Changing the Way the Industry Does Business

Indigo Payments recently announced that it will no longer charge customers early termination fees (ETFs) for cancellation of service.

A common practice in the credit card processing industry, ETFs have resulted in some questionable charges against merchants by unscrupulous companies.

The first time I heard about ETFs was before I knew anything about the payments industry. A good friend of mine and his brother had opened a restaurant specializing in Buffalo wings and regional beers. New to the restaurant business, they decided to run their credit card processing through their local bank.

They were soon inundated by salesmen who stopped by their business offering the “best credit card processing rates available.” After finally relenting, they produced a card statement for review.

It didn’t take much to better their existing processing rate. The duo ended the two-year contract with their bank early, paying a nominal $200 early termination fee, and signed a new contract. Changing processors was easy, and the new, lower rate quickly covered the ETF.

But then the economy went south, and the business failed with more than three years left on its new contract. Soon came a nasty letter from the processor demanding $750 on a $300 terminal lease and an ETF in the amount of $2,500.

Now broke, the men packed up the terminal and returned it. But the story doesn’t end there. The card processor then sued them in court for the $3,250 remaining terminal lease and early termination fee.

Knowing this story gave me pause about accepting a position in the payment card industry. I asked myself, and the owners of Indigo Payments, how they would have handled a client in this situation.

I was reassured with examples of how Indigo Payments often waived fees not only for businesses that had failed, but also for those customers who became convinced someone else was offering a better product. And equally important, any time a customer came back to Indigo, the ETF of $250 was immediately returned.

It was during these discussions (and subsequent meetings after taking the position) that the seed was planted to eliminate ETFs completely. It became clear to me that at Indigo, we earn our customers’ business every day. Why lock a customer down with an ETF? What are those companies afraid of?

I am proud to be a member of Indigo Payments because I appreciate how the company is changing the industry for the better. At Indigo, we are committed to offering all companies and organizations the benefits that formerly only large companies have received—such as the ability to accept Apple Pay. We offer truly transparent card processing. There is never a start-up fee. We guarantee to never raise our rates. And now, customers never pay to leave.

We truly earn your business every day.