Leasing versus renting versus buying
There are three ways to get a card terminal:
| Way | What you pay | Who owns it | Published example |
|---|---|---|---|
| Rent | A monthly charge, usually on your processing statement | The processor | TD’s sample statement: $25 and $35 a month for two devices |
| Lease | A monthly payment under a lease contract | Set by the lease | See below |
| Buy | One price, sometimes in instalments | You | Square Terminal $399. Helcim Card Reader $239 |
Renting. TD’s sample statement has a section called “Equipment Rental”. It lists each device as a “Rented solution fee”. In the sample, two devices cost $25 and $35 a month. TD’s guide says GST/HST is charged on equipment rental.
Buying. Square’s hardware page lists the Square Terminal at $399, or $34 a month over 12 months. Square says its payment plans are issued by Square Technologies, Inc., at 0% APR, and are subject to credit approval. Square also says it has “no long-term contracts or equipment fees.”
Helcim’s fee disclosure lists its Card Reader at $239 and its Smart Terminal at $429, or 12 monthly payments of $39, plus taxes. Helcim’s pricing page says it has “No contracts, leases, termination fees or cancellation fees.”
Leasing. A lease is a contract to pay for equipment over a set time.
What happens when you switch processors
If you rent from your processor, the agreement says what happens to it when the agreement ends. TD’s current terms (version 0726, in effect from July 10, 2026) say you “will immediately stop using, or return to us at your expense, all rental Equipment”. TD’s older terms (version 1125) said all equipment “will be returned to us immediately at your expense and risk.”
TD’s update page also says TD “will offer merchants the option to rent or buy certain Equipment.” Its current terms say bought equipment is “final sale”. Unused equipment in its original packaging can be returned within 30 days for a refund, less a 30% restocking fee.
If you buy, you own the device. Whether it works with a new processor depends on the device and the new processor.
If you lease: in Canada, the FCAC’s page on the Code of Conduct says a related service agreement “can’t have a term longer than your initial card processing agreement”, and that the Code’s penalty-free cancellation covers related service agreements. It also says these rights do not apply “if related services and their price don’t depend on you keeping your initial card payment processing agreement.”
Ending early: what it can cost
At TD, the rental sits inside the processing agreement. Ending that agreement early can add a fee.
TD’s fee list shows two termination fees. TD’s current terms call this the “Early Termination Fee” (its older terms called it a “Deactivation Fee”):
- $300 per merchant location.
- $20 per terminal, times the number of terminals, times the months left in the term.
TD’s terms say an agreement runs for an initial term of three years unless the application says otherwise. They also say there is no early termination fee if, within 30 days of the start date, you stop using the services and return all rented equipment.
The full rules are in Early Termination Fees: How They Work.
Working out the true cost
The example below adds up everything over the same length of time.
Terms to look for in your agreement
Rental and lease paperwork usually covers these:
- The monthly charge, and whether tax is added.
- The term: how many months, and whether it renews on its own. TD’s terms, for example, renew for six months at a time unless notice is given at least 45 days before the end.
- What happens if you end early: a flat fee, or a fee per month left.
- Returning the equipment: who pays to send it back, and by when.
- Who you are paying: your processor, or a separate leasing company.
Where to go from here
A statement’s equipment section lists each device and its monthly charge. That charge times the months left in the term is what remains to be paid. How to Read Your Merchant Statement shows where to look. Processor Markup covers the other fees your processor sets.
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