Every card terminal comes with terms, even when nobody mentions them. How you got yours decides what you pay over time and what happens if you ever switch providers. Here's what each option means in plain words.
What are the main ways to get a card terminal?
- Owned. You bought the terminal outright, and it's yours. There's no monthly equipment payment, and you decide what happens to it.
- Rented. You pay a regular fee for as long as you use it. Ask whether you can return it and stop paying, and how much notice that takes.
- Leased. You sign a separate lease contract for the equipment. Leases can run for years and may not be cancelable, even after you stop using the provider that set it up.
- Included with your account. Some providers supply a terminal as part of the processing agreement. Ask who owns it, and what happens to it if you leave.
Why do leases catch owners off guard?
A lease can be signed at the same time as the processing agreement, so it can feel like one deal. It may not be. Some equipment leases are separate contracts with their own term and cancellation rules, and closing your processing account doesn't always end the lease payments.
Look at the total, too. Monthly payments over a multi-year lease can add up to more than buying the same terminal outright. Ask for the total cost over the full term, in writing, before you sign.
Where does equipment show up on your statement?
Look for lines with words like "equipment," "rental," "lease" or "terminal." A lease is sometimes billed by a separate company, so it may show up on your bank statement instead of your processing statement. Our guide to reading your processing statement shows where other fees usually sit.
Can you keep your terminal if you switch?
Sometimes. Some terminals can be reprogrammed to work with a new provider. Others are locked to the provider that supplied them. If yours is leased, read the lease terms before you switch, because the payments may continue.
What should you ask before you choose?
- Will I own this terminal, rent it or lease it?
- What is the total cost over the full term, including any fees?
- Is the lease a separate contract? Can I cancel it, and what does canceling cost?
- If I switch providers later, can this terminal be reprogrammed, or do I return it?
- Which payments does it take: chip, tap and phone wallets?
Get every answer in writing. For more questions to ask before you sign anything, see Before You Sign: 9 Questions to Ask Any Merchant Services Provider.
Frequently asked questions
Is it better to own or lease a card terminal?
It depends on your business and the terms. Owning means no monthly equipment payment. A lease can run for years and may not be cancelable, so compare the total cost over the full term before you sign.
Can I cancel a card terminal lease?
Some equipment leases are separate contracts that may not be cancelable, even after you stop using the provider that set them up. Read the lease's term and cancellation rules, and ask what canceling would cost.
What's the difference between renting and leasing a card terminal?
Renting means you pay a regular fee for as long as you use the terminal, and you can ask about returning it. Leasing means a separate contract that can run for years, with its own cancellation rules.
Can I keep my current terminal if I switch providers?
Sometimes. Some terminals can be reprogrammed to work with a new provider, and others are locked to the provider that supplied them. If yours is leased, read the lease terms before you switch.
How we approach it at Keepwell
When we review a statement, we point out every equipment charge and explain what it's for. If you're thinking about switching, we go over your equipment options with you before anything changes. A review may show other fees worth a second look. Results vary.
Want us to look at your statement? Upload it at keepwellpayments.com/upload for a free, no-obligation review.
Keepwell Payments, LLC is an independent payments agency, not a bank or payment processor. Each merchant account is set up with a payment processor we partner with and its sponsor bank, named in writing before you sign. Merchant accounts are subject to approval. Results vary by business. This article is general information, not financial or legal advice.