A lot of retailers are tempted to buy refurbished POS hardware because of the lower price. In some cases, this can be a wise approach. Your choice of used POS hardware depends on several factors, including compatibility and support. It shouldn’t depend only on the price.

There is no shortage of such hardware on the market, and it’s getting more and more by the minute. Why? Like all technology, POS systems become obsolete very quickly. Companies that wish to upgrade their point of sale systems try to get rid of their previous ones, because they lose more value the longer they hold on to them. Sometimes, they’re selling something that will serve you well. Other times they aren’t. Here are some things to watch out for if you’ve decided to use refurbished hardware.

Should you buy on eBay?

Experts warn against this due to the high number of POS system scams on eBay. Most recently, there was one involving Clover POS systems. Businesses buy a system online thinking they’re getting hardware at a good price. It is very often the case that you’re making a contract with an illegitimate merchant account provider, not just getting cheap, usable hardware!

If you’re not sure about a POS reseller – especially if you found them on a site like eBay – call the original manufacturer. Ask them if they know the reseller and if so, if they would recommend them.

If you’re just buying hardware and already have a merchant account, it’s important to make sure that your new system is compatible with your existing merchant account. Keep in mind that you’ll still need support and servicing for that system (more on this later).

Refurbished, Yet Outdated

Yes, it’s possible. If you’re out of luck…or plain not careful. Most businesses switched over to the new chip-card POS terminals since the EMV Liability Shift in 2015, but not all, and most chip cards still have a magnetic stripe that you can use with the old terminals. If you’re purchasing a new system, you want to get one with new hardware, especially if using an outdated terminal could cause you to lose a lot of money.

Some resellers are offering systems that are not EMV-compliant. A lot of outdated systems are still in circulation and some merchants are trying to unload them before they’re completely obsolete. Be 100% sure that your POS reseller is offering modern equipment.

Don’t Neglect System Support

Often, refurbished POS hardware doesn’t come with support. What is more, some retailers seem to think they don’t need it! This is erroneous thinking because you’ll inevitably have problems with your POS hardware at some point, usually equipment malfunctioning. Users need a knowledgeable support team to resolve the problem in a timely manner. Often times, business owners aren’t aware at the time of purchase who will actually be providing support when they buy POS hardware from a reseller. Will the reseller be responsible? The manufacturer? The merchant account provider? Or someone else?

Make sure you know who will provide technical and payments-related support before agreeing to any POS hardware purchase. It will pay off to inquire into their customer service reputation as well.

Should I Lease?

It’s much better to buy hardware than it is to lease it, because a lease will incur high costs over the long term. You might be locked into a year-long agreement or more. An exception exists if you need to buy a lot of hardware for many terminals and don’t have the capital to do so.

Shop Around

Don’t go for the first hardware you find – take the time to shop around to avoid markups. Make sure you’re getting a good deal by looking into other sellers of that POS hardware. When considering the cost of POS hardware, take into account not only the price of the hardware itself, but other costs as well—monthly hardware/service fees, early termination fees (ideally to be avoided) and any others included in your contract. Even if the hardware is refurbished, you’ll be concluding a contract. Or you should be. It’s important to read it closely.

Test Before You Buy

If you’re new to the POS hardware you’re purchasing, you should be able to give it a test run to evaluate how it functions. With most modern POS hardware, you can try to sign up for a free trial online. Proprietary POS systems (those which don’t work with standard Apple or Android devices) are harder to test because you can’t just download a trial version of the hardware onto your iPad. Still, you should at least get to see a demo version before you invest a lot of money.

Not All Resellers Are Created Equal

Specifically in terms of Clover, many different vendors resell their hardware and software along with a First Data merchant account. Please note that most resellers are not top-tier in terms of their merchant service contracts if this is the POS system you’re considering. At present, only Payment Depot and Dharma Merchant Services are legitimate resellers. Bank of America and Sam’s Club also resell Clover, and a lot of companies buy from them, but they’re definitely not the best resellers.

Final Thoughts

There’s nothing wrong with buying refurbished POS hardware as long as you’re happy with whatever agreement you end up making. Again, you need to make sure you’re getting good customer support, modern equipment, and fair fees with your POS software. The option to switch to new hardware could well be the most important consideration in your decision making process to purchase. A monthly (instead of yearly) contract makes it easier to make a decision. You can just end it if you’re not happy with a given aspect of the POS hardware.

If your business is new and still evaluating your POS and merchant account options, you might need additional resources in terms of taking payments at your store or restaurant. However, this is outside the scope of your hardware.