The Reason Why You Shouldn’t Lease a Charge Card Machine

credit-card-terminal-picAlthough the concept of leasing has declined recently, some sales people will still try to convince you that leasing may be the right choice for you. They’ll let you know a lot of excellent achievements like, “you’re not needed to pay for anything in advance,Inches or “you’re guaranteed a substitute terminal if yours breaks.”

Individuals selling points might seem good, but I’m here to let you know that they’re not. I’m here to let you know that the terminal lease will finish up squandering your hundreds, otherwise 1000s of dollars. I’m also here to let you know by using the charges you’ll finish up having to pay to lease a terminal, you can purchase that very same machine within months…if not immediately. Heck, you can most likely buy several.

Furthermore, should you lease a terminal you may even be needed to buy equipment insurance, that is another added cost. And, as well as, you may also need to return the damn factor in the finish of the lease. WTF?!

Why Purchasing a Charge Card Machine is the greatest Option

Listen, a terminal lease carries by using it a 48 month lease agreement (the usual term). The price of that lease can run between $50-$100/month. That’s a Lengthy time for you to be having to pay for any machine that does not are more expensive than $400 nowadays. Why don’t you just get one outright?

The price of the acquisition is totally tax deductible, and also you won’t find yourself in trouble having to pay $2400 for any machine which costs $400. That’s 600 percent in interest during the period of 4 years. Yikes!

Even though you can’t manage to pay cash for the charge card machine, you can easily charge it to some business charge card. The eye compensated continues to be tax deductible, and presuming you’ve got a 14 % APR, should you spend the money for same $50/month toward your charge card balance that you’d have compensated toward your lease, you’ll possess the terminal compensated off in under nine several weeks. That’s a savings of nearly $2,000 that may be better directed into developing and expanding your company. It’s a real no-brainer.

The “Free” Charge Card Machine

Some processors supply “free” terminals for their retailers, but as everyone knows, there’s nothing free nowadays. Generally, a totally free terminal carries by using it an annual “Terminal Replacement” or “Warranty” control of between $50-$100/year. That’s still much under exactly what a lease would set you back though.

So, should you can’t purchase one, find out if your processor provides you with one for “free.” Both CDGcommerce and possess a free terminal program that’ll cost you about $79/year.


If you are already locked right into a lease, you almost certainly won’t in a position to break anything. When I pointed out before, a lease term is generally 48 several weeks, so you’ll need to know when that term ends before you leave with no penalty.

If you are not presently inside a lease, but they are thinking about one, never be fooled by exaggerated claims from sales people. Rather, do your personal homework and calculate the all inclusive costs of leasing versus. owning. I know you’ll discover that the very best and many affordable option is based on possession.



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