Webmaster forum - Merchant account termination, and or early termination fees

Author

Merchant account termination, and or early termination fees

MagikLair

2007-05-22, 6:26 pm

Hello,
I have a merchant account with CTS Holdings LLC .and they have been
absolutely lousy. They don't respond to my phone calls, email
nothing... I'd like to cancel, but there is an early termination fee
of $300. I do not think this company should be rewarded for lousy
service etc. They have some prohibited transactions that would cause
immediate cancellation of an account. If I said that I did one of
these prohibited transactions and the account was canceled. Would I
still have to pay an early termination fee? Yes I understand, it
doesn't sound like the *best* way to do things... Any feedback would
be appreciated
Thanks,
Brian

George L. Sexton

2007-05-22, 6:26 pm

On Tue, 22 May 2007 12:00:44 -0700, MagikLair wrote:

> Hello,
> absolutely lousy. They don't respond to my phone calls, email
> nothing... I'd like to cancel, but there is an early termination fee
> of $300. I do not think this company should be rewarded for lousy

It sounds to me like they are in breach. If that's the case, you can
probably terminate your account by notifying them in writing and letting a
cure period expire.

Anyhow, you shouldn't be asking here, you should be reading your contract.

--
George Sexton

Viper

2007-05-22, 6:26 pm

MagikLair wrote:
> Hello,
> I have a merchant account with CTS Holdings LLC .and they have been
> absolutely lousy. They don't respond to my phone calls, email
> nothing... I'd like to cancel, but there is an early termination fee
> of $300. I do not think this company should be rewarded for lousy
> service etc. They have some prohibited transactions that would cause
> immediate cancellation of an account. If I said that I did one of
> these prohibited transactions and the account was canceled. Would I
> still have to pay an early termination fee? Yes I understand, it
> doesn't sound like the *best* way to do things... Any feedback would
> be appreciated
> Thanks,
> Brian

Why not just stop using iut?
Also better talk to your lawyer.

Cynode

2007-05-22, 6:26 pm

On Tue, 22 May 2007 15:59:25 -0400, "Viper" <venomx@XXXXXXXXXX> wrote:

>Why not just stop using iut?

Don't most merchant accounts charge monthly?

--
If it keeps up, man will atrophy all his limbs but the push-button finger.
~Frank Lloyd Wright - www.cynode.com | (NSFW) www.cynbabes.com (NWS)

Jerry Stuckle

2007-05-22, 10:31 pm

MagikLair wrote:
> Hello,
> I have a merchant account with CTS Holdings LLC .and they have been
> absolutely lousy. They don't respond to my phone calls, email
> nothing... I'd like to cancel, but there is an early termination fee
> of $300. I do not think this company should be rewarded for lousy
> service etc. They have some prohibited transactions that would cause
> immediate cancellation of an account. If I said that I did one of
> these prohibited transactions and the account was canceled. Would I
> still have to pay an early termination fee? Yes I understand, it
> doesn't sound like the *best* way to do things... Any feedback would
> be appreciated
> Thanks,
> Brian
>

Brian,

Get your attorney to document the problems you've been having in a
letter and send it to them. You'll be amazed how quickly that gets a
response.

--
==================
Remove the "x" from my email address
Jerry Stuckle
JDS Computer Training Corp.
jstucklex@attglobal.net
==================

MagikLair

2007-05-22, 10:31 pm

On May 22, 2:59 pm, "Viper" <ven...@XXXXXXXXXX> wrote:
> MagikLair wrote:
>
> Why not just stop using iut?
> Also better talk to your lawyer.

There is a monthly fee otherwise I would continue doing business, but
elsewhere.
Thanks everyone

MagikLair

2007-05-22, 10:31 pm

On May 22, 7:54 pm, Jerry Stuckle <jstuck...@attglobal.net> wrote:
> MagikLair wrote:
>
> Brian,
>
> Get your attorney to document the problems you've been having in a
> letter and send it to them. You'll be amazed how quickly that gets a
> response.
>
> --
> ==================
> Remove the "x" from my email address
> Jerry Stuckle
> JDS Computer Training Corp.
> jstuck...@attglobal.net
> ==================

