The short answer
Free terminal offers are paid for in one of three ways: a higher processing rate, a multi-year term with liquidated damages, or a separate equipment lease. Occasionally the hardware genuinely is free as a customer-acquisition cost — but only where there is no term and no lease.
How to test the offer
Ask for the same pricing without the free hardware. If the rate improves, the hardware was never free. Then ask for the term and cancellation terms in writing.
When free is real
On competitive accounts, providers sometimes place a $300 terminal free because the account is worth far more than the hardware. The tell is a month-to-month agreement with no lease document.
Key takeaways
- Ask for the price without the free hardware
- Check for a term and a separate lease document
- Genuinely free hardware comes with month-to-month terms
Want this checked against your own statement?
We are an independent agent — we shop every processor we work with and bring you the best deal for your profile. Free analysis, every fee named, back within 4 hours. Or call now and we will quote you on the phone.