Cutting costs is a key focus for a lot of small businesses at the moment. Here are the card readers at the lowest price – purchase or rental.
The short answer is no, there are no absolutely free card readers for small businesses – but you have so many options when it comes to devices, rates, and features that you can select the most cost-effective setup for your needs.
The key is to understand how these options affect the amount you’ll end up paying over the long term. For example, a pricey monthly subscription might work out cheaper than a free plan with no monthly costs if you’re a high-volume business.
Below, we unpack flat rates vs custom pricing, the pros and cons of pay-as-you-go vs subscriptions, and take a look at some of the cheapest card readers for your small business.
Do all card reader providers charge a monthly fee?
Monthly fees are common, but many card reader providers simply charge a one-off payment for the device and then pay-as-you-go transaction fees.
It’s worth noting that a monthly charge doesn’t always mean you’re renting the machine. Some devices that are available to buy outright offer both pay-as-you-go and subscription models. With the former, you essentially pay per transaction. With the latter, as well as transaction fees, you pay a fixed monthly amount in exchange for reduced rates and perks like, for example, 24/7 support.
Should I choose pay-as-you-go or pay monthly? Pros and cons
The key thing to understand is that there’s no one-size-fits-all answer to this question. As well as comparing one-off device costs to ongoing monthly costs, you need to calculate how much you’ll pay in transaction fees over the long term based on your sales volume. If you’re a high turnover business and can access lower or bespoke rates with a pay-monthly model, it could work out cheaper than pay-as-you-go.
Pros of pay-as-you-go
- You don’t have to pay ongoing monthly fees, so it doesn’t matter if you have slow sales months
- You’re not tied into a contract
- Transaction fees are typically a flat rate, which makes costs predictable and uncomplicated
Cons of pay-as-you-go
- Pay-as-you-go transaction fees can be higher than subscription models
- Costs can really add up if you start to process a high volume of payments
Pros of paying monthly
- Enables you to access lower or bespoke transaction fees – great for high-volume businesses
- Some providers offer perks like next-day terminal replacement as part of the subscription
Cons of paying monthly
- Even if your sales dip, you still have to pay the monthly fee
- Transaction fees can be variable and less transparent
- You could be tied into a contract for 12-18 months or have to pay an exit fee if you cancel early
- There may be hidden fees for setup, maintenance and add-ons
Are you unsure about how to accept card payments for your business? Check out our short guide:
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The best value card readers for small businesses
The cheapest card readers are the ones that give you the most flexibility over how you pay, and therefore the best value. That means, for example, if you already have or expect to have a high turnover, you have the option to save with customised rates. On the other hand, if your sales are seasonal or less steady, you’re better off paying a flat, predictable rate on a pay-as-you-go model.
