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Clover Early Termination Penalty: How to Minimize or Avoid This Fee

Early termination fees can trap you in a bad relationship with your processor. These fees, often $295-595, are designed to discourage switching. But there are legitimate ways to minimize or avoid them.

Quick Fixes to Try Right Now

1

Review Your Contract Terms

Find your original merchant agreement and identify: the ETF amount, contract length, and any conditions for waiver. Some contracts have declining ETFs that reduce over time.

2

Document Service Issues

If you're leaving due to service problems (outages, billing errors, rate increases), document everything. Service failures may give you grounds to exit without penalty.

3

Negotiate with Your Processor

Call and explain why you're leaving. Ask about ETF waiver or reduction. If you're switching to a competitor, your new processor may offer to cover your ETF.

4

Consider Waiting It Out

Calculate whether waiting for your contract to end costs less than the ETF. If you have 3 months left and the ETF is $500, it may be cheaper to wait.

Still Having Issues? Compare Your Options

Feature Clover CapClover
Customer Support Long hold times, unresponsive Your assigned rep's direct line
Business Funding Limited or no options Up to $500,000
Approval Time Weeks or denied Same-day decisions
Hidden Fees Frequently reported Transparent pricing
Contract Terms Early termination fees Flexible terms

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Frequently Asked Questions

What is the Clover early termination fee?
The early termination fee (ETF) is a penalty for canceling your merchant agreement before the contract term ends. It typically ranges from $295-595, though some processors charge liquidated damages based on remaining contract value.
Can I avoid the early termination fee?
You may avoid the ETF if: your contract has expired or is month-to-month, the processor breached the agreement, you have documented service failures, or you successfully negotiate a waiver.
Will my new processor pay the ETF?
Many processors offer to cover competitors' ETFs to win your business. Ask potential new processors about ETF reimbursement programs. Get this commitment in writing before signing.
What if I was misled when signing up?
If you were misled about rates, fees, or contract terms, you may have grounds to dispute the ETF. Gather evidence (original quotes, sales rep communications) and consider consulting a business attorney.