![]() ![]() Getting Out of a Credit Card Machine Lease However, many prefer not be associate with gouging their customers on equipment costs. First Data has thousands of ISO and agents, and their leasing program is available to any that want to use it. Look at First Data Global Leasing, for example. Some two-bit agent using their processor as an excuse to lease equipment is one you should throw out of your store or office.Īgents and ISOs earn (a lot) of commission by leasing equipment, and any willing to do so is simply looking to pad their profits. The organization selling processing services, whether a direct processor or an ISO, has the ultimate say in what is and isn’t an acceptable practice. This one is laughable and not a good reason to justify leasing a terminal. Of course they are, but so is the cost to purchase a terminal. ![]() Even if you have to purchase a new terminal every five years, you’re still paying much less than you would have if you went the leasing route. Modern terminals will be functional for quite some time. After all, technology is moving so quickly that your terminal will be obsolete in a year or two. This selling point is always a headliner when it comes to leasing. Of course, a single fixed payment of $200-$300 (to purchase a machine outright) is a lot more financially attractive than 48 payments of $50. Leases do typically have fixed monthly payments. If possible, consider borrowing $200 for a friend or relative if this is your main motivation for leasing a machine. Instead, it drains your bank account over a period of two to four years. A lease does not typically require an initial investment. Regardless, let’s look at the benefits of leasing as provided by processors that lease equipment. The term beneficial lease is an oxymoron when referring to processing equipment. Benefits of a Lease (According to Processors that Lease Equipment) Save yourself the money and avoided leasing. In this snippet from an equipment lease, the business is paying more than $1,500 over 4 years for a machine that costs a few hundred dollars. The exact amount that the processor charges for the equipment you lease will vary, but whether you overpay by a little or overpay by a lot, you’ll still wind up paying more than you need to for equipment. We’re more than happy to give processors willing to lease equipment some negative press. Please post a comment below to let us know if you’re stuck in a lease. We would have loved to post the name of the processor, but the dental office asked us not to. The processor is making a profit of $2,070! The monthly lease amount paid for the PIN pad in just 2 months, but the office had the lease (with the monthly payment) for another 46 months after that. They’re paying $2,160 for piece of equipment worth $90. We helped a dental office that was paying $45 a month over four years for a PIN pad that they could have purchased for $90. Leasing processing equipment is a big money maker, and processors with questionable business practices will ride the gravy train to the end of the tracks.Īn experience we had here at CardFellow will give you an idea of just how much money a processor can make by leasing a credit card machine. Thankfully, the practice of leasing credit card machines has been declining, but some processors just can’t seem to let the cash cow go. ![]() Getting Out of a Credit Card Machine Lease.“It’s Not the Agent, It’s the Processor”.Benefits of a Lease (According to Processors that Lease Equipment).Credit Card Machine Leases are Nonsense!.The article below will provide plenty of reasons why you shouldn’t lease a credit card machine, and this settlement involving a large leasing company is further proof. Don’t fall into the trap of leasing machines. Credit card terminal leases benefit processors not you. ![]()
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