Warning: Watch Out For Early Termination Penalties

In the merchant account industry there are these wonderful things called “early termination penalties.” All this means is if you, the customer, switch to another service provider with in a certain time frame (typically 1-3 years) you will incur a penalty fee typically equal to six months worth of merchant account fees.

What!? This is crazy on both sides of the relationship. For starters, why would any business treat their customers this way? Why not wow your client with incredible service, clear integrity and fair pricing?

Now, as a customer, why would you sign up with a company that does not trust in itself to serve you in such a way that would prevent you leaving? This is like signing a prenuptial agreement that spells out what happens when your partner commits adultery! Why sign such a contract?

I will tell you why, because you think you do not have a choice. However, there are good companies out there that do not play this game. Search them out and give them your business and let the other companies fade away.

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