--- title: How Credit Card Machine Leasing Companies Hurt Your Bottom Line description: Part 9 of this series reveals three major problems with credit card machine leasing companies. Avoid terminal leases with our tips. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-terminal-leasing-unethical-billing.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. Get time back and spend it with furry patients.](https://www2.payjunction.com/payment-processing-veterinarians) - [Dental Simplify patient payments with multiple means of collection at your dental practice. Meet patient expectations and elevate the payment experience.](https://www2.payjunction.com/payment-processing-dentists) - [Auto Dealer Manage dealership payments by department, brand and location. Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # How Credit Card Machine Leasing Companies Hurt Your Bottom Line ![How Credit Card Machine Leasing Companies Hurt Your Bottom Line](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-terminal-leasing-unethical-billing.svg) [![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=48&height=48&name=Ursula_Librizzi.jpg) Ursula Librizzi](https://blog.payjunction.com/author/ursula-librizzi) 7/15/2019 The right credit card terminal will help you achieve [lower rates](https://blog.payjunction.com/credit-card-processing-fees/) and [protect your business from fraud](https://blog.payjunction.com/credit-card-reader-outdated/). It would be silly to opt against using one if you take in-person transactions, so the vast majority of business owners do. Unfortunately, some unethical Merchant Account Providers take advantage of this must-have mentality and lock businesses in with lengthy, expensive leases for credit card terminals. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## 3 Reasons to Avoid Credit Card Machine Leasing Companies We've identified three major problems with terminal leasing for your [merchant credit card processing](https://blog.payjunction.com/merchant-credit-card-processing/): 1. **Credit card machine leasing companies falsely advertise this option as cost-effective**. Unethical providers offer two options for terminals: purchase or lease. They sell the terminal at an inflated cost or offer a lease with low monthly payments. Facing an expensive purchase price, you’re more inclined to lease because it seems like the better short-term option for your bank account. Unethical providers end up charging you more than what you’d pay to purchase the terminal when the length of the lease is taken into consideration. The true cost for terminals varies from $150 to $500, depending on the level of technology. When you lease, you’re charged between $20 and $40 per month. With lease lengths ranging from two to six years, you’re left paying anywhere from $960 to $2,880 for the terminal. That’s potentially 20 times the true cost of a terminal. 2. **Credit card machine leasing companies trap you into paying for a terminal you no longer need**. If you choose to switch providers or your business closes or is sold, you’re stuck paying for the terminal due to the binding terms of the lease. Unethical providers’ failure to mention lease lengths is two fold: Along with earning an incredibly high profit, they guarantee themselves a fixed income from your account. If you choose to discontinue using that provider, it still makes money off of you. 3. **Unethical providers auto-renew terminal leases.** It’s common for credit card machine leasing companies to sneak in auto-renew clauses. Unethical providers love to add them into busy and confusing lease terms — since most business owners don’t read through every single term, providers know they’ll likely miss this unsavory condition. You have a few options if you choose to break a credit card machine lease: - **Pay the remainder of the lease and give notice to ensure you aren’t auto-enrolled in a new lease**. It’s the least cost-effective choice, but it guarantees you’ve cut financial ties with the provider. - **File a lawsuit against your provider**. It’s not uncommon to file a lawsuit if your provider failed to mention any lease terms. As detailed in one [lawsuit](https://www.ftc.gov/news-events/press-releases/2013/07/ftc-charges-marketers-deceiving-small-businesses-buying), an unethical provider pushed businesses to enter into credit card terminal leasing contracts. - **Refuse to pay**. Like refusing to pay an early termination fee, your business can be blacklisted on the [Terminated Merchant File](https://www.cardpaymentoptions.com/glossary/terminated-merchant-file-tmf-definition/), tracked down by collections agencies and suffer credit damage if you refuse to pay terminal lease fees. Of course, none of the above are ideal. Luckily there are ways to avoid terminal credit card machine leasing companies altogether. ## Never