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Contract Cancellation

Contract cancellation in the payment processing industry is a complex and often frustrating issue that requires careful navigation. Unfortunately, merchants typically find themselves locked into processing agreements with high fees, hidden charges, or restrictive terms that aren't exactly beneficial for their business. This leads many merchants to try to cancel their contracts early.

Prematurely terminating a payment processing contract can lead to severe financial penalties and legal consequences. If you are trying to get out of a payment processing contract but are unsure where to start, our skilled merchant processing litigators can help. Contact Sigal Law Group today for a free consultation.

Canceling a Processing Agreement

The first step to canceling a processing agreement is to review the contract terms carefully. Many agreements contain specific clauses that outline the cancellation procedures, notice periods, and any potential termination fees you may not know you agreed to. Making sure you understand the contract is essential to developing an effective cancellation strategy. There is nothing worse than trying to avoid paying for something only to be hit with fines that are detailed in the small print.

Many merchants try to cancel their merchant accounts or stop payments without reviewing the terms of the agreement. However, these actions can backfire and force the processor to pursue legal action against the merchant.

In some cases, merchants can terminate their contracts without being penalized by the payment processing company. This usually happens if the merchant can show a material breach by the processor—like unauthorized rate increases, negligent handling of chargebacks, or failure to disclose certain fees to the merchant.

The best way to determine your options for canceling your payment processor contract is to speak with an experienced merchant processing litigator.

Merchant Processing Litigator

Merchants should not have to suffer through problematic payment processing contracts without recourse. To ensure you receive the best possible outcome for your case, you must craft a solid defense. Contact Sigal Law Group today for a free consultation. Our merchant processing litigators have years of experience helping merchants navigate contract cancellations without being subjected to serious and pervasive penalties.

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