know what you need and make sure the system you choose fulfills those basic requirements.

As always, thanks for reading! If you’ve got questions, we’d love to help you out. Check our comment guidelines and leave us a comment!

The post The Best Credit Card Processing Apps for Quick-Serve Restaurants appeared first on Merchant Maverick.

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The Best Credit Card Processing Apps For Mobile And Service Businesses

mobile-card-payment-app-service

Being able to take payments on the go without having to jump through five million hoops is crucial for mobile businesses, whether you’re a service business that visits customers at home or just a small business without a permanent storefront. That’s where credit card processing apps come in: Combining integrated payments and feature-rich POS systems that run on smartphones and tablets, they’re designed to operate anywhere you can get a cellular or Wi-Fi signal.

We took a look at the most promising credit card processing apps for mobile and service businesses, comparing their features as well as their processing rates. Then, we compiled the best options into a list!

Choosing the Best App Features for Mobile & Service Businesses

If your business is primarily service-based or you tend to do more pop-up sales and events than deal with retail storefronts, you probably don’t need (or want) a whole lot of hardware. What you do need is an EMV-friendly reader and a smartphone or tablet to run the system from.

We used two primary criteria in deciding this list: first, the product has to have integrated payment processing, and the app must be available on a tablet (preferably a smartphone as well).

While hardware may not be a priority, knowing which systems can work as a countertop system as well as mobile is helpful. Invoicing, virtual terminals, solid sales tax management, and decent item libraries were also factors. Take a look at our comprehensive comparison chart to figure out which system might work best for your particular needs.

Square for retail review logo imageSquare PayPal Here Shopify Payline Mobile SumUp
BASICS
Integrated Processing Yes Yes Yes (Other options available) Yes Yes
Processing Rates (for most swiped/dipped transactions) 2.75% 2.70% 2.70% Interchange + 0.5% or 0.3% 2.75%
Monthly Fee $0 $0 Plans start at $9/month $0 / $9.95 $0
Number of Devices Unlimited Unlimited Unlimited Unlimited 1
Tablet Support Apple, Android Apple, Android, Windows Apple, Android Apple, Android Apple, Android
Smartphone Support Apple, Android Apple, Android, Windows Apple, Android Apple, Android Apple, Android
Email/SMS Receipts Email/SMS Email/SMS Email Only Yes Email/SMS
Receipt Printer Connectivity Bluetooth, Ethernet, USB Bluetooth, LAN, Wireless Bluetooth, USB, LAN No Bluetooth, LAN
Cash Drawer Connectivity Yes (Tablet Only, With Printer Connectivity) Yes (With Star Printer Connectivity) Yes (iPad Only, with Printer Connectivity) No Yes (with Printer Connectivity)
FEATURES
Split Tender Yes Yes Yes Yes No
Offline Processing Mode Yes No Very Limited No No
Full and Partial Returns Yes Yes Yes (including store credit) Yes Full Only
Sub-User/Employee Accounts Yes (monthly fee) Yes (free) Yes (PINS/accounts) Yes Yes (Limited)
Discounts by $ or % Yes Yes Yes Yes No
Tipping by $ or % Yes Yes No Yes Yes
Multiple Tax Rates Yes Yes Yes Yes Yes
Adjust Tax Rates In-App Yes Yes Yes Yes Yes
Customizable Receipts Yes Yes Yes Yes No
Generate Invoices Yes Yes Yes No No
Virtual Terminal Yes Yes (monthly fee) No Yes Yes
INVENTORY
Bulk Item Upload Yes No Yes No No
Item Counts Yes No Yes No No
Item Variants Yes Yes Yes No Yes
Item Add-ons Yes Yes No No No
Item Categories Yes Yes Yes No Yes
Item Photo Yes Yes Yes Yes Yes
Create Item from App or Dashboard Yes Yes Yes Yes No (App Only)

You can check out our reviews of each service for more information about features, user experience, and more.

Square

Square business model and mobile credit card processingSquare made its name with a mobile processing service that anyone could use, and while the company is definitely catering to larger entities these days, small and mobile businesses still make up a good portion of Square’s merchants. Square’s totally free processing app makes it easy to create an item library of physical products as well as services.

Square’s tax rate settings are easily adjustable from within the mobile app and you can pre-program different rates if you find yourself flipping between different locations often.

In addition, Square offers invoicing, recurring invoicing/storing cards on file, and a free virtual terminal. You can even integrate Square’s appointment booking software seamlessly.

Square will charge you 2.75% per swiped transaction, but invoicing will run you 2.9% + $0.30, and virtual terminal transactions will cost you 3.5% + $0.15.

PayPal Here

PayPal Here review: One of the top Square alternativesPayPal Here is another staple of mobile businesses with a free mobile app. PayPal has the advantage of massive eCommerce support as well as a solid mPOS so you can seamlessly blend different aspects of your business. Plus, your funds are available almost instantly in your PayPal account, and with the PayPal debit card, you can spend them anywhere. The free mobile app isn’t quite as feature-rich as Square’s, but it’s highly capable.

