Leasing a Credit Card Machine – Is That Really a Good Idea?

Credit & Debit Card Machine Video Overview

Many new business owners usually lease their credit card terminals because they have been convinced that this is the best way to go.  Because of their lack of knowledge in this area, telemarketers and other companies are ready to give a helping hand to offer what they think is the best solution for the business owner.

You’re just starting out so you’re trying to keep the costs down as much as possible for your new business.  This is why an outright purchase of a basic swipe/print credit card machine is your best option. If you lease, you will be spending thousands of dollars over time which is more than you need to.  Buying one would only cost you somewhere in the range of $200 to $300 which is a big savings.   You want to be as thrifty as possible so you can put your money into other necessities for the business.

Leasing credit card equipment in the eighties and early nineties was not uncommon because of lack of customer knowledge and the idea that credit card equipment was pricey.  Some businesses were paying as much as 50.00 per month for their leases.  Because of the internet, consumers are not in the dark about the costs of processing equipment. The only businesses which are usually still leasing because of a hectic schedule and lack of investigating on their part are the new businesses which makes them easily convinced to go with a lease.

Some business still do lease their equipment if the equipment is very highly priced.  Wireless terminals are becoming more affordable but can still cost over a thousand dollars which is quite a bit of money. Leasing may sound more reasonable initially but in the end you will pay more than the original cost of the terminal.

  If you are considering leasing a piece of equipment, ensure you completely understand all terms and conditions of the lease and calculate the costs involved compared to an outright purchase.  Lease terms can be anywhere from 12-48 months and come with penalties for cancelling them.  There is sometimes a purchase buyout option at the end of the lease but if you’ve already paid the cost of the equipment in monthly payments and then have to pay more money to buy it out, you spend a lot more money than you would have by buying it in the first place.

  See how much more leasing will cost you compared to buying your equipment outright by using the lease cost calculator.