Consumers use credit cards for 70% of all payments and 83% of Canadians own a debit card. A credit card machine allows small businesses to accept both credit and debit cards as payment. This allows customers to pay with the card of their choice while providing businesses with a way to get paid quickly.
Forbes Advisor Canada researched the top solutions available today to bring you this list of the best credit card machines for small businesses. Find the right option for you, based on hardware and software features, pricing and other important factors.
The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.
We reviewed 13 financial services companies using a complex methodology that allowed us to narrow it down to the seven best credit card machines for small businesses. Our ratings consider characteristics that small businesses look for from the provider of these machines, including offering a free version, a variety of pricing plans, mobile readers, built-in payment processing and more. All ratings are determined solely by our editorial team.
Credit card machines, otherwise called POS terminals, are electronic devices that read and process debit and credit card transactions for merchants. When a cardholder uses their card to pay, the information stored on either the magnetic stripe or its chip is read by the machine and then sent to the card issuer to check if the transaction is valid and has funds.
After the issuer approves the transaction, the terminal prints a receipt for the customer to sign or enter a PIN to complete the purchase. The transaction information is then stored and processed for payment settlement. Credit card machines work by securely processing electronic payments, allowing businesses to accept card payments and streamline their transactions.
Featured Partner
1
Shopify POS
Pricing starts at
$7 per month for casual sellers $51 per month ($38 per year) for retail sellers
Mobile payments
Yes
Key features
Syncs with Shopify online store, smart inventory management
There are a few considerations to keep in mind when choosing a credit card machine for your small business. First, consider what type of credit card machine you need. Do you need a simple terminal or a touchscreen with built-in features, such as loyalty and analytics?
Next, look at the cost of ownership. How much will you pay for the credit card machine itself and what are the monthly or per-transaction fees? Finally, think about ease of use. How easy is the credit card machine to set up and use? Does it have a user-friendly app?
The cost of a credit card machine can differ based on a variety of factors, such as the type of machine, payment processing fees and any extra services or features that your business requires.
Equipment costs can range from a few hundred to several thousand dollars, depending on the type of credit card machine, its features and what types of transactions it can process. A machine that can process all types of transactions will be more expensive than one that can process swipe transactions only.
A basic countertop credit card machine can cost around $69 CAD to $200 CAD, while more advanced models with additional features, such as touchscreens or NFC technology, can cost upwards of $1,000 CAD or more. Handheld credit card machines or mobile credit card readers typically cost between $69 CAD and $500 CAD.
The payment processing fee charged depends on the provider. However, it’s usually a percentage of each transaction plus a flat fee. Payment processing fees can range from 1.5% to 3% or higher, depending on the type of transaction you’re processing (chip versus swipe, for example) and whether you’re a high-risk merchant (such as a marijuana or CBD shop, as these often have high fraud rates).
For example, Square charges 2.65% per transaction, whereas Stripe charges 2.9% plus $0.30 CAD per transaction. Some payment processing providers may also charge additional fees for things such as chargebacks or foreign currency transactions.
Some credit card machine providers may offer equipment at a discounted rate or even for free but may charge higher payment processing fees to compensate for the cost of the equipment. Businesses should weigh their payment processing needs and compare the total costs of different credit card machine providers to find the best option for their budget and requirements.
To find the best credit card machine for small businesses, we looked at 12 different factors including features, pricing, ease of use and whether you can accept offline payments in the event the internet goes down. We also considered real customer experiences in our analysis.
When it comes to pricing, we favoured credit card machines that didn’t charge a monthly fee, and we looked at the overall cost of ownership, including hardware and processing fees. Offering a free version of its credit card machine allowed some providers to fare better in our rankings as did having a variety of different pricing plans available for small retailers. This accounted for 35% of our weighted scoring.
Features were also an important factor in our decision-making process. We looked for credit card machines that had built-in payment processors as well as the ability to accept contactless payments, such as Apple Pay and Google Pay. We also favoured credit card machines that had cloud-based software to send invoices, track sales and inventory and manage payroll, email marketing and loyalty programs. Finally, we considered whether the credit card machine could accept offline payments in the event of an internet outage. We weighted features at 35% of our total score.
Ease of use was another key consideration. We looked for credit card machines that had user-friendly apps and interfaces. Other factors that played a role in our expert analysis in determining the best credit card machines included their value for the money, stand-out features and popularity on third-party websites. These criteria make up 30% of the total score.
The best credit card machine for small businesses is the one that meets your specific needs. Consider the type of credit card machine you need, the cost of ownership and ease of use when making your decision. All things considered, eHopper ranked number one on our list because of its reasonable cost of ownership, support and hardware options.
Still not sure which is right for your business? Check out our article on the best POS systems for small businesses.
Canadian specific editing and research (including pricing) conducted by Anna Rey.
Featured Partner
1
Shopify POS
Pricing starts at
$7 per month for casual sellers $51 per month ($38 per year) for retail sellers
Mobile payments
Yes
Key features
Syncs with Shopify online store, smart inventory management
Most credit card machines require an internet connection to process payments. However, there are a few credit card machines that can process offline payments in the event of an internet outage.
A credit card machine is a type of POS system. A POS system includes the credit card machine as well as software to track sales, inventory and customers.
It often depends on the machine itself, but you can usually expect to be able to process between 600 and 700 transactions before you would need to change your credit card machine’s battery.
The most convenient and affordable way to accept credit card payments for your business depends on several factors, including what you sell, where you sell it, your sales volume and how your customers prefer to pay. Flat-rate payment service providers are best for businesses that do less than $5,000 CAD per month in sales while more complex models could be better for larger businesses.