You’ll also find PayPal Here’s tax settings are adjustable within the app and you can easily accommodate different sales tax rates. Like Square, you get free in-app invoicing. However, if you are looking for a virtual terminal or recurring billing, they’re going to run you an additional $30 and $10 per month, respectively, which is a fairly high price tag.

You’ll pay 2.7% per transaction in the app, whereas invoices will run you 2.9% + $0.30. Virtual terminal transactions (not counting the monthly fee) cost 3.1% + $0.15.

Shopify

Shopify started out as just an eCommerce offering but it’s expanded into a multi-channel solution for business. You can get Shopify’s Point of Sale app for as little as $9/month with the Lite plan, or you can upgrade to a countertop-friendly version with the Retail package, and even add on integrations for appointment booking. However, if you don’t /need/ a receipt printer or cash drawer and don’t sell through your own site online, the Lite plan will absolutely get you through.

Shopify isn’t the most advanced credit card processing app out there — for example, it doesn’t support tipping — but overall it has most of the features mobile and service-based businesses need, and its integration with the eCommerce tools is definitely an asset. It even allows invoicing.

Shopify allows you to set a tax rate for a shop location and create overrides and exemptions. One thing I do like that I don’t often see in these sorts of apps is tax rates based on GPS location, which eases the burden on you considerably.

For Shopify Payments (the default processing method), you’re going to pay 2.7% per transaction to start out, though if you opt for the higher-tiered plans you’ll see some savings.

Payline Mobile

Payline is one of our favorite merchant account providers, and we like their mobile solution because it’s available independently of the other offerings and suitable for low-volume businesses, which isn’t common with traditional merchant accounts.

The app is overall solid, with inventory features, tipping, and discounts. While there’s no invoicing feature, the mobile plans do offer access to a virtual terminal. The app is also designed for mobile use only: it doesn’t support retail/countertop processing features like cash drawers or receipt printers. However, Payline supports multiple tax rates for different items as well as a master tax rate for checkout, depending on your needs.

Payline’s mobile products offer interchange-plus pricing, too: the Start plan (formerly Spark Plan) will charge you 0.5% over interchange plus $0.20 per transaction with no monthly fee; the Surge plan charges a 0.3% markup plus $0.20, with a $9.95 monthly fee. The $0.20 per-transaction fee is a little high, but doesn’t put Payline Mobile in the realm of unreasonable pricing. However, it does mean businesses with larger ticket sizes will feel the effects of that per-transaction fee less.

Spark Pay

Capital One’s mobile processing solution Spark Pay is part of the larger “Spark” line of businesses solutions, which includes a fairly advanced online store. However, despite that, Spark Pay the mobile app stands alone, with no integrations.

It has all the major features a merchant would need — tipping, custom discounts, an item library, and support for a countertop setup. Unfortunately, there’s no invoicing, and Spark Pay’s virtual terminal is only in beta mode. You can only set one tax rate in the app as well. However, the major shortcoming is simply that while Spark Pay does offer EMV terminals, there’s not currently an EMV-compliant mobile reader, something that all the other options here do offer.

That said, Spark Pay does offer great customer service, and its pricing is competitive. On the Go plan, there’s no monthly fee and transactions cost 2.65% + $0.05. The Pro plan has a $19 monthly fee, but your rates drop to 1.99% + $0.05.

SumUp

SumUp has been operating in Europe for several years now, but it’s only reached the US in the past year, which definitely makes it the newcomer. The app is overall solid, though more limited than the others on this list.

You do get a free mobile app and free virtual terminal, as well as a fairly unique tool: SMS payments where customers can complete a transaction by opening a link sent through text message.

However, you can only process on one device at a time, so while you can create sub-user accounts, there’s not much of a benefit. SumUp does support multiple tax rates, but tax rates can’t be deleted when they are associated with an item. You’ll have to delete the item first.

The lack of discounts and the ability to make some changes through the dashboard are a bit disappointing — but the fact that you can manage everything from within the app is a major improvement over a platform like Clover Go, which requires you to make many adjustments in the web dashboard.

There are no recurring billing or card-on-file options, though, and no invoicing, either. That said, SumUp charges a simple 2.75% per transaction, and 2.9% + $0.15 for virtual terminal and SMS payments, with no monthly fee.

Final Thoughts

I’m usually pretty hesitant to recommend one product above all others without consideration of the differences from one business to the next. And that’s true here. If you really only have simple needs, any of the options on this list will serve you well. As your needs get more advanced, it’s definitely worth looking at more advanced setups such as Square or PayPal Here. And as always, the price is a major consideration. Make sure you run the numbers and are confident the rates you will pay are competitive.

The good news is that all of these services have a no-monthly-fee option so you can try them out with no risk. I encourage you to check out our complete reviews of any credit card processing app you’re interested in pursuing. And if you have questions, I encourage you to reach out. We’re always here to help, so feel free to leave us a comment!

The post The Best Credit Card Processing Apps For Mobile And Service Businesses appeared first on Merchant Maverick.