I apologize for the double post. I read the merchant account
agreement.
http://www.vagnavs.com/cts_agreement.pdf
16 Early Cancellation Fee
16.1 If (a) you elect to cancel this Merchant Application and
Agreement prior to the expiration of the initial thirty-six (36)
month
term, or (b) this
Merchant Application and Agreement is terminated by us prior to the
expiration of the initial term due to an Event of Default, we will
suffer a substantial injury for which it is impracticable or
extremely
difficult to fix actual damages. In an effort to liquidate in advance
the sum that should represent such damages, you agree to pay us as an
"Early Cancellation
Fee" in the amount of three hundred dollars ($300.00). This sum
represents a reasonable pre-estimate of the losses that we will incur
as a result of the cancellation of this Merchant Application and
Agreement prior to the expiration of the initial term of the Merchant
Application and Agreement.

But if they terminate it for prohibited transactions, I do not see
any
mention of any early cancellation fees.
thanks,
Brian

MagikLair

2007-05-22, 10:31 pm

On May 22, 8:50 pm, MagikLair <newsletterexcha...@XXXXXXXXXX> wrote:
> On May 22, 7:54 pm, Jerry Stuckle <jstuck...@attglobal.net> wrote:
>
>
>
>
>
>
>
> I apologize for the double post. I read the merchant account
> agreement.http://www.vagnavs.com/cts_agreement.pdf
> 16 Early Cancellation Fee
> 16.1 If (a) you elect to cancel this Merchant Application and
> Agreement prior to the expiration of the initial thirty-six (36)
> month
> term, or (b) this
> Merchant Application and Agreement is terminated by us prior to the
> expiration of the initial term due to an Event of Default, we will
> suffer a substantial injury for which it is impracticable or
> extremely
> difficult to fix actual damages. In an effort to liquidate in advance
> the sum that should represent such damages, you agree to pay us as an
> "Early Cancellation
> Fee" in the amount of three hundred dollars ($300.00). This sum
> represents a reasonable pre-estimate of the losses that we will incur
> as a result of the cancellation of this Merchant Application and
> Agreement prior to the expiration of the initial term of the Merchant
> Application and Agreement.
>
> But if they terminate it for prohibited transactions, I do not see
> any
> mention of any early cancellation fees.
> thanks,
> Brian

ok, I found out what I needed to know here.
http://www.findmerchant.com/merchan...nt_tmf_file.htm

NotMe

2007-05-22, 10:31 pm

--

"MagikLair" <newsletterexchange@XXXXXXXXXX> wrote in message
news:1179885618.212798.118160@q66g2000hsg.googlegroups.com...
| On May 22, 8:50 pm, MagikLair <newsletterexcha...@XXXXXXXXXX> wrote:
| > On May 22, 7:54 pm, Jerry Stuckle <jstuck...@attglobal.net> wrote:
| >
| >
| >
| > > MagikLair wrote:
| > > > Hello,
| > > > I have a merchant account with CTS Holdings LLC .and they have been
| > > > absolutely lousy. They don't respond to my phone calls, email
| > > > nothing... I'd like to cancel, but there is an early termination
fee
| > > > of $300. I do not think this company should be rewarded for lousy
| > > > service etc. They have some prohibited transactions that would
cause
| > > > immediate cancellation of an account. If I said that I did one of
| > > > these prohibited transactions and the account was canceled. Would I
| > > > still have to pay an early termination fee? Yes I understand, it
| > > > doesn't sound like the *best* way to do things... Any feedback
would
| > > > be appreciated
| > > > Thanks,
| > > > Brian
| >
| > > Brian,
| >
| > > Get your attorney to document the problems you've been having in a
| > > letter and send it to them. You'll be amazed how quickly that gets a
| > > response.
| >
| > > --
| > > ==================
| > > Remove the "x" from my email address
| > > Jerry Stuckle
| > > JDS Computer Training Corp.
| > > jstuck...@attglobal.net
| > > ==================
| >
| > I apologize for the double post. I read the merchant account
| > agreement.http://www.vagnavs.com/cts_agreement.pdf
| > 16 Early Cancellation Fee
| > 16.1 If (a) you elect to cancel this Merchant Application and
| > Agreement prior to the expiration of the initial thirty-six (36)
| > month
| > term, or (b) this
| > Merchant Application and Agreement is terminated by us prior to the
| > expiration of the initial term due to an Event of Default, we will
| > suffer a substantial injury for which it is impracticable or
| > extremely
| > difficult to fix actual damages. In an effort to liquidate in advance
| > the sum that should represent such damages, you agree to pay us as an
| > "Early Cancellation
| > Fee" in the amount of three hundred dollars ($300.00). This sum
| > represents a reasonable pre-estimate of the losses that we will incur
| > as a result of the cancellation of this Merchant Application and
| > Agreement prior to the expiration of the initial term of the Merchant
| > Application and Agreement.
| >
| > But if they terminate it for prohibited transactions, I do not see
| > any
| > mention of any early cancellation fees.
| > thanks,
| > Brian
|
| ok, I found out what I needed to know here.
| http://www.findmerchant.com/merchan...nt_tmf_file.htm

