The short answer
Equipment leases in merchant services are usually separate non-cancellable contracts with a third-party leasing company. A terminal worth $300 to $600 is commonly leased at $59 to $99 a month for 48 months — $2,800 to $4,700 total. Cancelling your processor does not cancel the lease.
Why they are sold so hard
Lease commissions are paid up front to the salesperson, often exceeding the entire first-year processing margin. That is the whole reason 'free' terminal offers so often come attached to a lease document.
What to do if you are already in one
Read the buyout clause. Some allow early buyout at remaining payments minus a discount; many do not. Diary the end date, get the cancellation notice requirement in writing, and never let it auto-renew.
What to do instead
Buy the hardware outright, or rent month to month on a cancellable agreement. On a 36-month view, purchase is cheaper in almost every case.
Key takeaways
- Leases survive processor cancellation — they are separate contracts
- Total cost is routinely 6-10x the hardware value
- Buy outright or rent cancellably; never sign a 48-month lease
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