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Debunking the Top 3 Myths About Leasing a Credit Card Machine
Chances are at least one slick credit card processing salesperson has come into your business singing the praises of leasing your credit card terminal. They probably fed you a lot of compelling lines to make you sign on the dotted line, but hopefully you were able to resist. Leasing your credit card terminal doesn’t benefit you at all – it only benefits your processor. Let’s take a look at the top sales tactics credit card processing salespeople use to convince you to lease so you can be prepared to say no.
“You Won’t Get Left Behind by Technology!”
This line taps into the idea that technology is changing so rapidly that your credit card machine will be old news in a year or two. There will be new systems with fancier gadgets, more capabilities, and hotter features. Why would you want to spend hundreds of dollars buying a terminal that’s just going to need replacing soon? The truth is that credit card machines don’t change all that much. As long as you’re purchasing an EMV-capable machine, you can count on it being useful for many years. Plus, even if you do need or want to upgrade sooner than you think, you’ll still spend less than if you were shelling out for a lease fee every month.
“You’ll Have a Low Manageable Monthly Payment!”
While this is technically true, those low manageable payments can stretch on for an eternity. Ten easy payments of $25 definitely sounds attractive, but when the terminal would have only cost $200 to purchase outright, you can bet it’s the card company that’s pocketing that extra $50. Processors are counting on you not doing the math on all the extra dollars you’ll be spending, so they focus on the attractive low monthly number. Make sure you’re running the numbers yourself, independent of the salesperson. Go over everything after they’ve left and when you’re not distracted to make sure it all adds up.
“You Won’t Have to Pay Anything Up Front!”
Like the last myth, this one is also technically true. Most lease agreements have a “no money down” clause where you get to have your new machine inhand without paying a penny. Unfortunately, the lack of initial investment is totally offset (and then some) by lease payments that will slowly drain you over the next few years. If you’re experiencing sticker shock when looking at the prices of new credit card terminals, ask your processor to help you explore more economical options or even consider borrowing some money. Spending a few hundred dollars to own a new machine is a far more prudent financial decision than spending many hundreds in small increments over the course of the next few years.
I’m Already In a Lease – What Now?
If you’re already signed a lease contract, don’t despair! 360 Payments will work with you to determine the terms of your lease, figure out what it will take to cancel it, and provide you with guidance throughout the process. Give us a call at 1-855-360-0360 or drop us a line on our website. We’d love to help.
PS – Here are some more reasons to never lease a credit card terminal.
PPS – While you’re at it, don’t sign any kind of credit card processing contract! Here’s why.