Is It Better To Lease Or Purchase A Credit Card Swiper?

The question many merchants ask is sometimes a very difficult question to answer.  Outside of the obvious, where it depends on the merchant situation, we'll attempt to answer this the problems surrounding this dilemma so merchants can fully understand the tax implications along with staying current with PCI compliance and explore the meanings behind what it means to own card merchant equipment.

What is vital to understand going forward is that the technology is always changing and so are the rules to processing credit card transactions.  It is one of the most important, most understated, misunderstood elements in a small business arsenal.  Staying compliant with the rules and regulations handed down from Visa, MasterCard, Amex & Discover are vital to the protection of the card merchant data and benefit the merchant as much as the card issuer.  Once this is clearly understood, the decision making process between leasing and owning becomes much simpler.

Every business that has the potential to stay in business has the opportunity to write off equipment as an expense.  So whatever the income of the business is for that year, the merchant can deduct the value or the money spent on the equipment from the income for the year.  Leasing equipment can be very expensive and many merchant processors overcharge merchants when they buy a credit card swiper so it is therefore very important to know what the market price is for the equipment.  Once the merchant understands how much the equipment costs, then it becomes and easier equation.  If a merchant is looking at a 36 month lease on a terminal that only costs $150 for $49/ month, it is easy to see why this is not a good decision and therefore the merchant should pass on this deal.  If the terminal costs $300 and the lease is for 24 months at only $20 /month, then the write off starts to make more sense.  The problem many merchant account service reps face is when a merchant knows the value of the machine and how much is too much.  The industry is saturated with individuals that are hungry to sell equipment as well as pitch deals that are not worth the value being offered. 

It is our goal to make sure store owners understand these risks and take the necessary steps to avoid the scams running around this industry.  CCMP or www.creditcardmerchantprocessor.com is firm to believe that the educated merchant develops a relationship with the service merchant representative and that the most important element within any business transaction is trust.  Trust can build long lasting relationships that are fruitful for both parties and this by far is a much more healthy way of conducting business. 

Equipment changes constantly so leasing a terminal might be a better way to write off 3 years worth of equipment and then when the tech changes, so can the ability to stay current as well as keep the card data secure from 3rd party malevolent hacking attempts. 

About the Author

Author Eric Bernard is the marketing manager of creditcardmerchantprocessor.com a service merchant credit card process company within the financial services payment industry.  They mainly deals in Credit Card Merchant Processor and Credit Card Swiper  you can find more products and services at his website>>> http://www.creditcardmerchantprocessor.com/