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Merchant’s Help guide to Stopping Card-Present Fraud

Charge card fraud, for most of us, invokes 1 of 2 scenarios. First, you will find data breaches à la Target or Lowe’s, where thieves connect to the system and steal charge card figures, names, along with other data. Beyond that, you may consider online card fraud, where shady people use stolen card figures (sometimes acquired in data breaches such as the formerly pointed out ones) to purchase a lot of stuff online. Even though you start digging into ways retailers can safeguard against card fraud, the overwhelming quantity of sources are directed at eCommerce an internet-based transactions, and the ways to prevent fraud there. There isn’t many details whatsoever about card-present fraud — that’s, transactions which are still not legitimate but occur inside a store, in which the card is swiped or dipped.

Overall, card-present charge card fraud is really a smaller sized bit of the cake than online fraud, that is likely why there is a disproportionate quantity of sources regarding internet-based cons. But it’s still necessary that retailers take each step they are able to to safeguard themselves. Which includes being aware of what risks you face within the brick-and-mortar atmosphere.

Table of Contents

Understanding the kinds of Charge Card Fraud

I’m penning this mostly to describe how to prevent fraud. I shouldn’t enter into all the various scams and methods that fraudsters use because you can write a little ebook about them. But generally, all charge card fraud (or bank card fraud) falls into 1 of 3 groups:

  • Cloned/Counterfeit Card Fraud: This is a kind of card-present fraud in which the fraudster forges a card with another person’s username and passwords and uses it inside a brick-and-mortar storefront.
  • Lost/Stolen Card Fraud: This kind of fraud is most familiar to consumers, and sure concern for a lot of retailers: a fraudster using another person’s card to create a transaction (frequently a really large one). This could happen online or perhaps in a store.
  • Card-Not-Present Fraud: Any kind of fraudulent online transaction falls into this category, simply due to the credit card not swiped or dipped. While there are several tools retailers may use to mitigate this risk, generally, it’s the easiest kind of fraud to commit. CNP fraud comprises nearly all card fraud, especially as EMV makes it harder to clone or counterfeit cards.

It is also important to note there’s a couple other kinds of fraud retailers have to be cautious about:

  • ATM Fraud: Scammers uses a couple of different tactics to obtain either money or card data from ATMs, including installing card skimmers (we’ll discuss individuals inside a bit) or deliberately blocking the money distribution mechanism. For those who have an ATM on-site at the business, be familiar with it as being a possible target.
  • Check Fraud: Checks are certainly decreasing. Actually, based on the Fed, the entire quantity of check payments produced in the U.S. fell typically 6.2 percent each year from 2000 to 2012, and from 2012 to 2015, fell by typically 4.4 % yearly. In 2015, consumers authored as many as 19.4 billion checks, that was a complete loss of 3.1 billion over 2012 figures. However, the Given also reports that the need for the checks risen has elevated — and therefore while individuals are writing them less often, they have a tendency to create them for more and more bigger purchases. Check acceptance isn’t universal, however if you simply do accept checks, utilizing a digital service for example Telecheck to instantly convert payments and flag dangerous transactions is a great way to safeguard yourself.

I am not likely to really enter into CNP fraud, as the majority of it requires running an eCommerce store. This short article won’t cope with ATM or check fraud in-depth simply because they don’t affect nearly all retailers. Our focus is particularly card fraud at brick-and-mortar stores, whether it is debit or charge card related.

The Charge Card Fraud Game-Changer: EMV

Before the EMV liability shift required place, fraud experts were predicting that CNP fraud would increase with a tremendous amount in america because other nations that implemented EMV observed an identical pattern, and individuals predictions have held true. Credit monitoring agency Experian reported a rise of CNP fraud totaling 33% when compared with 2015.

One of the reasons for elevated CNP fraud may be the development of shopping online. As increasing numbers of use online, the entire amount of charge card fraud is likely to increase. However, the rollout of EMV can also be playing a job within the increase of card-not-present fraud.

Particularly, the chips in EMV cards tend to be harder to repeat and reproduce than the usual magstripe card (which is dependant on technology straight from the 1970s). So rather, scammers are switching to purchasing online, where you can find no techniques to physically authenticate the credit card. Rather, most security checks depend around the CVV or AVS checks to recognize suspicious transactions.

That’s not saying cloned or counterfeited cards aren’t an issue whatsoever. They’re. EMV market saturation in america isn’t 100%, as well as if consumers have nick cards, that does not mean retailers are outfitted to simply accept nick cards. As well as if counterfeited card fraud is decreasing, there’s still lost/stolen card fraud to bother with.

6 Methods to Reduce Charge Card Fraud in Brick-and-Mortar Stores

So, your house you need to antiques store. Someone is available in to purchase some furniture for his or her new house. Two days and a few 1000 dollars later, you discover the card used would be a stolen card. The cardholder has filed a chargeback, meaning the entire transaction amount continues to be deducted from your bank account and put on hold pending analysis. Not just that, but you’re the actual merchandise, effectively doubling whatever is lost.

Regrettably, this could and does occur to retailers. Although some industries are much more likely than the others to become victims of card fraud, any and each business should know the potential risks and take safeguards.

