How to Identify the Cheapest EFTPOS Machine for Your Business

Why Finding the Cheapest EFTPOS Machine is Critical for Small-Business Success

What is the cheapest EFTPOS machine will vary by business, but these are today’s most wallet-friendly picks:

Lowest Up-Front Cost

• Basic card reader – $59 upfront, 1.4% transaction fee
• Mobile reader – $65 upfront, 1.6% transaction fee
• Compact terminal – $99 upfront, 1.4% transaction fee

Zero Monthly Fees

• “Pay Nothing” plans – $0 monthly when you process $10,000+
• Contract-free options – no lock-in agreements

Cash use in the U.S. has fallen sharply—down more than 40 % since 2016, according to the Federal Reserve Payments Study. Card acceptance is no longer a nice-to-have; it’s a requirement for staying competitive. The wrong payment setup, however, can drain profits through inflated rates, hidden charges, or pricey rentals.

The real trick isn’t picking the lowest sticker price—it’s understanding total cost of ownership. A $59 reader with 1.6 % fees may look cheap, but at $20,000 in monthly sales you’ll pay $40 more each month than you would with a 1.4 % device.

I’m Lydia Valberg from Merchant Payment Services. After a decade helping independent retailers and service providers, I’ve learned that choosing the so-called “cheapest” terminal without looking at volume, support and future growth is the fastest way to overspend.

Defining EFTPOS and Its Role

EFTPOS (Electronic Funds Transfer at Point of Sale) lets you move money from a customer’s card to your bank in seconds. The terminal sends encrypted data to a gateway, the gateway pings the issuing bank, and—if approved—funds settle into your merchant account, usually overnight. Every hop in that chain carries a fee, which is why the machine that looks cheapest on day one isn’t always cheapest on day 365.

Because Americans now tap to pay for everything from coffee to car repairs, an EFTPOS machine has become as essential as electricity. The question isn’t whether you need one—it’s how to get affordable, reliable card acceptance without sacrificing features your customers expect.

Understanding EFTPOS Machine Types and Costs

Choosing what is the cheapest EFTPOS machine starts with knowing the three main device categories and how each affects your wallet.

Mobile readers pair with a phone or tablet via Bluetooth. Ideal for markets or service calls, they cost $59–$99 upfront and have no rental fees.

Countertop terminals stay put, connect by Wi-Fi or ethernet, and handle heavier traffic. Expect $150–$300 to buy outright.

Integrated systems link directly to your POS so totals flow automatically, reducing key-entry errors. They run $250–$500 but save time at checkout.

Rental vs. Purchase

Traditional banks still push rentals at $25–$35 per month. Over a year, that $300-plus could have bought you the terminal outright. Buying a $199 unit instead of renting at $30 means break-even in seven months—after that, the savings are yours.

Fee Structures

Providers use either a simple flat rate (e.g., 1.4 % for every card) or blended pricing that changes with card type. Flat rates make budgeting easy; blended rates can be cheaper if most customers use low-cost debit but spike when someone pays with a premium rewards card.

Hidden Charges to Watch

• Chargeback fees: $15–$25 each dispute.
• PCI compliance fees: some processors tack on $10–$30 monthly.
• Statement or early-exit fees: buried in the fine print.

Ask for a full fee schedule in writing. If a provider won’t disclose every cost, move on.

By understanding hardware options, rental math, and sneaky extras, you’ll be far better equipped to identify the true cheapest EFTPOS solution—not just the one with the lowest price tag today.

What is the Cheapest EFTPOS Machine?

The honest answer to "what is the cheapest EFTPOS machine" isn't as straightforward as you might hope. It's like asking what's the cheapest car - it depends on whether you mean upfront cost, running expenses, or total cost over time.

For most small businesses processing under $10,000 monthly, a basic card reader at $59 represents the sweet spot for overall affordability. You'll pay 1.4% per transaction with no monthly fees lurking in the background. This means your only ongoing cost is tied directly to your sales - when business is slow, your EFTPOS costs drop too.

High-volume businesses face a completely different equation. If you're processing over $10,000 monthly, "Pay Nothing" plans can eliminate your rental fees entirely through surcharging. This approach transfers transaction costs to customers, potentially reducing your effective EFTPOS cost to zero. However, this strategy requires customer acceptance and careful compliance with surcharging regulations.

The break-even point between rental and purchase typically hits around 12-18 months. Traditional bank rentals at $30 monthly cost $360 annually, making any device under $400 a smarter long-term investment. The catch? Rental agreements often include replacement guarantees and technical support that you'll need to arrange separately with purchased devices.

