23 May How to Cancel Your Merchant Account
Canceling merchant accounts can be a difficult process because the account representatives are trained to talk you out of this decision. While there are some considerations you should make before canceling the account, you should be able to get through everything unscathed if you’re firm and diligent. Here’s a step-by-step guide on canceling your account.
Consider Penalties and Fees
Most merchant accounts have a termination date when the contract can be canceled without penalty. The problem is that the majority of merchants don’t know about this fee, and you might be hit with a bill for severing ties with the service provider. Check your contract or speak with a representative. If the date is just a month or two away, then you might want to stay with the credit card processing provider until the contract is finished.
Call the Provider
Every provider is different. You might need to call your representative, the customer service line or the cancellation department. Regardless of which department you need to call, you need to contact the provider and tell them that you no longer want the account. You’ll typically have to provide details about yourself and your business to verify your identity. Be sure to write down all details about the call, such as the representative’s name and ID number, in case you have issues later on.
Explain the Situation
Explain to the representative that your credit card processing needs have changed and that you no longer need the account. Most representatives will try to give you a better deal or prevent you from canceling the account without jumping through hoops. Tell them why you no longer need the account and stay firm about your request.
Most service providers require you to return any equipment before the contract can be truly canceled. You may also have to mail or fax a written request officiating that you no longer want the account. Be sure to get receipts or confirmation letters showing that everything was delivered.
At this point you just need to watch your bank account to ensure that you’re no longer charged for the service. If you are, then contact the provider again and tell them that the account should be canceled.
While representatives might make it difficult to cancel an account, severing your contract isn’t that hard if you know what to do. Just review your contract, call the provider and tell them that you no longer wish to do business with them. Be sure to keep all receipts or confirmation letters to avoid issues in the future.