Buying a credit card machine is a smart solution seen from a long term perspective, as rental fees can add to a huge amount of money after a few months or years. The ''purchase terminal'' option allows companies to minimise monthly costs by purchasing the credit card machines out right.
What are the disadvantages of renting?
As I mentioned above, the total price of renting might be over the purchase price. Paying a monthly rental fee a long period, will not mean that you own the credit card terminal and you will, therefore, have to return it at the end of the contract. Moreover, most suppliers will lock you in the contract, usually for 48 months. If you decide to stop the rental contract, you will need to pay high early termination fee (ETC).
Additionally, if you lease a terminal you may also be required to purchase equipment insurance, which is another added cost.
Conclusion If you're already locked into a lease, you most likely won't be able to break the contract. Lease term is usually 36 - 48 months, so you will have to find out when that term ends before you can walk away without a penalty.
If you're not currently in a lease but are considering one, don't be deceived by exaggerated claims from sales reps. Instead, do your own homework and calculate the total cost of leasing vs. owning. I'm sure you'll find that the best and most affordable option lies in ownership.
If you still have any doubts and need additional assistance, you can receive free quotes from me (Krzysztof Kawulak): office@bristolmerchantservices.uk
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