Renting a Credit Card Machine Vs. Purchase
When starting a business there are so many variables to consider, buying or leasing a credit card machine is a common question new business owners might have.
While shopping around for credit card processing, you will find that some merchant services allow you to lease or rent a credit card machine. Similar to leasing a vehicle, business owners pay a monthly fee to utilize the machine. The monthly fees vary depending on the merchant service provider. Some providers like Merchant Services LTD, even offer a free credit card machine for new merchant accounts.
What a merchant needs to know about obtaining credit card equipment.
There are several terms you should get familiar with prior to signing any lease agreements for a credit card terminal, ownership rights, proprietary issues, and contract length. Be sure to read the terminal agreements to avoid any misconceptions later down the road. There are options for renting credit card terminals each month until the device has been paid off, while other companies require you pay for the entire duration that you use their machine. Some merchant service providers require a 48-month contract agreement for leasing a device, and if canceled before the term limit a fee may have to be paid. It may be possible to purchase the same terminal for the amount your business could potentially be paying in fees while renting. Additionally, some companies require you to purchase equipment insurance if you lease a terminal.
Are there any possible benefits to renting a credit card machine?
Although, renting or leasing credit card machines has declined in recent years. Some merchant services do offer additional incentives for those interested in renting a machine. ‘No money down’ and a guarantee for a ‘replacement device’ should something happen to your original terminal. These options are ideal for a start-up company where any savings makes a difference in your bottom line. Seasonal sales may also benefit from renting a machine over purchasing one due to the short length of time the device will be in service. Lastly, renting allows your business to maintain a competitive edge by using the latest upgrade in payment processing equipment.
Overall, renting can be a positive decision depending on your business model. Speaking with your merchant services provider can assist you in determining which option is best for your business or organization.