Mobile credit card readers offer the ultimate flexibility to accept payments anywhere your customers are, from tableside to curbside and farmers markets to clients’ homes. You can use mobile scanners with smartphones and tablets or process in-person transactions without extra hardware via tap to pay.
To find the best mobile card reader for your small business, consider how features and functionality differ between basic card scanners and portable, hand-held terminals. In this guide, we explore the types of mobile card readers and terminals you can use with payment processing platforms and compare integrations, security, payment apps, and mobile point-of-sale (mPOS) software.
What is a mobile credit card reader?
A mobile card reader is a portable payment terminal that pairs with a smartphone or tablet, allowing small businesses to accept credit card, debit card, and contactless payments. It’s one of the standard options for setting up payment processing. Some mobile credit card readers have a dongle cell phone attachment (via audio jack), but most connect via Bluetooth. Mobile credit card scanners include hand-held POS devices and app-only solutions like tap to pay.
How mobile card readers work
Mobile credit card readers capture card data through magstripe or chip and transmit the information via Bluetooth or a charging port. The payment app requests bank approval, and then a series of steps follow to authorize the credit card so you can check out your customer.
Portable payment terminal functionality differs between smartphone-connected card readers and hand-held models. Mobile scanners are simple, and most processes occur in the payment app, not on the hardware. With all-in-one mPOS systems, you can enter transaction or loyalty details and view customer purchase history from the hand-held machine.
Types of mobile credit card readers
Payment processing providers typically offer virtual terminals or payment apps, Bluetooth-connected card readers, and hand-held units. Consider how costs and features differ between portable payment terminals to ensure the solution fits your needs, whether you’re just starting and new to credit card processing or a brick-and-mortar store adding mobile devices.
Mobile credit card machines and readers include the following options:
- Swipe readers: Magstripe-only card readers are less common and secure than chip readers (Europay, Mastercard, and Visa [EMV]-compliant hardware). These attach to cell phones for swiping credit and debit cards.
- Bluetooth chip/contactless readers: Many processors provide EMV hardware with near-field communication (NFC) technologies, which support mobile wallets and contactless payments. An EMV/NFC reader connects wirelessly to smartphones.
- Mobile POS terminals: Portable, hand-held machines offer POS functionality and may provide receipt printers, touchscreens, and barcode scanners. You can use smart readers without a mobile phone.
- Hand-held smart readers: Mobile card scanners support multiple payment methods and don't require a separate cell phone or tablet. These have fewer on-screen features than mPOS readers but cost less.
- Tap to pay on phone (no hardware): A tap‑to‑pay reader works on smartphones and doesn’t require hardware. This phone-only setup is an excellent, low-cost option for accepting mobile payments as an entrepreneur.
Benefits of using a mobile card reader
Connecting a mobile card reader to your phone can reduce transaction rates and improve customer experiences. For instance, some credit card processors charge card-not-present (CNP) fees when you pay via a virtual terminal or mobile app. But if you attach a card reader to your phone and customers swipe, dip, or tap, the rates are lower.
Some clients may feel uncomfortable sharing credit card information with (what appears to be) a personal cell phone. In this case, adding hardware can increase customer trust. Hand-held terminals feel more substantial and have large payment icons, showing consumers that the device is dedicated to payments.
When choosing a mobile payment solution, consider who will use the hardware and what features you need.
Fees to watch for in mobile processors
The top credit card processors offer interchange-plus and flat-rate pricing for mobile card reader fees. Flat rates are predictable but may cost more as your processing volumes increase. Interchange-plus fees vary by card type, payment method, and other factors, but as you process more, the costs generally decrease. Both models charge different rates for card-present (swipe, dip, or tap) and CNP transactions (manually keyed).
Consider the following when evaluating mobile credit card processing fees:
- Card reader swipe fee: In-person rates vary, but are usually the cheapest way to accept credit cards. Use a portable card reader to reduce credit card processing fees.
- Alternative payment methods: Compare fees for customers' preferred payment methods, such as QR codes (payment links) or invoice payments.
- Processing markup: Flat-rate fees include markup in the rate, whereas interchange-plus pricing itemizes costs so you can see what you pay to the processor and card networks.
- Monthly software costs: Some vendors include free POS software or virtual terminals, whereas others charge monthly fees.
- PCI program fees: Processors may charge fees for Payment Card Industry Data Security Standard (PCI DSS) programs, which help you maintain PCI compliance.
- Charge-backs: When buyers dispute a transaction, payment providers may add a fee to your account, and multiple charge-backs can increase your rates.
