Making life easier for their customers. This is the main goal of payment service providers. Choosing a method is a matter of needs, characteristics and type of business, as not all payment solutions are the same nor do all eCommerces have the same needs.
So, when it comes to POS, is the best option to rent or buy it? Still not sure? At PayXpert we want to give you the keys to clear up your doubts. Let’s get started!
Advantages of renting a POS
When starting a business, the question arises as to whether you should directly purchase these devices or opt for renting them. And although each has its advantages and disadvantages, it's important to think calmly to choose the best option. In general, the main advantages of renting a POS terminal are financial:
- It reduces the initial investment.
- It preserves solvency.
- It allows the equipment of a quality cash register system.
- You can deduct the cost of renting a POS terminal in your tax return to the Tax Agency.
- It is more profitable for companies that are just starting out.
- You can exchange it for a more up-to-date POS.
In general, renting a POS is a good option, as it is not the same to pay out the money in a single payment as it is to pay it little by little. However, in the long run it can be more expensive than buying. And that's one of the disadvantages of POS renting.
Advantages of buying a POS
It is often the best option for well-established businesses and it represents a long-term investment.
- It also allows you to deduct the associated cost on your tax return.
- You get equipment with all the guarantees for your business
- It's more profitable in the long run
- You will have your own equipment with everything you need to manage sales
What if you could rent it with an option to buy? You have the last word!
What should your choice depend on?
Renting or buying a POS is not a decision you should take lightly, but you should take some requirements into account. To do so, you can ask yourself the following questions:
- Do you have a seasonal business? These are those linked to a certain time of the year where there is an increase in sales. For example, an ice cream shop for the summer season.
- Are you planning to organise events? Many stores participate in outlets or other events where they increase the level of sales.
- Are you committed to the ongoing maintenance of your business or do you need to temporarily strengthen your business?
If any of the answers to these questions is yes, perhaps the best option is to rent a POS. That doesn't mean you may decide to buy your own device later on, even if you prefer not to make this investment for the time being.
Knowing whether buying or renting a POS is the best option is not an easy task, it depends on the needs of your business. To begin with, there is a wide variety of devices, such as fixed POS (connected to a local network), wireless (greater mobility inside the premises as it has no cables), portable (with integrated SIM to accept payments anywhere), mobile (associated with a Smartphone) or virtual (allows eCommerce to accept payments from consumers via credit or debit cards).
And finally, this choice depends directly on the characteristics of your business.
Where can I get my POS?
Now that you have decided whether you need to rent or buy a POS, it is time to buy it. Who should I contact? Where can I get it?
First of all, we usually think of banking institutions. This is the main place that entrepreneurs initially turn to for POS rental. However, it is not the only option. They can also turn to companies or payment service providers, either to buy it or to rent it. And finally, you also have the option to buy it from other independent companies.
The main difference between these places is that the bank requires you to be a business client of the bank, with a business or professional account. Hiring a POS through the bank is convenient when you have a business with a high volume of revenue. However, payment service companies avoid the costs of intermediation between the business and the bank. It is the perfect solution for those businesses that process many electronic transactions, can choose the most suitable POS and receive revenues in any account.
And finally, when you decide to buy a dataphone, you do not pay terminal rental fees or the per transaction extra charge normally associated with rental POS terminals.
Virtual POS, the big bet in e-commerce
Beyond the 'buy or rent' approach, there is the question of the 'Physical or Virtual POS'. Easy solution if you have an e-commerce.
The virtual POS has become an ideal system for eCommerce because it allows you to accept payments through credit or debit cards efficiently, quickly and easily. Among its main features are:
- Card payments once the data has been entered.
- Greater data security.
- Intermediation between eCommerce and the customer.
- Operations through a user-friendly platform, with various payment methods.
In addition, the risk of non-payment is reduced, the charge is received instantly, and the activity is entirely online. The electronic world needs to make things easier for increasingly demanding consumers. The democratisation of the Internet, the implementation of new forms or methods of payment and the improvement of the interface in online business platforms have marked the growth of e-commerce in countries such as Spain.
Many companies are born directly as part of the online world. And others combine their physical and online versions. But the goal is still to attract potential customers who are increasingly active in the digital universe.
Do you already know if you are going to buy or rent a POS? Do you have any questions about which is the best option for your business? Tell us about it, at PayXpert we will be happy to help you.