How to Handle a Bad Merchant Services Company Contract

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It can happen to the best of all business owners: you were contacted by a slick salesman, they told you all the benefits of merchant services, and claimed they were the best in town. They offered you a contract, glossed over a couple of “minor details,” and you signed it. Next thing you know, you ended up getting hit with a bunch of fees and can’t seem to escape your contract.

At CPS Merchants, we hear claims like this all the time from company owners who honestly just want to go about their business. It’s commonplace to the point that the entire industry tends to be seen as a field filled with scammers. Thankfully, there are good companies out there that try to help business owners do well—and we’re one of them. You’re probably wondering what to do if you ended up signing with the wrong company. Here’s our advice...

  1. First things first, read over your contract. Highlight the parts that you disliked in your agreement. Figure out what it is about the contract that you hated. Were you charged too much? Did you find out that you were paying illegal fees? Are the terms too difficult to navigate without a lawyer?
  2. Next, start shopping around for a new merchant services company. You want to look at three or more companies offering merchant services in your field before you select one. Ask them about the rates they’ll give you, any important stipulations that you are concerned about, and more.
  3. Ask them if they can help you make the switch from another merchant services company. Not all merchant services companies are willing to cut through the red tape for you, and to a point, it’s understandable. It’s a lot of work! However, if you can get help cutting through all the paperwork and getting your contract done with, by all means, do.
  4. If not, you may need to wait a while until the contract lapses or you might need to hire a lawyer. Too often, bad merchant services companies will make ironclad contracts for this reason. They don’t want to let customers go. Either way, you will need to follow the steps needed to end that contract as soon as possible.
  5. Switch to a new, better merchant service company as soon as you can. This is the key thing here. You shouldn’t give a bad company business if you don’t have to.

If you have been victimized by bad merchant services companies, you’re not alone—and we ask you not to lose faith in the industry as a whole. If you’re in need of a great company to handle your services, call CPS Merchants. We are here to help you.

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