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Buyers' Guide to
Online Payment Acceptance
Chapter 3: Purchase or
Lease?
If
you choose to lease you will end up paying more
in the end than if you purchase the processing
solution from the start. Let's say you find a
merchant account provider who will charge you
$200 to purchase the real-time Internet credit
card processing solution. Or they will lease you
the same solution for $20 each month for the next
48 months. If you do the math, in the end you
will end up paying $960 for that solution if you
chose to lease it for 48 months. That's $760 more
than if you purchased the solution up front for
$200. Also, be aware the above calculations do
not include your state sales tax on the lease or
the amount charged for the damage/loss waiver.
With these two additional costs you can end up
paying as much as $20 more. Another thing you may
not realize is that the 48 month lease is not
cancelable, so even if you go out of business you
may still have to pay on that lease until the 4
years (48 months) is completed.
Not all leases are for 48 months, some providers
offer 12, 24 and 36 month leases. However, the
shorter the lease time, the higher the monthly
lease cost will be.
Your credit rating will also have an effect on
the amount you pay for a monthly lease. Those
with bad or no credit will most always pay more
than those with good to excellent credit. Check
with the merchant account provider for details.
Needless to say, purchasing a processing solution
is by far the best way to go. And another nice
incentive is that it's 100% tax deductible.
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