Which industries are most in danger? Based on an american Bank presentation, a few of the MCCs (merchant category codes, accustomed to identify the kind of services or products a business offers) which are most focused on fraud range from the following:

  • 5411: Supermarkets and Supermarkets
  • 5732: Electronics Stores
  • 5812: Dining Establishments and Restaurants
  • 5999: Miscellaneous and Niche Stores
  • 4722: Travel Agencies and Tour Operators
  • 5311: Shops
  • 5661: Shoe Stores

Exactly what do you need to do to safeguard yourself? To begin with, you should know of whether you’re in the kind of industry that’s enjoy being focused on card-present fraud. A dry-cleaning business or perhaps a cafe? Most likely less. An gallery, a furniture or electronics store, or other business where consumers can drop hundreds or 1000s of dollars all at once? Most certainly a target.

Second, make certain you implement procedures and policies that will help mitigate fraud. We’ll begin with a very fundamental one, that we suspect lots of retailers overlook:

1. Check Network Guidelines for Card Acceptance

I mention mtss is a lot — by a great deal, I am talking about in nearly every review I write — but READ YOUR CONTRACT. Understand what you’re signing and just what rules and needs you’re being certain to. It’s important to maintain your credit card merchant account open so that you can keep accepting cards. But it’s also wise to consider the merchant guidelines the various card systems (Visa, MasterCard, American Express and Uncover) offer. They often cover guidelines for example displaying marks of acceptance, surcharging, and minimum/maximum transaction amounts. Hidden in individuals guidelines will also be policies which cover safety measures you’re likely to take and list of positive actions if you feel a card is fraudulent or even the transaction otherwise seems suspicious.

To help you get began, I suggest checking the Visa card acceptance guidelines, in addition to MasterCard’s rules.

2. Secure Your POS and Hardware

What is POS

In addition to the threats resulting from counterfeited or stolen cards, it’s also wise to be familiar with the opportunity of an information breach. If a person has the capacity to access the body and compromise your customers’ private information, it may be devastating for both you and your business. Data breaches can occur in lots of ways.

Among the apparent ones is skimming, in which a fraudster installs a tool over your terminal or pin pad that captures the credit card data and stores it. Skimmers may take only seconds to set up and therefore are difficult to place unless of course you are aware how to acknowledge the twelve signs. Scammers may also result in a data breach by using adware and spyware in your POS system or else hacking it. They are more complex techniques in most cases directed at high-value targets, but they’re possible you should know of, particularly if you store any type of customer data.

PCI Compliance: What you ought to Know

Technically, PCI DSS compliance (usually just known as PCI compliance) isn’t just about POS systems. Sturdy your hardware, too. More often than not that’s lumped along with your POS, though, particularly if you come with an integrated solution.

PCI DSS means Payment Card Industry Data Security Standard. It’s a unified policy indicating the steps retailers have to take to secure their transaction data through hardware and also the POS system, laid by the PCI Security Standards Council. Retailers are sorted into certainly one of four levels with respect to the type and number of transactions yearly. Most small companies are Level 3 or Level 4, that have the least steps to consider to keep compliance.

There’s an excellent chance that, should you didn’t construct your system yourself, you’re already PCI compliant. Software and equipment vendors will need to go via a certification process when they handle payment card information. However, should you store any customer data (particularly in a database you develop and keep yourself) or route it via a website you maintain yourself, that won’t function as the situation. You need to speak to your credit card merchant account provider or software vendor by what steps are needed to make sure your compliance. You might be needed to accomplish quarterly scans or self-assessments.

PCI compliance could be summarized into 12 points of action lumped into six groups. The reason here is obtained from the PCI SCC Quick Reference Guide.

Build and keep a safe and secure Network
1. Install and keep a firewall configuration to safeguard cardholder data.
2. Don’t use vendor-provided defaults for system passwords along with other security parameters.

Safeguard Cardholder Data
3. Safeguard stored cardholder data.
4. Secure transmission of cardholder data across open, public systems.

Conserve a Vulnerability Management Program
5. Use and frequently update anti-virus software or programs.
6. Develop and keep secure systems and applications.

Implement Strong Access Control Measures
7. Restrict use of cardholder data by business have to know.
8. Assign a distinctive ID to every person with computer access.
9. Restrict physical use of cardholder data.

Regularly Monitor and Test Systems
10. Track and monitor all use of network sources and cardholder data.
11. Regularly test home security systems and procedures.

Maintain an info Security Policy
12. Conserve a policy that addresses information to safeguard all personnel.

For retailers, I believe the important thing takeaway is the fact that PCI compliance (and knowledge peace of mind in general) isn’t a one-and-done type deal. You have to positively take preventive steps and monitoring the body, from updating software and firmware when updates seem to watching the employees and ensuring they’re educated on card security issues and proper procedures to handle.

Beyond PCI Compliance: How to maintain your POS (and knowledge) Secure

Learning all the intricacies of PCI compliance is most certainly challenging for anybody, the experts! However, since, data security isn’t something take proper care of once rather than consider again, you need to certainly take a moment to discover security.

Two big terms at this time are file encryption and tokenization. PCI DSS signifies that the POS and hardware should secure transactions. There’s two major kinds of file encryption, point-to-point and finish-to-finish.

Tokenization isn’t yet a business standard, though it’s increasingly common, mostly because of NFC/contactless payments. Tokenization generates a 1-time-use card number and substitutes it for that actual card number. Even when information is breached and decrypted, that tokenized number is useless to scammers. That’s just how Apple Pay and Samsung Pay and Android Pay keep the card data secure: Your card number is kept in a cloud vault which your phone have access to. Your phone generates the token and passes it to the system, which verifies the amount.

