Contract Lengths and Early Termination Fees

Before you agree to work with a payment gateway, make sure that you pay close attention to any contract that you are asked to sign. Many small businesses wind up getting trapped in long-term contracts with onerous early termination fees that make it difficult for them to escape. Knowing the terms of any contract can help you make the right decision on what’s right for your business.

A typical contract with a provider of merchant accounts can run anywhere from three to five years. For small businesses, this can be a lifetime. This locks you into working with a particular company, even if your merchant banking needs change and you need services they can’t provide.

Along with lengthy contracts, you might also be subject to high early termination fees if you are looking to quit working with a credit card processor before your contract expires. Typically, the termination fee is prorated, meaning that you’ll have to pay the monthly fee in your contract for the number of months left on the contract. While you might be able to negotiate this, it will typically mean having to pay a large sum just to leave a contract.

One thing that makes Payment Solutions, Inc. so unique is that we do bind you to any contract. We offer our merchant services on a “pay as you go” model, meaning that you have the right to end your contract at any time and for any reason. We can offer this kind of flexibility with our customers because we are confident in the quality of the service we provide to small business owners throughout the world. Contact us today to learn more.

This article is courtesy of Payment Solutions, Inc. Payment Solutions, Inc. provides small businesses access to merchant accounts so they can start accepting credit cards.