Free Card Reader

POS equipment can get expensive, so here's a list of the best affordable (if not free) card readers available on the market.

With so many free card readers available, it's easy to assume they're all good deals.

But 'free' often comes with a catch—some processors offset their free device by adding costly transaction fees or restrictive contracts.

If you're a new or small business looking to save on upfront costs, here's a guide to the best free card readers on the market, selected for their transparency and value.

Square Reader: Free Mobile Credit Card Reader

• Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
• Accept Credit Cards Anywhere
• Fast Setup, No Commitments

Click Here to Get Free Reader

Best Free Card Readers for Small Businesses

To find the best card reader for your business, consider:

• Use case: Do you need it for expos or conventions? Or for your brick-and-mortar store?
  
• Transaction fees: Do you have a high sales volume? Or do you get sporadic sales?
  
• Setup process: Are you tech savvy or do you prefer plug-and-play options?
  
• Business industry: A lot of these processors don't work with high-risk businesses, while others have their expertise.

Here's the best free card reader if your small business is just getting off the ground.

Square: for New Small Businesses

Square offers a free magstripe card reader for small businesses which you can plug into your phone. You can choose from a lightning connector, USB-C, or headphone jack connection.

It's ideal for conventions, expos, markets, and mobile businesses. If you need more, you can buy an additional magstripe reader for $10.

If you also want to accept digital wallet payments, you'll need a contactless chip card reader which costs $59.

You can start right away because Square is easy to set up and there's no approval process. What's more, Square POS is sleek and intuitive to use. Many small businesses and customers find it easy to work with.

• Square Review

  Square is best for small businesses who are just starting out. Maybe you don't have a transaction history yet or only receive sporadic sales. You could be a seasonal business too.

  This is because unlike other credit card processing companies, Square has a low barrier to entry. It won't need to review your business background to approve you for an account.

  Additionally, Square's transaction fees can get pricey for larger sales volumes. And larger sales may even lead to frozen funds.

  Read our full Square review for more details.

  Battery Life
  You won't need to worry about battery life with Square's magstripe card reader. The free reader will work as long as it's plugged into your device.

  However, you'll need to keep your eye out for the battery of the contactless card reader, which according to Square, lasts all day. The contactless chip card reader connects to your device through Bluetooth.

• Pros and Cons

  Pros:
  

  • Works with most mobile devices
    
  • Partners with the free Square POS app
    
  • All-day battery life for the Bluetooth card reader
    
  • Offline Mode in case of fluctuating internet connection (need to reconnect within 24 hours)
    
  • Easy to use point-of-sale system
    
  • No long-term contracts
    
  • No approval / underwriting process

  Cons:
  

  • No single card reader for all payment types
    
  • Pricey for larger sales volumes
    
  • Risk of frozen funds
  Beware of Frozen Funds
  Payment Services Providers like Square, Stripe, and PayPal make it easy for you to open an account. But there's a catch. They could freeze your account at any time if they deem your business "risky".

  If this is something you'd like to avoid entirely, opt for merchant accounts instead. These are more stable, but they do require a processor's approval.

• How to Get the Free Square Reader

  Order your free reader from Square's website:
  

  1. Go to https://squareup.com/us/en
     
  2. Click the "Shop" menu
     
  3. Choose "Reader for magstripe"
     
  4. Select the "Get a free reader" button
     
  5. Create your Square account

  You can expect the Square reader to arrive in 7-10 business days. Plus, you should get a confirmation email and shipping updates.

  That said, you can also choose to pick up the card reader at any participating retail store.

  Is the Square Reader really free?
  Yes, Square offers a free magstripe card reader if you're applying for an account for the first time. Additional magstripe card readers cost $10. Contactless card readers and smart terminals are also available for purchase.

Square Reader: Free Mobile Credit Card Reader

• Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
• Accept Credit Cards Anywhere
• Fast Setup, No Commitments

Click Here to Get Free Reader

Shopify: for Online Stores

Shopify is another titan in the payment processing space. But what makes it stand out among the rest is its e-commerce features.

With this processor, you can be sure that your customers' experience online and in-person are seamless.

You can get a free card reader when you select from their POS plans. These would be either Shopify Basic, Shopify, Advanced, or Retail plan.^[3]

Shopify's Tap & Chip Card Reader enables you to accept chip and contactless payments for major card brands and payment methods. Read on for the review to understand why it's worth it.

