In my evaluation, here are the best free and cheap credit card readers for iPhones:
- Best overall: Square
- Best for service-based businesses: Vagaro
- Best for high volume sales: Payment Depot
- Best for solopreneurs and seasonal businesses: PayPal Zettle
- Best for ecommerce businesses: Shopify
- Best for businesses on a budget: SumUp
iPhone credit card readers can process swipe, chip, and contactless payments for a reasonable transaction fee. Some payment service providers offer free credit card readers when you sign up for their service. You can also convert your mobile device into a payment terminal to save you the cost of getting a card reader.
In this guide, I list the best free credit card readers for iPhones and affordable iPhone card readers and give you alternative methods for accepting payments on your iPhone without a card reader.
How to get a free card reader for iPhone
There are generally two ways to get a free card reader for your iPhone: signing up with a payment services provider that offers one or turning your iPhone into a payment terminal (which I explain in detail in the next section).
Getting a free card reader usually happens when you sign up for payment processing services through a payment provider or a point-of-sale (POS) solution. They typically offer the first mobile card reader for free.
The caveat to getting a free card reader is that you are most likely locked into some kind of contract, rate, or agreement and may have to deal with cancellation fees if you terminate your contract within the agreed-upon period.
How to accept payments on your iPhone without a card reader
Alternatively, you can accept payments on your smartphone without a card reader. Each method below has its pros and cons, but it does the job of securely accepting payments.
Tap to Pay
Tap to pay is a wireless payment method made by tapping (or bringing close) a payment device (either a smartphone or smartwatch) or a credit or debit card near a contactless-enabled payment terminal. Contactless payments use near-field communication (NFC) technology to securely transfer data between the terminal and the card or device.
When you enable tap-to-pay on mobile, you do not need a credit card reader; a smartphone is enough. Your smartphone would function as the payment terminal through the payment provider’s mobile app. However, your mobile device should be NFC-capable (has an NFC chip and antenna), and your payment service provider (PSP) must offer the Tap-to-Pay feature.
All providers in this guide offer the Tap to Pay feature except for Payment Depot, but the device and iOS requirements vary per provider. Among the ones in this list, Square and Shopify have excellent user reviews for the feature.
QR codes
A QR (quick response) code is a graphic containing information that directs customers to pay by scanning the code using a mobile app.
QR code payments are also contactless. Customers scan the QR code with their mobile devices, which leads them to an online payment terminal and allows them to perform an online checkout. Once they have completed the payment, they will receive an alert if it went through.
QR codes cost nothing, but you will need to take extra steps. You need to generate a code, create a checkout page, and display your QR code (or have one ready for scanning on your device).
Similarly, it might be cumbersome for your customers, too, as they need to log in to their devices, scan the code, and enter their payment details before they can pay. Square, PayPal Zettle, and Clover offer QR payment solutions that are highly rated by users.
Payment links
Payment links let you request and collect payments remotely on online and remote platforms (like email and SMS). They can be included in an email or digital invoice, on your website and social media posts, and in instant messages (online chat and SMS).
Payment links can be direct (simple links) or embedded pay buttons (generally used on websites and social media posts). Once a customer clicks on a link, scans a QR code, or clicks on a payment button, they are taken to a payment page, which, similar to how QR codes work, lets them enter their payment information and make payments.
Payment links are free and do not cost additional among the providers I list in this guide. All of them have this feature included.
Cheapest card readers
There aren’t many free credit card readers for iPhone on the market. Those available usually come at another kind of price, either higher processing rates or locked-in terms. This table compares processors offering free card readers and those that give discounted rates or have one for less than $50.
I listed the factors that will play a huge role in your purchasing decision — the card reader’s accepted payment methods, other fees (such as software and transaction fees), and its corresponding mobile app rating in the App Store.
| Card reader cost | Payment method | Monthly fee (starts at) | Swipe, chip, and contactless fee | App rating in the AppStore (out of 5) | |
|---|---|---|---|---|---|
| Square | Free for 1st card reader; $49 | Swipe only for free reader; 2-in-1 (tap and dip) | $0 | 2.6% plus 10 cents | 4.8 |
| Vagaro | Free when using Vagaro as processor | 3-in-1 (tap, dip, and swipe) | $30 | 2.75%* | 4.7 |
| Payment Depot | $49 | 3-in-1 (tap, dip, and swipe) | $79 | Interchange plus 8 cents | 4.8 |
| PayPal Zettle | $29 for 1st card reader; $79 | 2-in-1 (tap and dip) | $0 | 2.29% plus 9 cents | 3.0 |
| Shopify | $49 | 2-in-1 (tap and dip) | $0-$89 | 2.4% to 2.7% | 4.5 |
| SumUp | $54 | 3-in-1 (tap, dip, and swipe) | $0 | 2.6% + 10 cents | 4.7 |
| *For small merchants (Transactions of less than $4,000 per month). **Based on Fiserv rates; fees depend on the chosen payment processor. |
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Square: Best overall
When it comes to using free card readers for iPhones, Square’s card reader is hard to beat. In addition to issuing a free card reader on your first order, Square doesn’t charge monthly fees to use its basic point-of-sale (POS) system. You can technically use its whole system for free.
