![]() That means lots of legal fees and dings on your credit. The alternative usually involves stopping your payments mid lease term and then hiring an attorney and fighting the leasing company in court. If you have been presented with a terminal lease read the fine print specifically looking for non-cancellable lease terms. If you are entering a true terminal lease, you will be required to satisfy all of the monthly payments before you are able to terminate the lease and stop making payments without penalty. This is the part of the terminal lease that is most often misunderstood and unfortunately often misrepresented by the merchant account sales representative. ![]() Non-Cancellable Contract TermĪ terminal lease is non-cancellable, and there are no exceptions. If the first reason wasn’t enough for you here’s a couple more things to keep in mind regarding terminal leasing. ![]() With purchasing, you still have to consider the replacement cost that could present itself if the terminal breaks or malfunctions but it’s still better than the total cost of leasing. The winning decision is to buy the terminal. So if you compare the cost of a purchase to the cost of a lease you will end up paying 31 times the price you COULD pay for a credit card terminal if you lease instead of simply buying the terminal outright. With a purchase of course, you don’t owe any monthly payments. So the total cost of a terminal lease is $4,752.00 over the life of the lease as indicated by the calculation above.Ĭredit card terminals usually cost anywhere from $150 to $400 to purchase. The typical monthly payment of a terminal lease is $59 to $99 per month.Ĥ8 month term X $99 per month = $4,752.00 over the life of the lease Typical terminal leases last for 36 or 48 months. No one likes paying double or triple the fair market cost of any product or service so would you think it’s crazy if someone asked you to pay 31 times the cost of a credit card terminal? If I was in need of a credit card terminal and was faced with the option to lease or buy, I would want to know the reason(s) why it is not a good idea to lease a credit card terminal. So my suggestion in this article comes from my attempt to put myself in your shoes. Then you’re surfing the web one day and you come across an ad selling the same exact watch you just bought for HALF the price! What?!?!! You buy a watch and you enjoy it for a couple of days soaking up the compliments of how it looks on you. įor the sake of argument, let’s say you’re shopping for a new watch. If you’re looking as setting up one of those special merchant accounts and want an objective look at whether it’s right for you, schedule a call with our team before you sign anything. Update : Since 2018, credit card terminal leases have come back and are becoming more and more common again with the advent of merchant cash discounting programs.
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