My Processor Added a New Fee. Can I Leave Without a Termination Fee?

This is general information, not legal advice. Your merchant agreement and the fee notice control your rights, so read both carefully and talk to an attorney if you're unsure.

Found a charge on your October statement you've never seen before? A large processor group that runs several well-known merchant services brands added two new fees this fall. A fee change can also open a door: many merchant agreements let you leave without a penalty when your provider raises costs, but only for a limited time.

Below: what changed, how to spot it, what the window means, how to act before the deadline, and what to check in any processing contract.

What changed: a $755 annual fee and a 35¢ batch fee

Two new charges are showing up on statements from this group's brands:

• A $755 "Annual System Enhancement Fee," appearing on October 2026 statements and charged once a year.
• A 35¢ batch settlement fee, charged each time you close out your card sales, starting November 1, 2026.

A batch is the group of completed card sales your terminal or point-of-sale system sends in for payment when you close out, usually at the end of the day. Close out once a day and you pay one 35¢ charge that day. Close out several times, or run several terminals that each close their own batch, and you pay for each one.

According to the group's own merchant notices, as reported by industry sources, the $755 fee doesn't come with new features or a change in service levels.

What the batch fee adds up to

The math is simple: 35¢ × close-outs per day × days you close out per year.

• Close out once a day, seven days a week: about $128 a year.
• Close out once a day, five days a week: about $91 a year.
• For a business that closes out once a day, the two new fees together come to about $880 a year.

How to spot a new fee on your statement

New fees are easy to miss in one statement and much easier to see over time:

1. Search for the fee by name. Look for "Annual System Enhancement Fee" on your October 2026 statement.
2. Count your batch fees. Check statements with activity from November 1, 2026 forward, and count how many times you close out each month.
3. Compare three months side by side. Any line that's new or bigger stands out.
4. Read the notices. Check your statement's messages section and any separate notice from your provider.
5. Recalculate your effective rate. Divide total processing fees by total card sales. For example, $1,350 in fees on $45,000 in card sales is a 3.0% effective rate.

Our guide to reading your processing statement walks through a typical statement and the fees worth questioning.

What the fee notice and the window mean

Many merchant agreements include a clause that gives you a penalty-free way out when your provider changes its fees. According to reports on this group's notice, merchants who object to the new fees may "terminate your agreement without penalty" by giving written notice in line with their agreement.

In plain terms:

• The clock starts with your invoice. You have 90 days from the date of the invoice that shows the $755 charge.
• Most windows close in late January to early February 2027. The exact date depends on your invoice date.
• The window doesn't stay open. Once it closes, your contract's normal terms apply again for that fee.
• Notice has to follow your agreement. Your agreement says how written notice must be sent. If you don't follow it, your cancellation may not count.

Don't guess at your deadline. Check the invoice date, your agreement and the notice, and if anything is unclear, ask your provider in writing or talk to an attorney.

How to act before the deadline

The sooner you start, the more options you have:

1. Find your date. Note the date of the invoice that shows the $755 fee, count forward 90 days, and set a reminder a few weeks earlier.
2. Read the notice and your agreement. Find the sections on fee changes, termination and how notice must be given.
3. Check your equipment separately. Terminal leases and rentals can have their own terms. Ask what it would cost to get out of them.
4. Compare the full cost elsewhere. Ask for every monthly, yearly and per-batch fee, not just the rate. The processing fee comparison calculator puts quotes side by side.
5. Line up your new setup before you cancel, so you don't miss a sale.
6. Send notice exactly as required, and keep proof of what you sent and when.

If a long lease or a lot of money is involved, have an attorney review the contract before you act.

Getting out of a processing contract: auto-renewal, termination fees and equipment leases

Outside a window like this one, leaving a processor usually comes down to three parts of your paperwork: the term and auto-renewal, the early termination fee, and any equipment lease. A November 2026 enforcement case shows how those pieces can trap a small business.

