The short answer
An early termination fee is a fixed charge, commonly $295 to $795. A liquidated damages clause instead calculates the provider's projected lost profit for the remaining term, which can reach thousands of dollars. Both appear in the termination section of your merchant agreement.
How to read the clause
Look for language about 'remaining months', 'average monthly fees' or 'projected revenue'. That is a damages formula, not a flat fee. Calculate the actual number before making decisions.
Reimbursement programs
Documented exit fees are frequently reimbursed by the incoming provider — CELER Merchants covers up to $1,000 with documentation. It does not cover equipment leases, which are separate contracts.
Key takeaways
- Distinguish flat fees from damages formulas
- Calculate the real exit cost before negotiating
- Reimbursement usually covers termination fees but never leases
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