Ending your merchant account earlier than is contractually agreed can cost your company quite a bit. In many instances it can cost a business around £100-£200 to cancel early. Lots of times these costs are a shock to small businesses, many of which have been with the very same provider for years. Here are a few things to think about if you are to steer clear of these fees.
Before You Get a Merchant Account
You should make sure you ask the merchant acquiring bank about any early termination fee. See if there is one, what the rand total comes to when it ends. If any other contract like a rolling contract comes into being when the fixed term contract finishes, investigate if an early termination fee is in that one too and the what the fee is in that one.
On top of asking the merchant acquiring bank, ensure you read through the fine print in the contract to see what is written in there. Ensure you have the complete contract and look through it all with care.
If you are on the ball, you will most probably negotiate charges down for the merchant account to get the very best deal for you. Investigate as if its possible to get the early termination fee removed or if possible reduced and if you are successful, be sure to get everything in writing.
Check online forums. One very useful thing about the 'net is you can get information from other owners of businesses. Have a little look at UK business forums to identify any potential probs and see if any people who participate on there have advice about how to get rid of early termination fees. Forum participants might be able to suggest merchant banks who don’t charge the fee.
What If You Decide To Terminate Early
If you take the decision to cancel your merchant account earlier than stated in the contract and you think a cancellation fee might be headed your way, there are some things you can do to attempt to get out of the fee.
Contact your bank. It may be the merchant acquiring bank can take money from the account. If you have taken the decision to dispute the cancellation fee tell the bank, you might have to close the account.
Get prepared to present the case. Have a look to see if account costs have increased in the past three months, you may possibly have the law on your side in that case. Similarly if you are going out of business.
Go to your bank with the case all set out for them. If you can demonstrate you have been a good customer and made them a profit they might drop the fee. They don’t want any negative publicity online
Ultimately, if you have signed a contract it might be up to the merchant bank to let you off the fee so try not to make any mistakes before you sign up. If you are liable to pay speak with them reasonably and present your case fully.