If you would like to understand more about how you can secure your POS, check out our POS 101 article around the subject, in addition to PC Mag’s article regarding how to place skimmers.

3. Capture Signatures, Even on Low-Value Transactions

accept mobile credit card payments

Credit (and debit) cards possess a space around the back for customers to sign them because, theoretically, retailers are meant to compare that signature towards the one around the receipt as a way of verification. The truth is couple of or no retailers really do that.

Within the interest of speeding along transactions, particularly in environments where customers be prepared to be interior and exterior the checkout fairly rapidly, the credit card systems have relaxed their guidelines with no longer need a signature on all transactions. Low-value transactions (under $25 or $50 with respect to the network) frequently waive the signature requirement.

mPOS systems — Square, PayPal Here, SumUp, etc. — plus some POS systems frequently allow retailers to disable signatures on low-value transactions. For mPOS systems, the brink is generally $25. For full-fledged POS systems, that threshold may also be in the merchant’s discretion.

Realistically speaking, quick-serve cafes and restaurants, supermarkets, etc., where you’re likely to encounter low-value transactions, aren’t an enormous risk. And also the losses, unless of course you’re experiencing a huge string of fraudulent transactions, are minimal. It isn’t that you simply absolutely must enable signatures on all transactions to safeguard yourself. That’s not true. However if you simply want to maximise your protection out on another mind the additional time to gather a signature throughout the checkout phase, you are able to enable them.

For top-value transactions, you need to absolutely be collecting signatures on everything. Actually, for large transactions, signed invoices are an easy way to safeguard your company and reduce the chances of chargebacks.

4. Request Customer Identification

Some consumers, rather of filling out the backs of the cards, decide to write “SEE ID” for the reason that space. This informs retailers they ought to request a photo ID and compare it towards the name around the card.

A great practice. Not every retailers get it done, especially with increasingly more consumer-facing PIN pads and terminals in which the cashier never handles the credit card.

But there’s only one small problem:

A merchant can ask to determine a photograph ID for any transaction, but legally, the customer isn’t obligated to supply it. Visa’s guide, 5 Important Visa Rules That Each Merchant Ought To Know, explains it such as this:

“A Merchant may request cardholder identification inside a face-to-face atmosphere. When the name around the identification doesn’t match the name around the card, the merchant could decide whether or not to accept the credit card. When the cardholder doesn’t have, or perhaps is reluctant to provide, cardholder identification, the merchant should recognition the credit card should they have acquired evidence of card presence, a legitimate authorization, along with a valid signature or PIN.”

Therefore if a person provides an ID that does not match the name around the card, the merchant can pick to say no the transaction. When the customer will not offer an ID or doesn’t have one, Visa’s rules condition that you ought to process the transaction, provided you will find the card in hands plus they sign or enter their PIN.

That stated, requesting ID continues to be generally a great policy. Just be familiar with the credit card systems acceptance rules (see point #1 above).

5. Avoid Keyed Transactions

It’s story time!

A lengthy, lengthy time ago (OK, a lot more like eight years back), after i labored like a cashier somewhere that shall ‘t be named, I recall from time to time getting to place a card inside a plastic grocery bag and swipe it to obtain the POS to see it. I’m still unsure why this labored, however it did. Them which had this issue were usually old and worn — sometimes worn to the stage the elevated figures weren’t as elevated because they must have been, and also the whole card appeared thinner, even extended. They often left worn-lower, overstuffed wallets, therefore i just generally assumed the put on evolved as the result of in which the card was stored. Sometimes, though, even that didn’t work, since the card might have a split inside it within the magstripe or it simply wouldn’t read. In individuals cases, I could (and did) by hand go into the card.

I do not determine if the cards I processed by doing this were fraudulent, but I know since it was a danger. Card network guidelines, in addition to other security experts, suggest that you inspect the physical card for indications of damage or tampering before you decide to process a transaction. Broken cards — particularly if it normally won’t swipe — can (but don’t always) indicate counterfeit or cloned cards. Entering the transaction means the POS does not have to physically look into the card, because it’s treated like a card-not-present transaction.

First, keyed transactions always are more expensive than swiped or dipped ones. PayPal and Square both charge 3.5% + $.15, that is well over the 2.7% and a pair of.75% (correspondingly) they charge for swiped or dipped transactions. Traditional merchant services may also assess a greater fee, although it varies more.

Second, getting a lot of keyed transactions is frequently a warning sign for a free account provider. It shows that someone may be processing cards that aren’t even physically contained in the shop, that is, clearly, a large no-no. A particular quantity of keyed transactions should be expected, but a lot of can result in a hold, freeze, or termination.

So your very best to prevent entering card information, because this will safeguard your company. Most security experts also recommend searching at the processing background and making note associated with a patterns — whether these transactions happen in a particular time consistently, or maybe one cashier is much more vulnerable to keyed transactions than the others.