Its free card reader is compact, easy to use, doesn’t need to be charged to operate, and can process offline payments (with the same processing fee rates as the usual swipe transactions). Its only downside is that it can’t process chip and contactless payments, you’d need to upgrade to a paid card reader to get that feature.
I can see Square working perfectly for small businesses because of its easy setup and straightforward payment processing rates. Its transaction rates are not the cheapest compared to others in my listed recommendations, but the powerful free point-of-sale (POS) system and inexpensive card readers make Square a favorite among small businesses.
Moreover, businesses can easily upgrade or add new features as they expand their business, as Square offers payroll, scheduling, and others.
Pricing
- Monthly fee: $0
- In-person (including contactless) processing fee: 2.6% plus 10 cents tap, dip, or swipe.
- Card readers:
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $59 and up for Square Reader contactless and chip card reader.
Features
- 4.8 out 5 mobile app rating in the AppStore based on nearly 500,000 reviews.
- Accepts tap, dip, Apple Pay, Google Pay, and other NFC payments.
- Transparent and flat-rate processing fees.
- Offline payment processing.
- Free, powerful POS app.
- Next-day funding, same-day with fee.
Pros and cons
| Pros | Cons |
|---|---|
| Readers can work offline. | Exclusive to Square Payments. |
| Free magstripe readers don't need to be charged. | Free card reader limited to swipe transactions; must upgrade to enable contactless and chip payments. |
| Square POS software and its mobile app are completely free. | Square reader for contactless and chip payments takes around 2-3 hours to charge. |
Vagaro: Best for service-based businesses
Vagaro is specially designed for businesses in the beauty, health, and fitness industries. Its software includes a scheduling appointment feature, making it the only one on this list that offers this feature.
Vagaro lets your clients schedule and pay for appointments on your website. Once you activate card processing, you get a free card reader. You can use the card reader to accept in-person payments, which comes in handy when your clients schedule appointments in advance after a visit to your store. You can also send the checkout screen directly to your customers’ phones so they can add a tip and sign.
Pricing
- Monthly fee: Starts at $30/month per bookable calendar (plus $10 for each additional calendar).
- Processing fees:
- 2.75% per dip and tap for monthly transactions less than $4,000.
- 2.2% + 19 cents for monthly transactions more than $4,000 (plus $10 monthly).
- +5 cents per Tap to Pay transaction.
- Hardware:
- Free credit card reader if one activates credit card processing with Vagaro.
- Starts at $749 for Vagaro Pay Desk terminals
Features
- 4.7 out of 5 mobile app rating in the AppStore based on more than 7,500 reviews.
- 30-day free trial.
- Web and mobile-accessible calendars or schedulers.
- Buy Now, Pay Later (BNPL) feature.
- SOAP notes assess and track client progress.
- Credit card save feature lets you securely store customer credit card information and protects you from no-shows or cancellations.
- Recurring billing and sales commissions payments.
Pros and cons
| Pros | Cons |
|---|---|
| Can process debit and credit cards and digital wallets. | Must use Vagaro’s credit card processing to get a free card reader. |
| POS software has a credit card save feature that protects you from no-shows or cancellations. | Cancellation and returns are not accepted. |
| BNPL feature. | If canceled within 12 months of ordering, must pay full price of the card reader. |
Payment Depot: Best for high volume sales
Payment Depot is one of the providers I have reviewed that offers the lowest credit card processing fees, making it great for high-volume sales. Payment Depot recently switched its pricing structure from subscription to interchange plus pricing, which means there are no monthly fees on top of low processing rates.
Although Payment Depot requires an application that is subject to approval, you are much less likely to experience frozen or delayed funds as it is a traditional merchant account provider.
Pricing
- Monthly fee: $0.
- In-person processing fee (including contactless payments): Custom interchange plus fee.
- Card reader: Starts at $49 (SwipeSimple card reader); may offer free hardware depending on contract.
Features
- 4.8 out of 5 mobile app rating in the AppStore based on more than 5,000 reviews (Swipe Simple)
- Can process Level 2 data for B2B.
- Free virtual terminal and payment gateway.
- 24/7 customer support.
- Invoicing and recurring billing by SwipeSimple.
- Virtual terminal.
Pros and cons
| Pros | Cons |
|---|---|
| One of the lowest payment processing rates. | Exclusive to US merchants. |
| 24/7 customer support. | Custom pricing, no published rates. |
| Free POS software including payment gateway and virtual terminal. | Application is subject to approval. |
PayPal Zettle: Best for solopreneurs and seasonal businesses
PayPal Zettle is the perfect option if you just plan to accept a variety of payments and nothing more. Firstly, it doesn’t have long-term contracts or monthly minimums, and you can get your first card reader at a discounted rate. Moreover, Zettle has extremely reasonable flat-rate processing fees, even lower than Square.
