A lower card-processing rate can sound like an easy way to cut costs. Before switching, there’s another question worth asking: What will it cost to leave?
In a case announced November 2, the FTC and Washington state alleged that Riverside Payments, its affiliate Cascade Equipment Leasing and their operators misled small businesses about savings and cancellation terms. The agencies say some comparisons omitted charges and customers encountered automatically renewing contracts and early termination fees. These are allegations, and the settlement remains proposed, pending court approval.
The proposal includes an opportunity for eligible customers to cancel merchant-processing agreements without an early termination penalty. One detail matters: equipment leases are excluded from that cancellation relief and would remain in effect under their terms. Affected businesses should check any official notice and its dates rather than calculate a deadline from the announcement. Read the proposed order.
When comparing any processor:
- Request an all-in estimate based on your actual transactions.
- Ask for recurring, transaction, equipment and cancellation charges in writing.
- Review processing and equipment agreements separately, including renewal dates.
- Keep the sales proposal and signed documents, and check how cancellation requests must be submitted.
The best comparison shows what you’ll pay in an ordinary month, what you owe over the contract term and what happens if you need to leave.