Merchant Account Fees: Cancellation or Termination Fee

Most all merchant accounts will have some sort of cancellation or termination fee. There is significant cost in setting up and maintaining a merchant account for a business, and this fee helps recoup some of those losses should a merchant cancel, especially in the beginning. However, most providers are willing to reduce or eliminate this fee should you have unresolved problems or issues. As a result this is something that in general you should be aware of but not overly concerned, but check with your provider as to their specific policy. It is most important that you select the right merchant account provider overall in many areas, not just because of one fee. In addition, the cancellation or termination fee should be a fixed amount. Beware of providers that want to charge a variable cancellation fee. For example, some providers will charge you the number of months left on our contract term times the average fees you have been paying each month. Under such a scenario you could be liable for thousands of dollars. Any cancellation or termination fees should be fixed.

Other Merchant Account Fees Explained:

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