Breaking a contract without penalty can be a challenging and time-consuming process. However, for Canadian merchants who are looking to get out of their merchant account contract, there are several options available.
In this article, we will provide you with a guide to help you break out of your merchant account contract with Moneris, as well as offer some strategies to navigate through challenging contract terms and hefty cancellation fees.
First and foremost, it’s essential to review your merchant account contract thoroughly before making a decision. Make sure you understand the terms and conditions, including the length of the contract, cancellation fees, and any other associated costs.
Moneris termination fees
Moneris sometimes has an early termination fee (ETF) which is a charge imposed by a payment processor to cover the costs associated with a merchant leaving or breaking a contract early. These fees are typically outlined in your agreement and can present a significant obstacle to breaking a contract penalty-free.
There are two common types of ETFs: flat fees and liquidated damages. A flat fee is a specific amount outlined in your contract, whereas liquidated damages take into account equipment costs and anticipated revenue losses for the remaining term of the agreement. Liquidated damages are typically more expensive than flat fees.
While some credit card processors, such as TCM, don’t have locked-in contracts, nearly all Canadian credit card processors have three to five-year agreements with ETFs ranging from $250 to over $5,000. Additionally, many processors have auto-renewal contracts, which can make it challenging to switch processors.
However, Canadian merchants have several tools available to help them break their contracts early. One option is to negotiate with their processor to waive or reduce the ETF. Highlighting any issues or concerns with the Moneris service may help in these negotiations. Another option is to transfer your merchant account to another provider like TCM. Sometimes we can help with the transfer without you incurring termination fess.
Look out for Moneris lease agreements for terminals
Equipment lease agreements can be particularly challenging to terminate as they are often not governed by the Code of Conduct and are typically tied to a non-cancelable personal guarantee. As such, breaking these agreements can be a difficult and expensive process with Moneris.
However, one option for merchants who wish to switch processors but are bound by an equipment lease agreement is to contact the leasing company, which is usually a third-party entity. Inquire about potential lease buy-out options that may be available to you. While this may require an upfront payment or fee, it could be a more cost-effective solution than continuing to make lease payments on equipment you no longer use.
It’s worth noting that some leased terminals are not proprietary to specific processor. This means that even if you’re unable to terminate your lease agreement, you may still be able to switch processors and continue to use the leased equipment, provided you have the necessary programming information.
Notifying Moneris that you are cancelling
While it may be tempting to handle your Moneris payment processing cancellation via email, giving your processor a call can offer several distinct benefits. Not only does it provide a chance for both you and your processor to clarify and potentially resolve issues, but it also adds a human element to the process.
One key advantage of making a phone call is that it provides an opportunity to negotiate with your processor, especially when it comes to early termination fees (ETFs) and other terms and conditions. Having a discussion over the phone can help to establish a better understanding of the situation and potentially result in a mutually beneficial agreement.
Additionally, a phone call allows you to clarify any potential misunderstandings or ambiguities in your contract. This is especially important when it comes to ETFs, which can be a significant obstacle to ending a payment processing agreement. By discussing the terms and conditions over the phone, you can ensure that everyone is on the same page and avoid any surprises down the line.
Finally, it’s essential to document any phone conversations you have with your processor. This includes noting the date and time of the call, the name and staff number of the representative you spoke with, and any reference numbers or other details relevant to your discussion.
Get everything in writing
When it comes to merchant payment processing contracts, it’s always wise to get everything in writing and ensure you know what to ask for. Rather than settling for potential cancellation fees later, it’s best to negotiate with your payment processor upfront to either remove them or avoid signing a contract that includes them altogether.
If Moneris offers any special promises, such as waiving fees or providing additional services, bundles, or equipment, make sure to get these guarantees written. This will help to prevent any unexpected charges that may arise later.
Having everything in writing not only protects you from any potential misunderstandings or discrepancies but also helps to ensure that both parties are on the same page. This can be especially important when it comes to contract renewals or extensions, where changes to the terms and conditions of your agreement may be made.
TCM can help
At TCM, we understand that switching payment processors can be a daunting task, especially if you’ve been with your current provider for a long time. However, we have helped many customers successfully switch from Moneris to our platform and we are here to help you too.
Our team is highly experienced with Moneris’ statements and processes, which means we can guide you through the entire process and make it as seamless as possible. We understand that you may have concerns about the transition, which is why we offer a no-strings-attached consultation to discuss your specific needs and address any questions or concerns you may have.
Whether you’re looking for lower fees, better customer support, or more advanced payment solutions, TCM can help you achieve your goals. So why wait? Give us a call today and let us help you make the switch to a better payment processing experience.
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