Does a small shop need a card reader, a payment terminal, or a full POS system?
Summary
A reader is enough if a phone or tablet can run the checkout. A terminal makes sense when you want one device that takes the card and prints the receipt, and a POS system is for shops that also want the device to track products, orders, and staff. Published prices climb with each step: most readers cost $59, terminals run $199 to $349, and a Square Register is $899. None of them changes the fact that processing is charged on every sale, and some hardware only works with the seller's own payments.
What each type costs
| Type | What it does | Published examples |
|---|---|---|
| Card reader | Reads the card; the phone or tablet app runs the sale | Square Reader $59; Stripe Reader M2 $59; PayPal $29 for the first reader, $79 after that; Helcim Card Reader $199 |
| Payment terminal | Takes the payment on its own screen, often with a printer | PayPal Terminal $199 ($239 with barcode scanner); Stripe BBPOS WisePOS E $249; Square Terminal $299; Stripe Reader S700 or S710 $299; Helcim Smart Terminal $349 |
| POS hardware | Runs the checkout plus products, inventory, taxes, staff, or tables | Square Stand for iPad $149; Square Register $899; SpotOn Station 15 $750 (listed down from $995) |
Readers are not interchangeable
Square's reader takes chip cards, contactless cards, Apple Pay, and Google Pay. Helcim's reader has no swipe slot, so a shop that still sees magnetic-stripe-only cards needs something else. The cheapest reader on the list, PayPal's $29 unit, is a one-per-business offer, and PayPal's own footnote says the standard price is $79.
Paying monthly adds a little
Square sells its Terminal for $299 or $27 a month over 12 months, which comes to $324. Its hardware financing carries a 15% APR and covers purchases from $49 to $10,000. Helcim offers its Smart Terminal at $32 a month for 12 months, $384 in total against $349 upfront. A terminal that leaves the Wi-Fi also has a data charge: $10 per reader per month on Stripe and $7 a month on Helcim.
Some POS hardware comes with its processor attached
SpotOn, a restaurant POS, answers the question "Can I use my own POS hardware or tablets?" with a flat "No," and it provides integrated payments across its POS plans. Buying its stations means taking its card processing too. The monthly software fee that usually rides along with POS hardware, and how it adds up with processing, is covered in the article on POS costs. On this site's effective-rate figures, hardware bought outright is spread over 36 months.
Sources
- squareup.com/us/en/hardware
- squareup.com/us/en/hardware/contactless-chip-reader
- squareup.com/us/en/hardware/terminal
- squareup.com/us/en/hardware/register
- stripe.com/terminal
- stripe.com/terminal/wisepose
- stripe.com/pricing
- paypal.com/us/business/pos-system/pricing
- helcim.com/pricing
- helcim.com/credit-card-reader
- spoton.com/pricing
Related on this site
- Can you take card payments on your phone without buying a reader?
- What does a POS system really cost each month once card processing is included?
- What the headline rate leaves out
- How to read the effective rate on this site
- Every provider we hold, and which publish a rate
Written by Kaz (pen name). Figures are copied from providers' published pricing pages on the dates shown. We have not used these products. Corrections: contact form.