Cancelling a Merchant Account Without Paying a Fee

Prepare For a Fight

If you read Part 1 on how to prevent getting into a bad merchant account narrow, we ’ rhenium now going to cover the process of canceling a merchant account that has an Early Termination Fee (ETF) — besides sometimes called a “ Deconversion Fee. ”
Please note that the tactics below should not be construed as legal advice and that this generator in no means endorses or encourages actions that may violate the law where your business is located. If you signed a contract, you may be under a legal obligation to fulfill it. If you are in a dispute with your supplier regarding your fees, please consult an lawyer for steering .

Understand Your Termination Policy

If you are going out of business, Andrew Schrage, co-owner of Money Crashers Personal Finance, notes that some contracts have conditions to waive the fee under such circumstances. Be certain to reference your agreement to find any provisions that allow you to terminate service without an ETF. Keep in mind that even if you find provisions that allow you to cancel without an ETF, it doesn ’ thymine mean that a processor will automatically waive your tip. therefore, you may want to prepare for an ETF by taking the following steps before canceling your overhaul .

Should You Close Your Attached Checking Account?

When you signed up for your merchant account you probably granted the central processing unit access to your checking report. Most often this is done therefore that your sales can be deposited from your merchant bill to your checking score, but once a supplier has ACH access they can besides make withdrawals without prior notice.

They May Charge You Instantly

early termination Fees are about always mechanically debited from a merchant ’ randomness attached checking account the moment they cancel service. The merely way to prevent a processor from drafting a quarrel fee from you is to cancel your checking report and notify the bank that you do not authorize any further transactions from it. Keep in take care that you should pay any legitimate outstanding fees owed to the provider, such as remaining serve fees, because the processor has a legal veracious to collect them .

There May Be Stiff Consequences

Closing your checking bill will keep a supplier from electronically collecting remaining fees while you fight an ETF, but doing so can set you up for early headaches. For exemplify, there are countless stories from business owners about being threatened with lawsuits, credit score damage, or getting sent to collections after closing a check explanation and refusing to pay an ETF . Even worse some business owners report getting placed on the Terminated Merchant File ( a highly unethical tactic ) which can make it impossible to get a merchant score with another provider. It ’ s up to you to decide if the competitiveness is worth the risk .

Build a Case For a Free Exit

first, check your concluding three months ’ statements to see if any of your fees have been raised. many submit laws ( and many contracts ) say that if your fees have been raised during your military service agreement, you can cancel with no punishment for a defined grace time period ( normally 30-90 days ) .
If you recently signed up with the supplier and want to cancel because you were deceived by an agent regarding the costs of the services, gather any support evidence that proves that you were misled about pricing or cancellation terms .

Zen and the Art of Negotiation

last, prepare to be courteous. The person on the other line is a human being and is more likely to help you if you are friendly and treat them with respect. Remember, you signed a contract and may have little to no “ legal ” leverage.

Get Your Sale Representative or Account Manager Involved

Getting the agent who set up your account involved can solve a distribute of problems. In some cases, the agent actually makes the final call on whether or not the ETF should be charged. If the agent values your kinship and has any influence in the count, they may be able to get it waived or reimbursed for you .
If the agent can ’ metric ton or won ’ t help you, and is an independent contractile organ ( most are ), then you may have an extra legal route for recovering your fee if you believed that he or she intentionally misled you. As an independent contractile organ, an agent acts as his or her own business and can be held accountable for illegal sales and market tactics. If you believe you have a case, you may consider taking legal action directly against the agent .

Make a Case

Most providers require written notification of cancellation. If you have documentation that proves or suggests that your ETF should be waived, resign copies along with your cancellation notice. Be certain to get confirmation that your cancellation noticed has been received. Your cancellation letter should provide an explanation of why your exchange traded fund should be waived in reference to the supporting documents .

Reverse the Fee

If a disputed ETF has already been debited from your checking account, get your deposit involved. Many banks will reverse the charge if you report it as unauthorized. however, if the bank where you keep your check has besides provided your merchant account, this tactic may be bootless. once you have successfully reversed a fee, it ’ second credibly a thoroughly estimate to close the check account and open a new one.

Threaten Public Complaints and Official Reports?

If a central processing unit is refusing to waive or reimburse a challenge ETF, there are a few places that you can file complaints that will get a merchant score provider ’ second attention. We ’ ve covered these places in another article titled “ How to Report Bad Credit Card Processors ” so check it out after you finish this article, but before you start filing reports be sure to speak with an high-level director and inform them that you plan to file reports and reviews about your grievance. Be specific about where you will file complaints as it will show them that are not making empty threats. If they even refuse to work with you, start filing reports and leaving reviews. You may be surprise how promptly they change their tune when a third party gets involved .

Bottom Line

merchant account early termination fees frequently seem unethical but, despite their questionable nature, they are legal in most cases. Your best chance of avoiding an ETF is to eliminate it anterior to setting up an report. For those who are already stuck in this inauspicious position, readiness and courteous attitude can make all the dispute. In the consequence that a processor will not budge, official reports, public complaints, and renegotiation may get the job done .
Do you have a horror story regarding an ETF? Tell us about it in the comment section below!

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Category : Finance

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