According to the latest figures from the Bank of Spain on card reader use, in 2023, there were already more than 4.2 million active point-of-sale (POS) terminals in the country. These toolsets include various hardware and software solutions that enable you to calculate payment amounts, manage sales, record sales for accounting purposes, and, of course, accept funds from customers.

A card reader processes payments when a buyer pays by card or e-wallet. The checkout flow is usually straightforward, but paying attention to a few key points helps ensure each transaction completes correctly. In this guide, we explain, step by step, how to collect payment for each sale using a card terminal.

What’s in this article?

• What is a card terminal, and how does it work?
  
• Types of card terminals in Spain
  
• Typical costs and fees of card terminals in Spain
  
• How to collect payments with a card terminal, step by step
  
• How Stripe Terminal helps manage payments with a card terminal
  
• FAQs about collecting payments with a card terminal in Spain
  

What is a card terminal, and how does it work?

A card terminal processes in-person sales by reading information on a credit or debit card. It captures details directly off a physical card or a wallet app on a mobile phone or smartwatch. Although they can function independently, card readers are usually part of a POS system.

In general terms, the terminal receives data from the card or digital wallet, transmits it first to the company’s POS software, and then to the payment processor for authorization. In fact, card-based checkout is ubiquitous in Spain; in 2024, it accounted for 51% of online orders. However, wallet apps are gaining ground and, in that same year, attributed to 26% of all transactions, alongside other digital checkout methods, per the Bank of Spain’s Economic Bulletin 2025/Q2. Irrespective of the customer’s chosen option, the terminal sends a unique set of characters, called a “token,” instead of the actual payment data. Tokenization services link random character strings to the underlying account information, allowing the transaction to proceed.

Types of card terminals in Spain

Businesses that sell in brick-and-mortar stores nationwide can choose from several types of card terminals to accept payments via physical cards or wallet apps. Let’s take a look at them:

• Bank card terminals
  Banks supply these devices and generally require them to connect to a business bank account held with the same institution. The provider handles setting up and maintaining the terminal, making the first steps easier. In return, businesses must comply with the institution’s conditions and restrictions, such as the use of a specific model. Traditionally, this has been the most common option because it initially allows the bank to delegate the purchase and maintenance of the hardware; still, it is less flexible than independent card readers due to the contractual obligations involved.

• Bankless card terminals
  Banks do not provide bankless card terminals, so they do not require signing a contract with these institutions. For companies, this means greater control over their POS setup and the type of device to use. While the initial cost is usually higher, the hardware can represent significant long-term savings, as it avoids monthly charges and, in many cases, the fees are lower. Thanks to those features, they are an ideal option for startups, small enterprises, and entrepreneurs in general.

• Mobile card terminals
  A mobile terminal is a software solution installed on smartphones or tablets that enables them to serve as checkout readers, eliminating the need to purchase additional hardware. With Tap to Pay, companies can accept contactless payments with physical cards and digital wallets on Apple or Android devices.

• Card terminals compatible with offline operations
  Some bankless card terminals, such as the Stripe Reader S700 and the BBPOS WisePOS E, accept offline payments, though only to a limited extent. When operating offline, these devices store transaction info and complete collection once the connection is restored, rather than completing the transaction immediately. This functionality supports business continuity when internet connectivity is unavailable and enables operation in areas with unstable or no connectivity. Because the setup cannot verify the charge at the time of purchase, it also introduces the risk of missing the amount if the transaction is later rejected, for example, due to insufficient funds.

Typical costs and fees of card terminals in Spain

Using card terminals usually involves paying a small extra charge for each transaction, though the exact rates vary depending on the type of device.

Fees for bank card terminals

In many situations, transaction fees add to fixed expenses for services including installing and maintaining the terminal or renting the hardware. To illustrate, renting a Banco Santander card reader entails a €250 registration and installation fee, plus a monthly charge of €50. Although financial institutions are very transparent about charges, using bank terminals often involves contracting other added services.

