Short answer
A double contract is when card processing and the card terminal are on two separate agreements, often with different companies and different end dates. The terminal may be on a lease or finance agreement that continues after you stop using the machine. Check both agreements, their end dates and what each costs to leave.
Part of Contracts and switching. Start with the main guide: How to cancel a card machine contract without getting caught out
Key takeaways
- Many businesses have two contracts: one for processing and one for the terminal, sometimes with different companies.
- A terminal lease or finance agreement can run for years, and often continues even if you stop using the machine.
- Switching processing does not end the lease, so you can pay for a terminal you no longer use.
- Look for the second bill, the second end date and the second exit cost.
- Ask before you sign whether the terminal is on a separate agreement and what it costs to end it.
"I thought I was switching provider, so why am I still paying for a terminal?" It is one of the most common complaints in merchant services, and the answer is usually the same. The business had two contracts, and only one of them was ended.
This guide explains how double contracts arise, why they are risky, how to spot one and what to do about it. It draws on common patterns in UK card machine arrangements, and the same issue appears in other markets under different names.
What is a double contract?
A forum user discussing UK card machine costs put the risk plainly: one contract for the processing charge and another for the machine with a different company can leave you locked in longer than you expected. That is the problem in a sentence.
How it happens
- A broker or reseller sells both. A sales agent arranges processing with one company and a lease for the terminal with another, then presents it as one package.
- A finance company funds the terminal. The hardware is paid for through a lease or hire agreement, separate from the card account.
- A terminal is added later. A business takes a second machine, or an upgrade, on a new agreement while the first is still running.
- A seller bundles a machine with something else. A till or booking system supplier adds a card terminal on its own terms.
In each case, the card processing and the machine are separate, even if the sales pitch described them as one.
Why do double contracts matter?
The two agreements can have different end dates
The processing contract might end in 12 months and the terminal lease in 48. When you switch processing, the lease continues. You may still own nothing at the end of it.
A lease can continue even if you stop using the terminal
Finance agreements usually require you to keep paying for the full term. If you change provider, close the business or use a different machine, the payments continue unless the lease is settled.
The exit costs are separate and may be large
You may pay an early termination fee on the processing and a settlement figure on the lease. They are calculated differently and sit with different companies. Our guide to early termination fees covers the first. The second is often the remaining payments, sometimes with a settlement discount.
The terminal may be locked
Some terminals only work with the provider that supplied them. If you move processing, the machine may become unusable, even though you are still paying for it.
- Processing saving over 24 months
- Lease still being paid for an unusable terminal
- Processing saving over 24 months £1,440 · Lease still being paid for an unusable terminal £840
Example: processing ended after 24 months, but the 48-month terminal lease has 24 months left at £35.00 a month.
In this example, the business saves £60.00 a month on processing (£1,440 over 24 months) but still pays £35.00 a month on a lease for 24 more months (£840). The saving is real, but more than half of it (£840 of £1,440) is spent on a terminal the business no longer uses.
How do you tell if you have a double contract?
Look for these signs.
- Two bills. One for processing and one for the terminal, from different companies.
- A payment to a finance firm. A regular direct debit that is not the card provider.
- A different name on the terminal. The machine carries one brand and the statement another.
- A lease or hire agreement. A document with payment schedules, a total, and sometimes a signed schedule of equipment.
- A mismatch in end dates. The processing contract can be ended, but the terminal cannot.
If you are not sure, check your bank statement for payments to any company connected to card payments and match each to a document. Our guide to hidden fees on a merchant statement shows how to hunt for them, and the bill check will show whether there is a gap between your statement and your bank.
Terminal lease or rental: what is the difference?
