Prairie POS Connection Inc. is an Elavon Payments Partner
& Registered MSP/ISO of the Canadian branch of the U.S. Bank National Association & Elavon
An Elavon Payments Partner
EQUIPMENT - RENT OR LEASE?
Equipment Leases have become very common in the credit card payment industry, and are often strongly recommended by the merchant service provider. Most non-bank owned processing companies rely on the large up-front commissions they receive from a leasing company the moment you sign the lease. Most times this up-front commission totals hundreds of dollars, which means your monthly payments goes to pay off, not just the cost of the machine, but also that large up-front commission the agent and processing company collected.
The leases themselves include a set monthly fee, plus tax, plus insurance, are non-cancellable, and typically are a term of 4 or 5 years. AND at the end of the term if you don't exercise your purchase option, the lease rolls to a month to month rental. So you could be making lease payments YEARS after the term has ended because you failed to cancel at the end of the contract!
ALSO as the equipment is owned, there is a limited warranty, so if anything happens you have to rebuy the equipment. Additionally with technology changing so quickly you will probably want to upgrade your equipment well before the terminal is paid for.
Equipment Rental allows you to upgrade, or downgrade, your equipment according to your business needs at any time. Unless the equipment was damaged as a result of neglect, it is maintained free of charge and all you pay is the shipping fee and another terminal is shipped immediately.
Our Recommendation We believe renting is a better option as it gives you more flexibility to change with your business needs. If owning your own terminal appeals to you we recommend buying it outright rather than purchasing on a lease