Best card readers with app for iPhone and Android phones

At Mobile Transaction, we’ve spent the last decade testing mobile card readers to help you make an informed decision.

And I’m happy to say that the terminals I’ve tested and reviewed are more affordable and run smoother than the ones I used in retail years ago.

There’s now a good selection of contract-free, inexpensive card readers that connect with an Android or iPhone app (all in this comparison work with both).

We like this setup because the app often offers more features than traditional card machines – it’s a more flexible solution.

The card readers don’t typically have monthly fees, lock-in or complicated fees. Instead, you purchase it upfront and pay a fixed fee per transaction.

We know this is attractive for merchants who cannot commit to ongoing costs, and perfect for new businesses looking to start up quickly.

We also look at the app that comes with the card reader, as it may serve as your main point of sale (POS) system. Some card readers for phones only have a basic payment app, while others go beyond that with a product library, staff logins, payment links, etc.

So the best card reader is not just about build quality and Bluetooth connection – we also test the app, compare costs and see if it integrates with other tools.

If you want to accept contactless payments directly on your phone without a card reader, see our comparison of Tap to Pay solutions.

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Photo: Mobile Transaction

The card reader costs £19 + VAT and has no monthly fees or contractual commitment. All you pay is a fixed 1.69% per transaction for any type of card, or 0.99% for domestic cards (1.69% for international and commercial cards) with a £19/month subscription.

Buying it as a bundle with a stand costs £25 + VAT.

Solo Lite works with SumUp App, a simple POS system with a product library, user accounts, sales overview, payout reports and online payment options.

The app also sends email invoices or payment links, and allows you to set up a basic online store, display or print QR codes for payments and accept telephone payments through a virtual terminal (a rare feature from an app). Merchants can also sell and accept digital gift cards.

Accepted cards

What’s more, the free SumUp Mastercard links with your very own online Business Account with access to transactions the day after, weekends included. Otherwise, payouts reach your bank account within 2-3 working days.

For a more complex till, the Solo Lite reader can be used with the SumUp Point of Sale software. This has full-fledged retail or hospitality functions that also integrate with Xero and Sage for accounting and Wix, PrestaShop and WooCommerce for ecommerce.

Signing up  and ordering the card reader is easy and quick through the website. For more help, customer support is contactable on weekdays between 8am and 7pm and weekends between 7am and 5pm.

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Photo: Mobile Transaction

Square Reader only costs £19 + VAT, and the pay-as-you-go transaction rate is 1.75% for all card payments. There are no monthly fees or contract lock-in to worry about.

Unlike other card readers on this list, it has a 2-year hardware warranty. We’re not surprised, as we’ve had ours for years without trouble.

You can get a charging dock for £29 + VAT too, and connect the hardware with receipt printers, kitchen printers, cash drawers and barcode scanners.

The free Point of Sale app has enough features to serve most small businesses. Its inventory library tracks stock, and the till menu shows various product options and the ability to mark transactions for eat-in, eat-out, delivery or pickup.

You can schedule staff shifts, track breaks, export payroll data and analyse employee sales, and the app Square Team lets staff log their own hours. More employee features cost £20/month per location.

Accepted cards

There are also customer lists, sales reports, order management, invoicing and more in the app. Electronic gift cards can be sold and accepted, payment links created, QR codes generated for contactless selling, and even buy now, pay later payment credit option Clearpay is accepted.

Square’s browser dashboard has a free virtual terminal for telephone payments, an online store builder, detailed reports and options to subscribe to POS systems for retail, restaurants and a scheduling system. Square also integrates with much external software for e.g. accounting, online ordering and ecommerce.

Payouts reach your bank account the next day, including weekends and Bank Holidays as long as your bank allows fast transfers. Uniquely, there’s also an instant bank account transfer option for an extra fee of 1.5%, or free instant transfers to a prepaid Square Card (Mastercard) to use in shops and online.

Square’s customer support is available on weekdays between 9am and 5pm. You sign up online through a simple form, order the card reader and wait 3-5 working days for the delivery.

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Photo: Mobile Transaction

You pay a low fee for domestic, consumer Visa and Mastercard transactions (0.8% + £0.02), but higher fees for UK consumer Amex (1.7% + £0.02) and all other cards (2.6% + £0.02).

The keypad-less card reader looks functional and akin to a retro pocket gaming device in its plastic casing. We had some technical issues where it wouldn’t connect with the app over Bluetooth, but this was eventually resolved, and we received a free replacement.

Accepted cards

We tried the chat support available to Business Account users, but the support agents were rarely able to help. It took several days or weeks to fix any issue. Still, the app is regularly updated and bugs fixed, which can’t be said of certain competitors.

Overall, Revolut Reader could be a nice extra for those who need simple in-person payments in addition to payment links, team expense tools and a business account. Features are gradually added, for example a product catalogue for itemising bills and Tap to Pay in the iPhone app which weren’t there when we started testing it.

The Revolut POS iPad app also integrates with Revolut Reader and is included on all Business plans. We tried it and can say it’s mainly sufficient for small cafés with its simple table plans, food menus and service charges, but not anything more substantial.

