Liquidating damages dating matchmaking service business plan sample
In other words, the credit card processing company is going to get its money – regardless of whether your business continues to use its services. Your goal should be to find that section, then read it VERY carefully.
Here’s a sample contract with the liquidated damages clause highlighted:(Click to Enlarge)Here’s the clause once again in writing: In the event that Client terminates this Agreement within (3) years from the date of approval or this 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.
Fighting against a credit card processor’s liquidated damages fees is a difficult undertaking – especially if the fees are clearly part of an iron-clad contract.
However, you may find asylum with your state’s attorney general’s office if the fees charged are disproportionate to the original contract.
Liquidated damages clauses act as insurance for both parties.
The person who breaks the contract knows ahead of time how much they would owe the other party.
Have any questions related to credit card processing? I work for a small restauranteur who got forced into signing with Vantiv/fifth third in march of 2014 in order to avoid an ‘integration fee’ by a new POS provider who was setting us up at the same time.
Unfortunately, merchants get stuck with the fees in most cases, which is why the best thing you can do to combat these underhanded tactics is to refuse to sign a contract containing a liquidated damages clause to begin with.
If you are tied up in a contract with a liquidated damages clause and plan to tough it out until your agreement expires, beware the sneaky auto-renewal clauses.
Although many will charge a flat fee of a few hundred bucks to close a merchant account early, some companies charge “liquidated damages” fees, which you just may have to sell your right kidney to pay for.
When you choose a credit card processor, you may be asked to sign a contractual agreement that includes a commitment of between two and three years.