Understanding your business volume helps determine the most cost-effective approach:

Business Volume	Best Option	Monthly Cost	Annual Total
Under $5,000	Basic Reader	$70 (fees only)	$840
$5,000-$15,000	Mid-Range Terminal	$140 (fees only)	$1,680
Over $15,000	Zero-Cost Plan	$0 (surcharge model)	$0

The key insight here is that total cost of ownership matters more than sticker price. A $59 device with 1.6% transaction fees costs more than a $99 device with 1.4% fees once you're processing $20,000 monthly. Those seemingly small percentage differences compound quickly when multiplied across thousands of transactions.

What is the Cheapest EFTPOS Machine for Up-Front Cost?

When cash flow is tight and you need to start accepting cards immediately, basic card readers at $59 win the affordability race hands down. These compact devices connect to your smartphone or tablet, making them perfect for market stalls, food trucks, or service businesses where mobility matters more than bells and whistles.

Refurbished units can slash upfront costs even further, though finding quality second-hand terminals requires patience and careful inspection. Some merchants find decent refurbished terminals for $30-$50, but these often come without warranties or guaranteed software updates. Given how quickly payment technology evolves, this penny-wise approach can become pound-foolish.

Short-term hire deserves consideration for seasonal businesses or those testing the waters with card acceptance. Daily rates of $5-$10 might seem expensive when you calculate them out, but they provide valuable flexibility for businesses with irregular trading patterns. Christmas markets, festival vendors, and pop-up shops often find hire more practical than purchase.

The trade-off with ultra-low-cost options involves feature limitations that might bite you later. Basic card readers often lack contactless payments, receipt printing, or integration capabilities that become essential as your business grows. Starting too basic can force expensive upgrades sooner than expected, ultimately costing more than investing in a slightly better device initially.

What is the Cheapest EFTPOS Machine for Transaction Fees?

Finding the cheapest EFTPOS machine for ongoing costs means hunting down the lowest transaction rates, where small differences create big savings over time. Processing fees typically range from 1.2% to 1.9%, and that gap can cost hundreds monthly for busy merchants.

Flat-rate models provide the most predictable costs and simplify your bookkeeping compared to blended rates that vary by card type. When providers charge 1.4% for all cards including American Express, you can calculate your monthly costs accurately without creating complex spreadsheets for different card brands.

Least-cost routing represents hidden savings that many businesses overlook. This technology automatically selects the cheapest network for each transaction, potentially reducing fees by 0.1-0.3% per transaction. While these savings seem tiny, they add up to hundreds monthly for high-volume businesses without requiring any effort on your part.

Surcharging rules allow businesses to pass transaction fees directly to customers, effectively reducing your processing cost to zero. However, compliance requires strict adherence to regulations - you cannot surcharge more than your actual cost, must display appropriate signage, and need to review rates annually. For businesses comfortable with this approach, advanced solutions can automate the complexity.

The mathematics are compelling: a business processing $50,000 monthly saves $350 monthly by choosing 1.2% rates over 1.9% rates. That's $4,200 annually - enough to justify significant effort in finding the right provider.

Evaluating "Zero-Cost" Surcharge Solutions

Pass-through fee models promise to eliminate your EFTPOS costs entirely by adding surcharges to customer transactions. While this sounds like financial magic, the reality involves careful consideration of customer impact, legal compliance, and competitive positioning.

Legal compliance demands strict attention to regulations that govern surcharging in the US. You must cap surcharges at your exact processing cost, display clear signage about surcharging policies, and review rates at least annually to ensure ongoing compliance. Failure to follow these rules can result in penalties and customer complaints to regulatory bodies.

Customer perception varies dramatically by industry and demographic. Many customers accept small surcharges, especially when they understand it's for convenience or to keep other prices lower. However, others actively avoid businesses that surcharge, potentially choosing competitors to save a few dollars. The key is understanding your customer base and testing gradually.

Signage requirements include clear disclosure of surcharge amounts before customers commit to purchases. This means digital displays, counter signs, and payment terminal messages must all communicate your surcharging policy transparently. The goal is avoiding surprises that create disputes and damage customer relationships.

The strategic question becomes whether eliminating EFTPOS costs justifies potential customer friction. For some businesses, particularly those with loyal customer bases or unique offerings, surcharging works beautifully. For others competing primarily on price, absorbing transaction costs might be the better long-term strategy.

Feature Checklist Beyond Price

Finding what is the cheapest EFTPOS machine means looking beyond the price tag to features that actually matter for your business success. I've seen too many business owners choose the lowest-cost option only to find it can't handle the payment methods their customers expect.

Contactless payments have become non-negotiable. Your customers expect to tap their cards or phones without thinking twice about it. If your terminal doesn't support tap-and-go, you'll frustrate customers and slow down your checkout process. This isn't just convenience - it's become the standard way people pay.

EMV chip technology protects both you and your customers from fraud. Beyond security, chip-enabled terminals reduce your liability if fraudulent transactions occur. Modern EFTPOS machines must support chip cards to maintain PCI compliance and keep your business protected from security breaches.

