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