If you're selling your business, one of the last things you might think about is your EFTPOS contract. However, cancelling it before the term ends can come with unexpected costs. Here’s what you need to know.
The Risks of Cancelling Your EFTPOS Contract
Early termination fees
EFTPOS contracts are structured with fixed terms, meaning that if you decide to cancel before the agreed period ends you will be liable for early termination fees. It's essential to carefully review the terms and conditions of your contract to understand the potential costs involved in early termination, as these fees can vary widely depending on the provider and the specific terms of your agreement.
Downtime from replacing EFTPOS equipment
Replacing the EFTPOS solution can cause unexpected disruptions, resulting in downtime that not only leads to lost sales opportunities but also inconveniences both the new owner and their customers. If the new owner wishes to continue offering EFTPOS services, they may face setup costs with a new provider. These costs can include new hardware installation, system configuration, and staff training to ensure everything runs smoothly. Ensuring a seamless continuation of service is essential for maintaining customer satisfaction and safeguarding the business's reputation during the transition.
How to Avoid These Costs
Transfer Your Contract
Instead of cancelling your EFTPOS contract, consider transferring it to the new owner. This helps you avoid costly early termination fees and ensures the new owner can continue using the existing EFTPOS equipment. By transferring the contract, you preserve continuity of service—something that can make your business more attractive to potential buyers. Plus, the new owner can negotiate a new rate and solution that fits their needs.
Timing is key
Delaying the transfer process could lead the new owner to choose a different EFTPOS provider, resulting in additional setup costs and service disruptions. Initiating the transfer early ensures a seamless handover and gives both parties ample time to prepare.
Get Your Last Month's Rental Fees Credited
If the transfer is successful, EFTPOS NZ will credit your last month’s terminal rental fees to your final invoice. This helps offset some of your costs during the sale process and ensures a smoother financial transition.
By transferring your contract instead of cancelling it, you avoid unnecessary fees, keep payment processing running without interruption, and streamline the handover to the new owner.
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