Card Payment Machine for Small Business: Cost vs Phone
A card payment machine for a small business costs $59 to $899 or more upfront, plus 2.29% + 9¢ to 2.6% + 15¢ on every in-person sale. Your phone with JIM Tap to Pay costs $0 upfront and 1.99% per sale, so the phone costs less upfront and on every sale.
Cards drive most checkouts: credit and debit cards made up 65% of U.S. consumer payments in 2024, according to the Federal Reserve's 2025 Diary of Consumer Payment Choice.
This guide is updated every year with official hardware and fee pages. Last reviewed: November 2026.
How much does a card payment machine cost?
Budget for three costs, not one: the hardware, the monthly plan and the fee on each sale. A card payment machine, also called a card terminal or POS terminal, reads the customer's card and sends the payment for approval. The price of that box depends on how much it does.
| Setup | Upfront hardware | Monthly fee | Per in-person sale |
|---|---|---|---|
| Phone with JIM Tap to Pay | $0 | $0 | 1.99% |
| Card reader that pairs with a phone | $59 to $79 | $0 to $149 or more | 2.29% + 9¢ to 2.6% + 15¢ |
| Standalone card terminal | $299 to $399 | $0 to $149 or more | 2.29% + 9¢ to 2.6% + 15¢ |
| Countertop register | $899 and up | $0 to $149 or more | 2.29% + 9¢ to 2.6% + 15¢ |
Source: Square's, PayPal's, SumUp's and Clover's official pricing and hardware pages, accessed November 2026. JIM: jim.com/pricing and the JIM Help Center fee table. Per-sale range covers in-person rates on no-monthly-fee plans. Monthly range covers optional software plans of $49 to $149 a month.
Read the contract before you buy. Some countertop systems charge a required monthly software fee, and some hardware subscriptions can't be canceled once you sign. With JIM, you skip both: no subscription, no setup fee and no box to return.
How much do you pay per sale on a machine vs your phone?
Your phone with JIM costs less on every sale, because JIM charges a flat 1.99% with no fixed fee. Machines add a fixed 9¢ to 15¢ on top of a higher percentage, and that fixed part hurts most on small tickets.
| Sale | Phone with JIM (1.99%) | Machine at 2.29% + 9¢ | Machine at 2.6% + 15¢ |
|---|---|---|---|
| $10 | $0.20 | $0.32 | $0.41 |
| $25 | $0.50 | $0.66 | $0.80 |
| $50 | $1.00 | $1.24 | $1.45 |
| $100 | $1.99 | $2.38 | $2.75 |
On a $10 coffee-and-pastry sale, the machine at 2.6% + 15¢ takes about twice what JIM takes. Sell mostly under $25? The fixed fee is the line to watch.
Each fee rounded to the cent. Rates from the official pricing pages listed above, accessed November 2026. Read how card processing fees work for what goes into each rate.
What does a card payment machine cost in its first year?
A machine costs $212.60 to $452.60 more than your phone in year one, even at the lowest hardware price and lowest per-sale rate. Suppose a mobile seller makes 80 in-person sales of $25 a month, $2,000 in total, for 12 months.
| Year one, 960 sales of $25 | Hardware | Sale fees | Total |
|---|---|---|---|
| Phone with JIM Tap to Pay | $0 | $480.00 | $480.00 |
| Card reader + phone | $59 | $633.60 | $692.60 |
| Standalone card terminal | $299 | $633.60 | $932.60 |
The machine never catches up. Its per-sale fee stays higher than JIM's for the whole time you own it, so every extra sale widens the gap instead of paying back the hardware.
Example math: JIM's fee on a $25 sale is $0.50, times 80 sales, times 12 months. The machines use $0.66 per sale (2.29% + 9¢, rounded to the cent) and no monthly plan. Add a $49 software plan and a machine costs $588 more per year.
Can your phone replace a card payment machine?
Yes, for contactless sales. JIM turns your phone into the card reader: your customer taps a card, phone or watch, and the money lands in your Jim balance in seconds. Learn how Tap to Pay works if you want the technical side.
Setup guides for each phone: Tap to Pay on iPhone and Tap to Pay on Android. For more ways to take cards without a box, read accepting cards without a card reader.
When does a small business still need a card payment machine?
Keep a machine if many of your customers insert or swipe their cards, or if your checkout runs on a tablet with a receipt printer. JIM Tap to Pay reads contactless payments on a phone, and it does not support tablets or corporations. If you sell solo or with one owner on the account, JIM covers contactless cards and wallets at 1.99% with money in seconds, and a Payment Link covers a card that won't tap.
| Profile | Deciding criterion | JIM when... | Consider an alternative if... |
|---|---|---|---|
| Mobile seller, tickets under $100 | Fee per sale | Most customers tap a card, phone or watch | Many customers insert or swipe cards |
| Shop with a counter | Checkout hardware | You sell from one or more phones | You need a tablet screen or receipt printer |
| Business structure | Who can sign up | You are a sole proprietor or single-owner LLC | Your business is a corporation |
Still weighing hardware? Read whether you need a card reader at all before you order one.
How do you start taking cards on your phone with JIM?
You can take your first sale the day your profile is approved, with no box in the mail. You need to be 18 or older, sell in one of the 50 U.S. states, and run a sole proprietorship or an LLC with one owner (JIM's seller requirements).
Selling as an individual? See taking card payments as a sole proprietor, or compare all the ways to accept credit card payments.
Should you buy a card payment machine or use your phone?
Use your phone if most customers tap to pay: you saw $480.00 in year one with JIM against $692.60 to $932.60 with a machine on the same 960 sales. Buy a machine only if chip-insert or swipe payments are a big share of your sales.
JIM Tap to Pay charges 1.99% per sale, with no hardware, no monthly fee and money in your balance in seconds. Run a $1 test sale on your own card, then check every fee at jim.com/pricing.
Sell and get paid in seconds with Jim
