TSYS Merchant Solutions $250 cancellation fee after 7 years Internet

We cancelled our service with TSYS Merchant Solutions on 10/04/12.  They told me they were going to charge me $250 for cancelling my contract.  I originally signed a contract with First National Bank of Omaha on 7/18/05 over 7 years ago.  FNBO sold their credit card processing to TSYS Merchant Solutions but I never signed a contract with them.  Originally, my contract was for 3 years and supposedly you have one month a year to cancel without penalty.  Of course they do not notify you of your impending renewal.  Anyway, I sent them a letter on 10/4/12 stating that I never had a contract with TSYS and that I was under no obligation to pay them $250 and that I did not authorize them to draft my account for those funds.  Unfortunately, my bank said they could not block an ACH transaction but that I could dispute it when it was charged.   The cancellation fee was debited from my account on November 2, 2012.  I have disputed the charge and it is under review.  I do not believe the contract has a cancellation fee but if it does, it should have ended with the initial 3 year period or the sale of the company.  Either way, this company tries to ripoff loyal customers that they have made a fortune off of.   Beware of this company and don't ever sign a contract for credit card processing.