Should You Buy Or Rent A Credit Card Machine?
Which is Your Best Deal?
Nowadays, most businesses require a credit card machine. You don’t want to see a potential customer go to your competitor because you couldn’t receive a credit card payment. You need an ePOS system with a credit card terminal, but you can’t decide either to buy or rent?
Firstly, you should ask different suppliers about various options for the purchase and rental solutions. By mapping all options you ensure that your company finds the right solution - and for the right price.
Finding the best deal might take some time, so you might be interested in saving time by receiving customized quotes, for free. Simply fill in the contact form and let us know about your needs and preferences, and we will get back to you as soon as possible and help you buy a credit card terminal. The service is fast, free, and with no obligation!
Why should you rent a credit card machine?
Renting can be a good solution in some cases as it has some valuable advantages. Firstly, it has no initial costs as you will be charged with a fixed monthly payment. It can avoid your company the need of investing money in a credit card machine, which is especially good for startups as small savings can make a difference.
The renting option is also good for trade shows, sales or seasonal shops as the credit card terminal can be rented out for short periods as a weekend or a month.
By renting a processor you will have access to a better customer service in case of problems. For example, if your equipment breaks down, the supplier will replace it straight away with a functional unit.
Finally, renting will allow you to always have the latest terminal as you will be upgraded with new technologies when needed. Technology is developing fast so being able to always use the latest equipment without investing a lot of money can be beneficial and will give you a competitive advantage.
What are the disadvantages of renting?
If you want a long term oriented solution, then renting is not the best option as the total price of renting might be over the purchase price. Paying a monthly rental fee a long period, will not mean that you own the credit card terminal and you will therefore have to return it at the end of the contract.
Moreover, most suppliers will lock you in a contract, usually for 48 months. If you decide to stop the rental contract and buy a credit card processor, you will need to pay high early termination fee.
Why should you buy a credit card machine ?
Buying a credit card processor is a smart solution seen from a long term perspective, as rental fees can add to a huge amount of money after a few months or years. If you have a physical store you probably also need a cash register, a scanner or even a receipt printer. Most suppliers offer a package if you need to buy more than one device.
Although it might be slightly more expensive, make sure that your new credit card machine is equipped with the new technology trends, to avoid the need of changing the terminal in the near future.
Remember that mPOS systems that can be connected to a smartphone might be a good solution if you need to receive payments outside your physical store.
Also remember to check which type of support the chosen supplier offers. In general, the service fee is not included in the purchasing price so make sure to have this clear in order to avoid confusions. It is also important to be able to call someone immediately in case of technical problems.
Do not buy used
Even if used equipment is cheaper, it is better to avoid it. Used terminals can cause many technical problems, and the installation process is not easy as many small details need to be updated and adapted for the new owner.
Moreover, this solution doesn’t provide you with any support or technical assistance in case of problems. In the long run, buying used equipment might be more costly than investing in a brand new machine.
As a wrap up, in order to decide whether to buy or to rent a credit card machine, you should calculate the total cost of renting or buying. Although a rental fee might seem a lot cheaper than the initial cost of purchasing a machine, it could be good in the long run. It will always depend on your business needs and the use you will give to the equipment.
If you still have any doubts and need additional assistance, you can receive up to four free quotes from us. Just fill out the contact form and we will send you quotes with no strings attached.