A Guide to Mobile Card Readers: Which is Right for You?

We live in an increasingly cashless society. A 2022 study by UK Finance found that in 2021, there were 23.1 million consumers who used cash only once a month or not at all. And an increase in the number of cash transactions since then isn’t much to celebrate since it’s widely believed that this has come about because consumers were watching their transactions much more closely because of the cost of living crisis. In other words, because people have less money to spend rather than more. 

For small businesses, then, insisting only on cash payment is increasingly becoming a thing of the past. But if you’re taking a lot of card payments from your customers, what’s the best way to do it? Cost, of course, is imporant, but there are other factors that you may wish to take into account, such as compatibility with your existing systems and customer support, if something goes wrong. 

What is a Card Reader?

A card reader is a device that allows customers to pay with credit or debit cards or through a digital wallet. It can be used for a variety of purposes, including accepting payment from customers and as part of point-of-sale (POS) systems, for online banking to verify identity, pay people, and change personal details, or to read information from cards, such as credit cards, debit cards, ID cards, and memory cards.

There are several ways to make payments using this technology. With Chip and PIN, the card reader reads the embedded chip that contains the customer's PIN.

Contactless payments allow the customer to touch their card to the card reader, which uses Radio Frequency Identification (RFID) to detect the card's details. Mobile wallets, on the other hand, allow apps such as Apple Pay or Google Wallet to use Near-Field Communication (NFC) to provide card information.

Why Mobile Card Readers are Essential for Small Businesses

Small businesses have substantial benefits from using mobile card readers. They are extremely flexible. Traders who are always on the move, for example, can install an app and use it to take payment. Customers appreciate the ease of use, and they also tend to be more affordable than POS systems, which may be a degree of overkill for smaller businesses. 

How to Choose the Right Card Reader for Your Business

There’s a wide variety of options when it comes to card readers, so understanding your needs and your customers' needs is critical before you start your decision-making process. For many smaller traders, mobility will be extremely important, whether you need a portable card reader for taking payments to customers at their table in a restaurant or a desktop card reader for a fixed till point. You might need a mobile solution if you're a mobile business, like a plumber. 

The needs of your customers are also important. Will your card reader accept the payment methods your customers want to use, such as credit and debit cards? Does it reach modern security standards and align with your privacy protocols? You’ll want to check the company's reputation and user reviews. Does it have an intuitive touchscreen interface? Is it easy to install? 

The impact on your business is also essential. Consider the upfront costs, processing fees, and recurring subscription costs. It’s not all about the present day, either. It’s in the very nature of all businesses to want to grow, but can your card readers upscale in line with your business needs, should this happen? 

Types of Card Readers Available in the UK Market

There are several different card reader types available in the UK market.

Mobile readers are devices that allow businesses to accept card payments using a smartphone or tablet. They can process credit, debit, contactless, chip, and PIN transactions.

A portable card reader that can accept payments can accept contactless payments with an iPhone or Android phone. Some standalone payment card readers can accept payments as a standalone device with a built-in SIM card for free unlimited mobile data, while others can even offer flexible payments for customers. 

Payment processing is a series of actions that take place behind the scenes when a consumer makes a purchase. While the process may only take a few seconds, it involves many different steps and triggers. Such services will come with their own readers and may offer significantly higher levels of security and customer service, though this may come at a cost. Traditionally, you need a merchant account to process them. 

Key Features to Look for in a Mobile Credit Card Reader

The ultimate decision over which mobile credit card reader is best for you will ultimately depend upon your business's and your customers' needs. But there are some features that you should look out for when you’re comparing across the market.

Compatibility

If you already accept card payments, you’ll need to know how easily any new reader integrates into your current set-up. This could apply to either existing devices or payment systems. You may find that you cannot afford hiccups during the implementation stage of such devices. 

Cost

All this new technology does, of course, come at a cost, which means that some readers may be better suited to you than others. The initial purchase fee of any reader is just one of several costs you will have to consider. Transaction fees come in several different forms, while there may be other ongoing subscription costs that you must consider. 

Support

The fact of the matter is that something could go wrong with anything that involves the processing of money. What matters from your perspective is what happens next and how quickly an issue gets resolved. If you operate, for example, a restaurant which does the majority of its business on evenings and weekends, a payment provider which only has customer support 9-5, Monday to Friday, might not be of much use to you. 

Reliability

If somebody wants to make a payment to you, it is in the best interests of everybody involved that the process proceeds as smoothly as possible. Most processing organisations will have an uptime that they seek to adhere to, while the connection quality could affect how reliably any payment is processed. 

Transaction Processing Speed and Efficiency

If you want return business, customer satisfaction will have to be extremely important to your business. As such, processing speed and efficiency will be critical. People expect seamless transactions these days and will not want to stand around waiting while your processor contacts the outside world. 

How to Get a Card Reader for Your Business

Here are the steps to get a card reader for your business.

Understand your needs: Every business is different, and the first step is to understand both your business's and your customers' needs. Portability and ease of use may be the most important features you need. You may need to keep your costs to an absolute minimum to preserve your bottom line. 

Research and compare: If you’re to progress down this route, it’s important to understand the marketplace you’re stepping into. When you’re comparing costs, take a holistic overview. Some may charge more per transaction but no monthly fee, and others may do the complete opposite, but you’ll never know which is which unless you compare them like for like. 

Sign-up and register: Sign-up processes will vary from provider to provider, and it’s best to check the specifics to ensure a smooth transition. For some providers, you'll need to register your business before purchasing a card reader, while others may have an app that you can download.

Install and setup: You will need to pair your smartphone or tablet with the card reader. Many providers will require you to activate your card reader by logging into their system. And don’t forget to test before you go live. You need to ensure that everything is working as you intend before releasing it into the wild!

Which Mobile Credit Card Reader is Best for iPhone and Android?

Most of the major card reader providers these days will be compatible with both iPhone and Android on mobile phones and tablets, but Square and Revolut are the highest-rated on the app stores. 

There are differences between how they work. Revolut offers banking services, including debit and credit cards, currency exchange, stock trading, and cryptocurrency exchange. Square provides payment processing services. How they charge also differs from one to another. Square's in-person transaction fee is 1.75%, while Revolut's online transaction fee starts at 1% + 20p. Revolut's machine costs £49, which is in the middle price range. 

Few within the finance industry expect cash to make a significant return, and the sheer number of people considered ‘essentially cashless’ is a reminder that the public has already started moving on from it as a means of payment. Customers expect to be able to pay by card and increasingly contactless, and staying away from that loop could cost your business money. Switchpal can help with this; contact us today to learn how we can help bring your payment processing into this new era!