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In this tutorial by Michael from SwipeSum, early termination fees are discussed, also known as early cancellation or deconversion fees with credit card processing providers. Three types of early termination fees are highlighted: flat rate, prorated, and liquid damages. Flat rate fees are common, with $300 being a typical amount. Prorated fees decrease the closer you are to the end of your contract. Liquid damages are the most severe, attempting to estimate the profit the company would have made if the contract had been fulfilled. It is important to be aware of salespeople or bankers who may hide margins in fees such as early termination fees to earn commissions.