What the FTC and Washington case alleged

On November 2, 2026, the Federal Trade Commission and the Washington State Attorney General's Office announced a complaint and proposed settlement with a payment processor based in Vancouver, Washington, its equipment-leasing affiliate and the companies' owners. According to the complaint:

• False savings claims. The processor claimed small businesses could in some cases save nearly 60% by switching, but businesses that switched typically ended up paying more than before.
• Hidden fees. The quote sheet given to prospects left out fees such as activation fees, batch fees and fees for supposed non-compliance with data security standards or inactive processing.
• Auto-renewing three-year contracts. Key terms were buried in a 26-page electronic contract, including automatic renewals after the initial three-year term.
• A $695 early termination fee that was not clearly disclosed.
• A separate four-year equipment lease. Terminals came through a separate lease with the affiliate, described in the complaint as having a non-cancelable four-year term that automatically renews. The FTC said it lasted one year longer than the processing contract.
• Hard to cancel. Businesses that tried to cancel were left in a "complicated loop of deflection and fruitless phone calls," according to the complaint.

Under the proposed order, the defendants would pay $600,000 (a $32 million judgment is suspended because they can't pay the full amount) and notify customers that the early termination fee is waived for 60 days. They would be barred from misrepresenting costs, savings or cancellation conditions, and would have to disclose all material terms clearly, get express informed consent for any "negative option" plan (where doing nothing counts as agreeing to pay), and offer a simple way to cancel. These are allegations resolved by a proposed order, not findings after a trial.

What to check in your own agreement

Find these terms before you need them:

• Term and renewal. How long is the term, does it renew automatically, and how far ahead must you cancel to stop a renewal?
• Early termination fee. Is it a flat amount or a formula, and is it waived when fees change?
• Equipment. Do you own, rent or lease your terminal? If it's leased, from whom, can the lease be canceled, and how long does it run compared with your processing agreement? Ending your processing agreement may not end a lease.
• Fee changes and notice. How must your provider tell you about new fees, and how must you deliver a cancellation?

If you can't find these terms, ask your provider for a complete copy of your agreement and any lease, and talk to an attorney about anything unclear.

Want a second set of eyes on your statement?

Send us your October or November processing statement for a free statement review. We'll point out new and recurring fees, calculate your effective rate and show you, side by side, what the same processing would look like with Pine, so you can decide before your window closes. We can also explain how a dual pricing program or cash discount program would work for your business. Pine has no setup fees and no contracts, and there's no obligation. For questions about your agreement itself, talk to an attorney.

Pine Payments serves businesses nationwide, with local bilingual (English/Spanish) service in Miami-Dade, Broward and South Florida.

Frequently asked questions

What is the Annual System Enhancement Fee?

It's a $755 yearly charge a large processor group added to merchant statements starting in October 2026. According to the group's notices, as reported by industry sources, it comes with no new features or service changes. Look for the line on your October statement.

What is a batch fee, and how much will it cost me?

A batch fee is charged each time your terminal or point-of-sale system closes out a batch of card sales for payment. The new fee is 35¢ per close-out, starting November 1, 2026. If you close out once a day, seven days a week, that's about $128 a year. More close-outs or more terminals that batch separately multiply it.

Can I cancel my processing agreement without an early termination fee because of the new fees?

Usually, but only within a set window. According to reports on the group's notice, merchants who object may terminate without penalty by giving written notice, as their agreement requires, within 90 days of the invoice that shows the $755 fee. Read your agreement and the notice to confirm your terms, and talk to an attorney if you're unsure.

When does the penalty-free window close?

For most accounts, between late January and early February 2027. Your exact deadline depends on the date of the invoice that shows the $755 fee and on what your agreement says about notice. After the window closes, your contract's normal terms apply again for that fee.

Does canceling my processing agreement also end my equipment lease?

Not necessarily. Terminal leases and rentals can be separate contracts, sometimes with a different company and a different term. In the November 2026 FTC and Washington case, the complaint described a separate, non-cancelable four-year lease alongside a three-year processing contract. Check your lease terms before you cancel anything.

How do I know if my processing contract auto-renews?

Check the term, renewal or termination section of your merchant agreement. It should say how long the initial term lasts, whether it renews automatically and how much notice stops a renewal. No copy? Ask your provider for one.

This article is general information, not legal advice. Contract terms vary, so review your merchant agreement and fee notice and talk to an attorney about your situation.

Keep reading

• How to Read Your Credit Card Processing Statement (and Spot Hidden Fees)
• Flat Rate vs. Tiered vs. Interchange-Plus: Which Pricing Model Is Costing You?
• What Is Dual Pricing?
• Cash Discount vs. Dual Pricing vs. Surcharging