Merchants' Choice Payment Solutions MCPS Corporation, Woodforest National Bank Possibly illegal, certainly unethical contract terms The Woodlands, Texas

We contracted with Merchants Choice Payment Solutions, a credit card processor, in January, 2007 to handle our credit cared transactions. The initial term was for three years. We elected to purchase the terminal outright at the time the contract was signed. In Sept. or 2010, 9 months after the contract had expired, we were offered better terms and a lower monthly account fee by another local processor. The savings over MCPS was substantial. Merchant's Choice offered a "rate review" at that point, but my secretary let them know we preferred to go more local, with a representative nearby. This month we received another statement for monthly account fees. I contacted them at 1-800-327-0093 to make sure they were aware we were no longer needing their services. Here is the unethical, if not illegal part. Our contract was thru January of this year. But unless MCPS is contacted 30 days prior to the end of the current contract they automatically renew it for another three years! According to their representative, we are in violation of their contract terms and owe a $495 penalty for terminating before another three years is completed. If there is any attorney interested in a class action filing on these unclear, dishonest and perhaps illegal contract terms, we would be happy to work with you. In 28 years of business, I've never seen another contract that automatically renews for a period as long as three years, with no option to cancel except for a very narrow 30 day window once every 36 months.

With so many credit card processors to choose from, there is no good reason to consider Merchant's Choice Payment Solutions (MSPS). There are better terms available from other providers who do not attempt to rip-off other businesses in their contract small-print. They've turned account termination into a huge profit center.