Micro-ticket leasing is leasing for low-cost equipment, typically items under a few thousand dollars such as credit card terminals, small POS setups,…
THE SHORT ANSWER
Micro-ticket leasing is leasing for low-cost equipment, typically items under a few thousand dollars such as credit card terminals, small POS setups, and office equipment. The monthly payment looks small, but because the equipment is inexpensive and the term is long, the total of payments and the implied interest rate are often far higher than the cost of buying the equipment outright, and many of these leases cannot be cancelled.
Updated · Waytrix Pay editorial team
Small payments over 36 to 60 months add up. A terminal with a cash price of a few hundred dollars can cost several times that over a long lease, once taxes, insurance or protection fees, and end-of-term charges are included. The implied interest rate on these leases can be much higher than on business loans or credit cards.
Most micro-ticket leases are non-cancellable. If you close your business, switch processors, or no longer need the terminal, you usually still owe the remaining payments. Some leases also renew automatically month to month if you do not return the equipment or give notice at the end of the term.
Before signing, get the following in writing and compare the total with buying:
Buying the equipment outright, financing it with a standard equipment loan, or renting it month to month without a long commitment are often cheaper or more flexible. Enter the quote in the equipment lease calculator to see its implied rate and how much more it costs than buying.
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