Short answer
Renting a card machine costs little up front but adds a monthly fee for as long as you keep it, while buying costs more at the start and then little or nothing. Buying usually wins if you keep the machine for more than a year or two and it works with other providers. Rental can win for short use, for trials and where maintenance is included.
Part of Contracts and switching. Start with the main guide: How to cancel a card machine contract without getting caught out
Key takeaways
- Renting spreads the cost but never stops. Buying costs more now and usually less over time.
- The crossover point is the purchase price divided by the monthly rental, often in the range of one to two years.
- A bought terminal may be locked to one provider, which limits your freedom to switch.
- Rental often includes support and replacement, which has value if you cannot afford downtime.
- Always count the whole contract, including the return cost and what happens at the end.
Rent or buy? It is the question every business asks when it takes its first card terminal, and again when it considers an upgrade. The honest answer is the one you give about most assets: it depends how long you will keep it, what else comes with it and how much freedom you want.
This guide does the sums. It sets out the cost of each route over one to five years, shows where the crossover sits, explains the risks that numbers do not show and gives you a decision list. For a wider view of everything a card machine costs, read how much a card machine costs first.
What does each terminal option mean?
A third route, leasing or finance, sits between the two. It spreads the cost like rental but often runs longer and carries the risks covered in our guide to double contracts.
What do the numbers look like over five years?
Take a terminal that can be rented for £25.00 a month or bought for £250.00 with £5.00 a month for software and support. These are illustrative figures, and real prices vary by model and provider.
| After | Rent (£25.00 a month) | Buy (£250.00 + £5.00 a month) | Cheaper |
|---|---|---|---|
| 6 months | £150.00 | £280.00 | Rent by £130.00 |
| 12 months | £300.00 | £310.00 | Rent by £10.00 |
| 24 months | £600.00 | £370.00 | Buy by £230.00 |
| 36 months | £900.00 | £430.00 | Buy by £470.00 |
| 60 months | £1,500.00 | £550.00 | Buy by £950.00 |
The crossover comes just after 12 months. The gap in monthly cost is £25.00 − £5.00 = £20.00, and £250.00 ÷ £20.00 = 12.5 months. After that, every month widens the gap in favour of buying.
- Rent
- Buy
View the data as a table
| Rent | Buy | |
|---|---|---|
| Month 0 | £0 | £250 |
| Month 12 | £300 | £310 |
| Month 24 | £600 | £370 |
| Month 36 | £900 | £430 |
| Month 48 | £1,200 | £490 |
| Month 60 | £1,500 | £550 |
A £25.00 monthly rental against a £250.00 purchase with £5.00 a month support. They cross at about 12.5 months.
If you expect to use the terminal for five years, buying saves £950.00 on these figures. If you might close, switch or move to a different system within a year, renting is as cheap or cheaper.
The formula
What does the maths not show?
Locked terminals
A bought terminal may only work with the provider that sold it, or with a small group of providers. If you buy and then want to switch, you may find the machine cannot be reused. The money spent is lost. Before you buy, ask whether the terminal can be unlocked and what it costs, and whether it supports other providers.
Support and replacement
Rental usually includes repair or replacement. If a bought terminal fails outside warranty, you pay for a new one or for repair. For a business that cannot take cards for a day without losing money, the insurance in rental may be worth the premium.
Upgrades
Card technology changes. A terminal that does everything you need today may be out of date in four years. Renting lets you swap for a newer model, often at a cost or at renewal. Buying locks you into the old one until you buy another.
Cash flow
A small business may prefer to pay £25.00 a month rather than £250.00 at once, even if the total is higher. That is a legitimate choice. Just make it knowing the cost, not by default.
Contract length and exit
Rental agreements often have a minimum term, and ending them early can mean paying the remaining rentals. See early termination fees. A purchase has no exit cost, though the processing contract might.
Illustrative. Rental £25.00 a month, purchase £250.00 plus £5.00 a month support, leased £35.00 a month on a 48-month agreement.
When is renting the better choice?
- You are testing a new business or product. If you do not know whether it will last, avoid a purchase you cannot get back.
- You expect to switch provider. A rented terminal returns with the contract and does not leave a stranded asset.
- You need support included. Replacement and repair can be worth the premium.
- You have limited cash. Spreading the cost keeps your start-up capital free.
- You need the latest hardware. Rental lets you change models without a large outlay.
- The rental has no minimum term. If you can end it without a fee, the commitment is small.
When is buying the better choice?
- You will use the terminal for more than two years. The maths tilts in your favour.
- The terminal is not locked. You can move processing and keep the machine.
- You want no ongoing hardware cost. A bought terminal leaves your monthly bill lower.
- You have the cash. Paying once avoids a stream of payments.
- You can handle repairs. Warranty or a spare reduces the risk.
Our guide to switching card machine provider explains how a bought terminal makes a change easier, if it can be reused.
How do you compare rental offers?
Rental is not a single price. Compare:
- The monthly amount and what it includes: support, replacement, software, connectivity.
- The minimum term and the cost of leaving.
- Return charges and the process for returning the terminal.
- Price changes: can the rental increase during the term?
- What happens at the end: does it renew, or can you buy it for a small amount?
- Whether it is on a separate agreement. See double contracts.
- How long will you keep it?Under a year points to renting. Over two years points to buying.
- Can the terminal be reused?If it is locked, the value of buying falls.
- Is support included?Weigh the cost of downtime against the saving.
- What does it cost to leave?Check the minimum term and return charges.
- Compare total cost over the full termInclude one-off, monthly and exit costs.
A short path through the decision.
A real-world pattern
Many UK businesses find that the rental they signed in year one is still being paid in year four, long after buying would have been cheaper. A common reason is that nobody put the end date in a diary, and the agreement rolled on. That is why dates matter as much as prices. See contract length, auto-renewal and notice periods.
If you have been renting for more than the crossover period, ask the provider what it would cost to buy the terminal outright, or what a new, cheaper agreement would look like. You may be able to cut your monthly cost without changing provider at all.
For consultants
Hardware is often the part of a deal that merchants forget they are paying for. In a review, ask how long the rental has run and compare it with the crossover. A merchant who has been paying £25.00 a month for six years has paid £1,800 for a terminal that costs a fraction of that. Mentioning this is both helpful and persuasive. In the checkmyrates calculator, the equipment section lets you enter rental and purchase costs alongside the processing fees, so the saving covers everything the merchant pays for cards.
Frequently asked questions
Is it cheaper to buy or rent a card machine?
Buying is usually cheaper over more than a year or two, if you keep the machine and it can be used with other providers. Renting is cheaper for short use and includes support.
How do I work out when buying beats renting?
Divide the purchase price by the difference between the monthly rental and any monthly support cost for the bought terminal. The result is the number of months to break even.
Can I use a bought card machine with another provider?
Only if it is not locked to the provider that sold it and the new provider supports the model. Ask before you buy.
Does rental include repairs?
Often it does, but not always. Check what is covered, including replacement and connectivity.
What happens when a rental contract ends?
You usually return the terminal, though some agreements renew automatically or offer a purchase option. Check the end-of-term terms.
Can I buy out a card machine I have been renting?
Sometimes. Ask your provider for a buy-out figure. If you have rented for years, it may be small, and it can reduce your monthly costs.
Sources and further reading
- Card machine rental in the UK: costs, hidden fees and when to buy (ExpertSure) (opens in a new tab)
- Card machine charges and fees explained (Mobile Transaction) (opens in a new tab)
- How to end a card machine contract in the UK (Teya) (opens in a new tab)
- Competition and Markets Authority (UK) (opens in a new tab)
Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.