Fees for bankless card terminals

To avoid the obligation to contract additional services, more and more businesses in Spain are opting to use bankless card terminals. If you choose this option, keep in mind that, while they do not require a contractual relationship with a financial institution, independent terminals usually charge small fees for payments processed through the device. It is important for the provider offering the card reader to be transparent and clearly explain its pricing structure. Here are some of the most common costs associated with using a bankless card terminal:

• Initial charge for purchasing the terminal
  
• Processing fees
  
• Extra charges for certain payment methods, such as fees for transactions with cards that are not from the European Economic Area (EEA)
  

How to collect payments with a card terminal, step by step

All card readers, whether independent or provided by a banking institution, work in a very similar way. This step-by-step guide on how to collect payments with a terminal will be useful regardless of the type of device you use in your business:

• Internet access
  Generally, the card terminal accesses the internet via Wi-Fi, though some are compatible with SIM options that facilitate connection to 4G and 5G networks in Spain.

• Connecting to the payment platform
  The terminal connects to the payment service provider’s platform via the internet to process transactions. For instance, Stripe Terminal’s bankless card readers connect to Stripe’s payment platform to process in-person transactions.

• Entering the amount
  The salesperson enters the amount due for the products or services into the card reader using physical buttons or a touchscreen. Either way, the amount to be charged must be confirmed before presenting the terminal to the customer to complete checkout.

• Paying for the purchase
  The buyer completes the purchase using their chosen payment method. When paying by card, they insert it into the card terminal or hold it near the device to make a contactless payment; the same approach works with digital wallets such as Apple Pay or Google Pay. NFC (near-field communication) enables these transactions by allowing wireless data transfer between devices. If a single purchase exceeds €50, or if the total amount of transactions on the same day exceeds €150, the system prompts the buyer to authorize the charge. This step varies by option: if it is by card, they will have to enter the PIN, while if it is contactless, identity confirmation can happen with biometrics on their mobile device.

• Communicating with the issuing bank
  Through the service provider, the terminal communicates with the customer’s card issuer. During this process, which takes only a few seconds, the card reader encrypts the account information, sends the authorization request to the platform (which forwards it to the issuer), and, upon receiving a response, displays a message authorizing or rejecting the charge.

• Payment settlement
  If the issuer approves the charge, the funds typically reach the business’s account by the end of the day.

• Printing the ticket
  The ticket is printed automatically with a thermal printer that is part of the POS system or, if not, using the printer integrated into some card terminals, such as the Verifone V660p.

How Stripe Terminal helps manage payments with a card reader

Collecting payments with a terminal in Spain is not complicated. Still, it can be challenging if you handle these transactions separately from online checkout in your ecommerce store.

Stripe Terminal allows businesses to grow revenue with unified payments across in-person and online channels. It supports new ways to pay, simple hardware logistics, global coverage, and hundreds of POS and commerce integrations to design your ideal payments stack.

Stripe powers unified commerce for brands like Hertz, URBN, Lands’ End, Shopify, Lightspeed, and Mindbody.

Stripe Terminal can help you:

• Unify commerce: Manage online and in-person payments on a global platform with unified payments data.

• Expand globally: Scale to 24 countries with a single set of integrations and popular payment methods.

• Integrate your way: Develop your own custom POS app or connect with your existing tech stack using third-party POS and commerce integrations.

• Simplify hardware logistics: Easily order, manage, and monitor Stripe-supported readers, wherever they are.

Learn more about Stripe Terminal, or get started today.

FAQs about collecting payments with a card terminal in Spain

Is it mandatory to collect payments with a card reader in Spain?

It is only mandatory to collect payments with a card reader if the business indicates that it accepts card payments and the customer requests it. If the business does not suggest that it offers this option, it has no obligation to take it, as there is currently no law requiring acceptance of checkout methods other than cash. However, for companies with a high average order value, it is important to accept different checkout methods, such as cards and digital wallets, for purchases that exceed the €1,000 cash limit imposed by the anti-fraud law.

Is it safe to collect payments with a card terminal?

Yes, because the tokenization of payments by card terminals replaces confidential transaction details, including credit card numbers, with a token. This process protects payment data during transactions, as the actual account info is neither used nor stored. In this way, companies reduce the risk of data breaches and minimize the cost of complying with the PCI DSS standards.

Can tips be collected through a card terminal in Spain?

Yes, it is legal to accept tips through a terminal. That said, as specified by the general secretary of the Spanish Federation of Hospitality Businesses, many bars and restaurants do not accept tips being added to workers’ paychecks via a card reader because it records those amounts as company income. If you wish to collect tips for your workers using a terminal, it is best to calculate and distribute them among the employees accordingly. In Spain, tipping is voluntary, and the amount is usually less than in other countries, such as the United States, where tipping is an unspoken rule and considered a significant part of workers’ wages.