Why Avoid Credit Card Terminal Leases?
Many small businesses look at leasing high price equipment, such as a piece of equipment that may cost $10,000. But would you lease a cash register
that costs $400? Most would say no! Why would you then lease a credit card terminal that can cost less than $200?
Credit card terminal leases can range from 12 to 48 months. They generally start at $19.95 a month and go up from there. If you are on a 48 month
lease paying $24.95 a month, that is $1,197 in payments! If you were to buy this terminal from Gotmerchant.com and charge it to your credit card, you
could have it paid off in the less than a year.
Many merchant account providers claim that lease payments are a deduction, but we would point out that
a purchase would be deductible as well. You do not
receive any more tax advantages by leasing vs buying outright.
Here are a few cold hard facts about leasing:
- Many leasing companies will continue to charge you after the end of the lease unless you call and cancel.
- They are binding regardless of your circumstances. You cannot cancel before the lease ends.
- Equipment insurance is required, adding extra monthly fees.
- You must return the terminal that you have made payments for during the past 48 months. Most leases have a buyout option, but this also
requires more money to fully own the unit outright.
Do yourself a favor and save your money by avoiding the hassle of leasing.
Credit Card Processing Articles
Merchant Accounts |
Credit Card Logos |
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- The Different Types of Merchant Accounts
- How to Avoid Credit Card Processing Downgrades
- Merchant Account Responsibilities
- The Different Types of Credit Card Machines
- What is a Merchant Account?
- Why Avoid Credit Card Terminal Leases?
- 3 Ways to Save Money on Credit Card Processing
- Credit Card Processing Checklist
- Pros & Cons of Credit Card Processing
- What to Expect in Your Monthly Statement
- The History of Credit Card Processing
- Recent History & Future of Credit Card Processing
- The Different Organizations of Merchant Services
- The Glory Details of Disputes, Retrievals & Chargebacks
- Understand All the Risk with Merchant Services
- Factors & Guidelines to Merchant Service Underwriting
- The Life Cycle of a Credit Card Transaction
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