First, as long as the equipment is used and maintained properly according to the details of the lease agreement, then most issues related to defective or malfunctioning technology would usually be the responsibility of the merchant services provider to fix, which is beneficial for the leasing business as they would not incur additional costs to replace faulty or broken payment stations. This situation carries with it certain advantages, and also some notable liabilities, for the business. Under a lease agreement, the payment processing equipment technically remains property of the lessor/merchant services provider, and is not officially owned by the business/lessee. This contract specifies the details of the lease agreement, such as the duration of the lease (usually in months, such as 12, 24, 36, etc.), the amount of the monthly fees to be paid, and other contractual obligations such as maintenance requirements, approved uses of the equipment, and other restrictions. A POS system lease involves a contractual agreement between the business and the merchant services provider, referred to in the contract as the lessee and the lessor, respectively. Let’s take a look at how leasing POS technology works, and consider how you can determine if leasing is the best possible option for your business.īusinesses who either do not wish to incur a large initial cost for a POS system, or who do not have the capital available for such a large upfront purchase, often choose to lease the technology instead. In cases like this, leasing the technology can be an appealing option.

Investment in so many different types of systems can carry a price tag that some businesses simply can’t manage up front as a single capital expenditure. For example, a company may have a physical storefront in need of a countertop POS, as well as a remote kiosk utilizing an unattended terminal, an ecommerce website with an online payment processing gateway, or perhaps even a mobile POS unit to take payments remotely. This is particularly relevant for companies who require multiple point-of-sale solutions to suit multiple different applications. Each approach has advantages and disadvantages, so it’s essential to make an informed decision on what’s ultimately going to be best for your business. This most certainly includes the purchase and implementation of new in-store point-of-sale systems, e-commerce websites, mobile payment terminals, and unattended POS stations from merchant services providers.Ĭhoosing the right technology is critical, as is selecting the best payment processing partner for your business, but it’s also important to carefully consider whether your business should lease POS equipment, or purchase it outright. Markets of all industry verticals are more competitive today than ever before, and businesses need to be savvy with their investments to make sure they’re getting the best return and the maximum advantage for every dollar. However, this technology can be a very substantial investment for businesses, so it’s important to know the pros and cons of purchasing POS systems outright or leasing them on a monthly plan. Modern point-of-sale systems are essential pieces of technology that play a critical role in the success of businesses by enabling fast, secure, and convenient payment processing for customers across a diverse range of situations and applications.

Lease credit card terminal