Ending a Credit Card Processor Contract

The C&A Advantage Newsletter July 2019

The dentist went to close his merchant service account and was informed that the contract autorenewed and he’d be subject to an early cancellation fee. The company demanded $48,000(!) to cancel the contract, which is its estimate of how much it stood to lose over the next two years. According to Alex Sadusky, President of Dental Card Services Alliance, in the rare instance this happens, doctors have options.

First, send a letter to the company disputing the contract, terms, and conditions and stipulating fraud and deceptive business practices. Some states prohibit contracts where the renewal provisions are not conspicuously displayed. Hopefully, they back off at this point. If they’re threatening to charge a huge penalty, then close your bank account so they’re unable to withdraw the money.

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