Monday, August 19, 2013
Don't Pay Early Termination Fees
Whenever you sign any contract, make sure you read it first and/or have a lawyer review it for you. Many, if not most merchant services salespeople require you to sign a contract which includes an "Early Termination Fee". When we speak to business owners, the majority of them never realized that they signed a term of contract. It can often be very expensive to switch processors. Why do processors lock merchants into long term contracts? Often times it's very legitimate. If the processor has invested money into your business by providing proprietary software, helps create a unique POS System to better fit your business needs, or if they place a terminal (at their expense) free for your use, an ETF (early termination fee) is very legitimate. It will enable the processor to recoup their initial investment in your business. But many salespeople lock you into a contract for their own financial gain or just because they can. What does a merchant gain from signing a long term contract? Usually not much. A processor has no obligation to give a merchant the service they deserve or help when there are issues with their processing. The processor often stands to make more money off of the ETF than continued processing fees. Be careful when signing any merchant services contract. Unless the processor has invested in your business, DO NOT sign any length of contract. Make them earn your business. At Card Solutions Int'l, we don't require any term of contract. You are free to leave with 30 days notice....But you won't want to. Why? Try us…you’ll like us!