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Contracts and Early Termination Fees

Let’s talk credit card processing and contracts for a moment – this can be a sore subject for some businesses. When I speak with merchants, I frequently hear about ‘X’ amount of time remaining on a one-, three-, or even five-year contract. The penalties for getting out of a merchant account contract can vary, be it a flat fee in the hundreds of dollars, paying off the monthly fees on the life of the contract, or paying a percentage of the revenue your processor stands to lose if you leave (the most egregious of all). I’ve seen the latter example cost merchants as high as $30,000!.


The question I always return to is “why?” Why are processors allowed to charge an astronomical amount for a customer seeking to find a better solution? In many cases, the merchant wants to leave the contract because of poor customer service; and yet the processor is rewarded with a parting gift for not providing what the customer needs! There are a few reasons why you may end up in this situation:

  • You didn’t read the merchant agreement and the sales rep didn’t divulge the information to you;
  • You didn’t know that you could try to negotiate the penalties within the agreement; or
  • You didn’t know that other companies offer no contracts.

 Whatever the reason, I’m here to tell you that there is a better solution! DynaPay offers a no contract account to all of our clients – right from the start. It’s our promise to the customer that we will follow through with everything we offer. If we make an error, you aren’t trapped and we aren’t rewarded for our mistakes. We believe that it’s an honest way to do business and we want to set ourselves apart from the negative sales culture that exists in our industry.

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