I have run across a new type of contract in the Merchant Services industry, it is called a lost revenue contract, and it works like this. When a Merchant signs with a Credit Card Processing Company, the usual agreement in the past was a 36 month auto renew contract with a 295.00 cancel fee. Now I'm starting to see a new penalty in the contract, a lost revenue fee, which works this way if you wish to cancel your contract you will be charged the amount of money which the processor is making from your monthly charges and will charge you that amount times the number of months remaining on your contract. Say the processor makes 50.00 dollars monthly off your account, and you have 12 month remaining on the contract, they would charge you the Merchant 600.00 dollars to cancel. Preferred has no long term contract.
This information brought to you by Bruce Bryen vist us at cards4merchants.com
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