Contract Length, Exit Fees and Auto-Renewals
Card-acquiring agreements often bundle terminal rental, software and processing into one term. This guide explains typical 18–48 month tie-ins, how early termination is calculated, and the diary dates that stop silent renewals.
Next step: Compare card machine options before you re-sign. Contact us if you want help weighing an exit fee against a better MDR.
What is actually in the term
Read the schedule: merchant agreement (processing), terminal hire, PCI or gateway modules, and any minimums. Exit fees sometimes apply per component — cancelling processing may still leave hardware rental running. Align contract end dates when you negotiate; staggered renewals make switches painful.
Early termination and “lost margin” clauses
ETFs often combine remaining rental and a liquidated damages style charge based on months left or forecast margin. Ask for the formula in writing before sign. If you are mid-growth or may relocate, favour shorter terms or break clauses tied to genuine material change — and capture promises on rate holds in the order form.
Notice windows and auto-renewal
Many agreements need 90 days’ notice to prevent rollover. Put reminders in the finance calendar; “we’ll deal with it next quarter” is how 36 months becomes 72. If you intend to tender, start before the notice cliff so you are not negotiating under ETF pressure.
Switching without downtime
Plan overlap: new MID live, test transactions, then return old hardware. For integrated EPOS, involve your software vendor early — see integrated terminals and EPOS. Cash-flow timing matters too: compare old vs new settlement cycles so you do not create a working-capital hole.
Related guides
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