How Clover Payment Terminals Work and What They Cost
What a Clover Terminal Does and Who Uses It
A Clover payment terminal is a point-of-sale system that processes card payments, tracks inventory, and manages customer data in one device. It's made by Clover, a company owned by Fiserv, and runs on an Android-based operating system. The terminal itself looks like a tablet with a card reader attached, and it connects to your internet to send payment information to the bank.
Clover terminals are used by small to medium-sized businesses — restaurants, retail shops, salons, gyms, food trucks, and service providers. The system lets you ring up sales, split checks, apply discounts, track what's in stock, and see reports on what sold and when. You can also take payments on the go using a mobile card reader if your Clover account includes that feature.
The terminal itself is hardware you own or lease. The software and payment processing are services you pay for monthly. Clover doesn't make its own money from selling terminals; it makes money from the fees charged every time a card is swiped, inserted, or tapped.
Key Takeaways
- Clover terminals process card payments and run your entire point-of-sale system on one device, with inventory tracking and sales reports built in.
- You pay a monthly subscription fee for the software, plus a per-transaction fee every time a customer pays with a card (typically 2.6% to 2.9% of the sale plus a flat fee per transaction).
- You can buy a terminal outright, lease one monthly, or use Clover's mobile reader to take payments on a phone or tablet you already own.
- Clover terminals require an internet connection to process payments; if your connection drops, you cannot complete card transactions until it's restored.
- Clover is owned by Fiserv and integrates with hundreds of third-party apps for accounting, scheduling, delivery, and other business functions.
How Much Clover Costs and What's Included
Clover's pricing has two parts: the monthly subscription and the per-transaction fees. The monthly subscription depends on which plan you choose. Clover offers several tiers — Clover Starter, Clover Plus, and Clover Premium are the most common — and each tier includes different features. A Starter plan might cost around $50 to $70 per month, while a Premium plan could run $150 or more. These prices vary by region and change over time, so you should ask Clover directly for current rates in your area.
On top of the monthly fee, you pay a percentage of each card transaction plus a flat fee per transaction. This is called the interchange rate, and it typically ranges from 2.6% to 2.9% plus $0.10 to $0.30 per transaction, depending on the type of card used and your industry. A debit card transaction costs less than a rewards credit card transaction. Clover does not set these rates; they come from the card networks (Visa, Mastercard, American Express) and your bank.
The terminal hardware itself is separate. You can buy a Clover device outright for $300 to $500, depending on the model. You can also lease one for $20 to $40 per month. If you already have a smartphone or tablet, you can use Clover's mobile card reader (which costs $50 to $100 to buy) and process payments through an app instead of buying a full terminal.
Some Clover plans include free or discounted apps from Clover's app marketplace. Others charge per app. Accounting software, employee scheduling, delivery tracking, and loyalty programs are all available as add-ons, and each one may have its own monthly cost.
How Payments Move From Your Customer to Your Bank Account
When a customer swipes, inserts, or taps their card on a Clover terminal, the device reads the card information and sends it over your internet connection to Clover's payment processor. The processor checks with the customer's bank to make sure the card is valid and the account has enough money. This usually takes a few seconds.
If the bank approves the payment, the money is held by the card network (Visa, Mastercard, etc.) temporarily. Clover then deducts its fees — the monthly subscription, the per-transaction percentage, and the flat fee — and deposits the remaining balance into your business bank account. This deposit usually happens within one to two business days, though it can take longer depending on your bank and the time of week you process the payment.
You can see all transactions in real time on the Clover terminal or in the Clover Dashboard, which is an online account you log into from any computer. The dashboard shows you which payments cleared, which are pending, and which failed. If a customer disputes a charge later, Clover handles the dispute process with the card network on your behalf, though you may have to provide proof of the transaction (a receipt, for example).
What Happens If Your Internet Goes Down
Clover terminals require an active internet connection to process card payments. If your wifi or mobile connection drops, the terminal cannot send payment information to the processor, and the transaction will fail. You cannot complete a card sale until the connection is restored.
Some Clover terminals have a built-in cellular backup that automatically switches to a mobile data connection if your wifi fails. This feature is usually included in higher-tier plans or available as an add-on. If your terminal does not have cellular backup and your internet goes out, you have two options: wait for the connection to return, or ask the customer to pay by cash or check instead.
