What you need to get a credit card machine
A credit card machine (also called a payment terminal or point-of-sale device) lets you accept card payments from customers in person. To get one, you need a business bank account, a merchant services provider, and a way to process the transaction — either through a traditional payment processor or a modern mobile reader.
The process is straightforward: you contact a payment processor, provide basic business information, and they send you the hardware. Most small businesses can have a working machine within a few days to two weeks. The machine itself is often free or low-cost; the processor makes money from transaction fees instead.
You do not need perfect credit or a long business history to may have access to. Processors care more about your monthly sales volume and the type of business you run. Some industries — like restaurants and retail — are considered lower risk and get approved faster.
Key Takeaways
- You need a business bank account and a merchant services provider before you can process card payments.
- Payment processors typically charge a percentage of each transaction (usually 1.5% to 3.5%) plus a small per-transaction fee, not an upfront cost for the machine.
- The process takes 5 to 10 minutes online, and approval usually comes within 24 to 48 hours.
- You can choose between a traditional countertop terminal, a mobile card reader that plugs into your phone, or a full point-of-sale system depending on your business type.
- Your processor will ask about your average monthly sales, the types of cards you expect to accept, and your business structure.
Decide what type of machine fits your business
The right machine depends on where and how you take payments. A countertop terminal (like a Verifone or Ingenico device) sits on your counter and customers insert or tap their card. These work well for retail shops, restaurants, and service businesses with a fixed location. They are durable and reliable but require a phone or internet line to process transactions.
A mobile card reader (like Square Reader, PayPal Here, or Clover Go) is a small device that plugs into your phone or tablet. It works anywhere you have cell service or WiFi. This is ideal if you take payments at markets, pop-up events, or client locations. The hardware is cheaper, but transaction fees are often slightly higher.
A full point-of-sale system combines the terminal with inventory tracking, employee management, and reporting software. Restaurants and larger retail shops often use these. They cost more upfront but save time if you manage multiple staff or need detailed sales data.
Choose a payment processor
Your payment processor is the company that handles the transaction between your customer's bank and your business account. The major options are traditional processors (like First Data, Global Payments, or Worldpay), mobile-first companies (like Square, PayPal, or Toast), and your own bank if it offers merchant services.
Compare these details before you choose: the percentage fee per transaction (called the discount rate), the per-transaction fee (usually $0.10 to $0.30), monthly minimums or statement fees, and whether they charge for the hardware. Some processors offer flat-rate pricing (the same percentage on every card type), while others charge different rates for debit, credit, and premium cards.
Ask whether the processor supports the payment types you need: chip cards, contactless (tap), online payments, or recurring billing. If you plan to take payments online as well as in person, some processors bundle both into one account, which simplifies reporting.
Gather the information the processor will ask for
When you contact a processor, have these details ready: your business name and legal structure (sole proprietor, LLC, corporation), your business address, your estimated monthly sales volume, the types of products or services you sell, and your business phone number. You will also need your Social Security number or EIN (Employer Identification Number).
The processor will ask what percentage of your sales come from card payments versus cash, and whether you take payments online or only in person. They may ask about your industry specifically — restaurants and gas stations have different risk profiles than, say, a consulting firm. Be honest about your sales volume; processors use this to set your processing limits and pricing.
If your business is very new (less than a few months old), some processors may ask for a bank statement or tax return to verify your sales. If you have been in business for a year or more, a bank statement usually suffices.
Submit your information and wait for approval
Most processors let you start the process online in under 10 minutes. You fill out a form with your business details, choose your machine type, and select your pricing plan. Some processors ask you to upload a photo of your ID and a recent bank statement at this stage.
Approval typically takes 24 to 48 hours. The processor will contact you by phone or email to confirm details, ask follow-up questions if needed, and let you know whether you are approved. If you are approved, they will ship the machine to your business address — usually within 3 to 5 business days.
If you are declined, the processor will tell you why. Common reasons include a mismatch between your stated sales and your bank statements, or a high-risk industry classification. You can ask to reapply after fixing the issue, or try a different processor.
Set up the machine and start processing
When your machine arrives, the processor will include setup instructions. For a countertop terminal, you plug it in, connect it to your phone line or internet, and follow the on-screen prompts to register it. For a mobile reader, you read the processor's app, plug in the reader, and authenticate your account.
The processor will send you a welcome packet with your merchant ID, your processing rates, and information about your monthly statement. Read the statement carefully the first month to understand how fees are calculated — this varies by processor and by card type.
Test the machine with a small transaction before your first customer uses it. Process a card, check that the receipt prints correctly, and verify that the transaction appears in your processor's online dashboard within a few hours. If anything looks wrong, contact the processor's support line — they usually respond within a few hours.
Understand what you will pay
You do not pay for the machine itself in most cases. Instead, you pay a percentage of each transaction (the discount rate) plus a small per-transaction fee. A typical setup might be 2.6% plus $0.10 per transaction, though this varies widely by processor and card type.
Some processors also charge a monthly statement fee ($5 to $15) or a minimum monthly processing fee. A few charge a small monthly fee to rent the terminal instead of selling it to you. Read the pricing terms carefully — the lowest percentage rate is not always the best deal if there are hidden monthly fees.
You will see all fees itemized on your monthly statement. The processor deposits the transaction amount minus fees into your business bank account, usually within 1 to 3 business days. If you process $10,000 in a month at 2.6% plus $0.10 per transaction, you would pay roughly $260 to $280 in fees.
Frequently Asked Questions
Do I need a business license to get a credit card machine?
No. Processors do not require a business license, though some ask whether you have one. You do need a business bank account and a way to identify yourself (a driver's license or passport). If you operate as a sole proprietor, you can use your Social Security number instead of an EIN.
Can I get a credit card machine if I have bad credit?
Yes. Payment processors do not run a personal credit check. They look at your business sales history and bank statements instead. If your business is new or your sales are very low, some processors may decline you, but bad personal credit will not automatically disqualify you.
What happens if a customer disputes a charge?
The customer's bank investigates the dispute and may reverse the charge, pulling the money back from your account. This is called a chargeback. Your processor will notify you and deduct the amount from your next deposit. You can dispute the chargeback by providing proof (a receipt, invoice, or email confirmation) that the transaction was legitimate.
Can I use the same machine for online payments?
A physical terminal only processes in-person payments. To take payments online, you need a separate online payment gateway (like Stripe or PayPal). Some processors bundle both into one account, so you manage everything in one dashboard. Ask your processor whether they offer this.
What if I want to switch processors later?
You can switch at any time. There is no contract lock-in with most modern processors, though some traditional ones require a one- or two-year agreement. When you switch, the new processor will send you a new machine, and you stop using the old one. Your old processor will close your account and send you a final statement.