A merchant agreement is made between the merchant payment processor and the business or individual to ensure the merchant processor processes the payments and, in turn, gets paid for their service. When an issue arises with the merchant processing agreement— e.g., if the merchant processor defaults on their side of the agreement or accuses the business or individual of defaulting—considerable and costly litigation may follow.
If you believe your merchant processor has defaulted on your agreement or is accusing you of doing the same, you need to hire an experienced attorney. Sigal Law Group has spent years helping individuals and businesses all over the country and California defends their merchant processing agreements from excessive fines, breaches, and defaults. Contact our offices today for help.
Defaulted Agreements Laws
Usually, your merchant processing agreement will list all the ways that either party can “default” on it. “Defaulting” means failing to make the required payments to the merchant processor. When you sign your merchant processing agreement, you are agreeing to its terms, which sometimes include clauses that define what that particular merchant processor believes a “default” is.
For instance, many merchant processing agreements include a clause stating that if a business or individual becomes subject to any voluntary or involuntary bankruptcy, reorganization, or liquidation proceeding, they are considered to have defaulted. Other agreements also clarify that the business or individual defaults if they fail to pay or reimburse the expenses, charges, or fees referenced in the merchant processing agreement when they are due.
Defaulted Agreements Issues
Unfortunately, when you default on your merchant processing agreement, or the merchant processor believes you did, they can terminate the agreement and still require you to be liable to their bank. It can also affect your ability to get a merchant processing agreement with any other bank or payment processing company.
You must hire a merchant processing litigator to ensure everything runs smoothly and you can continue to conduct your business. Not only will Sigal Law Group's attorneys help you prepare your argument, but they will also ensure you are not subject to any unnecessary consequences. Contact Sigal Law Group today for help.