Mobile wallet acceptance for Apple Pay, Google Pay, and Samsung Pay attracts customers who've ditched physical wallets entirely. These digital payments often process faster than physical cards and create less wear on your terminal. Plus, younger customers increasingly expect this option.

The receipt printing question comes down to your customers and industry. While email and SMS receipts save paper and provide better record-keeping, some customers still want that physical receipt. Built-in thermal printers add convenience but increase both device costs and ongoing maintenance needs.

POS integration eliminates the tedious manual entry of transaction amounts. When your EFTPOS machine talks directly to your point-of-sale software, checkout becomes seamless and errors disappear. This integration makes end-of-day reconciliation effortless instead of a headache.

Settlement speed affects your cash flow more than you might realize. While next-day settlement is standard, some providers offer same-day or instant settlement for premium fees. For most small businesses, the extra cost rarely justifies faster access to funds, but it's worth considering if cash flow is tight.

Security compliance through PCI DSS standards isn't optional - it's essential for protecting your business and customers from data breaches. All reputable EFTPOS providers maintain compliance, but you should verify current certifications and understand your role in maintaining secure payment environments.

Connectivity & Portability

Wi-Fi connectivity works perfectly for most fixed-location businesses, providing reliable internet access for transaction processing. The challenge comes during internet outages when your payment processing stops completely - potentially costing you sales during busy periods.

4G backup connectivity acts like insurance for your payment processing. Dual-connectivity terminals automatically switch to mobile networks when your primary internet fails, keeping sales flowing smoothly. This redundancy particularly benefits businesses in areas where internet reliability can be spotty.

Battery life becomes critical if you need portability. Eight-hour battery life handles most day trading, but longer events or multi-day markets require extended battery capacity or smart charging solutions. Consider both charging time and replacement battery availability when making your choice.

The portability requirements vary dramatically by business type. Food trucks and market vendors need lightweight, weather-resistant devices that survive outdoor conditions. Restaurants benefit from sleek terminals that improve table-service experiences. Retail stores typically prefer fixed terminals that integrate seamlessly with existing checkout systems.

Support & Reliability

24/7 help desk availability ensures you get assistance when problems arise outside normal business hours. Many small businesses operate evenings and weekends, making round-the-clock support essential. Local support teams understand regional regulations and provide faster, more relevant assistance than distant call centers.

Replacement SLAs guarantee how quickly you'll get a new terminal when yours fails. Four-hour replacement in metro areas and next-day service in regional locations minimize business disruption. The best providers offer advance replacement, shipping new terminals before collecting faulty units so you're never without payment processing.

Uptime guarantees reflect how confident providers are in their network reliability. While 99.9% uptime sounds impressive, it still allows nearly nine hours of downtime annually. Providers offering 99.99% uptime demonstrate superior infrastructure investment and typically deliver better service reliability.

Businesses without reliable card acceptance risk losing significant revenue as cash usage continues declining. Investing in reliable EFTPOS infrastructure protects against these potential revenue losses.

Reporting & Accounting Integrations

Real-time dashboards give you immediate visibility into your business performance throughout the day. Modern EFTPOS providers offer mobile apps and web portals displaying current sales data, transaction volumes, and fee calculations. This information helps you make informed decisions about staffing, inventory, and operations.

Accounting software integration transforms your bookkeeping from tedious manual work to automatic data import. This automation eliminates data entry errors and saves hours of administrative work monthly. Automatic reconciliation particularly benefits businesses processing hundreds of transactions daily - imagine never having to manually match payments again.

Advanced reporting features help you understand your business patterns better. You can identify peak trading periods, customer payment preferences, and seasonal trends. Some systems even provide customer analytics that help improve service delivery and identify opportunities for growth.

Frequently Asked Questions about Low-Cost EFTPOS Solutions

How fast will my funds settle?

Most EFTPOS providers offer standard next-day settlement, meaning your money appears in your bank account the morning after processing transactions. This timing works perfectly for most small businesses and doesn't cost you anything extra - it's just part of the normal service.

Same-day settlement sounds appealing, but it usually comes with a price tag. You'll typically pay an extra 0.1% to 0.5% per transaction for the privilege of getting your money within a few hours instead of overnight. Before jumping on this option, honestly assess whether getting your funds 12 hours earlier is worth paying hundreds of dollars extra each month.

Some providers now offer instant settlement where funds hit your account within minutes. While this sounds fantastic, it's often the most expensive option and may have daily limits on how much you can instantly transfer. Unless you're in a business where cash flow is absolutely critical hour by hour, the standard overnight settlement usually does the job perfectly well.

One thing to keep in mind: weekends and public holidays can affect settlement timing. Some providers process continuously, while others take a break on weekends. If you do significant weekend trade, check how your provider handles holiday settlement before signing up.