- Hardware lease fees: If you lease or spread hardware payments out over time, this cost increases your monthly cost of processing credit cards.
- Early termination terms: You may incur steep fees if you cancel your hardware or processing contract early.
Integrations with POS systems
A mobile card reader and payment app work well for solo vendors and pop-ups, but POS functionality provides additional benefits. Mobile POS systems include inventory-management tools for tracking multiple stock-keeping units and modifiers. You can sync inventory across online and in-person sales channels and integrate your POS with loyalty programs and accounting software.
If you outgrow a mobile reader-only setup, compare small business POS systems to find solutions that support portable, countertop, and online sales. Cloud-based POS platforms may offer more third-party integrations than mPOS solutions and include order and staff management features.
Security risks and how to avoid them
Accepting credit card payments on the go requires extra attention to security and compliance. However, using a mobile card reader to dip or tap cards is more secure than manually keying in information for CNP transactions. According to Clearly Payments, CNP transactions have about a 90% higher fraud rate than in-person card-present transactions.
All small businesses must adhere to the newest payment standards, whether processing cards via mobile readers or countertop machines. PCI DSS v4.0 was announced in 2022. It replaced PCI DSS 3.2.1 on March 31, 2024, and merchants were required to comply by March 31, 2025. The latest standard requires more robust security and ongoing assessments.
Follow these steps to stay secure and compliant when using mobile payment apps or card readers:
- Choose devices with P2PE encryption. Payment processors and hand-held terminals should offer point‑to‑point encryption (P2PE), which scrambles card data from the moment it’s captured.
- Activate multifactor authentication (MFA). Enable two-factor verification (or any form of MFA) to require a second form of identification, such as a one-time code, when logging into your payment app.
- Secure mobile devices. Set strong passcodes or use biometrics (face or fingerprint scans) on smartphones and tablets. Automatically install security patches and updates to reduce vulnerabilities.
- Disable unnecessary features. Turn off phone applications like screen recording that might capture card data, and never store credit card numbers on cell phones outside of the payment app.
- Treat smartphones like payment terminals. Update your phone policy for data security, and document steps for remotely restricting access and wiping sensitive apps if devices are lost or stolen.
- Scan systems and review user access. Perform regular vulnerability scans and make sure only authorized employees can access mobile payment data.
Top mobile reader and hand-held options for small businesses
The best mobile credit card readers for small businesses process transactions fast and enable seamless customer experiences. In addition to portable terminals and card scanners, most vendors offer tap-to-pay options, which don’t require hardware.
Consider the following mobile payment solutions:
- Helcim: Pair the Helcim POS app with a mobile card reader ($99), smart terminal ($349), or hardwareless tap-to-pay on iPhone to accept chip, dip, and tap payments.
- Merchant One: Choose from Merchant One’s audio jack or EMV-compliant device for phones or stand-alone SwipeSimple and Clover options.
- Square: The free mobile credit card reader comes with a headset jack or Lightning connector, whereas Square’s wireless version costs $59, and the hand-held POS terminal is $399.
- Clover: Use the Clover Go app on your phone with the Go card reader ($199), or run your business with the all-in-one Clover Flex ($749) or Flex Pocket ($699).
- Payment Depot: Choose from SwipeSimple, Dejavoo, and Clover models, or Payment Depot will reprogram compatible card readers or terminals for free.
- ProMerchant: Download the PayAnywhere app and use ProMerchant’s Bluetooth card reader with mobile devices, or take orders and payments with the larger Pax A920.
- Stax: Order mobile hardware from Stax, including a SwipeSimple reader for your iPhone or Android device, Dejvoo touchscreen models, or the Clover Flex.
- PayPal Point of Sale (PayPal Zettle): Get your first PayPal mobile card reader for $29, then $79 for additional devices, or select a portable terminal for $199.
How to choose the best mobile credit card reader
When choosing a mobile payment solution, consider who will use the hardware and what features you need. For phone-based setups, the virtual terminal or payment app is the star of the show and does the heavy work. Take time to test the app's functionality and read customer reviews.
For team members using portable mPOS systems or less-expensive payment terminals, it's important to consider how these devices look and feel when handled by customers. Request demonstrations to see the software in action, as this will provide a hands-on experience and a better understanding of its functionality.
Before signing a contract, explore the terms and rates for mobile credit card readers, payment methods, and contracts. While processors may offer free hardware, these often require long-term agreements that put you on the line for the total price if you or they cancel early. Lastly, choose a credit card processor that meets your expectations for customer support levels, reliability, and payout speeds.
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