If you’re like most people, when you’re handed a 30-page contract, you skim over it, make sure it looks okay and sign on the dotted line. When it comes to payment processing, resellers should cross all the t’s, dot all the i’s and read it from cover to cover. Yes, it may take some time, but that dedication could save your merchants’ hundreds if not thousands of dollars, and even your reputation.
Most service contracts have a provision for early termination fees. Take your phone, cable, or internet provider for that matter, and you’ll play a flat fee for canceling, no matter what the reason. For payment processing, early termination typically results in a one-time, flat-rate fee for the merchant as well.
However, some processors have deviated from the flat-rate fees. Their termination fees are either a flat fee or the amount of the missed processing fees after the contract is cancelled, whichever is higher.