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Sage 100 Payment Solution Hidden Fees in Your Contract

Sage 100 Payment Solution: Beware of Hidden Fees

Sage 100 payment solutionDon’t be caught unaware by hidden fees and terms when you want to discontinue your Sage 100 payment solution. Depending on your processing volume, those seemingly small fees can add up quickly. Some of the terms that processors sneak in can cost you 6 figures in penalties if you want to cancel early or process elsewhere. It’s important to understand what to watch out for to spare yourself unnecessary headaches down the road.

Beware of Liquidated Damages Provision

One such costly provision we’ve seen when reviewing contracts for businesses is the liquidated damages provision. It may take different forms and names but it’s going to dictate that you process all of your transactions with that processor for three years, for example. If you want to leave early, the provision requires you to pay the processor the fees that would have been charged under this agreement if you had stayed with them for the entire three-year term.

Depending on your processing volume and the length of time of the contract term, those fees can add up quickly. For example, if you're currently paying $4,000 a month in processing fees and you're in a three-year agreement and you terminate after year one, they would charge you $4,000 for each of the 24 months left, totaling $96,000. That’s a huge problem but it can easily be avoided by watching out for this costly provision.

Beware of Early Termination Fees

A more reasonable Sage 100 credit card processing agreement may have a fixed fee if you terminate early, known as an Early Termination Fee, or ETF. In most cases, you may owe up to $500, so this is another term in your contract that should be closely examined.

Also, look carefully for those liquidated damages or ETF clauses so you know what your real risks are because the fees and penalties can be substantial. Often, the main purpose of changing processors is to save money. The next thing you know you end up with a processor claiming you owe tens of thousands or hundreds of thousands of dollars in liquidated damages clause. Pay close attention to those clauses because they can cost a lot of money.

Get Help from the Experts

The experts at VIP Integrated Payments have seen it all. If you would like expert guidance and advice on your Sage 100 payment solution contract, we would be happy to take a look with no obligation. We strive to remain processor agnostic to help save our customers from long-term contracts and nasty terms. We find the solution that fits your needs. If we're not doing our job right, you have the right to move wherever you want and that's the way that it should be.

Contact our experts at VIP today to start saving time and money with Level 3, ERP-integrated credit card payments. Give us a call at (888) 791-9390 ext. 101 or visit or email us.