6 Best Credit Card Readers for iPhone and iPad 2020

Business owners want a credit card reader that charges low rates, has low (or no) upfront costs, and also provides good customer service for issues like chargebacks. Unfortunately, figuring out how much you’ll pay in fees requires a little math. It depends on your monthly sales volume, as well as the average dollar amount of each sale. iPhone and other mobile card readers need to be portable with user-friendly apps and offline payment options.

The best credit card readers for iPhones are:

• Square: Best overall credit card reader for iPhone and iPad
• PayAnywhere: Low-cost option for businesses selling under $10,000 monthly
• Payment Depot: Best for businesses that sell over $10,000 a month
• Shopify: Best for businesses that sell online in addition to in-person transactions
• EMSplus: Best for microbusinesses with transactions over $25
• PayPal Here: Best for occasional sellers needing a reliable option

Not sure which iPhone credit card reader is best for you? Take this 3-question quiz for our recommendation:

 

How We Evaluated Credit Card Readers

First and foremost, business owners want to know exactly how much they’ll pay in processing fees. Each company charges fees in different ways. For example, Square charges 2.6% + 10 cents per transaction, whereas PayAnywhere charges 2.69%. While it may not seem like a big difference, that extra 10 cents can add up very quickly if you sell inexpensive items.

Likewise, some companies charge a monthly fee in exchange for lower processing rates. If you’re selling a relatively small amount (under $10,000/month), then it probably isn’t worth it. However, as your sales increase, companies like Shopify and Payment Depot become more competitive.

Thus, there’s two main factors that determine which credit card reader will give you the best rates:

1. The average transaction size when customers make a purchase, and
2. Your total amount of credit and debit card sales each month

Credit Card Reader Price Comparison

Using the graph above, you can compare processing fees across all six major companies depending on your average transaction size and monthly sales. Using the tabs at the top, you can see what your rates would be for $10, $25, $50, and $200 transactions. Then, on the chart below, you can see how much you’ll spend in processing fees whether you sell $2,000, $5,000, $10,000, or $25,000 each month.

Processing Fees Aren’t Everything

While this data weighed heavily in our recommendations, we also looked carefully at each company’s payment features, chargeback policies, hardware options and customer service. If you need an app that can process credit cards without an internet connection, or that can sync with your online store, that might take precedence over getting the lowest rates. Furthermore, some companies have high fees for chargebacks (like EMSplus and PayPal), which can end up costing you a lot more in the long run if you deal with chargebacks regularly.

Square: Best Overall Credit Card Reader for iPhone & iPad

Square offers competitive rates with no monthly fees or upfront costs, yet also provides reliability, security, and cutting-edge features, making it the best overall credit card reader for the iPhone. Depending on your sales volume and average transaction size, other providers can be more competitive. However, Square makes up for this with top-notch chargeback support, a suite of business management tools, and scalable hardware, should you need a full-fledged register in the future.

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Square Pricing

• Monthly fee: $0
• Swipe, chip, and contactless payments: 2.6% + 10 cents
• Keyed-in payments: 3.5% + 15 cents

Square iPhone/iPad Reader Costs

Square also has standalone payment terminals, cash drawers and receipt printers. Square iPhone App Features:

• POS App: Square’s POS app is packed with more features than all the other solutions on our list except for Shopify, which comes with a monthly fee. With Square, you can record both cash and card payments, add tips to each transaction, split sales between different payment methods, and send customer receipts via text or email. Square works offline, so you can accept card payments even without an internet connection.
• Business management: Square comes with additional features including invoicing, appointment booking, employee management, and customer email marketing. Furthermore, Square integrates with many other business programs, such as accounting and delivery management.
• Payout time: Square deposits funds into your bank account in one day (or two days if the transaction happens after your regular business hours). Instant transfers are available for a 1.5% fee.
• Chargeback policy: Unlike most credit card processing services, Square does not charge extra fees when a chargeback occurs; there is only the fee from the cardholder’s bank should the dispute be unsuccessful. They will notify you of a chargeback via email, and actually dispute it automatically should you forget or miss the deadline. It is highly recommended, however, that you add supporting documents via the Square dashboard, as this will improve your chances of a successful dispute.
• Customer support: Phone, chat, and email support are available Monday to Friday from 9 a.m. to 9 p.m. Eastern time.

Learn more about Square’s ecommerce and business management features by visiting our full Square Payments review.

PayAnywhere: Best for Vendors With Monthly Sales Below $10,000

PayAnywhere charges a flat rate of 2.69% for credit card transactions, which makes it great for businesses that sell inexpensive items. For example, if your average transaction size is $10, PayAnywhere will save you about 25% in processing fees compared to Square, which charges 2.6% + 10 cents per transaction.

