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How to get out of a rental for credit card equipment

Leasing Nightmare

Leasing can be a very unpleasant experience. Once I called a merchant who had 3 different lease agreements, and he didn’t even know what they were for. After examining his statement of the check account, I was able to help him determine who the lease belongs to and what they were attached to.

It turns out that he had a lease for his terminal, another separate lease for a pin site, and a third lease of $ 89 per month, which he paid for 6 years, and was not even sure what it was for. This specific lease expired after 5 years, but he still could not force the leasing company to stop withdrawing money from his current account.

You may ask how this can be?

This is a good question that you can answer by reading this entire post.

Your processor is not your leasing company

Many sellers are surprised to learn that a credit card processor and a leasing company that owns a lease agreement signed by the seller are two completely different business entities.

This means that you can freely switch processors at any time (unless your card processor has entered into one of those early termination fee manipulation contracts that I often swear with) and it will not have anything to do with the terminal your credit card. Your new processor will simply download the new software to your existing terminal.

Why is leasing so hard to get out

Something that sellers do not cease to consider when signing a trade agreement (especially for the first time) is whether the contract they sign is not subject to cancellation, with very few exceptions. This means that you WILL make payments for the full amount of the period if you do not violate the contract or agree to withdraw from it.


One of the reasons is that the leasing company has already paid an advance commission, which can reach $ 1,000 or more, to the seller who made you sign the lease. So they will definitely refund what they paid. But that goes beyond that.

Another reason this is so complicated is that they have a voice recording over the phone that agrees with the terms of the contract before you can get the equipment.

I hate renting. Yes, I would make a great advance. But if I did this, I would also force my seller to pay 10 times the cost of the equipment by the time the lease expires. Forget it. I still want to be my friend 5 years later.

Perpetual rental

You will not only pay for the entire period for which you have agreed to lease, but most leases will never end unless YOU STOP THEM. This is true even after the initial lease term. expired,

How can it be?


The contract usually indicates that it will remain in effect for _____ years and will continue until one of the parties terminates it. Often they insert a proposal that it will be automatically updated in increments of 1 year, unless the seller stops it in writing at least 30 days before the expiration date. This means that the contract will be constantly updated until the merchant finishes it.

This means that if you have not read your contract and written when it ends, you may be “forever connected” with it. (What a terrible way to do business).

How to legally withdraw from a lease

To terminate the lease, you need to know the conditions and exactly what is written in the contract. Here are 4 ways that most of the leases I have come across are structured to free you from further commitments — from “good” to worse.

  1. Buyback for 1 dollar, This means that when the lease expires, you can exit it by paying 1 dollar, and now you have the equipment. As for the lease, it is it that is the most fair (except for direct ownership of it, which allows several rare contracts)
  2. Fair market value This means that at the end of the lease, the leasing company will determine the current market value and require that you pay it in order to save the equipment and finish the lease.
  3. Send it backI find this particularly disgusting. After payment, possibly 10 times the cost of the car for 4 or 5 years, the leasing company requires you to return the equipment to them, or they will continue to debit funds from your current account – “forever”.
  4. Leasing buyback This is where they want you to pay for the remaining months of the contract, and then the lease ends. I listed it as the worst, but it’s only the worst, if you just started renting, that is, it can potentially cost thousands of dollars, and again, up to 10 x (or more) of the cost of the terminal,


With options like the ones listed above, it’s not surprising that they will make sure your voice is recorded on the phone, agreeing to the terms that they declare before you receive the equipment. Unfortunately, they do not disclose all the facts. If they did, you probably would not have gone through this.

In fact, they only make you verbally declare a “non-cancellable” rental onx“Amount of dollars, for”xnumber of months.

My suggestion? If I were obliged to rent equipment, I would immediately receive my contract and would do the following:

  • Understand the terms of its termination … that is, a buyback for $ 1, fair market value, return of equipment? etc.
  • I would find the exact month of the lease expiration – and
  • I took out my calendar and marked it 60 days before the expiration date, after which I –
  • Send a registered letter stating that I want to withdraw from the lease upon expiration

NOTE. Most sellers do not understand that in most cases the rental does not end if you do not take any action. This means that even if it is called “for a period of 36 months” or “5 years,” the timeline should indicate only when you have the right to terminate it, and not when it will end.

Just writing about how these companies do business is nearly enough for my blood to boil. And that should be enough to be careful when renting credit card equipment!


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