Best Credit Card Machines In Canada For May 2024

• eHopper: Best for start-ups
• Clover: Best for retail stores
• Toast: Best for full-service restaurants
• ShopKeep by Lightspeed: Best for quick service restaurants (QSRs)
• Stripe POS: Best for omnichannel businesses
• Square: Best for ease of use
• Shopify POS: Best for pop-up shops
• Aloha Cloud: Best for restaurants with multiple locations
• KORONA POS: Best for restricted industries

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.

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?

Types of Credit Card Machines

• Traditional terminals: To process transactions, these machines require a phone or internet connection and a dedicated phone line.
• Wireless terminals: These machines are designed for businesses that operate on the go and use cellular networks to process transactions.
• Mobile card readers: By plugging into smartphones or tablets and using an app, businesses can process card payments on the go.
• Virtual terminals: These online portals allow businesses to accept payments through their website, email, phone or fax.
• POS systems: Combining hardware and software, these all-in-one systems process payments while managing sales, inventory and customer data.
• Contactless payment systems: Customers can use their mobile devices or contactless credit cards to pay with machines that use near-field communication (NFC) technology.

Essential Equipment Features

• Compatibility: To ensure transactions are processed correctly, credit card machines must be compatible with the payment processing system used by the business.
• Security features: Encryption and security features, such as tokenization or point-to-point encryption (P2PE), are necessary to protect customer data and reduce the risk of fraud. If you have too many instances of fraud, a processor might not want you to be one of their merchants anymore, so this is especially important.
• Fast and reliable processing: Machines should be fast and reliable to avoid delays and downtime that can lead to lost sales.
• User-friendly interface: Machines should have an intuitive interface and clear instructions to reduce the risk of errors during transactions.
• Connectivity: A stable connection is necessary for machines to process transactions seamlessly. Many allow for Wi-Fi connection.
• Receipt printing: Machines should be capable of printing a receipt for the customer to sign or enter a PIN.
• Acceptance of multiple payment types: Machines should be able to accept various payment types such as credit, debit and mobile payments to accommodate different customer preferences.
• Customer support: Machines should come with reliable and responsive customer support to address any issues or technical problems that may arise.

Essential Software Features

• Payment processing: Payment processing is the core function of credit card machine software and enables businesses to accept credit and debit card payments.
• User management: User management features allow businesses to add and remove users and assign different levels of access to the software. This is especially helpful for businesses with employees who need different access levels, such as management versus cashiers.
• Reporting and analytics: Software should provide comprehensive reporting and analytics capabilities to help businesses track sales and financial performance.
• Compatibility: The software should be compatible with the credit card machine hardware being used and any payment processing systems integrated with the business.
• Customer management: Customer management features enable businesses to create and manage customer profiles, track purchase history and offer targeted marketing campaigns.
• Integrations: Integrations with other software systems, such as inventory management or accounting software, can help businesses streamline operations and increase efficiency.
• Customer support: Software should come with reliable and responsive customer support to address any issues or technical problems that may arise.

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

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.

Payment Processing Fees

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.

Pricing

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

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.

Expert Analysis

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.