In addition, PayAnywhere is one of the only providers that gives you a free EMV (chip) card reader, which is much better for preventing chargebacks. However, PayAnywhere has a different, less transparent pricing structure for businesses processing over $10,000 monthly, making it a good option for sellers under that threshold.

Visit PayAnywhere

PayAnywhere Pricing

• Monthly fee: $0
• Swipe, chip, and contactless payments: 2.69%
• Keyed-in payments: 3.49% + $0.19

PayAnywhere iPhone/iPad Reader Costs

PayAnywhere also has standalone payment terminals, cash drawers, and receipt printers.

PayAnywhere Features

• POS app: The PayAnywhere app gives you all the main features you expect. Customers can add tips and sign digitally. You can email, text, or print receipts using a compatible printer. The app works offline, so you can swipe credit cards without an internet connection.
• Online payments: Send invoices online, or set up recurring payments with autopay.
• Payout time: PayAnywhere deposits funds into your bank account in one business day.
• Chargeback policy: PayAnywhere notifies merchants of chargebacks via email. There’s an online portal to dispute the chargeback and attach supporting documents. Unlike most credit card processing services, PayAnywhere does not charge any automatic fees, although there is a $25 fee if the dispute is unsuccessful.
• Customer support: Phone, chat, and email support are available Monday to Friday from 8 a.m. to 8 p.m. Eastern time. During my evaluation, my questions were answered immediately

Read our full PayAnywhere review to learn more about the iPhone credit card reader features.

Payment Depot: Best for Businesses Processing Over $10k Per Month

As a traditional merchant account provider, Payment Depot is ideal for larger businesses because they have some of the lowest credit card processing fees available, especially if your average sale is over $25.

Although Payment Depot requires an application and a monthly subscription fee, each account also comes with a free SwipeSimple mobile account and account stability, meaning you’re much less likely to deal with frozen or delayed funds.

Visit Payment Depot

Payment Depot Pricing

• Monthly fee: $79
• Swipe, chip, and contactless payments: Approximately 0.84% + $0.26*
• Keyed-in payments: Approximately 1.17% + $0.26*

*We came up with this number by averaging the six most common types of credit and debit cards, and adding $0.10 (Payment Depot’s surcharge). Please note, the actual amount you’ll pay can vary widely. Interchange fees tend to be much lower for debit card transactions, and higher for premium credit cards.

Unlike the other services we reviewed, Payment Depot does not charge a flat transaction fee. They charge the interchange rate + 10 cents. The interchange rate is the actual fee the credit card or debit card issuer charges to process the transaction. It’s different for every type of card, such as Visa or American Express, and for different types of transactions such as swiped payments or keyed-in payments.

Payment Depot also has a basic plan that charges only $49, but has a higher transaction fee (interchange + $0.15), as well as premium plans that offer lower transaction fees.

Payment Depot iPhone/iPad Reader Costs

Payment Depot also has standalone payment terminals, cash drawers and receipt printers.

Payment Depot Mobile Features

• POS app: The mobile app is powered by SwipeSimple and it has all the main payment features you expect to see: SMS and email receipts, a basic item catalog and inventory tracking, tax settings, and tips. The mobile app works offline, so you can process transactions without an internet connection. You can also invoice customers, although it does not have ecommerce tools like Square or Shopify.
• Payout time: Payment Depot deposits funds into your bank account in one to two days.
• Chargeback policy: Unlike Square and Shopify, Payment Depot does not have a simplified chargeback dispute process. There are multiple website portals you will need to access to file and track your disputes. Payment Depot also charges a nonrefundable $15 chargeback fee.
• Customer support: Phone and email support are available 24/7. Payment Depot’s support team is highly rated by customers. During my evaluation I was connected immediately.

Read our full Payment Depot review to learn more about why Payment Depot is one of the most affordable credit card readers.

Shopify: Best iPhone Credit Card Reader for In-Store & Online Sales

Shopify is a leading ecommerce platform that includes a free mobile POS system with each account. Its credit card processing fees are competitive, but what truly makes Shopify stand out is the convenience. All online and in-person sales sync to your Shopify dashboard so your revenue, inventory and customer data is always up-to-date⁠—perfect for brick and mortar retailers that also sell online.

Visit Shopify

Shopify Pricing

• Monthly fee: $79
• Swipe, chip, and contactless payments: 2.5%
• Online and keyed-in payments: 2.6% + 30 cents

Shopify also has a basic plan that charges only $29 per month, but has a higher credit card processing rate of 2.7%. Similarly, there’s an advanced plan for $299 per month that offers a lower processing rate of 2.4%.

Shopify iPhone/iPad Reader Costs

Shopify also has full payment terminal kits, cash drawers, and receipt printers.

