The question comes up at every store opening and every contract renewal: should you rent your payment terminal or buy it? In Quebec, renting is still the dominant model with traditional providers. Here are the numbers that settle it.
The real cost of renting
| Monthly rent | Over 12 months | Over 36 months | Over 60 months |
|---|---|---|---|
| $35 | $420 | $1,260 | $2,100 |
| $45 | $540 | $1,620 | $2,700 |
| $60 | $720 | $2,160 | $3,600 |
At the end of the lease the device is not yours. Some contracts include a buyout (for example $216 for a terminal rented at $45 a month for 24 months: total cost $1,296), others require the device to be returned or billed.
The cost of buying
The Square Terminal, a standalone device with a built-in receipt printer, costs $399 (taxes extra), or $34 a month for 12 months at 0% APR, after which it is yours. A Square Reader costs $69. A Square Register, a complete two-screen register, $999 with a two-year warranty.
Over 36 months, a purchased Terminal costs $399 against $1,620 for a $45 rental. The difference, $1,221, is three more terminals.
The fees that usually come with renting
- Monthly statement fees ($5 to $15), PCI compliance fees ($5 to $10 a month or $100+ a year), monthly minimum processing fees.
- Automatic renewal: many leases roll over for 12 months unless you send written notice 30 to 90 days before the end date.
- Early termination fees: either a fixed amount or the sum of the remaining rent.
- Insurance or a "replacement program" for the device, billed separately.
With a terminal bought from Square, none of those lines exist: the free account has no monthly fees, no PCI fee and no minimum term. The one-year limited warranty is included, and returns are free for 30 days.
When renting can make sense
A seasonal business that needs a device six weeks a year. A one-off event. A company that refuses any capital outlay, even $399. In those cases Square also offers short-term hardware rental, and above all an option with no device at all: Tap to Pay on iPhone and Tap to Pay on Android, which turn your phone into a terminal for contactless payments.
How to decide in five minutes
- Take your latest statement and add up: terminal rent, statement fee, PCI fee, monthly minimum.
- Multiply by the months left on your contract, then add the termination fee if you leave early.
- Compare with the purchase price of the Square hardware that fits your counter.
- Do the same exercise on processing fees with our calculator: that is often where the gap is largest.
- Set the switch date based on the end date that avoids penalties.