Flute
You’ve been running your boutique from the same spot for years, and the countertop device behind your register has done the job well. One weekend, you’re invited to set up a booth at the local farmers’ market. You’re excited to get out and meet some new customers, but don’t give much thought to how you’ll take payments. The problem is, your usual hardware is designed to stay put: plugged in and wired to a counter. Now that the weekend has arrived, you’re left with two options — cancel your market appearance or scramble for a last-minute solution.
Going back to the drawing board when you’re in growth mode isn’t fun. But choosing the right payment hardware is a lot easier when you understand your options before you need them.
Whether you’re just getting started or dipping your toe into a new market, it’s important to invest in the right technology from the start. Here’s how to tell your options apart and choose what’s right for your business.
Most payment hardware, whether it’s a card reader, a countertop device, or a mobile setup, falls into one of two categories: countertop and mobile. Understanding the difference and what each is actually built for is important when you’re just getting started or looking to expand.
A countertop device, sometimes called a countertop card reader or credit card machine, is a fixed unit that lives at your point of sale, like at the register or service counter. These devices connect to a power source and the internet (via Wi-Fi or Ethernet) and are designed for consistent, high-volume sales. They typically feature larger screens, more processing power, and in many cases, built-in receipt printers and customer-facing displays.
Mobile payment hardware is designed for movement. These include compact mobile card readers, wireless handheld devices, and small card readers that attach to a smartphone or tablet — letting you accept payments from anywhere: a table, job site, pop-up market, or festival.
Customers increasingly want to pay where they are, on their terms. A payment setup that can’t keep up with your business when you need to take it on the go creates friction before the transaction even begins.
For brick-and-mortar businesses with a defined checkout area, countertop hardware makes a lot of sense.
Stability is the biggest advantage. A device with a reliable power source and a wired or strong Wi-Fi connection can process transactions reliably, without the battery concerns or signal drops that mobile devices can sometimes cause. When every second at checkout counts, that reliability matters.
Countertop devices also tend to offer a better user interface and a more complete feature set. Larger screens make it easier for customers to interact with their transactions, view details, enter a PIN, or sign. Many countertop models also include integrated receipt printers, barcode scanners, and customer-facing screens that streamline checkout from both sides of the counter.
Countertop devices are stationary by design, so if you need to bring the payment experience to your customers, a countertop-only setup won’t get you there. Countertop devices can also be pricier than smaller, mobile options. For businesses just getting started, a larger piece of hardware might not be worth the upfront investment.
Mobility changes the customer experience in ways that are hard to overstate, and the numbers reflect it.
Federal Reserve data shows U.S. consumers now use mobile phones for roughly 23% of all monthly payments, a figure that’s nearly tripled since 2018. Among young adults aged 18 to 24, that number jumps to 45%. Customers are paying on the go, and they expect that convenience everywhere they shop.
Food trucks, pop-up vendors, on-site contractors, and mobile groomers need payment options that are as flexible as they are. But mobile credit card readers aren’t just for businesses on the move. Consider what they can do for a restaurant. On a busy Friday night, your server can take an order on a handheld device, return to the table at the end of the meal, and process the payment right there. No trip to the back, no shared device, and no passing cards across the table.
According to the National Restaurant Association, 62% of full-service restaurant diners said they’d use a tablet to pay at the table, and 63% said they’d be comfortable paying by smartphone. They still want human interaction, but they’re open to tech when it makes the checkout easier. That’s a strong signal, and a real opportunity for restaurants to adapt.
Mobile hardware is also typically more affordable to get started with than a full countertop setup, making it an accessible entry point for businesses in their early stages or operating on tighter margins.
There are limitations, though, that are worth considering. For instance, battery life is a genuine concern, especially during long event days or outdoor markets where charging isn’t always available. Signal reliability can vary by location and carrier. And for businesses processing very high transaction volumes quickly, a mobile credit card reader’s smaller size and screen may not match the processing power of a purpose-built countertop setup.
Mobile hardware tends to work best for:
For many business owners, the answer isn’t one or the other: it’s a combination.
As mentioned earlier, a full-service restaurant might keep a countertop device at the bar and provide waitstaff with handheld devices to take tableside payments. Similarly, a boutique might have hardware at the front desk and equip floor staff with mobile devices, so customers don’t have to wait in line.