Zettle accepts credit cards, Venmo, PayPal, and digital wallets. All payments go straight into your PayPal account and, from there, can be transferred to your bank. So, if you are a solopreneur or run a seasonal business, going with Zettle is a cost-effective solution. Consider other options if you want additional features (like loyalty programs).
Pricing
- Monthly fee: $0.
- In-person and QR code processing fee: 2.29% + 9 cents.
- Card reader: $29 for first card reader; additional readers cost $79. Price includes USB cable.
Features
- 3 out of 5 mobile app rating in the AppStore based on a little over 800 reviews.
- No long-term contract or termination fees.
- Accepts a variety of payment types — chip and contactless payment methods, including Venmo and PayPal payments.
- Next-day funding, same day with fee.
Pros and cons
| Pros | Cons |
|---|---|
| Accepts Venmo payments. | Lower than average user reviews on the App Store compared to other providers on this list. |
| Immediate payouts to PayPal account. | No offline functionality. |
| Free POS with no minimums. | Doesn’t process swipe payments. |
Shopify: Best for ecommerce businesses
Shopify is a popular and top ecommerce platform among real world users and ecommerce experts. Aside from letting you sell on multiple online channels, it also enables in-person selling through its POS app.
Shopify’s card reader is great for ecommerce businesses that plan to sell on pop-ups or kiosks for in-person sales. If you want to establish a physical store location, there are Shopify POS terminals you can use, too. Shopify is extremely scalable and can accommodate your business’ growing needs.
Pricing
- Monthly fee: $0 to $89 (plus $5 to $399 for a Shopify ecommerce account).
- In-person (including contactless) processing fee: 2.4% to 2.7%.
- Card reader: $49 with one-year limited warranty (two-year extended warranty under a POS Pro plan).
Features
- 4.5 out of 5 mobile app rating in the AppStore based on almost 7,500 reviews.
- User-friendly mobile app interface.
- Sync online and in-person sales and inventory.
- Extensive integrations for scalability.
- Multiple sales channels, including social channels and online marketplaces like Amazon and Walmart.
- 24/7 customer support.
Pros and cons
| Pros | Cons |
|---|---|
| Omnichannel selling—online and in-person. | Requires an ecommerce subscription (additional cost). |
| Multiple online sales channels, including social. | Exclusive to Shopify Payments. |
| 24/7 customer support. | Limited offline functionality. |
SumUp: Best for businesses on a budget
SumUp’s mobile card reader, SumUp Plus, easily rivals the aesthetics of popular payment providers like Square. At $54, the reader is also on the lower pricing end, making it a cheap and affordable option for businesses of all sizes. It has a display screen that allows you and your customer to see transactions (the only one in this list to do so other than PayPal).
Additionally, SumUp is one of the few readers I have tried that still accepts magstripe payments (swipe cards), and has a PIN feature for additional security protection.
Its basic POS features and low transaction fees (2.6% + 10 cents like Square) make it a great option for businesses on a budget and just have straightforward payment needs.
Pricing
- Monthly processing fee: $0.
- Card present transaction fees: 2.6% + 10 cents.
- $54 for SumUp Plus (Connects via Bluetooth to your smartphone or tablet).
- Accepts swipe, tap, dip, Apple Pay, Google Pay, and other NFC payments.
Features
- 4.70 out of 5 mobile app rating in AppStore based on more than 12,500 user reviews.
- No add-on fees for international credit cards.
- No extra cost for e-check payments with invoicing.
- No chargeback fees.
Pros and cons
| Pros | Cons |
|---|---|
| Display screen on device. | Limited ecommerce integration. |
| 500 transactions on one full charge. | Limited POS software features compared to other card readers. |
| No add-on fees for accepting international payments. | Lacks same-day funding option. |
How do I choose the best free card reader for my iPhone?
To choose a credit card reader for your iPhone, look at the types of payments it can accept, its integrations, and, of course, its cost. A portable credit card reader for iPhone can cost anywhere between $50 and $100, though some providers give a free reader or offer the first order at a discounted price.
At the minimum, an iPhone credit card reader must be able to accept EMV chip cards and contactless payments (2-in-1 or tap and dip). Magstripe payments, though an added convenience, are becoming less common because of the associated security risks.
A mobile credit card reader for iPhone should also work with or integrate with your POS, if you have one. If you plan to accept payments using your iPhone credit card reader exclusively, this doesn’t really matter.
However, if your business accepts a variety of payments online and in person, ensuring your card reader integrates with your software is crucial for tracking sales and inventory, if applicable.
Methodology
Based on my five years of experience helping retail businesses launch their ecommerce stores and streamline their in-store and online sales operations, I looked at the top payment providers and merchant services that have mobile apps and provide absolutely free iPhone card readers.
Moreover, I looked at cheap alternatives or those that offer card readers for less than $50 (the usual price for card readers is $50-$100). From there, I ranked them based on their popularity and ratings on the App Store.
From my initial list, I compared providers according to the payment methods they accept, corresponding transaction fees, and any standout features they have compared to others. Finally, I also factored in my own experience handling these card readers (as a payee and a payor) and took into consideration feedback from real-world users.
This article and methodology were reviewed by our retail expert, Meaghan Brophy.
