Credit Card Terminals

1. Credit Card Terminals: Purchase Vs. Leasing It is no surprise that advancements in technology are changing the way we live our lives. Even when we talk about payments, people these days prefer to pay via online transaction. And given the present circumstances where social distancing is much required, even small businesses are adopting the practice of accepting card payments to stay afloat. However, if you want to accept online payments, you need to have credit card payment terminals in your outlets. When you choose a credit card processor, they provide you with services like terminals. You can either purchase them or lease them. The real question however is, which is the better option? Purchasing or leasing? Credit card terminals are an expensive piece of machinery, purchasing or leasing it is ultimately your personal choice. But humor us and answer the following questions to get a better perspective on the matter. Does your business have enough cash flow to support purchasing the terminal? Are there any tax benefits for leasing as opposed to purchasing? Will monthly payments be more convenient for you than a one-time payment? When it is time to upgrade your terminal, will you be able to buy all the necessary equipment? If your equipment becomes obsolete due to advancements in technology, can you buy an entirely new setup? Just like everything else, there are two sides to this argument as well. But if you were to ask for our opinion, we would recommend that you not lease credit card terminals. In simple terms, leasing a terminal is far more expensive than purchasing one in the longer run. You end up paying more money when you lease. An online credit card processor gives you attractive offers, but know that they are binding contracts that you can’t easily walk out of. Ask your credit card processor about incentives like free terminals to save you a ton of money.