Clover does not process payments offline and then sync them later. Every transaction must be authorized in real time. This is different from some older point-of-sale systems that could store a few transactions locally and send them later.
Clover's App Marketplace and Third-Party Integrations
Clover's main advantage over simpler card readers is that it can run hundreds of third-party apps on the same device. These apps let you connect your point-of-sale system to accounting software (QuickBooks, Xero), employee scheduling tools, delivery platforms, loyalty programs, and inventory management systems. Instead of manually entering data into multiple programs, the apps can sync automatically.
Some apps are free; others charge a monthly fee. Clover takes a cut of the revenue from paid apps, so the app developer sets the price. Before you add an app, check whether it costs money and what data it will access from your Clover account. You can remove an app at any time, but you may lose access to data stored in that app if you do.
Not every business tool has a Clover app. If the software you use doesn't integrate with Clover, you can sometimes use a third-party integration service like Zapier to connect them, though this usually requires a separate subscription and may not sync data in real time.
Clover vs. Other Payment Terminals and Systems
Clover competes with other all-in-one point-of-sale systems like Square, Toast, Lightspeed, and PayPal Zettle. Each system has different strengths. Square is simpler and cheaper for very small businesses or pop-up shops. Toast is built specifically for restaurants and includes more advanced features for managing kitchen orders and delivery. Lightspeed is stronger for retail inventory management. Clover sits in the middle — it's flexible enough for many business types, but not as specialized as Toast for restaurants or Lightspeed for retail.
The main difference between Clover and a basic card reader (like Square Reader or PayPal Zettle mobile reader) is that Clover is a full point-of-sale system, not just a payment processor. If you only need to take card payments and don't need inventory tracking or employee management, a mobile card reader is cheaper and simpler. If you need a complete system to run your business, Clover or a competitor like Toast or Lightspeed may be worth the extra cost.
Payment processing fees are similar across all these systems — usually 2.6% to 2.9% plus a flat fee per transaction. The real difference is in the monthly subscription cost, the features included, and how well the system works for your specific business type.
How to Set Up a Clover Terminal and What Documents You'll Need
To set up a Clover account, you'll need a business bank account, a business tax ID (EIN) or Social Security number if you're a sole proprietor, and basic information about your business — name, address, phone number, and what you sell. Clover will also ask for your expected monthly card volume so it can assess the risk of processing payments for your business.
Once your account is approved, you'll receive the terminal hardware (or activate the mobile reader app on your phone). Clover will walk you through connecting it to your internet, logging in, and setting up your product catalog or service menu. You can start processing payments as soon as the terminal is online and your account is active.
If you're switching from another point-of-sale system, Clover can sometimes import your product list and customer data, though the process depends on what format your old system used. You may need to manually re-enter some information.
Frequently Asked Questions
Can I use a Clover terminal if I don't have a business license?
Clover requires you to have a legitimate business and a business bank account. If you're a sole proprietor or freelancer, you can use your Social Security number instead of an EIN, but you still need a bank account in your business name. Clover verifies this information before approving your account.
What happens if a customer's card is declined?
The terminal will display a message saying the transaction was declined, and you'll see a reason code (insufficient funds, expired card, etc.). The customer's bank decides whether to decline; Clover just relays the decision. You can ask the customer to try a different card or payment method, or they can contact their bank to find out why the card was declined.
Can I process payments without a Clover terminal, just using my phone?
Yes. Clover's mobile card reader works with the Clover app on your smartphone or tablet. You'll pay the same per-transaction fees, but you won't need to buy or lease a full terminal. The mobile reader is good for businesses that don't have a fixed location or that process only a few payments per day.
Do I have to sign a contract with Clover?
Clover does not require a long-term contract for most plans. You can cancel your account and stop using the service, though if you leased a terminal, you'll need to return it or pay an early termination fee. Check your agreement for the exact terms before you sign up.
How long does it take to get paid after a customer swipes their card?
Clover deposits money into your business bank account within one to two business days after a transaction is approved. Weekends and holidays can delay deposits. You can see pending and cleared transactions in your Clover Dashboard in real time, even if the money hasn't reached your bank yet.