Merchant Account Equipment: Sell, Rent or Lease?

When it comes to merchant account service, do you know what recommendations to offer clients regarding financing of equipment? As the industry changes, that answer changes, and its important to be clear on options that offer the best solutions for each individual merchant account.

What is the Upward Trend in Merchant Equipment?

In today’s market, there are several factors that impact equipment choices. Not only does it depend on the business needs of each individual merchant, but also on their budgets. Now that equipment becomes obsolete sooner, it’s really important to realize that this trend still holds, whether a client is renting, leasing or buying equipment.

Initially renting equipment was best for short term convenience, for example, special events, seasonal shopping or charities. However, there are higher costs associated with a rental option, and that sometimes frustrates merchant account holders. Now factor in those businesses may have less upfront cash for purchasing or leasing a terminal, and renting tends to be the only viable option left.

Benefits of Rental Packages for Merchants

In addition to low upfront cash, there is also high change/update rate for terminal software. Terminals also have a fixed memory. This presents even more challenges for merchants interested in keeping the same terminal for the long-term because new software many not fit in the memory banks without purging old software.

Merchants also generally frown upon purchasing replacement POS credit card terminals every few years, so it’s important, as a processing provider, to offer a program that addresses these challenges and spells out the long term benefits for merchants. Also be sure to factor in how these packages impact your bottom line costs and revenue.

With equipment rentals, software upgrades, broken terminals and the ability to meet the industry, standard requirements are also easier. Now the merchant has a package that offers the latest and greatest in the industry, combined with affordable rates. When you throw it all together, renting is the best value the merchant can get for their dollar.