• Shopify Review

  Shopify's omnichannel selling features are its main selling point. For instance, your customers can purchase products from your online store and choose to pick them up in one of your branches.

  Maybe your customer wants a product that's not in stock. They can still make the purchase in store, then you can ship the inventory from a branch where it's available.

  The POS is packed with even more features such as setting up product QR codes, low stock reports, Tap to Pay options, discounts, and more.

• Pros and Cons

  Pros:
  

  • All-in-one card reader
    
  • Smart terminal available
    
  • 3-day free trial for Shopify POS; first month costs $1
    
  • Great omnichannel selling features
    
  • Competitive card reader price
    
  • Lower transaction rates for higher-tiered plans

  Cons:
  

  • Monthly plans (in-person features start at $89/mo)^[4]
    
  • Flat rates with monthly fees can get pricey for small businesses
    
  • Terms and conditions apply to get the free card reader (you won't be getting it right away)

• How to Get the Free Card Reader

  It's not so easy to get the free card reader from Shopify because there are terms you need to keep in mind. Here's a summary.
  

  1. Shopify will have to invite your through email for the promo
     
  2. Complete the required actions that will be indicated in the invitation
     
  3. Pay for one billing cycle of an eligible plan within 60 days of the free trial

  These actions will get you Hardware Credit. And each credit is valued at $50. Shopify's Tap & Chip card reader costs $49.

Clover: Best All-in-One Card Reader

Clover is a payment processor that offers Clover Go as its card reader. That said, you won't be getting the free card reader from Clover, but rather, from other payment processors that offer them.

Some of these companies include Velocity Merchant Services, POS Pros, and National Bankcard. You'll have to review the point-of-sale features of the processor of your choice since these will vary.

That said, the card reader works great and will let you accept all credit cards, debit cards, and mobile wallet payments.

• Clover Review

  Clover Go's card reader is expensive compared to other card readers. It costs $199 if you decide to purchase it from Clover.

  Additionally, if you're a retail business, you'll have to pay an additional $14.95/mo to access inventory management features. The online store is also an add-on.^[6]

  That said, Clover provides quality service, and it even has one of the best customer service compared to other processors on this list. Some small business owners consider this worth the price.

  Read our full Clover review for more details.

• Pros and Cons

  Pros:
  

  • All-in-one card reader
    
  • Up to 160 swipe or 130 contactless transactions in one charge
    
  • Dock available (from Clover) to keep the reader charged
    
  • Works on Android and iOS
    
  • Shop around for affordable processing rates
    
  • Great customer service (from Clover)
    
  • Quality Clover POS features

  Cons:
  

  • Needs to find a suitable third-party processor
    
  • Pricey card reader if bought from Clover
    
  • Flat rate pricing partnered with monthly fees can be expensive

• How to Get the Free Clover Card Reader

  You'll need to shop around for a third-party payment processor first. Each will have their terms on how to get the free card reader.

  For instance, you can get the free reader with Velocity Merchant Services after signup. But you'll have to be approved for an account.

Vagaro: for Salons and Spas

Vagaro is not just a credit card processing company. It's primarily an appointment scheduling software that specializes in the beauty, wellness, and fitness industry.

If you opt for their credit card processing services, you can get yourself a free card reader which lets you accept credit cards, debit cards, and digital wallet payments.

It may be more suited for mid-size to growing businesses because of the processing rates. The starting rate is the most expensive compared to the other processors on the list.

But the discounted rate can be the most affordable as well. You only need to meet the sales volume required.

• Vagaro Review

  Vagaro has all the essentials your business needs regarding booking and payments. For example, you can offer memberships and packages, set up recurring payments, and require deposits at booking.

  You can also charge cancellation fees or fees for no-shows to avoid losses from clients who forgot about their sessions. You can even get paid in full the next business day which could be a big help in terms of cash flow.

  Many small business owners love Vagaro, especially since you have everything you need under one platform. The features are packed and scalable, and the interface is intuitive.

  Vagaro's customer service is also great and reliable if you need it.

  Free Trial Available
  Vagaro offers a 30-day free trial for their software. Afterwhich, your subscription will automatically be upgraded to a paid plan.
  

