Beware of Card Payment Closure Fees

Card payment companies offer competitive deals to get merchants to switch, including paying a closure fee. For a merchant to get out of their existing contract, a closure fee must be paid to leave early – the exact same as a mobile phone contract.

Closure fees can range from £50 up to £3000 and will be paid by your new card payment provider.

There are strings attached with your closure fee, because just like your first provider made you pay a closure fee, if you switch again, it’s more than likely you will need to pay a closure fee once again.

Closure fees are advertised as a quick option to switch providers, but some companies provide a closure fee to the merchant as a loan, without making this clear. This means if you leave, even when you’re not in a contract, the closure fee must be repaid. The amount repayable depends on how long you have been with the provider for them to recoup their costs.

So, if you are looking to switch, make sure you find out all the terms and conditions before you accept a closure fee.

If you want to change provider and you have a closure fee in place, Contact us to discuss it further.