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your merchant account is the account where customer payments are deposited before theyre transferred to your small business bank account its essentially the middleman between the customers bank and your businesss bank when you choose a merchant account provider you probably sign a contract that agrees to specific terms of use this might include fees contract terms and other stipulations and agreements from both parties however there are times when you need to end these contracts and cancel your merchant account though it should be easy thats certainly not always the case merchant account providers can be a tricky bunch the exact steps youll need to take will depend on your merchant account provider but here are some general actions to do or to prepare for first check your merchant account provider agreement and website next give your merchant account provider a call send an official merchant account cancellation letter return any necessary equipment get confirmations for everythin