Credit Card Machine Rental

Credit Card Machine RentalsCredit Card Machine Rentals

Every business that wants to survive and be successful needs to accept Credit Cards as a Method of Payment.  This is done through a Credit Card Processing Machine or Terminal, which a business owner can rent from the Bank or buy from an Independent Processor.

In general, most people rent their Credit Card Machine, from the same bank they use.  This makes it easy for everything to be linked and work efficiently.  The bank will have direct access to the business accounts used for Credit Card processing and can easily bill the same account for Rental of the machine.  There is a drawback though, renting a credit card processing terminal from the bank means that the rent payments never end.  The bank will continue to charge rental fee’s for the machine, until the account is closed.  There is generally not the option to Buy or Lease the Terminal with the bank, as it is better for them to keep billing a business indefinitely for using the Credit Card Processing Terminal.  The rent will be billed every month and it will be billed for as long as the account is in use.  This can be very expensive over a long amount of time, as the rent is billed monthly for as long as the business is using the credit card machine.

Some Credit Card processing companies that are not run by the Banks choose to offer the option to Rent to Own or Lease to Own the Credit Card Machine.

This has many benefits for the business.  Instead of paying rent every month forever, the rent to own or lease agreement will only run for a certain number of months, after which time the option to buy-out the machine comes up, and credit card payment services can still continue without having to pay the Monthly Rental fee’s.

Either way a business chooses to go, a monthly payment for credit card processing is a sure thing when the business wants to accept all methods of payment.  This cost to rent the credit card processing machine would be in addition to the regular usage and service costs also associated with accepting credit cards as a method of payment.

Taking this into consideration, one should carefully bargain a monthly rental fee, and use the amount of processing as leverage to discount other service fees.  for example, if you know as a business you will be processing lots of credit card payments, and making your processor know that they will profit allot of transactions, maybe the rental fee or lease to own fee can be negotiated to something very manageable.  And vice versa, if a business will not have a lot of transactions, bargain with the processors to raise the rental fee, which they are sure to collect every month in exchange for a lower processing fee!

Either way, every business will have to pay a rental or usage fee every month for being able to accept all these payments.  In the long and short term, it is well worth the expense to rent or lease or buy a credit card processing terminal considering how much possible revenue will be available as a direct result of being able to accept all forms of payment.

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Matthew Hunt has been helping small businesses get set-up with Canadian Merchant Account Services since 2007 and helped 1000's do so. Join Matthew on Google+.

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