• Pros and Cons

  Pros:
  

  • All-in-one platform for booking services
    
  • Easy to use interface
    
  • Packed with booking and membership features
    
  • Sales volume discount for transaction fees
    
  • Card reader dock available for purchase

  Cons:
  

  • Expensive transaction rate for low-volume businesses
    
  • Only ideal for wellness businesses
    
  • No card reader returns; potentially pay for the card reader if you cancel within 12 months

• How to Get the Free Card Reader

  You can order the free card reader from your mobile device, on the web, or on a pay desk. Just follow the steps below.
  

  1. On your account, go to "Settings" and then "Credit Card Processing"
     
  2. Scroll to "Account Type" and select either Business Account or Employee Account.
     Business Account: to order a reader attached to the shared business merchant account
     Employee Account: to order a reader attached to a specific employee

  3. Click on "Get Your Free Reader"
     
  4. Enter your shipping details, contact number, and payment method (the reader is free)
     
  5. Click on "Place Order"

  And you're done! You can expect the card reader to arrive within 3-5 business days.

SecureGlobalPay: for High-Risk Businesses

Many small businesses who opt for payment processors like Square and PayPal report issues of frozen funds. It's because these processors have deemed their businesses "risky."

You can avoid this instance with SecureGlobalPay as it is a high-risk payment processor. Your account will be more stable since your business will be evaluated beforehand for approval.

SecureGlobalPay works best with retail businesses (who may still be considered high-risk). The free card reader is PCI-compliant and works with Android and iOS.

With this card reader, you can accept EMV Chip, magstripe, and contactless payments. SecureGlobalPay didn't specify the card reader brand, but your mobile POS will be from Clover.

• SecureGlobalPay Review

  There's not a lot of talk about SecureGlobalPay and its services. However, it offers enticing features like:
  

  • Robust merchant portal
    
  • Transaction rates customized to your business
    
  • All-year-long customer support (email, chat, and phone)

  It also offers a secure payment gateway so you can accept payments in-person and online. The POS software is also free.

  Keep in mind that you'll be applying for a merchant account, so there will be an underwriting process. Your transaction rates will be based on your business type, industry, and sales volume.

• Pros and Cons

  Pros:
  

  • No setup fees
    
  • No monthly fees
    
  • No hidden fees
    
  • No closure fees
    
  • Next-day funding available
    
  • Mobile POS from Clover

  Cons:
  

  • Need to contact for a quote
    
  • Approval / underwriting process
    
  • Not a lot of small business reviews

• How to Get the Free Card Reader

  It's easy to get the free card reader with SecureGlobalPay. After you apply for a merchant account, you only need to wait for approval and for your payment gateway activation code.

  Once activated, they'll send you the free card reader through mail. Then, you can start taking in-person payments once you receive it.

Alternatives: Cheapest Credit Card Readers

If you're willing to shell out a little money, here are some card readers from trusted brands. They may be worth the price.

PayPal: for Accepting PayPal and Venmo

PayPal is one of the biggest names in payment processing. It offers a card reader and smart terminal with competitive pricing. Plus, the in-person transaction rates are affordable compared to others on this list.

Even if you don't purchase a card reader, you can use the free PayPal Zettle app to accept credit cards, debit cards, and contactless payments like Apple Pay and Samsung Pay.

Additionally, you can accept PayPal and Venmo in person, which could come in handy for customers who aren't carrying cards.

• PayPal Review

  PayPal is a trusted brand in the payment processing industry. If you use PayPal to accept payments, your customers may see your business as more trustworthy.

  Also, the free POS is packed with features which are especially handy for retail businesses. Some of the things you can do include:
  

  • Managing your inventory
    
  • Apply discounts
    
  • Offer digital and paper receipts
    
  • Manage staff schedules
    
  • Review performance reports

  You can opt for the smart terminal as a standalone device. The card reader needs to be paired with the PayPal Zettle app on your mobile device.

  Caution on Frozen Funds
  Keep in mind that PayPal is not a merchant account provider, hence opening an account is easy. That said, if PayPal suddenly deems your business as "risky", they may freeze your funds at any moment.

  This may include high-volume businesses, since there's a greater risk of loss with more sales. You're better off with a merchant account provider if you have large ticket sales. PaymentCloud is one of the best providers you can check out.
  