6. Change to EMV Acceptance

EMV credit card terminal

Should you not curently have a POS and hardware that accepts EMV transactions, it’s about time you are making the switch. No exceptions, no excuses. Yes, it may appear costly, you will find, the EMV rollout continues to be rather slow partly due to the backlog on hardware and software certifications. But there are many EMV-certified hardware and software open to retailers. If you were postponing the switch, just start it already. It’s probably the most important methods for you to safeguard your company from charge card fraud.

Like I stated earlier, it’s a great deal harder (not possible, but very, very hard) to repeat a nick card. That is why many scammers are relocating to CNP fraud. On October 1, 2015, liability for fraudulent nick card transactions shifted in the banks to “the least-secure party,” which within this situation means retailers who aren’t outfitted to simply accept EMV.

Remember the instance I began with, using the antique furniture. Repeat the person purchasing the products have a counterfeit nick card. However, you, the merchant, have only a magstripe readers. If you’d had an EMV readers, it could have been in a position to identify the card was fraudulent. But rather, you processed the magstripe transaction — which leaves you entirely responsible for the entire mess.

The problem could be different when the fraudster were built with a stolen EMV card and tried on the extender in an EMV terminal. For the reason that situation, the liability would fall around the card provider.

Should you haven’t already, get EMV-capable card-readers and make certain your POS is EMV certified, too. It’s absolutely worthwhile, and every one of our top-rated merchant providers offer EMV acceptance, just like our top-rated mPOS providers.

Conclusion: How Large a danger is Card-Present Charge Card Fraud?

Realistically, retailers who sell online face an even bigger threat than brick-and-mortar retailers. That’s largely because of the EMV liability shift and rollout of nick cards. Unfortunately, even nick cards can’t safeguard against stolen or lost card fraud. And until EMV market saturation hits 100%, there’s still a danger of accepting counterfeit cards.

Fortunately, you are able to take measures to safeguard your and yourself business. Understanding is power, especially within the payments industry. So review your processing contract, the credit card networks’ laws and regulations, and also the legal matters affecting your industry. Make certain that you simply keep the POS secure, out on another overlook simple defenses for example collecting signatures or requesting IDs, and keeping keyed transactions low. Applying EMV, should you haven’t already, is among the most critical methods for you to safeguard your company.

If you have questions, we’d like to respond to them! Take a look at our comment guidelines by leaving your question inside a comment. Thanks for studying!

Melissa Johnson

Melissa Manley is definitely an independent author and editor who loves e-commerce, internet marketing, technology, and social networking. Not so long ago, she earned a journalism degree, but she continued to uncover that they could work at home, researching, editing, and covering the items she found most fascinating. When she’s not associated with her laptop, Melissa usually can be based in the kitchen, studying a magazine, or doing something from the nerdy persuasion.

Melissa Johnson

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Top 7 Square Alternatives

square-alternatives

Created by the one and only Twitter cofounder Jack Dorsey, Square is definitely an innovative mobile payment system that allows your business to accept charge card payments with an iPad, iPhone, or Android device. Along with the disposable Square Readers, a little plastic charge card readers that connects to the audio jack of the supported smartphone or tablet, the Square Register application turns a mobile phone into an item of purchase. It’s very awesome, yes, but it is also a problem. Due to the way Square has changed how huge numbers of people purchase things – and obtain compensated for things – I’d argue that it is revolutionary.

Certainly, Square may be the greatest player in mobile payment processing. Since its 2009 founding, the company’s groundbreaking concept and stylish design have attracted greater than 3 million users and $10 billion in annual payments. Quite simply, they’re a problem.

A few of the stuff you most likely love about Square include its fast and free setup and it is easy-to-use interface. Additionally to serving as an item of purchase, Square facilitates payment processing. Square doesn’t have monthly usage charges, charging merely a flat 2.75% fee for magstripe card transactions, nick card transactions, and NFC payments.

Despite its immense recognition, Square isn’t without its downsides – in fact, Square’s flaws aren’t any small matter. Troublingly, Square offers hardly any when it comes to customer support, and lots of business proprietors have were not impressed with Square withholding funds and shutting lower accounts without a good enough reason. Not awesome, Square. Not awesome.

While Square was among the only mobile payment games around 5 years ago, this really is, fortunately, no more the situation. If you wish to offer customers mobile payment options utilizing a service having a more merchant-friendly status, you can look at out several robust Square alternatives that suit this profile. Heck, even when you’re pleased with Square, you may consider offering yet another mobile payment option to give customers more options. The following is my breakdown from the top Square alternatives.

Table of Contents

1. Clover Go

Clover-go-logo

Clover Go (see our review) may be the mobile form of the super-popular Clover suite of POS products. Clover Go is simple to use, nick card-compatible, and uses an actual credit card merchant account. And even though it’s a mobile POS, you still obtain access to Clover’s back-office reporting featuring like customizable tax, email/SMS receipts, featuring from inventory management softwares. You may also use Clover Go as an additional “on-the-go” payment option additionally for your primary Clover Station.

As the other Clover POS systems (Clover Station and Clover Small) need you to purchase proprietary hardware, Clover Go enables you to make use of an iPhone or Android phone, much like Square. The price of Clover Go’s EMV-compliant headphone jack card readers varies somewhat with respect to the reseller, however, you will be able to have it for under $100. The price to use and process payments with Clover Go also depends upon the reseller – for instance, if you choose to opt for Dharma A Merchant Account for the credit card merchant account, you will get interchange-plus prices at .25% + $.10 plus a $25 fee every month, along with a $10 fee to make use of the Clover Go application.

