It’s an old question, Shakespearean even, “To be, or not to be?” Only with a POS system, the question becomes “To buy, or not to buy?” Er, rather, to buy, or rent.
There is not a for sure yes or no answer to this question, and it will depend on your individual situation. Some restaurant or bar owners will have the finances to pay for a system all upfront, but that’s not a reality for everyone.
Fortunately, there are still options for owners who need an expensive point-of-sale system, but can’t afford to out a loan for it.
There are many POS companies who will do a rental program, where you will not own the equipment, but instead pay a monthly fee to use the POS system.
This can be a great option if you don’t want to drop tons of cash upfront, or just don’t want to own one.
When you rent a POS, you will have to sign a contract, because you are leasing an expensive piece of equipment. Read the contract over carefully to make sure there are no hidden fees, or that you are obligated to pay for any faulty equipment.
Usually with POS rental programs they come with a monthly support fee, where you will have your POS service bundled in with credit card processing fees. This can be pretty sweet because it combines the two components and lets you deal with only one provider, making your life easier.
Here’s where it can get a little tricky. It’s perfectly fine to have your POS rental fee and payment processing wrapped up together, but make sure you’re not being overcharged for processing fees, or that your rates are not going to be raised dramatically every single month without explanation.
How do you know if this will happen to you?
Well, here are some situations we have seen over the years with merchants we’ve worked with.
***Disclaimer, these numbers may be higher depending on what type of POS system you rent, along with how many service stations you need.
Look and see how much the monthly fee is for renting. A fair price, should be between $300-$500. That usually covers the fees, one service station, and support. If your contract only gives you an $80 fee for renting, you can expect to see around $1,000 processing fees, along with possible additional fees for customer support, and cheap equipment.
If you do decide to rent, try and get a list of clients who are currently in the rental program, and talk directly to them. Finding out how satisfied the current clients are with the company’s rental program will let you know if you’re getting a fair deal.
