As a business owner understanding not just what merchant company to do business with, but whether you should take a “free terminal” deal or lease equipment.  This isn’t a post telling you what you should do, it’s simply outlining some of the differences in your options.  Without being biased, here is our take on loaner terminal programs versus programs that include leasing equipment.

There is no Free Lunch

You have heard this, and you know this, so it shouldn’t come as a surprise. There is cost associated with merchant accounts; processing equipment, upgrades, shipping, customer service, technical support, etc.  No merchant processor is getting equipment for free, so the cost must be recouped in some way, that is simply a fact.

Leasing Equipment AMP Payment Systems

Leasing Equipment AMP Payment Systems

May not Include Guarantees

Not all programs whether loaner/free or leasing equipment are created equal, but they typically tend to differ in the guarantees that are provided.  Programs with AMP provide equipment guarantees exceeding the manufacturer’s warranty, software upgrades and overnight replacement with our lease program.  Some loaner programs do offer similar benefits, but a majority do not.

Costs Recouped

We know that nothing is free in today’s society, so how are the costs of a free terminal recouped?  That’s simple, when a company loans you a free terminal that cost must be recouped in the monthly processing fees.  At the end of the day, merchant processors are in business the same as you are, and a profit must be made.  If you purchase a car and they absorb the cost of your trade in that is underwater what happens to that cost?

It obviously doesn’t disappear, but instead it gets wrapped into the loan and you pay financing costs on your new car purchase as well as your trade in deficit.  You feel better on the front end, but the dealership and finance company still charge you on the back end and for many people that’s what they prefer.

What if I Leave

No processing company goes into an agreement with you, whether you are leasing equipment or on a loaner program expecting you to leave.  We all hope that our service and knowledge will make your experience as pleasant as possible, but sometimes things change.  If you are borrowing a free terminal you will need to return that equipment.  If you are leasing that equipment and decide to move to the next processor you can take it with you though the guarantees you had previously may not carry over.

Whether to be loaned or leased to is a difficult question and much like politics some companies and representatives are staunchly in one camp or the other.  Each has their own policies and procedures and reasons for such.  To better understand AMP Payment Systems policies and procedures please feel free to schedule an appointment.

References:

https://www.firstdata.com/fdgl/index.html