I'm not a lawyer and don;t play one on the internet but Texas has a
'deceptive trade practices act' which has considerable bite (even the
insurance industry is afraid of this one). In any case your state may have
a similar law. check it out. might help and can't hurt.
Might also check into the FTC web site as the Fair Credit Reporting Act may
apply as well.

George L. Sexton

2007-05-23, 3:19 am

On Tue, 22 May 2007 18:50:57 -0700, MagikLair wrote:

> On May 22, 7:54 pm, Jerry Stuckle <jstuck...@attglobal.net> wrote:
> I apologize for the double post. I read the merchant account
> agreement.
> http://www.vagnavs.com/cts_agreement.pdf
> 16 Early Cancellation Fee
> 16.1 If (a) you elect to cancel this Merchant Application and
> Agreement prior to the expiration of the initial thirty-six (36)
> month
> term, or (b) this
> Merchant Application and Agreement is terminated by us prior to the
> expiration of the initial term due to an Event of Default, we will
> suffer a substantial injury for which it is impracticable or
> extremely
> difficult to fix actual damages. In an effort to liquidate in advance
> the sum that should represent such damages, you agree to pay us as an
> "Early Cancellation
> Fee" in the amount of three hundred dollars ($300.00). This sum
> represents a reasonable pre-estimate of the losses that we will incur
> as a result of the cancellation of this Merchant Application and
> Agreement prior to the expiration of the initial term of the Merchant
> Application and Agreement.
>
> But if they terminate it for prohibited transactions, I do not see
> any
> mention of any early cancellation fees.

You're deluding yourself. Section 16.1(b) "is terminated by us prior to the
expiration of the initial term..."

You perform a prohibited transaction, they cancel your account, and per
16.1(b) nail you for the fee.

--
George Sexton
MH Software, Inc. - Home of Connect Daily Web Calendar
http://www.mhsoftware.com/connectdaily.htm

MagikLair

2007-05-23, 3:19 am

On May 22, 9:53 pm, "George L. Sexton" <gsex...@Mhsoftware.com> wrote:
> On Tue, 22 May 2007 18:50:57 -0700, MagikLair wrote:
>
>
> You're deluding yourself. Section 16.1(b) "is terminated by us prior to the
> expiration of the initial term..."
>
> You perform a prohibited transaction, they cancel your account, and per
> 16.1(b) nail you for the fee.
>
> --
> George Sexton
> MH Software, Inc. - Home of Connect Daily Web Calendarhttp://www.mhsoftware.com/connectdaily.htm

thanks for clarifying that. There is also the Terminated Merchant
File which is basically a blacklist for all credit card companies. I
know I'm grasping at straws here. Trying to get out of this contract
any way I can.
Thanks everyone for the feedback.
Brian

Jerry Stuckle

2007-05-23, 3:19 am

MagikLair wrote:
> On May 22, 9:53 pm, "George L. Sexton" <gsex...@Mhsoftware.com> wrote:
>
> thanks for clarifying that. There is also the Terminated Merchant
> File which is basically a blacklist for all credit card companies. I
> know I'm grasping at straws here. Trying to get out of this contract
> any way I can.
> Thanks everyone for the feedback.
> Brian
>

As I said - get your attorney involved.

--
==================
Remove the "x" from my email address
Jerry Stuckle
JDS Computer Training Corp.
jstucklex@attglobal.net
==================