The goal isn’t to pick a category, but to build a payment setup that supports your long-term goals, no matter how or where you do business.
Once you’ve settled on the right device type, there are a few extra features to consider. None of them are dealbreakers, but they can make a real difference in how smoothly things run day to day.
Most countertop devices come with a built-in receipt printer. Mobile hardware often doesn’t. If you regularly hand customers a paper receipt, look for a device that includes a printer or budget for an external Bluetooth device.
Many mobile setups support email or text receipts as an alternative, which cuts down on paper and simplifies your setup without losing the confirmation customers expect.
Chip and contactless cards are the standard today, but magnetic stripe cards are still in use.
Federal Reserve data shows that debit and credit cards combined account for about 65% of U.S. consumer transactions. That said, not every cardholder has a contactless-enabled card yet. If your device handles swipe, chip, and contactless, you’ll never have to turn someone away because of how their card is set up.
Restaurants, coffee shops, mobile grooming services, and delivery operations live on tips. If that includes you, look for a device that prompts customers at checkout with suggested tip amounts. It takes the mental math off the customer and encourages them to leave a little something extra. For businesses where gratuity is part of how your team gets paid, that one feature can add up quickly.
Every card transaction comes with a processing fee. Cash discounting and dual pricing are two ways to offset that cost without absorbing it entirely. With cash discount programs, card payments will automatically include processing costs on top of your base price, while customers who pay in cash will receive a small discount. Dual pricing shows both prices side by side at checkout.
Both models are legal nationwide, though state and card network rules vary. If protecting your margins is a priority, look for hardware that natively supports these programs.
The best payment hardware doesn’t call attention to itself. It works quietly in the background, letting you focus on your customers and your business.
Start by thinking honestly about your operation. Where do transactions happen: at a counter, at a table, in the field? Do customers come to you, or do you go to them? How many payments do you take on a typical day?
A 2025 PYMNTS report found that one in three customers would skip a purchase entirely if their preferred payment method was unavailable. That means getting your hardware right is one of the best ways to close the gap between what customers expect and what you offer.
Here are a few questions to ask yourself before you make a final decision:
If you get stuck, ask your payment provider to walk you through your options. The best provider will partner with you to find the ideal solution for your business.
Payment hardware is one of those things you don’t notice when it works well — and notice immediately when it doesn’t. Choosing the right setup doesn’t have to be complicated. Whether you’re setting up your first location or expanding into new channels, understanding the difference between countertop and mobile hardware and knowing which features to look for makes it easier to serve your customers and be successful in the long term.
Flute offers payment hardware built for growing businesses, with flexible options, transparent pricing, and tools that give you full visibility into your payments and your margins, all in one place. Ready to find the right fit? Explore our payment hardware options or reach out to a member of our team to get started.
Software platforms are transforming how people pay, borrow, and manage money. In the past, customers relied on separate banks, lenders, or insurers to complete financial tasks. Today, more of these services are being built directly into the digital products people already use. This shift is called embedded finance, and it’s one of the most impactful trends in financial technology.
For SaaS (software-as-a-service) executives, product leaders, and business owners, embedded finance unlocks new ways to grow platform value, generate revenue, and build stronger customer relationships. With the right partner, platforms can add features like payment acceptance, recurring billing, and even banking tools like lines of credit, deposit accounts, and disbursements — without taking on the complexity of becoming a bank.
Let’s take a closer look at what embedded finance is and how it can help you grow your software company, expand revenue, and build a happier, stickier user base.
Embedded finance is the process of integrating financial services like payments, lending, insurance, or banking into software that was not originally designed for finance.
For instance, a pet care company might use its scheduling platform to book appointments and send invoices within the app. Or, an auto repair shop might let customers finance their bill through its business management software. In both cases, the businesses don’t have to go through a separate vendor for payments or lending; the features are built directly into the core platform, offering a more seamless and intuitive user experience.
The biggest benefit of embedded finance is convenience. Users don’t have to juggle multiple vendors, bounce between platforms, or log into different systems to get things done. Instead, everything happens in one place. That means users have access to more relevant, curated financial solutions that keep them engaged and capture more value from every transaction.
Embedded finance isn’t limited to payment processing. Many solutions also include:
Each element of embedded finance is designed to work seamlessly within the software company’s native application.