• Pros and Cons

  Pros:
  

  • Free PayPal Zettle app
    
  • Packed with features great for retail businesses
    
  • No long-term contracts
    
  • No monthly fees
    
  • Easily access your funds in your PayPal account
    
  • Affordable first card reader
    
  • Works on Android and iOS

  Cons:
  

  • Battery life may be limited
    
  • Risk of frozen funds
    
  • Poor customer reviews
    
  • Many other fees to consider

Helcim: Free Credit Card Processing

Helcim is one of the best credit card processors around. You can opt for its card reader or terminal to take in-person payments.

The POS software is free. You'll be able to access the virtual terminal, invoicing features, set up recurring payments, and more from the get-go.

What's more, Helcim helps you surcharge your customers, so you can offset the cost of credit card processing.

Surcharge costs 3% for in-person credit card payments, and about 3% if the payments are made online. This can lead to big savings on your bottom line.

• Helcim Review

  Helcim is a great merchant account provider as proven by excellent customer reviews.

  It offers interchange-plus pricing which makes it suitable for growing businesses. It can lead to more savings since interchange rates tend to be cheaper than flat rates like Square.

  Also, the card reader accepts all modes of card payments such as tap and pay, chip and PIN, PIN debit, and debit tap payments.

  You can be sure that no potential sale will fall off due to the mode of payment the customer prefers.

  Lastly, unlike some of its competitors, you'll get all the software features such as inventory management, customer management, reporting, and more, with no need for add-ons.

• Pros and Cons

  Pros:
  

  • Competitive card reader price
    
  • Free Helcim account
    
  • Great customer service
    
  • Surcharge-compliant system
    
  • Card reader available in various colors

  Cons:
  

  • Smart terminal is expensive compared to other processors
    
  • More complex pricing due to interchange rates
    
  • No free card reader

Start Accepting Payments Fast

Click Here to Learn More

• Interchange Plus Pricing
• No Monthly Fees
• No Contracts

National Processing: for Retail Businesses

National Processing may offer affordable transaction fees with flat-rate pricing. You can even get lower rates with a higher-tiered plan. That said, monthly fees start at $9.95/mo.

You may get a free terminal (or other promos) depending on your processing volume, credit, and qualifications. You can also choose your POS with an Advanced plan.

Although a free terminal isn't exactly the same as a free card reader, you can still accept credit card payments with it. But National Processing still offers the SwipeSimple B250 card reader regardless of your plan.

• National Processing Review

  National Processing is a suitable option if you're looking to switch processors. You may get $500 if National Processing can't beat your current rates.

  Additionally, unlike other processors on this list, National Processing supports high-risk businesses. But you'll have to apply to a high-risk merchant account specifically.

  Small business owners claim that application is quick, with no hard sells. There are also no hidden fees, which means you can properly budget depending on your average sales.

  Because National Processing integrates with software like QuickBooks, WordPress, Shopify, and more, it's a lot easier to get started.

  Read our full National Processing review for more details.

• Pros and Cons

  Pros:
  

  • Great customer service; 24/7 customer support
    
  • Quick and easy application process
    
  • Many integrations available
    
  • Low flat-rates; locked-in rates
    
  • No hidden fees
    
  • Free reprogramming of your equipment

  Cons:
  

  • Monthly fees
    
  • No volume discounts for transaction fees
    
  • Sudden spike in sales may lead to frozen funds (which can be a problem for seasonal businesses)
    
  • Needs account approval to take advantage of the promos

What is a Card Reader?

A card reader is a small point-of-sale device that enables you to accept debit or credit card payments easily. It's used together with your mobile phone or tablet since it needs a point-of-sale app to accept these payments.

The card reader reads the information on your customer's card which is processed through your chosen credit card processing company. This article explains in detail how it works.

How to Choose the Best Card Reader

When it comes to looking for the best card readers for your business, there are a ton of options—both paid and free. Before you settle on one, here are a few things you need to consider:

• Accepted payment methods
  Does the card reader take EMV chip payments? Magstripe payments? What about contactless payments? Card readers let you take all or just a few of those types of payments.

• Device compatibility
  Card readers are typically suitable for both Android and iOS, but some readers are limited to one of the two. Make sure the device you plan on using is compatible.

  Also, consider how you want your device to be connected. Some are connected via Bluetooth, while others are directly plugged into your smartphone or tablet.