Can I legally pass card fees to customers?

Yes, you can surcharge customers for card payments in most US states - and it's completely legal when done correctly. However, there are some important rules you need to follow to stay on the right side of the law.

The golden rule is simple: you cannot surcharge more than your actual processing cost. If your EFTPOS provider charges you 1.4% per transaction, that's your maximum surcharge. You can't round up to 1.5% or add a bit extra "for administration" - regulators take a dim view of businesses that try this.

Clear signage is absolutely essential. Your customers need to know about surcharges before they commit to buying anything. This means signs at your entrance, near your counter, and prompts on your EFTPOS terminal. Think of it as giving your customers fair warning - nobody likes surprise fees at checkout.

You'll also need to review your surcharge rates annually to make sure they still match your actual costs. As your processing fees change (and they do change), your surcharges need to adjust accordingly. Some modern providers handle this automatically, which saves you the hassle of manual calculations.

The reality is that customer acceptance varies widely. Many customers barely notice small surcharges, especially if they're getting convenience in return. Others might grumble but pay anyway. A few might walk away - but with cash usage declining rapidly, most customers understand that card processing costs money.

Should I buy or rent if my sales are seasonal?

Seasonal businesses face a tricky decision when choosing between buying and renting EFTPOS equipment. If you only operate during summer markets or Christmas periods, paying monthly rental fees year-round feels like throwing money away.

For short seasonal operations (3-4 months per year), rental often makes more financial sense despite the higher monthly costs. A $30 monthly rental for four months costs $120, while a $150 purchased terminal takes more than a full season to pay for itself. You're also not stuck storing and maintaining equipment during the off-season.

Longer seasonal operations or businesses planning to operate for several years usually benefit from purchasing. Once you're looking at six months of operation annually, or planning to run seasonal operations for multiple years, the math starts favoring ownership. A $100 terminal used for three seasons effectively costs about $33 per season.

Don't forget the practical considerations of ownership. Storing terminals properly during off-seasons prevents damage from temperature swings and humidity. You'll also need to occasionally power up and update the software to maintain security compliance - terminals that sit unused for months can become outdated.

Some providers offer flexible arrangements that work well for seasonal businesses. Month-to-month contracts let you activate service when needed without long-term commitments. Others offer seasonal suspension services that reduce monthly fees during inactive periods. These middle-ground options can provide the best of both worlds - flexibility without the full cost of year-round service.

The key is being honest about your trading patterns. What is the cheapest EFTPOS machine for your seasonal business depends entirely on how many months you'll actually use it and how many seasons you plan to operate.

Conclusion

Finding what is the cheapest EFTPOS machine isn't just about the sticker price - it's about understanding what works best for your unique business situation. After helping thousands of merchants over our 35 years in the payment industry, I've learned that the "cheapest" option can sometimes be the most expensive mistake you'll make.

The numbers tell a clear story. If you're just starting out or have low transaction volumes, a basic card reader at $59 gives you the most bang for your buck. It's simple, reliable, and gets you accepting cards without breaking the bank. For businesses ready to invest a bit more upfront, mid-range terminals at $99 offer better features and no monthly fees - a sweet spot that many of our clients love.

But here's where it gets interesting: high-volume businesses often find that zero-cost surcharge solutions completely flip the cost equation. When you can legally pass processing fees to customers, your effective EFTPOS cost drops to zero. It's like having your cake and eating it too, though you'll need to handle the customer communication carefully.

The real eye-opener comes when you calculate the long-term costs. A terminal that seems expensive upfront but charges 0.2% less per transaction can save you hundreds of dollars monthly if you're processing decent volumes. I've seen businesses save thousands annually just by looking beyond the initial price tag.

Don't forget the features that keep your business running smoothly. Contactless payments aren't optional anymore - they're expected. Reliable connectivity prevents those awkward moments when your terminal won't connect during busy periods. Good customer support becomes invaluable when something goes wrong on a Saturday afternoon.

At Merchant Payment Services, we've watched the payment landscape evolve dramatically. What started as simple card swiping has become a sophisticated ecosystem of mobile wallets, instant settlements, and integrated accounting systems. The businesses that thrive are those that choose EFTPOS solutions that grow with them, not just serve their immediate needs.

The decision roadmap is actually quite straightforward when you break it down. Start by calculating your monthly transaction volume, then factor in your upfront budget and must-have features. Value beats price every time - a slightly more expensive solution that saves you time, reduces headaches, and keeps customers happy will pay for itself quickly.

Your EFTPOS machine should feel like a trusted business partner, not a necessary evil. Take the time to test different options if possible, read the fine print on fees, and don't be afraid to ask providers tough questions about their service levels. The right choice will make your daily operations smoother and your customers happier.

Because at the end of the day, the cheapest EFTPOS machine is the one that helps your business grow while keeping costs under control.