Software companies are embracing embedded finance not just because it’s more convenient for users, but because it helps platforms grow and open new revenue streams. Here are three benefits to consider:
When your users can do more inside your software, they’re more likely to stay long-term. Payments are often the first step. Instead of directing users to an outside payment page, embedded payments allow them to complete transactions through your application, whether it’s in-person with a point of sale (POS) system, with an app on their iPhone, or through an e-commerce marketplace integration.
The convenience of simplifying daily workflows and accelerating checkout builds loyalty. It also allows you to offer services like recurring billing, stored payment methods, and digital invoicing to keep customers connected to your platform over time. You worked hard to earn your customers, and offering the right financial tools can help you keep them.
Another reason SaaS companies invest in embedded finance is that it opens a new revenue stream without having to manage or build payments infrastructure from scratch. Every time a customer makes a payment, you earn a share of the transaction. Over time, this can become a major contributor to your company’s bottom line, especially as you gain more users.
Remember, not every embedded payment solution offers revenue sharing, so it’s important to ask upfront what your earnings will be. The right partner will also provide the APIs, embeddable components, onboarding tools, and compliance support needed to operate in the background, while you focus on growth.
Brand matters, especially for companies that have invested in their design and customer experience. With embedded payments, for instance, payment flows remain inside your software platform and reflect your branding. This includes checkout pages, receipts, account management screens, and more. This continuity reinforces your brand at every touch, building recognition and trust with your users.
Your embedded finance partner should offer full control over the look and feel of your payment experience. There’s no need to redirect users to a third-party processor or use off-brand forms, so be sure to ask providers about flexible APIs and easy-to-use interface components that you can style to match your brand.
Embedded finance is growing in popularity across a variety of industries, and for good reason. Here are a few examples of how embedded solutions can be valuable if you’re a vertical software provider:
Each of these examples shows how embedded financial solutions not only simplify operations but also open up new revenue opportunities.
Embedded finance isn’t just a trend — it’s an expectation. As users expect more from their software tools, platforms that offer integrated financial services will stand out.
At Flute, we give SaaS companies and software platforms a fast, reliable way to embed payments and capital products into their native solutions. With modern APIs, strong support, and a clear revenue model, we can help you move from payment processing to full financial integration – and in the process, deliver more value to each customer, increase retention, and increase your profitability per customer.
If you’re ready to embed payments and other financial tools into your software solution, reach out to our team for more information.
Every time you buy something with a credit card, a small portion of that sale goes to processing fees. Most consumers don’t see those costs, but for small businesses, merchant processing costs can add up quickly.
Credit card fees usually range from 1.5% to 3.5% of the total sale. As a small- or medium-sized business (SMB), if you sell a $100 item, between $1.50 and $3.50 of that transaction will be divided among banks, networks, and processors before the rest reaches your bank account.
As your volume grows, so will the cost of taking payments. For instance, if your business does $100,000 per month in credit card transactions, between $1,500 and $3,500, on average, will go toward paying those fees.
In 2023, U.S.-based businesses paid $224 billion in credit card processing fees. Although there’s no way to get around card fees altogether, there are opportunities to minimize them. So, let’s break down the different types of credit card processing fees and what you can do to lower them.
Credit card processing fees — or processing rates — are the cost businesses pay to accept credit and debit card payments for their goods and services. Fees are split between a few people in the payments ecosystem, including:
Every time your customer swipes, dips, or taps their card, those organizations take a slice of the sale. Understanding who gets what will help demystify the cost of accepting credit cards and give you leverage when comparing providers.
Card-issuing banks like Citi, Chase, and Wells Fargo collect the largest share of fees, also known as interchange fees. These costs cover everything from assumed credit risk to fraud protection and transaction handling.
Card networks like Visa, Mastercard, Discover, and American Express charge assessment fees for access to their infrastructure. These costs support the secure global systems that make card transactions possible.
Payment processors are the companies that manage transaction logistics, deposit funds into your merchant account, and offer value-added tools like advanced reporting, customer support, or point of sale (POS) integrations. These companies often charge a markup or service fee to cover their services.
During online transactions, payment gateways securely transmit a customer’s payment information to the processor. Gateways are often built into the processor’s platform, but if you’re using a separate, third-party gateway, there may be additional fees.
Credit card fees often go beyond the standard percentage per transaction. Here’s a breakdown of the most common fees you might encounter as a business owner.
