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The Best Way to Take Payments With Your iPhone
Mobile businesses can save time and money by accepting payments with their iPhones.
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Entrepreneurs with mobile businesses like pop-up shops, home service companies or food trucks must be able to accept payment on the go. Instead of lugging around a wired credit card reader and searching for someplace to plug it in, you can use something you already have with you: your iPhone.
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Many credit card processing companies have sophisticated software that can help you accept credit card payments with your phone. With iPhones enjoying robust popularity, iPhone-compatible payment acceptance is a hot topic. We’ll explain everything you need to know about accepting payments via iPhone.
How to accept payments with an iPhone
Delivering seamless payment options is part of providing a great customer experience. An iPhone can help mobile business owners access a powerful and versatile payment terminal that can save customers time and reduce hassles.
“Using an iPhone to accept credit card and mobile wallet payments has never been easier,” noted Lou Alfieri, merchant services consultant at Shift4. “Doing so enhances mobility, allowing merchants to accept payments anywhere, whether at a counter, tableside or offsite.”
Follow these steps to harness the convenience of iPhone-based mobile transactions:
- Find a mobile payment processor: Find a provider with the features you need at an affordable price. Many top credit card processors have mobile functionality, so choosing the right one is crucial.
- Get an iPhone-compatible card reader: Your mobile payment processor will provide you with an iPhone-compatible card reader to facilitate consumer payments.
- Download the appropriate companion app: Your payment processor will direct you to a dedicated iPhone app that interfaces with your account and card reader. Download this app and set up your account.
- Connect your devices: Connect the mobile credit card reader to your iPhone via Bluetooth. (Older iPhones may require a reader that plugs in via the headphone jack or Lightning charging port.)
- Accept customer payments: Familiarize yourself with your mobile card reader’s capabilities. Depending on your reader and your customers’ specific cards or digital payment methods, you’ll have your customers tap, insert or swipe their cards to remit payment. In some circumstances, you may need to manually enter the card number into your mobile payment software interface.
The best card readers for processing payments on iPhone
You have many options when selecting a mobile credit card processor to help you set up your iPhone to accept payments. You’ll want to evaluate their card reader pricing, processing costs and card reader features.
Here are a few of the best mobile credit card processing solutions to consider:
Processor | iPhone card reader | Features | Reader cost | Processing cost |
|---|---|---|---|---|
Clover | Clover Go | Swipe, tap, chip and contactless payments | $199 | $0-$14.95 monthly fee; 2.6% plus 10 cents transaction fee |
Square | Square Reader (for contactless and chip) | Chip, tap and contactless payments | Free for new merchants, otherwise $59 | No monthly fee: 2.6% plus 10 cents transaction fee |
PayPal | PayPal Zettle | Swipe, chip, tap, contactless payments and PIN pad | First one $29, then $79 | No monthly fee; 2.29% plus 9 cents transaction fee |
Helcim | Helcim card reader | Swipe, tap, chip, contactless payments and PIN pad | $99 | No monthly fee; Interchange plus pricing averaging 1.83% plus 8 cents |
Payanywhere | Payanywhere 3-in-1 | Swipe, tap, chip and contactless payments | $59.95 | No monthly fee; 2.69% transaction fee |
SumUp | SumUp Plus card reader | Swipe, tap chip, contactless payments and PIN pad | $54 | No monthly fee; 2.6% plus 10 cents transaction fee |
Here is some additional information on each option.
Clover Go
The Clover Go mobile credit card reader can accept magnetic stripe (swiped), chip (inserted) and near-field communication (NFC or tapped) cards. It also supports mobile wallets like Apple Pay, Google Pay and Samsung Pay. This compact $199 device connects to your iPhone via Bluetooth and interfaces with the robust Clover Go mobile payment app.
Clover offers various pricing plans tailored to industry and business needs, so monthly payments vary. For example, under the Home Services category’s Standard plan, you’ll pay $199 plus $14.95 monthly for the Clover Go device and a software plan that allows you to accept payments and manage your business. You’ll also pay 2.6 percent plus 10 cents per transaction for card-present transactions via the reader.
Our complete review of Clover credit card processing explains more about Clover’s pricing plans and options.
Square Reader
Square is a credit card facilitator that offers the Square Reader for contactless and chip payments. This compact reader utilizes Bluetooth and supports NFC mobile payments like Apple Pay and Google Pay. However, it doesn’t support cards with magnetic stripes or chipless cards.
The Square Reader costs $59 and interfaces with Square’s POS software, allowing you to view sales transactions, manage inventory, issue digital receipts and manage your customers. There are no monthly fees. You’ll pay 2.6 percent plus 10 cents per transaction for card-present transactions via the reader.
Our in-depth review of Square explains how the vendor’s robust free service plan provides businesses with everything they need to accept various payments.
PayPal Zettle
Like Square, PayPal is a credit card facilitator. With these platforms, you don’t have your own merchant account. When you accept card payments with PayPal, you’re a submerchant under PayPal’s umbrella merchant account.
Unlike the Clover Go and Square Reader, the PayPal Zettle iPhone credit card reader has a numeric pad where customers can enter their debit PIN. It accepts chip, tap and swipe transactions; customers can also pay via PayPal, Venmo, Apple Pay, Samsung Pay and Google Pay. Notably, PayPal Zettle is one of the only credit card processors that supports Venmo for business.
The Zettle reader utilizes Bluetooth wireless technology and works with PayPal’s Zettle app, which integrates with PayPal’s free Zettle POS software. This combination creates an efficient solution for businesses with e-commerce and brick-and-mortar stores.
