Leasing & Credit Card Terminals – What You Should Know!
A new business owner should be aware of telemarketers and companies offering to help them with their credit cards. Because of ignorance in the credit card industry, many new business owners are led to believe that leasing a credit card terminal is the way to go for their business. This is not so.
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 0 to 0 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.
If you’re in the market for a higher end piece of credit card processing equipment, do you lease or do you purchase? The equipment can cost over a thousand dollars if you’re looking for a wireless credit card machine. You have to consider how much more money you will spend over the original purchase price of the equipment if you decide to lease.
If you do decide to lease your equipment, always be aware of all the terms that go with it. There are always strings attached. Leases last anywhere from 12 – 48 months and the shorter the lease the higher the monthly payments will be. There may be penalties for trying to terminate the lease and also buyout options to consider at the end of the lease. Be sure you completely understand what you are getting into before signing a lease. The costs can be hefty.
If you want to know the difference between leasing your equipment and purchasing it, use the lease cost calculator and see the difference.
