Are in a Contract with Your Merchant Services Provider?

Are in a Contract with Your Merchant Services Provider?

You may be in a contract and NOT know it.

By RICK JENKINS

When you opened up your business, one of the first things you probably did was to setup a merchant account so that you can accept credit cards for all your great products and services.  Now you’ve been in business for awhile and you haven’t been very satisfied with the company that you started with.  You may start thinking that maybe you could get some better rates or service with another provider.  So you start asking around to other business owners and get some great recommendations. 

“Many credit card processing companies try their best to skirt around their contract term and early termination fee”

Or maybe you start your search online.  Either way, the search can become daunting and confusing.  When you talk with companies that seem to speak in a different lanquage and it can leave you confused, overwhelmed and pretty stressed out.  And to make matters worse, many credit card processing companies try their best to skirt around their contract term and early termiantion fee.  In fact, if you do not ask them directly and then insist that they provide you proof of what they’ve told you, then this part of the conversation will likely never come up.   And when it can get really frustrating and expensive, is when you do finally find a company that provides the fee structure and customer service that would serve your business needs best, only to find out that your current processor has a small window each year to cancel.  If not cancelled per their Terms and Conditions, then your merchant account will auto renew for another year.  In this event cancellation fees can range from a couple of hundred dollars, into the thousands. 

So what in the world can yo do?

If you find yourself in this situation, the best thing to do is to get a copy of your original contract, the Terms and Conditions section and find out exactly what date you need to provide you processor with cancelling instructions.  Get the exact dates of the cancellation window and the method of communication required to cancel.  And I would get this in righting.  Anytime that you are going through this type of process it is highly recommended that you keep impeccable notes and who and when you spoke with someone.  Then put this date in your calendar.  We all get busy, but this is an important date to not let slip by.  When the time comes, then proceed with the exact instructions that were given to you.  I would then follow up with an email to confirm that the account is closed.  This will give you a digital “paper trail” in the event that the account wasn’t closed properly. Following their specific instructions while obtaining as much proof as possible should ensure that you can now obtain a merchant account with a company that actually values you as a client. 

Up Next

If your looking to obtain a merchant account with fair and honest rates terms and conditions, then I’ll outline questions to ask and what to look for.

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