Considerations Before Cancelling a Merchant Account - foamposites for cheap

Many merchant service agreements have a clause that voids the termination fee if processing rates are raised within the contract term Derrick Rose Jersey. For example, if discount rates are raised on a merchant account in the first year of operation the early termination fee for that account would be waived regardless of the contract term.

Due to the high turnover in the merchant services industry contributing to the lack of knowledge of many sales representatives, you can't rely on you merchant service provider to bring this loop-hole to your attention air jordan 3. Even if they insist that such a provision doesn't exist in their agreement, check for yourself to be sure.

It's not uncommon to find a salesperson in the merchant service industry that has never read their acquiring bank's processing agreement in its entirety foamposites for cheap.If you can't get around the cancellation fee to terminate your account, you may find that's it's cheaper to leave the account open until the contract term expires.

Depending on the total of monthly fees your merchant account has, it may be less expensive to leave the account active and pay the monthly fees until the terms ends and you can close the account without penalty cole haan nike air. For example, a merchant account with a $20 monthly minimum and a $10 statement fee costs $30 per month if there is no processing volume.

If the cancellation fee for the same account is $250 and there are four months left in the account's term, a merchant would save $130 by leaving the account open instead of cancelling and paying the fee ($250 ($30 * 4months) = $130).This last point is for merchants that are cancelling their merchant account to open a new, less expensive account with another provider. Merchant service providers hate to lose a client to a competitor and they will always try to retain a your business. The first thing that a provider will ask when you call to cancel your merchant account is "why" and the second is, "what can we do to keep you." The answer to this question is usually lower rates and fees. This is where many merchants get frustrated because they realize they didn't need to cancel their existing account and devote time and energy into finding a new one. A single phone call to their existing provider may well have produced lower rates and fees at a fraction of the energy they've expended finding a new account.