Should I buy or rent a contactless card reader for my business?

Looking to invest in a contactless card machine for your business? Here’s our guide to hiring vs buying a card payment machine.

Handepay Card Payment

A contactless card reader is a great investment for your business.

Accepting contactless payments lets you take payments faster, serve more customers during the day, and save time counting cash each evening.

Plus, customers are increasingly using contactless cards.

When it comes to investing in a contactless card reader, there is one big question you’ll want to ask.

Should I rent or buy my card machine?

Here, we’ll take you through the best options and show why leasing a card machine is the simplest and most cost-effective way of accepting card payments.

Can I buy a contactless card machine?

Yes, you can buy a card machine outright.

But in reality, not many independent businesses do this.

Contactless card machines are expensive to buy - especially if you’re a new or small company without a lot of capital.

If you lose or break the machine, you’ll be forced to buy a new one.

You’ll also be liable for ongoing maintenance costs if it develops issues.

Plus, you’ll have to negotiate rates for your business with an acquiring bank.

The best rates on the market are offered to huge national chains with hundreds of terminals accepting thousands of payments daily.

Independent businesses who purchase one or two terminals are unlikely to get the same prices.

In fact, you’ll end up paying a lot more than if you rent a machine from a supplier, who is able to negotiate better deals.

You also need to keep in mind how quickly payment technology and consumer attitudes towards card transactions are changing.

Even five years ago, card terminals wouldn’t have been able to accept contactless payments.

Today, contactless is commonplace.

Now we’re seeing more payments made using mobile wallets and smart devices.

And who knows what payments will look like in the next decade?

If you choose to purchase contactless card readers upfront, keep in mind that you may need to upgrade your machine in a few years’ time.

Two people paying for eggs using phone for contactless payment

Phone contactless payment taking place

Why leasing a contactless card machine is the best choice

From both a cost and service point of view, leasing a contactless card reader is the best choice for independent businesses.

Firstly, there’s no large upfront cost for the machine.

Those costs are spread out over the period of your contract.

This is a great way to see how a contactless card reader is a good investment for your business, without taking a large chunk out of your working capital.

Plus, your merchant services provider will be on hand for help and support with fixing any technical issues.

If the machine breaks, you should be covered under your agreement and can get it replaced.

It’s the simplest way to future proof your business.

As technology changes and your contract renews, you can negotiate for a newer machine so you can keep up to date with the latest payment methods.

What will I pay if I rent a card payment machine?

The biggest cost will be the monthly “rental” of the machine.

This can range between £15 - £40 per month per terminal, depending on which terminal type is best for you.

By choosing to lease a contactless card reader from a merchant services provider, you’ll be able to access lower transaction rates.

Merchant service providers, such as Handepay, are able to use our large network of independent businesses to negotiate cheaper rates for everyone.

It means that even if you only have a few card machines, you can still access competitive prices, like large national chains.

There are other fees that you may have to pay, depending on the provider you choose and the contract you sign.

Some of these fees are totally unnecessary, so it’s important to shop around and compare every provider before signing up.

Contactless payment being processed

Talk to us about investing in a contactless card reader

If you think your business could benefit from a contactless card machine, or if you have more questions about the costs involved, get in touch with us today.

One of our experts will be happy to talk you through everything in more detail and find the perfect solution for your business.


Financial disclaimer:

Terminal hire contracts are provided by Merchant Rentals Limited, who is authorised and regulated in the UK by the Financial Conduct Authority (FCA) for Consumer Hire under FRN 720500. Terminal hire can be for consumer hire and non-regulated hire contracts. Please check your contract carefully for details. Regulation of all consumer hire fall under the control of the FCA.

Handepay Ltd is authorised and regulated by the FCA for Consumer Credit under FRN 673564. Handepay is a credit broker for consumer hire not a lender.

Handepay acts as an introducer of card acquiring services on behalf of EVO Payments UK, the card acquiring service provider. EVO Payments UK is the trading name of EVO Payments UK Ltd, a payment institution that is authorised and regulated by the Financial Conduct Authority (FRN number 959332).

Existing Cards Businesses- The one-month rolling terminal hire contract from Merchant Rentals is only available to businesses that are switching from their current acquirer to EVO Payments UK arranged through Handepay.

New to Cards Businesses- The 12-month terminal hire contract from Merchant Rentals is only available to businesses that are new to card payments and wish to receive acquiring services from EVO Payments UK, arranged through Handepay.

The Next Day Banking Settlement service provided by EVO Payments UK incurs an additional fee of £4 a month on top of your acquiring service charges and fees. Provided your card machine performs a reconciliation before 12am (midnight), you’ll receive settlement of funds the next banking day.

Editorial disclaimer:

The information we provide does not constitute financial advice and might not apply to your business. Always carry out research into your business’ needs when choosing a new merchant services provider.

Sometimes, we link to other third-party websites to provide you with additional information. At the time of publication, we consider the information accurate, however, we do not have control over their content and are not responsible if any information on these websites change.

The products we display on our website are for illustrative purposes only - if your business requires additional facilities, you may receive a different model than advertised.

All of the information contained on this website, including fees, services and functionality, are correct at time of publishing. E&OE.