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Consider individual circumstances while weighing the pros and cons of leasing your credit card machine. Research shows that business owners who open merchant accounts create customer credibility and increase sales. Take notes from industry experts to find a truly profitable approach to credit card processing.

Equipment Overview

There are four types of credit card processing systems:

– Credit card machines combine a card-reader and receipt printer for fast processing.

– Computer-based systems require a card-reader attachment and specialized software.

– Virtual gateways facilitate Internet purchases.

– Phone processing meets the needs of smaller businesses with a mobile base of operations.

Credit card machines and computer accessories are available for lease or purchase through a variety of retail channels.


Financial experts warn small business owners to stay away from credit card leasing deals. While a number of swindles do exist, there are some benefits associated with temporary ownership.

– Some leasing agreements allow free equipment upgrades during the contract period.

– A small percentage of income generated from credit card receipts may be tax deductible.

– Leasing is the perfect option for businesses that do not have the funds to purchase expensive equipment.

– Temporary ownership ensures that merchants have access to the most recent processing equipment.

– Owners have the option of returning equipment if their business goes bust.


Leasing contracts offer maximum flexibility, but all that freedom comes at a price. Before you sign on the dotted line, remember the following items:

– Owners end up paying more for leased equipment.

– A series of monthly fees, including service charges and insurance, add to the lease price.

– Leasing contracts last up to five years and prove incredibly hard to break if you desire another service.

– Leased terminal contracts include a minimum monthly fee that owners pay even if they do not make a sale.

– Owners face massive cancellation fees if they decide to terminate the lease contract.

The seemingly inexpensive flexibility of a leasing contract makes the option attractive when contemplating credit card processing. Further investigation reveals a series of obligations that can become overwhelming, especially for fledgling business with extremely limited resources. Whenever possible, set aside funds to purchase equipment after establishing any merchant accounts. According to financial experts, the money that would typically go towards monthly leasing fees can aide in future business growth.