We were contacted by a rep at TransNational, who wanted to help us get started processing credit cards in our small store. He said that there would be no cancellation fees with TransNational if we ever wanted to stop, and while we'd be "leasing" the credit card machine through Northern Leasing Systems for 4 years, TransNational would help us find someone else to buy the lease from us of we wanted to quit. We said ok, knowing that within a year, we'd likely be upgrading our system all together and wouldn't need it anymore. First mistake: all these cancellation “perks” were verbal, and never in writing.
We're paying $48 a month for the credit card machine, which after 4 years, comes up to about $2300, which is grossly more than the cost of the actual machine. We didn't discover this until later.
A year later, the rep we talked to is nowhere to be found. TransNational is sticking a $300 cancelation fee, plus requires a two month cancellation notice. And they will not help us sell the lease. Northern Leasing Systems, the lessor, will not let us out of the lease early, so we're stuck paying the 1500% markup on the machine. The only out option is to have someone else buy the lease, with a $150 lease transfer fee.
Who in their right mind will buy the lease of a 1500% markup credit card machine?
Ya, we're stuck. Don't fall for the trap! Buy your own credit card machine and find a competitive merchant that makes honest money.
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