Is the lease tied to my processing contract?

Often not. Leases are frequently written by a separate leasing company, so switching processors does not end the lease. Check the lessor's name on the agreement.

Held deposits and equipment leases

Can you cancel a credit card machine lease?

Updated September 23, 2026 · Checked against primary sources

The short answer

Usually not without paying the remaining balance: most card terminal leases are written as non-cancellable for several years. But regulators have acted where terms were hidden. The FTC won $4.9 million from First American Payment Systems over surprise three-year terms and $495 exit fees, and a New York court rescinded Northern Leasing contracts and vacated 29,617 default judgments.

Key takeaways

Read the lease, not the sales pitch: term, total of payments, and the buyout clause.
A lease that was misrepresented at signing is the case regulators have acted on.
Compare the total of remaining payments with the cost of buying the terminal outright.

What enforcement has actually found

The FTC alleged that First American Payment Systems hid three-year terms and $495 cancellation fees from small businesses, obtained $4.9 million in redress (FTC) and in 2025 sent $2.6 million to 5,588 businesses. In New York, the Attorney General's case against Northern Leasing Systems ended with leases rescinded and 29,617 default judgments vacated, with restaurants and bars among those targeted (NY AG).

Step by step

Find the signed lease. Note the lessor (often not your processor), the term, the monthly payment and any buyout clause.
Add up what is left. Remaining payments plus any end-of-term fee. Compare it with buying the same terminal.
Ask for a buyout in writing. Lessors often settle for less than the full remaining balance.
Escalate if it was misrepresented. Keep the sales emails. File with your state attorney general and the FTC.

Frequently asked questions

Is the lease tied to my processing contract?: Often not. Leases are frequently written by a separate leasing company, so switching processors does not end the lease. Check the lessor's name on the agreement.

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Go deeper

GuideMerchant Processor Holding Funds? What to DoWhy processors like Toast freeze deposits or set reserves, what the contract lets them do, how MATCH works, and how to escape a POS or card-machine lease.

Terms on this page

Non-cancellable equipment lease: A long-term lease for card terminals or POS hardware, often four years or more, that cannot be ended early without paying the remaining payments. Frequently costs far more than buying the equipment.
Early termination fee: A charge in a processing or POS agreement for ending the contract before its term. Check the amount and whether hardware financing or subscription balances also come due.

Sources

Cite this page

Pavado, “Can you cancel a credit card machine lease?”, https://www.pavadotech.com/restaurants/questions/can-you-cancel-a-credit-card-machine-lease, updated 2026-09-23.