Best card readers with app for iPhone and Android phones

We at MobileTransaction have spent the last decade testing and comparing mobile card readers so you can make an informed choice. And I’m happy to say that the terminals I’ve tested during my time as a reviewer are much 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 enabling you to take cards through a connected mobile app. We like this setup because it’s actually quite flexible when the app gives you more tools than a card machine traditionally did.

These devices do not typically have monthly fees, lock-in or complicated fees. Instead, you just purchase the card reader upfront and pay a fixed rate 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.

Another thing we consider is the accompanying app which may act 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 accounts, payment links, etc.

The best card reader therefore depends not only on the build quality – we also test the app and compare costs and the potential to expand with other tools.

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Cons:

Photo: Emily Sorensen (ES), MobileTransaction

The card reader costs £49 + VAT and has no monthly fees or contractual commitment. All you pay is a fixed 1.69% per transaction for any type of card. There is also a stand for SumUp Air, which is in a bundle with the reader for £49 + VAT.

The Air card reader works with SumUp App, a simple POS system with a product library, user accounts, sales overview, payout reports and online payment options.

SumUp users can send email invoices or payment links, set up a basic online store from the app, display or print QR codes for payments and accept telephone payments through the in-app virtual terminal. You can also sell e-gift cards that can be accepted through the app.

Accepted cards

What’s more, the free SumUp Card (Prepaid Mastercard) that’s linked to your very own online Business Account provides access to transactions the day after, weekends inclusive. Alternatively, payouts can land in your bank account within 1-3 working days.

For a more complex till, the Air reader can be used with the SumUp Point of Sale software for full-fledged retail or hospitality functions. You can’t currently integrate with accounting software, but SumUp does integrate with Wix, PrestaShop and WooCommerce through plugins.

Customer support is available on weekdays between 8am and 7pm and weekends between 7am and 5pm. Signing up is easy through a web form, after which you can order the card reader.

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Photo: ES, MobileTransaction

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. You can get a charging dock for the reader for £25 + VAT too, and connect the hardware with receipt printers, kitchen printers, a cash drawer and barcode scanner.

The free Point of Sale app has enough features to serve most small businesses. Its inventory library tracks stock levels, 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, while an additional app called 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 to access through the app. Electronic gift cards can be sold and accepted, payment links created, QR codes generated for contactless selling, and any payment method accepted through the checkout including Clearpay (Buy Now Pay Later option).

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

Payouts reach your bank account in 1-2 working days, but there’s an instant transfer option (not available to all) for an extra fee of 1%.

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 of Square Reader.

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Photo: ES, MobileTransaction

We do not recommend buying the card reader before your Merchant Account has been completely approved. We did the mistake of ordering it after the immediate, automatic approval of it, only to have the account on hold in the following days while Revolut requested additional information to process.

After receiving the keypad-less card reader – which looks functional and akin to a retro pocket gaming device in its plastic casing – we had some technical issues with it, but it was eventually resolved and we received a free replacement.

Accepted cards

We tried the chat support available to all Revolut Business account users, but the support agents were rarely able to help. It took several days or weeks to fix any of our issues. That being said, 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 and a business account. New features are gradually added, for example a product catalogue allowing you to itemise bills.

The hospitality POS system from Nobly also integrates with Revolut Reader, requiring a monthly or annual subscription.

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Photo: Emmanuel Charpentier, MobileTransaction

When testing it, we found the latest version (Zettle Reader 2) ergonomic, small, lightweight and sturdy. It comes in white or black and can connect with a till drawer, barcode scanner and receipt printer. The optional charging stand (Zettle Dock) keeps it in place on a countertop.

Zettle Reader works with a free POS app called Zettle Go on most tablets and smartphones. It has a product library, transactions overview, basic sales reports, invoicing and the ability to accept cards, cash, payment links and gift cards. QR codes can be generated at checkout for customers with a PayPal app to scan it.

Accepted cards

The card reader works with other POS systems like Lightspeed, Revel and Tabology, and integrates with Xero and QuickBooks for accounting and ecommerce platforms like Shopify, BigCommerce and PrestaShop.

However, Zettle’s own app has hardly been developed further since PayPal took over Zettle. The lack of investment in the product means we can’t recommend the card reader as a solution that will definitely continue for years, unless you’re happy with it for your current situation.

Out of all card readers for iPhone, iPad and Android, Zettle accepts the most card brands via chip and PIN and contactless tap. Transactions are automatically cleared in your bank account within 1-2 working days.

Zettle only provides customer support on weekdays between 9am-5pm via telephone, email and chat. To sign up, all you need is fill in the short registration form online and order the card reader.

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Photo: MobileTransaction

You’ll have to sign up for one of the following online store plans to use the POS and payments system: ‘Basic Shopify’ for £25 monthly and a 1.7% transaction fee, ‘Shopify’ for £65 monthly and a 1.6% transaction fee, and ‘Advanced Shopify’ for £344 monthly and a 1.5% fee for all card reader transactions. The subscriptions are cheaper with an annual contract.

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

The Shopify POS app is by default free (Shopify POS Lite), but you can upgrade to Shopify POS Pro for £69 monthly per location in addition to the ecommerce subscription. This higher plan has many more features designed to unify online and in-store sales for a better customer service experience, for instance with a smooth Click & Collect system.

Accepted cards

The free POS plan has a good selection of features for e.g. product and order management, customer profiles, staff accounts and integration with hardware such as 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 are settled 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.

Looking for options beyond card readers?

Card machines for small businesses in the UK

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Cons:

The card reader has a PIN pad, looks like a calculator and accepts contactless payments and chip and PIN cards. Elavon MobileMerchant does not connect with a cash drawer, barcode scanner or receipt printer, so it is purely for mobile transactions.

To accept a payment through the MobileMerchant app, you need to enter the transaction amount with an item description. It’s possible to add a tip, discount and VAT, accept cash and send an e-receipt, but there are no other checkout options. There’s no product library or other advanced features in the app.

The app is rarely developed and actually had a 3-year break between updates (not to add features, only to fix issues), so Elavon clearly does not prioritise this service. A healthy card reader app should be updated regularly to fix bugs and keep up with iOS and Android software, so it is unsurprising to see that users complain of technical issues preventing them from using the card reader.

Accepted cards

Elavon merchants can access a free virtual terminal in the web dashboard, where you can accept over-the-phone payments for a higher transaction cost. You can 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. The ‘Barclaycard’ logo on the terminal may put some customers at ease, since it is a trusted brand.

You’d think a banking giant like Barclays would only have amazing products, but the latest app version is poorly designed and looks neglected. Some features include a product library, refunds, sending a digital receipt and viewing transactions (these features are usually standard elsewhere).

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

Accepted cards

However, you can’t fault the low transaction fee of 1.6% for any Visa, Mastercard or JCB card. This is the lowest fixed rate available for an app-based reader, except for the high subscription tiers with Shopify’s card reader (where the fee is 1.6% or 1.5%) and Revolut for domestic cards.

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

To get started, you need to fill in an online application form, which should take about 15 minutes. Your chance of approval “depends on financial circumstance and borrowing history”, which is stricter than other card reader sign-ups.

Other credit card readers

A few services have gone out of business: WorldPay Zinc, Worldpay Reader, Payatrader and Intuit Pay. PayPal Here has also been discontinued and replaced with Zettle Reader (PayPal owns Zettle).

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 and link with your online payment system.

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