Why is Clover Go much better than Square?

The primary advantage of Clover Go compared to Square is you obtain a real credit card merchant account with Clover Go, as opposed to the aggregate account you receive with Square. This equates to better account stability and reduced chance of account freezes, withheld funds, along with other such headaches. The only real caveat is that your merchant account provider must use First Data since it’s backend processor. Companies with greater sales volumes will also be able to save cash with Clover Go.

2. iZettle

izettle-logo

iZettle (see our review) is really a nick card-based mobile payment service that presently serves retailers in Norway, Norwegian, Denmark, Finland, the United kingdom, Germany, The country, Mexico, and South america. Particularly absent out of this list may be the US. However, with nick card usage increasing, iZettle’s expansion in to the US might be imminent. (If right now you’re thinking, “What the heck is really a nick card?” take a look at our article Do You Want an EMV Nick Card Terminal?)

To process mobile payments, iZettle offers two separate mobile charge card readers, including one which works together with nick and PIN cards, and the other for nick and signature cards. Within the United kingdom market, card readers vary from £20 to £59 – about $32 to $93 for all of us Yanks.

The primary draw of iZettle is its low ultra-low processing charges, which start just 1.00% for top-volume retailers. As the cheapest volume retailers pays 2.75% per transaction, when you hit £2,000 in card payments inside a month, your fee begins to drop, going as little as 1.00% should you accept greater than £40,000/month in payments.

Some options that come with iZettle’s mobile point-of-purchase (POS) application include:

  • Inventory library
  • Cash drawer/receipt printer connectivity (receipts may also be sent by email)
  • Cash/card acceptance
  • Online reporting tools
  • Multiple staff accounts

Around the customer support side, iZettle offers email support and make contact with support during week day business hrs. As with all the Square competitors about this list, iZettle has less complaints about its customer care than does Square.

Why is iZettle much better than Square?

When compared with Square, iZettle offers both superior prices and reliability. It doesn’t offer you as numerous features, however, you cannot beat iZettle’s prices if you’re a greater-volume merchant. Although this Square alternative isn’t yet offered in america, it’s a good option for retailers within the markets it serves and could soon be considered a strong domestic competitor for Square too.

3. PayPal Here

paypal-here-logo

Everyone knows PayPal, but have you ever heard of PayPal Here? PayPal Here (PPH- see our review) is PayPal’s popular mobile processing service having a model much like Square’s. It takes a PayPal Business or Premier account, however the upgrade from the personal PayPal account is free of charge, out of the box the application and card readers.

Additionally to accepting swiped or keyed-in charge card payments, PPH’s readers may use image capture (i.e., your smartphone’s camera) to deposit checks, and also the service also accepts PayPal payments, as you may expect. It really works with many Apple devices and a few Android and Home windows devices.

PPH comes with the standard features (mobile card processing, mobile POS, free mobile application, free audio jack swiper), and also the service also provides the benefit of access immediately to funds by your PayPal account.

Exactly why is PayPal Here much better than Square?

PPH provides more features as well as an overall superior consumer experience in comparison with Square, or when compared with nearly any standalone mobile processing service. PPH also offers lower charges (2.7% per card swipe, with no fee every month) when compared with Square.

Like the majority of other mobile payment solutions, PPH also comes with much better customer care than Square. PPH uses PayPal’s primary support system, including several choices, varying from phone support to some Twitter account that fields service and support questions Monday through Friday, 9:00 AM to five:00 PM Central Time. (You are able to tweet the questions you have to @AskPayPal.)

4. Inner Fence

innerfence-logo

Launched in 2007, Inner Fence (see our review) has got the distinction to be better established than Square. Inner Fence was the very first developer from the mobile processing application and virtual mobile terminal, though the organization doesn’t really process mobile payments. Let me explain.

With Inner Fence, users can setup using their own credit card merchant account and gateway. This selection offers retailers greater stability but has a greater cost tag. The fundamental service, which utilizes Stripe for that payments and gateway, costs $39 monthly, plus 2.9% + $.30 per transaction. You get one free card readers and extra ones are $79.

“Honesty” and “transparency” are also words you generally hear in colaboration with this small but sturdy a merchant account provider. “Value” may not be a thing you’ll hear, but having the ability to link your overall credit card merchant account can offer exceptional account stability and reliability.

Why is Inner Fence Much better than Square?

Square users come with an aggregate credit card merchant account, meaning they share it along with other people that use the service, while Inner Fence users have the benefit of getting their very own dedicated credit card merchant account. As pointed out, this means improved service stability for Inner Face users. Finally, though I’m most likely beginning to seem just like a damaged record, better customer support (provided over the telephone and via email) is yet another edge on Square. The squeaky-clean status Inner Fence is promoting in the last seven years is yet another reassuring method in which Square is different from its predecessor.