Shopify iPhone App Features

• POS app: Of all the providers on this list, Shopify has the best point-of-sale app. In addition to accepting payments, managing taxes, and adding tips, you can split sales between different payment methods, process full or partial refunds with store credit, and view detailed sales reports. Furthermore, Shopify integrates with over 2,000 different apps and programs. The main downside, however, is that Shopify cannot accept card payments without an internet connection.
• Ecommerce website: Shopify is one of the leading ecommerce platforms on the market. It gives you simple tools to create a professional web store as well as sophisticated inventory management, order fulfillment, and integrations to sell on Amazon, Facebook and Instagram.
• Payout time: Shopify deposits funds into your bank account in one to three days. Unlike Square and PayPal, there’s no same-day payouts.
• Chargeback policy: Like Square, Shopify has a good chargeback policy. You’ll be notified of chargebacks via email, as well as an alert in your Shopify dashboard. From there, you’ll be able to add evidence to dispute the chargeback. But even if you forget, Shopify will file the dispute automatically on the deadline using the data available in your system. There’s no fees to dispute a chargeback, but if unsuccessful there is a $15 charge.
• Customer support: Phone, live chat, and email support are available 24/7.

Learn more about Shopify’s advanced ecommerce and POS features in our full Shopify POS review.

EMSplus: Affordable iPhone Card Reader for Transactions Over $25

If you tend to sell more expensive items (over $25), and want a credit card processing company that doesn’t charge any upfront or monthly fees, then EMSplus is an option you’ll want to consider. It has some of the lowest rates for large transactions, but also has steep chargeback fees and a mobile app that is not as smooth or functional as Square or Shopify. For some, the low rates may outweigh any inconveniences. For others, the reliability and support of a more established provider might be worth the higher fees.

Visit EMSplus

EMSplus Pricing

• Monthly fee: $0
• Swipe, chip, and contactless payments: 2.25% + $0.10*
• Keyed-in payments: 3.5% + $0.15

*2.95% for Amex

EMSplus iPhone/iPad Reader Costs

EMSplus Card Reader Features

• POS app: EMSplus has the basic features needed to accept credit card payments, including tips, email receipts, and invoicing. Like other apps on our list, EMSplus has features to create product categories and items with pricing so that you can ring up sales by specific products. The app, however, does not have an offline payment mode, so you’ll need to be connected to the internet to accept payments.
• Payout time: EMSplus deposits funds into your bank account within two days.
• Chargeback policy: EMSplus provides an online portal to manage chargebacks. There is a nonrefundable $45 fee when a chargeback occurs, even if you successfully dispute the chargeback.
• Customer support: Phone, live chat, and email support are available 24/7. During my evaluation, I was always connected immediately to an agent and received helpful responses.

 

PayPal Here: Reliable iPhone Card Reader for Occasional Sellers

PayPal Here has basically the same credit card processing fees as PayAnywhere (2.7% vs 2.69%). This makes it great for businesses that sell inexpensive items. PayPal Here also has a lower rate for keyed-in transactions, accepts international cards, and offers same-day payouts. Plus, you can accept PayPal and PayPal Credit payments and manage invoices through the iPhone app.

Visit PayPal Here

PayPal Here Pricing

• Monthly fee: $0
• Swipe, chip, and contactless payments: 2.7%
• Keyed-in payments: 3.5% + 15 cents

PayPal Here iPhone/iPad Reader Costs

PayPal Here Features

• POS app: The PayPal Here app provides all the basic payment features: calculate sales tax, email receipts, and create a list of products for faster checkout. The app does work offline, so you can process payments without a credit card.
• Online payments: Like Shopify and Square, you can also PayPal to sell products online, combining your online and in-person sales data in one place. Additionally, you can send invoices, or set up recurring subscription payments.
• Payout time: PayPal deposits funds into your bank account in one day. Or, if you apply for a PayPal Business Debit Mastercard, you can receive your funds on the same day. Users should be aware that magstripe payments in excess of $500/week are subject to a 30-day hold. This can be remedied by using the chip or contactless reader instead.
• Chargeback policy: PayPal notifies you of chargebacks via email and gives you 10 days to respond through the resolution center portal. There is a $20 nonrefundable fee, even if you successfully dispute the chargeback.
• Customer support: Phone and chat support are available seven days a week from 9 a.m. to 9 p.m. Eastern time.

Read more about PayPal’s payment processing app in our full PayPal Here review.

Bottom Line

Of all the companies we reviewed, Square had the best balance of competitive rates (particularly for businesses that sell below $10,000 per month), is a great POS app, and offers solid customer support.

In the credit card processing industry, you hear many horror stories of steep chargeback fees, or funds getting frozen. While no company is completely immune from these issues, Square is considerably more reliable than its competitors, offering, for example, one of the best chargeback systems for vendors. Visit Square to create a free account.

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