If we signed a contract with a credit card merchant services corp and now wish we hadn’t, how can we do can out of it?

We recently had a salesperson lie to us, stating we could have credit card

processing for our business for the low rate of $20 per month. We did not read

the fine print in the massive documents we signed. We found out the fees are

much higher, and online research reveals that the company has recently changed names because their previous name had such a bad reputation/legal trouble. We only signed this about 10 days ago. Is there any type of grace period that we should have for cancelling this service? The documentation lists a $500 cancellation fee, plus other fees we may have to pay for cancelling – we actually did this for 2 businesses and now greatly regret it because they are thieves.

Asked on March 7, 2016 under Business Law, Mississippi

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, there is no grace period for cancelling this kind of contract, unfortunately. And if the unfavorable terms were in the fine print, so that you *could* have read them prior to signing, you will be held to them: the law requires people to read and understand what they sign before signing or otherwise entering into a contract, and presumes that you agreed to what you signed; therefore, you will be held to the terms of the contract.


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