• Battery life
  Card readers that are connected wirelessly will rely on batteries. Consider how many hours worth of payment processing you need based on how busy your store is during operating hours.

• POS app features
  Card readers work hand-in-hand with mobile POS apps. Features typically include digital receipts, inventory tracking, and customer management.

  When choosing a POS, consider what you need for your daily business operations.

• Processing rates
  Since card readers typically come from payment processors, you need to consider processing rates.

  Take note of their online and in-person transaction fees, monthly charges, PCI compliance fees, chargeback fees, and other miscellaneous fees. Ideally, you'll want a service provider that doesn't take too much away from your profits.

Card Reader Breakeven Calculator

If you could get better processing rates from a certain merchant, sometimes, paying for a card reader may be worth it. Use this breakeven calculator to determine how many transactions you'll need to pay off the device.

Here's a summary of the processing rates and card reader cost of the processors on this list:

How to Use the Calculator:

1. Enter the price of your intended card reader.
   
2. Input the average price of your products/services.
   
3. Add the in-person processing rate and flat fee from your payment processor.
   
4. Click "Calculate" to see the number of transactions needed to break even.

If all things considered, the free card readers offer what you need, should you go and grab one?

Pros and Cons of a Free Card Reader

Free card readers have their own set of pros and cons. Be sure to weigh them out before you go out and get one.

Pros:

• Free equipment
  The obvious advantage is that you won't need to worry about leasing or buying POS hardware. The mobile POS apps that come with them are usually free as well and are enough to help you start accepting credit card payments.

• Plugged and wireless options are available
  Depending on the payment processor, the card reader may be plugged into your mobile device. This means you won't need to worry about battery life at all.

  Wireless options, on the other hand, may come with charging docks. This allows you to put them neatly on your countertops.

• Makes POS systems accessible
  You don't need to worry about capital for POS equipment. You can start accepting credit and debit card payments as soon as you get your card reader. The setup is easy too.

Cons:

• Tied to a POS software
  The company will likely tie the free card reader to the POS software they offer or work with. For example, a free Square reader will only work with Square's POS app.

• Higher transaction fees
  If you're choosing a credit card processing company due to the free reader, then you may not be getting the lowest transaction fees you could get.

• Tied to long-term contracts
  There are payment processing companies that may tie their free card readers to a long-term contract, especially if you're applying for a traditional merchant account.

  You may also be required to return the free equipment if you end your term. Be sure to read the fine print to know what you're getting yourself into.

Free vs. Paid Card Reader

Free and paid mobile card readers will often offer similar features. They'll let you accept credit cards, debit cards, and contactless payments. Both will also include POS apps that'll help you grow your business and expand your reach.

The best way to look at it would be to see the free card readers as an added bonus. The main thing you should be looking at is the POS provider and what it can do for your business.

Prioritizing the POS system puts your business first. Don't get caught up with the free stuff that comes along with it.

Can I use my smartphone as a card reader?

You can turn your phone into a card reader through Tap to Pay technology. Just enable "Tap to Pay on iPhone" or "Tap to Pay on Android" on your POS app.

This will allow you to take contactless payments such as Apple Pay, Google Pay, and Samsung Pay.

Additionally, mobile POS apps can also transform your device into a credit card machine. But you'll need to partner it with a card reader to accept swipe, dip, and contactless payments.

Otherwise, you'll have to manually enter the customer's card details which can be more expensive to process.

Methodology

To come up with our list, we looked at several card readers that could help you accept card and contactless payments. We also looked at those that wouldn't cost you anything to get their product.

Additionally, we looked at other POS features that might help your business grow even more. We thought about which ones would help small, medium, and large businesses.

For the paid alternatives, we considered the best affordable options. We thought about their ease of use and pricing transparency, seeing which ones would help a growing business on a budget.

What the Experts Say

CreditDonkey asked a panel of industry experts to answer readers' most pressing questions. Here's what they said:

Bottom Line

Some payment processors and POS system providers offer free credit card readers when you apply for an account. But you shouldn't choose their service just for the free reader.

Be very picky. It's always best to consider the features and if your business can work with them in the long run. Free card readers can serve as a bonus instead of a cause for your application.

If the free card readers don't do enough for you, you can always check out other affordable options. You might also consider the cheapest credit card processors when hoping to save some money.

References