Lease a Credit Card Machine Again Avoiding credit card terminal leasing takes a bit of work but is worth the savings. Here are some best practices for avoiding terminal leases: - **Choose a provider with month-to-month terminal rentals**. No long-term contracts or payment plans, just easy monthly payments for a terminal you can stop using at any time. - **Purchase a terminal that is reliable and future proof**. Purchasing means a one-time payment for a terminal that’s yours to keep. Purchase a terminal that can adapt to future changes in technology. Unethical providers leverage terminal leases as an income source, failing to put the best interests of their customers first. Don’t jump at the opportunity to lease a terminal because it seems cost-effective; it’s actually the more expensive option. Take the time to research options when it comes to your [merchant account](https://blog.payjunction.com/merchant-account/) equipment; your bank account will thank you. ## Learn about our Smart Terminal. Speak to an expert today! Have you ever dealt with unethical credit card machine leasing? How long were you stuck with the terminal? Tell us about it below; we’d love to hear from you. *Editor's Note: This post was originally published in January 2017 and has been updated for comprehensiveness and accuracy.* [Unethical Billing](https://blog.payjunction.com/topic/unethical-billing) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![Merchant Processing: 3 Tips to Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/merchant-processing.svg) Merchant Processing: 3 Tips to Know](https://blog.payjunction.com/merchant-processing) ##### [![Internet Merchant Account: 5 Tips for Integrating](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/internet-merchant-account.svg) Internet Merchant Account: 5 Tips for Integrating](https://blog.payjunction.com/internet-merchant-account) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![How to Sidestep Unfair Contract Terms](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/contract-terms-unethical-billing.svg) How to Sidestep Unfair Contract Terms Unfortunately, unethical billing is more common than we’d like to believe. Some Merchant Account Providers will squeeze terms and fees into their merchant contracts that only harm the businesses they claim to serve. Due to the nature of these terms, most business owners don’t realize they’re unfairly locked into a contract until they’re looking to exit their merchant credit card processing agreement. Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW](https://blog.payjunction.com/contract-terms-unethical-billing) ## [![What Is ISO Credit Card Processing?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/iso-credit-card-processing.svg) What Is ISO Credit Card Processing? Independent sales organizations (ISOs) are companies that manage the sales and marketing of credit card processing products and services. Unlike Payment Facilitators, which provide one shared merchant account to all of their customers, ISOs underwrite each business they work with to provide them with an individual merchant account. ISOs are synonymous with Merchant Service Providers.](https://blog.payjunction.com/iso-credit-card-processing) ## [![Credit Card Processors vs. Merchant Service Providers](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processors.svg) Credit Card Processors vs. Merchant Service Providers It’s very likely you looked at the title of this post and thought, “Those are different?” The general public uses these terms interchangeably, and without extensive knowledge of the payments industry, it makes sense to do so.](https://blog.payjunction.com/credit-card-processors) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. Get Email Updates GO Thank you for subscribing! PayJunction is a Level 1 PCI Compliant Provider. PayJunction is a registered ISO of PNC Bank, N.A., Pittsburgh, PA. © 2026 PayJunction. All rights reserved. [Privacy Policy](https://support.payjunction.com/hc/en-us/articles/211053648) and [Terms of Use](https://support.payjunction.com/hc/en-us/articles/211053628). ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Ursula Librizzi" }, "dateModified" : "2023-05-31", "datePublished" : "2019-07-15", "description" : "Part 9 of this series reveals three major problems with credit card machine leasing companies. Avoid terminal leases with our tips.", "headline" : "How Credit Card Machine Leasing Companies Hurt Your Bottom Line", "image" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/BLOG/FEATURED%20IMAGES/credit-card-terminal-leasing-unethical-billing.svg" }, "mainEntityOfPage" : "https://blog.payjunction.com/credit-card-terminal-leasing-unethical-billing", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/635739/logo-400px.png" }, "name" : "PayJunction" } } ```