Your first PayPal Zettle mobile card reader for iPhone costs $29; additional units cost $79. There are no monthly fees; you’ll pay 2.29 percent plus 9 cents per transaction for card-present transactions via the reader.
Visit our PayPal credit card processing review for more details about pricing and terms for PayPal’s various offerings.
Helcim card reader
Helcim’s iPhone card reader allows you to accept swiped, chip and NFC card transactions, as well as mobile wallets. It also features a numeric pad for PIN input. The reader connects via Bluetooth and can interface with Helcim’s POS software on iPhones, iPads and laptop computers.
Helcim POS software also includes automatic tax calculations, inventory management and customer data. The Helcim card readers cost $99 each. There are no monthly fees; on average, you’ll pay 1.83 percent plus 8 cents via the reader.
Our review of Helcim credit card processing explains more about this all-in-one platform that provides merchants with essential tools beyond credit card processing.
Payanywhere 3-in-1
The Payanywhere 3-in-1 reader doesn’t have a numeric pad and looks similar to the Clover Go and Square readers. It accepts magnetic stripe, EMV and chip cards, as well as mobile wallets.
This $59.95 device connects to your iPhone, tablet or laptop via Bluetooth. The Payanywhere app supports adding tips or percentages and accepts signatures for additional security. It can also send digital receipts or kitchen tickets for food service businesses.
There are no monthly fees; you’ll pay 2.69 percent per transaction for card-present transactions via the reader.
SumUp Plus
The SumUp Plus reader accepts swipe, tap and chip payments, as well as Apple Pay and Google Pay. It also features a debit card PIN pad on the back. The reader connects via Bluetooth, boasts excellent battery life (up to 500 transactions per charge) and is affordable at only $54.
The accompanying app allows you to manage products in your catalog, assign tax rates and send digital receipts. If you have multiple employees, you can see everyone’s sales.
There are no monthly fees; you’ll pay 2.6 percent plus 10 cents per transaction for card-present transactions via the reader.
Benefits of accepting mobile payments via iPhone
If your business is inherently mobile, you must accept payments on the go. And since most people don’t carry checks or much cash, accepting credit cards and digital payment methods is essential.
“The number one benefit to being able to accept payments from your phone is being able to get paid anywhere,” said Branden Korf, marketing associate at EBizCharge. “You can collect payments from your farmers market booth, from your food truck or after completing a job fixing a sink as a plumber. There are so many scenarios where collecting payments from your phone is a huge help for daily business operations.”
Additional benefits of accepting mobile payments via your iPhone include the following:
- Taking payments with your iPhone speeds checkout lines: Long lines discourage customers and can negatively impact sales. Retailers with payment-enabled iPhones can process sales quickly, allowing multiple associates to check out customers. For example, Apple Store associates can check out customers anywhere on the sales floor.
- Taking payments with your iPhone improves flexibility: An iPhone credit card reader and app allow you to try different sales platforms. For example, if you have an Etsy shop selling handmade goods, you could also participate in art shows. Clothing retailers could try setting up a pop-up shop and restaurants could delve into the food truck or event space.
- Taking payments with your iPhone boosts closing ratios: Accepting payments while you’re with a customer is invaluable for closing the sale. There are no delays to impede the sale’s progress and your customer can enjoy their purchases immediately.
Alfieri emphasized that accepting payments with iPhones is a win-win for businesses and customers. “[iPhone payment processing] improves the customer experience with quick, secure and convenient payment options and is a professional, modern checkout process that supports growing payment trends,” Alfieri noted.
How much does it cost to accept credit cards via iPhone?
When you decide to accept credit cards with your iPhone, understanding credit card processing fees is crucial. However, Kyle Hall, CEO of PayKings, noted that costs can be minimal. “The financial barrier to entry for mobile payments is remarkably low,” Hall explained. “Most providers offer free basic equipment and charge only per-transaction fees, making it accessible for even the smallest merchants.”
Here’s a quick primer to help you understand your costs.
Transaction fees
All payment processors charge a transaction fee ― a percentage of the total purchase amount. Some processors also charge a flat amount per transaction. Transaction rates range between 1.5 percent and 3.5 percent plus 10 to 30 cents per transaction. Here’s what you should know:
- If you have many small transactions: Businesses with many small transactions should look for a rate with no flat per-transaction fee (or a very small one).
- If you have high-ticket transactions: Companies with fewer transactions ― but higher-dollar-amount ticket sales ― will fare best if the transaction fee is a lower percentage, even if the flat amount is higher.
- Card-present vs. card-not-present transactions: Payment processors usually charge different transaction fees depending on how the payment was made. Transactions more susceptible to credit card fraud, such as e-commerce or card-not-present transactions, will be charged at a higher rate than more secure ways of paying, such as in-person with a credit card reader.
- Interchange plus pricing: Some payment processors have an interchange plus pricing model. This means they take the interchange rate set by the card networks (Visa, Mastercard, Discover and American Express) and add a markup. Interchange rates vary widely, from lower rates on debit cards used with a PIN to higher rates on corporate rewards business credit cards.
Monthly fee
Some credit card processors charge a monthly fee that covers, at a minimum, customer service and monthly statements. This fee may include other services, including PCI security compliance and payment gateway charges. Processors that charge monthly fees usually have lower transaction rates and may be a good choice for businesses with higher sales volumes.
Incidental fees
Most payment processors charge incidental fees when specified events (outlined in the contract) occur. For example, you’ll typically be assessed a chargeback fee if a customer disputes a transaction and you may be charged if you don’t meet security requirements.