5. Spark Pay

Spark-pay-logo

Spark Pay, (see our review) the mobile processing arm of Capital One, has gotten hardly any press since its 2013 re-launch and rebranding (Spark Pay was formerly SAIL, of VeriFone). Nonetheless, it’s a solid, straightforward mobile payment service that may potentially help you save lots of money.

Like Square, Spark Pay offers mobile debit and charge card processing using a free magstripe card readers that connects to your phone’s headphone jack (subsequent readers can cost you $13/readers). By adding a $250 wired payment terminal, you may also accept NFC payments and EMV nick cards.

With regards to features, Spark Pay’s are not as robust as Square’s. However, some helpful functions you’ll get with Spark Pay’s mobile application include online reporting/analytics, inventory reporting, cash drawer connectivity, and customizable electronic receipts, amongst others.

Spark Pay offers retailers two different fee schemes, such as the Go Plan (pay-as-you-go) and also the Pro Plan (fee every month). I would suggest the professional Plan if you’re a greater-volume merchant (processing about $2,000+ monthly). The advantages of the greater-volume plan are that you simply pay less for every transaction – 1.99% + $.05 per swipe for that compensated plan versus. 2.65% + $.05 for that free plan. This can be used handy calculator to find out which plan would be perfect for your company.

Why is Spark Pay much better than Square?

Spark Pay’s Pro Plan can potentially save greater-volume retailers lots of money over Square, considering that your average sale is at least $7 approximately. Even though you choose Spark Pay’s free “Go” plan (no fee every month), the two.65% + $.05 per-transaction fee continues to be less than Square’s for transactions $50 and bigger.

Users of Spark Pay also receive solid customer care, provided over the telephone during business hrs. Coupled with prompt email support (one-day turnaround or fewer) and responsive Twitter support, Spark Pay includes a much better overall support experience than Square, that is crucial because of the greater quantity of SNAFUs that occur with mobile payments when compared with traditional processing.

6. Intuit GoPayment

Intuit GoPayment

Intuit is better noted for its benchmark accounting software QuickBooks, but the Intuit GoPayment (see our review) mobile payment processor is absolutely nothing to shake a stick at either. Additionally to supplying you with the advantages of a bona fide merchant account, GoPayment is a superb mobile POS system for businesses that use and love QuickBooks, because it offers seamless QuickBooks integration.

On the top of QB features, Intuit provides you with advanced functions like invoicing, camera checking to capture card information (although, in a greater processing charge), recurring billing options, and also the ability to process cards from the web browser via an online terminal.

How’s Intuit GoPayment much better than Square?

Unlike Square, Intuit GoPayment gives you your personal dedicated credit card merchant account, that can bring with it the benefits we’ve always discussed. GoPayment’s pay-as-you-go processing rate of 2.4% + $.25 per swipe can also be cheaper for retailers, with the exception of the situation of really small transactions (as well as for a $19.95 monthly charge, you can aquire a reduced rate of just one.6% + $.25). Finally, Intuit GoPayment has more advanced features than Square, including full-fledged QuickBooks integration. Live chat support is another plus.

7. Vend POS

vend-logo

Although it is web-based, Vend (see our review) is really a effective, full-fledged POS system, such which you can use it to exchange a conventional Home windows-based POS system at the brick-and-mortar store. Vend is another viable option to Square should you presently make use of the Square Stand iPad setup. Additionally to running with an iPad, you may also use Vend from the internet browser, and that means you can process payments from any web-connected device, wherever you’re.

Processing charges with Vend depend around the payment processor you utilize for instance, if you are using Vend with PayPal, you’ll obtain a rate of two.7%. Vantiv is another payment processing option. Vend has a monthly fee unless you choose its limited free plan, however the numerous advanced POS top features of Vend make its $59/month fee worthwhile – these functions include advanced inventory management, 24/7 email support, offline mode, eCommerce functionality, loyalty program features, customer management, and much more.

Why would you use Vend over Square?

For really low-volume businesses that process all sales from the smartphone, Square may be the more sensible choice. However, iPad-based Vend is really a viable Square alternative for growing businesses that are looking to upgrade from the casual “mobile POS” like Square. Simultaneously, Vend is a less expensive middle-of-the-road option when compared with a much more advanced iPad POS like Revel Systems or Lightspeed Retail.

Conclusion

As a small company, it’s usually best to have options with regards to mobile payment acceptance. The range of different mobile payment and mobile POS providers implies that it’s not necessary to stick with Square if it is not meeting your requirements sufficiently. The good thing is you do not have to stay with only one mobile payments processor: no companies discussed in the following paragraphs have contracts or early termination charges, so that you can test them out out with no risk, or perhaps use a number of them concurrently to determine what one you want best – just observe that with Intuit GoPayment, you have to jump via a couple small hoops to cancel your bank account (on that within our Intuit GoPayment review).

If you wish to perform a little further comparison shopping before registering for a mobile payment processor, read or comparisons of Spark Pay versus. Intuit GoPayment or Square versus. PayPal Here. Or, compare the merits of using Square versus. a free account.

So what’s your preferred Square alternative? Tell us within the comments!

Shannon Vissers

Shannon is really a freelance author and editor located in North Park, CA. Shannon type of wants an apple iphone 7, but she’s not necessarily prepared to lose the headphone jack.

Shannon Vissers
Shannon Vissers

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