Interchange fees are set by the card networks and paid by a merchant’s acquiring bank to the card-issuing bank to compensate issuers for costs like fraud risk, transaction processing, and cardholder rewards. Interchange fee rates can range from 1.15% to 3.25% or more per transaction. These costs vary by card type, transaction method, and industry.
Assessment fees are charged by card networks like Visa and Mastercard for processing transactions through their payment networks. These fees are typically around 0.13% to 0.15% of each transaction. Although they’re more consistent than interchange fees, assessment fees can vary based on factors like transaction type or whether a payment is domestic or international.
Processor markup reflects what payment processors charge for providing the technology and services needed to manage transactions, including payment authorization, transaction routing, and customer support. Processors play an important role in the payments ecosystem by ensuring transactions move securely and reliably from one party to the next.
Processor costs vary based on pricing model, but the most common include:
Gateway fees are the charges payment gateway providers collect to handle online transactions. Gateway pricing often includes one or both of the following:
There are a few more costs to be aware of, ranging from monthly minimums to fraud-related chargeback fees. Here’s a quick look at some of the most common ones:
Payment providers structure their credit card processing fees in several different ways. Here are the three most common models you’ll see.
Flat-rate pricing is a fixed-fee structure in which businesses pay the same rate for each transaction. For instance, a payment company might charge 2.6% + $0.10 every time you take a payment, regardless of what you sold or the final price. It’s the most expensive pricing structure. While it’s convenient for some merchants, flat-rate processing rates can quickly add up and erode profit margins in high-volume businesses.
Here are the pros and cons of flat-rate payment pricing:
Pros:
Cons:
Tiered pricing divides transactions into three categories based on card type and payment processing method. Transactions are categorized as:
In tiered pricing, interchange rates are the lowest for qualified transactions and the highest for non-qualified transactions. This structure also includes a percentage-based fee based on the card type.
Overall, tiered pricing is generally less expensive than flat-rate pricing since you don’t have to pay as much for qualified transactions. Here are the pros and cons of this pricing model:
Pros:
Cons:
This model charges the actual interchange fee plus a fixed markup from the processor. For instance, you might pay 1.8% + $0.10, depending on the card and how it’s used. With interchange-plus pricing, you always pay the underlying rate plus a consistent, clearly defined markup that goes to the processor. This model lets you to cut costs on qualified transactions while knowing exactly how much will be sent to your processor.
Pros:
Cons:
Credit card processing rates aren’t just a transactional expense — they directly impact your total cost of ownership over time. That means a seemingly small difference in fees can translate into thousands of dollars annually, especially for businesses with high sales volumes. Thankfully, with the right strategies, you can lower processing fees and keep more of what you earn without changing how you do business.
Here are seven practical ways to get started:
Interchange-plus is the best pricing model for most businesses. It separates card network costs from processor markup fees, so you always know exactly where your money is going and save more long-term.
No fee payment processing options let you compliantly pass your merchant processing costs along to your customers. When choosing a payment provider, ask if they support cash discounting, dual pricing, or surcharging so you can keep more of what you earn.
Payment processors have more wiggle room in their pricing than you might think. Ask about how you can lower your per-transaction fee or monthly service charges — especially if sales are steady.
Leasing card terminals might sound convenient, but the long-term cost can be up to five times higher than buying hardware outright. Payment equipment usually pays itself off after just a few months.
High-risk businesses (like CBD, firearms, gaming, and travel) often have to pay higher interchange rates to cover the increased risks of fraud, chargebacks, and legal restrictions.
On the other hand, business-to-business (B2B) and business-to-government (B2G) companies may be eligible to apply for Level 2 or Level 3 processing, which offers lower processing fees in exchange for more detailed transaction data.
Understanding what type of business you operate can often help you navigate and even reduce credit card fees.
Being PCI-compliant protects your customers’ data and prevents costly non-compliance fees.
Take the time to fully understand your monthly statements and keep a close eye out for vague charges labeled “regulatory fees,” “service add-ons,” or “batch fees.” These might be unnecessary or inflated. If something looks off or is unclear, ask your provider to explain or justify the charges.
Small changes can lead to major savings, especially as your business grows. At Flute, we’re here to help you get the best deal and keep more of what you earn on every transaction. To learn more, reach out to a member of our team.