How to Buy or Lease Credit Card Equipment

Credit card equipment provides you with additional payment options.

Buying or leasing credit card equipment can be one of the most important decisions you make in your business. Leasing may present certain tax benefits in the form of write-offs. Buying such equipment outright eliminates high monthly leasing payments for your credit card equipment.

Instructions

1. Research the pros and cons of leasing and buying credit card equipment. If you can negotiate a good purchase price, buying the equipment can be a better decision than leasing, as purchasers avoid monthly leasing payments. Your leasing payments may be tax-deductible, however. Buying credit card equipment outright does not allow you a full write-off.

2. Determine the types of functions the equipment must perform. You might select a type of unit that will allow customers to use debit cards via a pin pad. A credit card terminal such as the Hypercom T7 Plus is often used by retail merchants who need to provide credit and debit card acceptance. If you plan to sell at a trade show or outdoor event, the Nurit 8000 wireless credit card terminal might be a good option because you do not need a power outlet to operate it. The Nurit 8000's wireless terminal has a battery and operates like a cell phone.

3. Talk to various merchant account providers. Obtain price quotes for buy and lease options. Call at least five companies to gather research. Decide whether you plan to lease or buy credit card equipment. Research the leasing company that will lease the equipment to you. If you decide to lease, make sure the leasing company has not been involved in any fraudulent activities. If you decide to buy a credit card machine, pick the best three prices quoted by vendors. Begin your price negotiations.

4. Obtain your credit approval. If you lease credit card equipment, the leasing company will need your name, date of birth and Social Security number to check your credit. Better credit scores allow you to negotiate lower leasing payments. If you have poor credit, you will probably still be approved, but you should expect to pay a little more. The typical lease lasts 48 months. No credit checks are necessary if you buy credit card equipment.

Tips & Warnings

• Leasing equipment gives you the advantage of free maintenance. The leasing company retains ownership of the credit card equipment throughout the duration of the lease.

• If you choose to buy equipment, you may have a limited warranty on your credit card terminal. After the warranty expires, you will be responsible for any maintenance and repairs.

References

• Microsoft Dynamics: Supporting Online Systems With Dynamic GP: Mark Polino

Resources

• Business Know How: How to Evaluate Credit Card Processing Companies for Small Business: Janet Attard