A credit card terminalis essentially one of the most important equipment you need as a retailer, particularly if you honor credit cards. Of course, since it is an essential business tool, it is only logical to buy one. But there are actually business owners who lease card terminals. While this may seem like a good option, it isn’t.
There are several reasons why you should buy a credit card terminal, as supposed to leasing one. For one, the terminal is moderately priced. While it isn’t cheap (most units go for 400 to 1,000 dollars, although most terminals lean towards the 400 dollar mark), a card terminal is not something you need to pay off for months and months.
Still, some business owners may find a 400 dollar machine too steep. In a way, leasing may make sense. But overall, buying the credit card terminaloffers more savings.
For one, most leasing contracts for these terminals require you to pay for the value of the terminal in the future. If your lease is for 2 years, your payments consider the possible value of the machine after a year or two. This means only one thing: you’ll end up paying more than what the machine is worth. Leasing a terminal also requires you to get equipment insurance (which is not included in the monthly lease payment) – an additional cost to an already expensive contract.
Contracts for credit card terminalleasing are also very strict. If in case you want to cancel your lease before the end of the contract, you still have to pay for the remaining contract months—even if they end up being unused.
Lastly, leasing the terminal is like throwing the money that you could have otherwise used as investment. The buyout option for leases is still not practical (you will still end up paying more than you should). In the end, you paid for something you do not and will not own.
Any serious business owner should buy his own credit card terminal. There are several moderately priced units available. Finding the one most appropriate to your operations will surely save you money.
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