Long Term Agreement
Often times when working with new customers, I get asked a lot of questions which I truly appreciate because it tells me that they are focused on their businesses success. However, it always surprises me how few times I get asked what is the term of our agreements. When it comes to merchant service accounts most contract terms are anywhere from 1 to 3 years depending on the vendor you choose. When I hear that someone is about to sign their agreement I always advise them to never sign a 3-year contract.
As you have probably seen already, technology is moving fast and with new technology comes new opportunities especially as it relates to credit card processing. Mobile devices, card chip technology, and the possibly or evolution of mobile wallets is right around the corner. These days 3 years in technology is like a life time and one can never tell what the next big thing will be that will help grow your business. With technology changing rapidly it usually means that everyone will adapt but how fast? Will your merchant service vendor have that solution available when you want it?
The second thing to consider is service. Unfortunately, most representatives in the merchant service arena seem to come and go which means where will your support come from? An 800 number? Obviously, you have the 800 number to call but what about that personal service that was around when you signed up? Will or does your current provider inform you of new technologies or services as they become available? Three years is a long time for any business that is evolving and growing so don’t get yourself caught in such a lengthy contract!
It’s one thing to say don’t get caught in a long-term contract, but how do you avoid getting into a long term agreement? Most contract terms are buried in the fine print, but if you don’t want to read all the fine print (something we don’t recommend) then you can find it this way. Listed somewhere on the pricing page there is typically a line item fee for Early Termination (ETF). Early Termination Fees are typically around $250.00 to $300.00. Once you find that on the pricing page then you can prompt the question and get the representative to show you the line item within the contract. The term of the agreement is also typically listed on the signature page of the agreement as well. If it’s not listed or you can’t find it, probably means you’re dealing with a company you really don’t want to. Our agreements are month to month with no Early Termination Fee. Our term is listed and the ETF is clearly visible, however, we waive it which makes our agreements month to month. Having a month to month agreement is our guarantee to our customers that you will like our products and services to the point that you won’t want to leave.Let’s Talk
For additional questions or for more information on this topic, feel free to reach out to us at 602-635-6494 or visit us on the web at www.dfgaz.com.