Leasing is a popular practice in many areas of business. It's often a cheaper alternative to buying something outright and, if the leased item in question is technology-based, it may allow you to stay current with constant innovation. Rather than being burdened with an aging piece of technology that you invested heavily in by buying, you can return the model and lease a newer version. Of course, this won't apply to everything, and you have to consider specific factors pertaining to your technology before deciding if leasing or buying is the right choice. For example, consider your POS system.

Leasing POS equipment is not uncommon, but is it the best practice? Is it actually cheaper to lease this item rather than buying it? The Bureau of Consumer Protection Business Center says no. At the very least, merchants should ensure they are extremely careful when accepting the terms of an equipment lease. 

"Sales agents may try to lease you POS equipment to swipe cards or may offer you 'free' equipment. Check the contract terms carefully," the site says. "Leases can be very pricey and you often end up paying thousands of dollars for equipment you can buy for much less."

Although leases can allow you to upgrade more frequently depending on your terms, what if you decide that your POS system is not working out right away? What if it's well before your lease runs out? If you had purchased the equipment, you may be able to return it. If it's leased, you may have to continue paying a monthly fee until the lease runs out, even if you decide that the system is not for you. 

Ultimately, there are many hidden stipulations in POS system leases, so it's best to work with a merchant account services provider to ensure you get the right system for your needs.