Leasing Merchant Services Processing Equipment for Your Business

Complex fees and rates on merchant accounts are a big worry for business owners. One of the areas of concern is in leasing merchant services processing equipment.

Some credit card devices leases have up to a 1,500% markup cost. Small business proprietors are forced to lock into lease agreements of $1,400-$5,000 and above in a 4-year period for credit card devices and pin pads, which only cost a part of the amount when paid in cash.

The tactic begins with pressuring a business owner to sign an agreement before they discover the importance of a credit card device. Leasing companies are totally aware of their usurious gains and their perfectly created lease arrangement that contain provisions that make it hard for a business owner to exit the locked-in agreement once the merchant has realized what business deal they've gotten into.

After the merchant services processing company locks a businessman into a deal, there's little resort other than to purchase out the contract or ride the full term of the lease, paying monthly in the process. The willingness to coax clients into signing a contract that they know is unjust says a lot about the character of the account company and the sales agent.

Some providers that rely on device leases for profit use this strategy for their services, and often charge huge cancellation costs on their accounts. Companies and agents that utilize these strategies place more importance in their profits than the welfare of clients or the service quality they offer. After all, they don't need to prioritize setting competitive rates and fees because their clients are locked into their leasing agreement and would be charged a hefty cancellation cost. click to find out more Merchant Cash Discount Program

If you have already signed into a leasing agreement with an account provider, there is not much you can do about quitting the contract. However, make sure that the account offers low rates and fees to compensate your loss. Most machines are reprogrammable. You do not need to stay with the credit card processor that sold you a leased device if the fees and rates are hefty.

Even if a cancellation fee is needed to get out of the deal so that you can switch providers, the savings that you get will justify the expense in a few months. Some companies even evaluate accounts and compare savings and costs from the best structures like flat rate debit/credit card processing and interchange plus.

The bottom line: Avoid renting credit card tools, but if you already signed into one, the next best action to do is cut down losses and make certain to find the most competitive account with the lowest fees and rates.