Businesses, large and small, must accept credit cards if they want to remain competitive. When choosing a credit card machine it is important that business owners take their time to think about what is best for their business. One of the biggest choices they must make is whether they should rent or buy their credit card machine. Here are four aspects a business owner should consider when thinking about whether to buy or rent a credit card terminal.
1. Overall Costs
When looking to buy a credit card machine, some will not want to make the upfront purchase of a credit card terminal, which can be priced upwards of a thousand dollars. Especially for entrepreneurs, it will be easier on their short-term budget to rent or lease a terminal instead, setting the price at a considerably lower monthly rate. Especially for startups in their early stages, even small savings can make a difference during these more vulnerable times. The money may be better invested in hiring employees and investing in capital. However, if a business has the capital to invest in a credit card terminal, the overall cost of the machine will be lower if it is simply purchased.
2. Tax Deductibles
When you rent equipment for your business, the entire amount of the payments you make is tax deductible. While purchases you make for your business are also deductible, the full amount of the purchase may not be because of how the value of the equipment depreciates over time. Depending on how your tax liability situation is, this may make renting credit card machines a more attractive option.
3. Upgrading Technology
Having a terminal that can process credit quickly is important in shaping the customer experience, so having a credit card terminal with the newest technology is important for business owners. When a person buys a credit card machine, they will only be able to use that particular model. In a rental agreement, however, business owners may be able to upgrade to newer models as their credit card machine merchant gets ahold of the latest terminals. Level of support may also vary between rental and purchase agreements, so business owners should be sure to clarify what type of technical support they will be able to receive through each plan.
By looking at these considerations, the choice of whether to buy or rent a credit card machine should be clearer. Whatever option you choose, True Merchant can help you find the right type of credit card terminal or credit processing method for your business.