Skip to Main Content

What is Equipment Leasing? 

An equipment lease is a financing contract between you and a leasing company that can be difficult to get out of. It requires you to make financing payments for a fixed period of usually four to five years. Equipment leases can end up costing your business quite a bit. So, if you haven’t signed a contract yet, it’s worth understanding exactly what equipment leasing will cost you. 

You’ve likely heard the "Why rent when you can own" pitch – and we agree

This saying is very true in payment processing. Here’s why. Equipment leases are expensive. A $29 per month lease that lasts for 60 months adds up to $1,800, plus the buyout fee! That's a lot of money for a terminal that’s worth only a few hundred dollars. Depending on which terminal you use, you can buy it outright for significantly less than the cost of leasing, and that’s not even including the buyout fee. 

So why do processors try to sell you on equipment leasing?

Processors and merchant brokers receive a large up-front payment from the leasing company that makes up the majority of their commission structure. This means that equipment leases are in the best interests of the processor and the merchant broker reps. Not in your best interest as a merchant. 

How is Helcim different?

We never lock our merchants into equipment leases. Our card reader is offered for purchase at a competitive price.  Once you purchase your equipment you don't need to worry about additional monthly bills for rental or lease costs. You also don’t have to worry about being locked into a contract that expires in 48 months – or the penalty of breaking it.

What if I’m already in an equipment leasing contract?

Many contracts last between 48 and 60 months. They can be hard to break – though not impossible. However, you may have to wait until your leasing contract ends to make a move to a new processor. 

If your equipment rental is part of a merchant services agreement with your bank, it may be possible to get out of it. 

curve decoration


Get important updates about your business’s payment processing, insightful articles and resources that matter to you, and Helcim tutorials and updates delivered right to your inbox.