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When using it, we found the card reader ergonomic, lightweight and sturdy. It comes in white or black and can connect with a till drawer, barcode scanner, receipt printer and optional charging dock keeping it in place on a countertop. I do think the new PayPal Reader looks smarter than the old Zettle Reader – the larger screen makes a difference.

The PayPal Reader works with the free POS app on most tablets and smartphones. It has a product library, transactions overview, basic sales reports and acceptance of cards (keyed or via reader) and cash. Still, the complete lack of new features in the app means we can’t recommend it as an advanced checkout.

Accepted cards

The card reader also integrates with other POS systems like Epos Now and Tabology, accounting like Xero and QuickBooks and certain ecommerce platforms.

But invoicing, payment links and QR codes have actually been removed from the PayPal Point of Sale app, so any remote transactions will need to be done through the PayPal account.

Transactions clear in your bank account within 1-2 working days or straight away in an online PayPal account. The latter also has a PayPal Business Debit Card linked so you can spend funds without transferring it to a bank account.

PayPal only provides customer support on weekdays between 9am-5pm via telephone, email and chat. We’ve tried contacting them on several occasions without a response, so we can’t say with much confidence that this is a good service.

To sign up, you submit a short registration form online and order the card reader, which has a shipping fee.

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Photo: Mobile Transaction

The cheapest subscription you can have with WisePad 3 is Starter for £5 + monthly for a few online selling tools. This has the high rate of 5% per card reader transaction.

The full-fledged online store plans (£19-£344 + VAT/month) have lower rates between 1.5%-1.7%. Annual contracts are cheaper per month.

A limited version of the Shopify POS app (POS Lite) is included on all plans, but you can upgrade to Shopify Retail (with POS Pro) for £69 + VAT monthly per location. This has a chip and tap card rate of 1.7% and many features for unifying online with in-store sales, for instance a smooth Click & Collect system.

Because of the ongoing monthly cost, the card reader is only really worth it if you’re also using Shopify for an online store.

Accepted cards

The POS app has genuinely good features for e.g. product and order management, customer profiles, staff accounts and integration with receipt printers, cash drawers and barcode scanners. POS Lite is recommended for on-the-go sales, whereas POS Pro is better for a full setup in a retail shop.

Transactions settle in your bank account within 6 working days, which is the slowest in this comparison. All subscriptions include 24/7 customer support and online help guides.

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In the app, you enter the transaction amount with a description or add items from a simple product library. It’s possible to add a service charge, discount and VAT, accept cash, gift cards (digital or physical) and send e-receipts, and that’s about it. Digital invoices can be sent too. There are no advanced features beyond that.

Elavon has actually improved their app by replacing it with Talech’s (now rebranded to Elavon) mobile POS app. However, this is only slightly better than the old, buggy card reader app that was hardly ever updated.

Over the years, users have complained of technical issues preventing them from using the card reader, but the new app should have resolved this.

Accepted cards

Elavon merchants have a free virtual terminal in the web dashboard to accept over-the-phone payments for a higher transaction cost. They also benefit from fast settlement – one working day – but this is not guaranteed.

Customer support is provided 24/7 for merchants, which is a luxury for a pay-as-you-go credit card reader.

Signing up is more tedious, though. You complete an online form (takes around 15 minutes) and have to submit various documents for verification. Once onboard, you can order the card reader.

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The card reader doesn’t work with receipt printers, cash drawers or barcode scanners, but it does take swipe cards on top of contactless and chip cards. In addition, the trusted ‘Barclaycard’ logo on the terminal may put some customers at ease.

You’d think a banking giant like Barclays would only have amazing products, but the latest app is poorly designed and looks neglected. There’s a product library, refunds, digital receipts and a transactions overview, but these features are standard elsewhere.

What’s more, the app was last updated a year ago, which means it is buggy. User ratings frequently mention bugs, connectivity issues and a lack of customer service when they report the issues.

Accepted cards

Smartpay Anywhere’s transaction fee used to be fixed at 1.6%, but Barclaycard has decided to change that to custom rates. This is less transparent upfront, but potentially fairer – at least with a high sales volume that gives lower fees. It does mean that monthly fees may apply, which we don’t think is worth it for the poor app experience.

Standard payouts take between 2 working days and a week, but next-day settlement is available for some users.

To register, you complete an online application, which should take about 15 minutes. But beware – your chance of approval “depends on financial circumstance and borrowing history”, which is stricter than elsewhere.

Other credit card readers

A few services have gone out of business: WorldPay Zinc, Worldpay Reader, Payatrader and Intuit Pay. PayPal Here was discontinued and replaced with Zettle Reader and then PayPal Reader (on the list above).

The European neobank Viva Wallet offers a Mini Card Reader that works with its app, and this is available for UK merchants.

Then there’s a Stripe card reader for existing platform users. Card machines by Stripe can be more complicated, as they need to be programmed by a developer.

You sometimes see others, but without the tech funding to update software and adapt the product quickly, these card readers do not get good reviews. In the end, the fittest survive – which is good news for small businesses.