The words are used loosely, but the agreements can be different.
| Arrangement | Who owns the terminal | Typical term | What to check |
|---|---|---|---|
| Rental | The provider | Month-to-month or fixed | Return process and fees |
| Lease or hire | The finance company | Often 36 to 60 months | Total payable, early settlement, what happens at the end |
| Hire purchase | You, once all payments are made | Often 36 to 60 months | Whether ownership transfers, and the settlement cost |
| Purchase | You | n/a | Compatibility and locking |
Leases and hire agreements are finance products. They carry obligations that are separate from the card service, and they may be regulated differently from the processing contract. If the figures are large, take advice before you sign or cancel.
What should you do if you have a double contract?
- List both agreements with provider, start date, term, monthly cost and end date.
- Ask each provider for the exit figure in writing: what it costs to end the agreement on a specific date.
- Ask the lessor about settlement. Many offer a reduced payoff if you pay early, but not all.
- Check whether the terminal can be used with another provider. If yes, you may be able to keep it. If not, the lease is a sunk cost.
- Add the lease to your comparison. Include the remaining lease payments in the cost of staying and, if it will continue, in the cost of switching.
- Time the switch. If the lease ends in six months, waiting may be cheaper than leaving the lease running for years.
- List both agreementsProvider, dates, monthly cost, notice and exit cost for each.
- Get written exit figuresOne for processing and one for the terminal or lease.
- Check terminal compatibilityCan it work with a new provider, or is it locked?
- Cost the whole pictureInclude the lease payments that will continue after you switch.
- Time the moveCompare switching now with waiting for the first agreement to end.
Work through these in order before you change anything.
What should you ask before you sign?
If you are about to take a new card machine arrangement, ask:
- Is the terminal on the same agreement as the processing, or a separate one?
- Who owns the terminal, and who do I pay for it?
- How long is the term, and what happens at the end?
- What does it cost to end each agreement early?
- Will the terminal work with other providers?
- Can I buy the terminal at the end, and for how much?
- Does the monthly price include maintenance and replacement?
If the seller cannot answer clearly, ask for it in writing, or walk away. A clear answer takes a minute to give. An unclear one can cost years.
What if you were not told it was separate?
Some business owners find out about a separate lease only when they try to leave. If you believe the arrangement was not properly explained, raise it in writing with the seller and the finance company, and keep a record of what you were told. If you cannot resolve it, use the complaints process, then the financial ombudsman or regulator that applies in your country. This is not legal advice, and if the sums are large, take advice before you act.
For consultants
Spotting a double contract early saves the merchant money and saves you from a bad surprise mid-switch. Ask every prospect about the terminal at the start: who provides it, how is it paid for, what is the term. Include the lease in the savings comparison, so that the number you show is real. A switch that saves £60.00 a month but leaves £840 of lease still running is not what it seems. The checkmyrates calculator has a section for equipment and a field for exit costs, so the quote shows the complete picture.
Frequently asked questions
What is a double contract on a card machine?
It is when card processing and the terminal are on two separate agreements, often with different companies and different end dates.
Can I cancel the processing but keep the terminal lease running?
Yes, you can end one without the other if the terms allow it, but the lease usually continues and you may be left paying for a terminal you cannot use. Check both agreements first.
Do I still have to pay a lease if I stop using the terminal?
Usually yes. Finance agreements typically require payment for the whole term, unless you agree a settlement figure with the lessor.
Can I use my leased terminal with a different provider?
Only if it is not locked to the old provider and the new provider supports it. Ask both before you switch.
How do I find out if I have a separate lease?
Look for a second bill or a payment to a finance company, check your bank statement for card-related payments and ask your provider who owns the terminal.
What should I ask before signing a card machine deal?
Whether the terminal is on a separate agreement, who owns it, the term, the exit costs for each agreement and whether it works with other providers.
Sources and further reading
- Card machine rental in the UK: costs, hidden fees and when to buy (ExpertSure) (opens in a new tab)
- Average cost of a PDQ machine (UK Business Forums) (opens in a new tab)
- How to cancel any card machine provider (MerchantSwitch) (opens in a new tab)
- Competition and Markets Authority (UK) (opens in a new tab)
- Financial Conduct 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.