Entrepreneurship & Small Business

How do I get out of my debit machine lease with First Data?

[OP]
Newbie
Mar 28, 2008
35 posts

How do I get out of my debit machine lease with First Data?

Hi friends - I got duped in to going with one of these companies promising cheap processing rates. Now i've cancelled with them, but still locked in to a five yr lease with first data for the terminal.

They're telling me I need to pay out almost 3000 to get out of the lease...and moneris won't use their terminal so I don't know who I will even end up using for processing.

Has anyone successfully gotten out from under one of these bad leases???
30 replies
Newbie
Mar 31, 2010
30 posts
13 upvotes
Pickering
Hi there,

Yes...people do get away from bad lease companies all the time. I will send you a few suggestions that have worked for my clients. Hope it helps!

Kimberley
Newbie
May 8, 2012
1 posts
QUÉBEC
But...can u send me some too please? I signed up with the same company
Newbie
Jan 24, 2011
29 posts
10 upvotes
jazzmatazz1 wrote:
May 9th, 2012 8:13 pm
But...can u send me some too please? I signed up with the same company

First off, you cannot get out of the lease. Be very careful about this because you will have issues with your personal credit.
I had the same problem at one point but I was smart about it, I signed up with a new company and BOUGHT the terminal, got my approvals, then cancelled the lease - but I had to fight them.
Jr. Member
User avatar
Aug 15, 2010
167 posts
20 upvotes
Nanaimo
Good point about making sure you have your new processing in place before you cancel. Look over the lease carefully and see if there is anything that lets you break it such as something they said they provided and didn't. Search the Better Business Bureau for complaints against them.

Here are some links them might help for consumer complaints in Canada.
http://www.consumer.ca/1652

Could be worth talking to a lawyer.
Garland Coulson, "Captain Time"
Newbie
Nov 23, 2011
69 posts
12 upvotes
Shoot me a pm and i can give you some options on how to get out of a lease like that.
Josh Pereira
Payfirma Corporation
Newbie
Mar 31, 2010
30 posts
13 upvotes
Pickering
Generally speaking, if you are able to claim unfair or dishonest selling tactics and are able to prove them, then, if the leasing company is reputable, they will distance themselves and allow you to terminate the lease agreement. However, do bear in mind that leases are legal docs and can be binding. I have helped clients get out of leases... however, you must be not easily intimidated and be prepared to go the distance. Usually the lease is done through a third party finance group that is a separate entity from the ISO/MSP. However, there are a few exceptions... for example, Ladco is owned by Elavon .

I would suggest a thorough review of what you signed for and double checking your statements and original contract...and then take it from there. Usually your answers are there. Please do feel free to contact me if I can be of service.
Kimberley
Newbie
Nov 19, 2012
1 posts
CRESTON
Kimberley-Robyn wrote:
Jul 27th, 2011 4:48 pm
Hi there,

Yes...people do get away from bad lease companies all the time. I will send you a few suggestions that have worked for my clients. Hope it helps!

Kimberley
Can you give me some suggestions on getting out of this lease please...
Member
Apr 6, 2010
492 posts
52 upvotes
Toronto
bzizzler wrote:
Jul 18th, 2011 6:11 pm
Hi friends - I got duped in to going with one of these companies promising cheap processing rates. Now i've cancelled with them, but still locked in to a five yr lease with first data for the terminal.
They're telling me I need to pay out almost 3000 to get out of the lease...and moneris won't use their terminal so I don't know who I will even end up using for processing.
If you cancelled for a valid reason - rate increase, charges outside those specified in the contract, etc - you do not have to pay the lease.
If you cancelled because you got a cheaper rate for example, you still have to pay. Not the 3,000 (if FirstData was your processor as well that will include the cancellation fees) - just what is left over in your payments. Don't forget the end of lease conditions.
With FirstData a VX810 goes for some $30 a month or so. At 60 months that would be $1800 plus end-of-lease but less what you paid already. If you don't want to spend the end-of-lease cost you can just send the terminal back.

Kimberley is right - a processing contract and/or a lease are legal documents, you need valid reasons to cancel them.
Cristian.
Newbie
Feb 24, 2013
2 posts
Mississauga
hi

isinedup with first data last month.but i cancelled after one week with out activating the machine.i send the cancellatiojn request by fax.but i did not recieve any mail from them.the rep told me i have 90 days trial but when i called first data.they said i have 30 days only.i found some suspicious activity in my business account.rep lied me that i can just cancel the account with out paying because i did not buy or leased the equipment.i asked customer service they said i purchased the machine.i have no clue about it.any idea how to get out of it?where can i return the machine.pls help
Member
Apr 6, 2010
492 posts
52 upvotes
Toronto
sherin0621 wrote:
Feb 25th, 2013 9:12 pm
isinedup with first data last month.but i cancelled after one week with out activating the machine.i send the cancellatiojn request by fax.but i did not recieve any mail from them.the rep told me i have 90 days trial but when i called first data.they said i have 30 days only.i found some suspicious activity in my business account.rep lied me that i can just cancel the account with out paying because i did not buy or leased the equipment.i asked customer service they said i purchased the machine.i have no clue about it.any idea how to get out of it?where can i return the machine.pls help
Look at your contract. There should be a page regarding the lease or purchase of the terminal.
MAKE SURE you check your bank account, if it was a purchase it would be something over $1000 or so, depending on the terminal.

Unless it's a rental, your rep lied to you - it's either lease or purchase. I don't think FD offers rentals.

By law, you have 10 days from the signing of the contract to cancel without any reason. I hope you have a record of the name of the person who told you you have 30 days, and the date (time too if possible).

VERY IMPORTANT: take the fax you sent and the confirmation report to your bank and make sure they stop whatever withdrawals are taking place. Get them to refund anything they have taken.

Contact FD - call and then in writing (fax is ok) - and tell them what happens, ask for information about terminal return.

Send me a private note if you have any questions.

Hope this helps,
Cristian.
Newbie
Mar 31, 2010
30 posts
13 upvotes
Pickering
The most important task is to be vigilant and aware of what your real rates and fees are supposed to be. If you start discovering charges that were never mentioned on your contract, if you find unfair terms in your contract that were not clearly explained to you , then you have legal grounds to challenge and potentially void the contract. Remember that unscrupulous processing companies rely on the fact that most business owners are busy running their stores, and don't have time or energy to learn legalese. These companies also bank on the reality that many folks become intimidated at the idea of fighting a big company payment processor.
If you are being bullied and ripped off by your provider send me a private message. Perhaps I can help.
Deal Expert
User avatar
Mar 18, 2005
16681 posts
1065 upvotes
Niagara Falls
Yeah, FirstDate is a horrible company. I was able to get out of their merchant agreement because they tried to tack on some bogus fee that was not part of my initial contract, but I am still stuck with the terminal. Personally, I've just moved onto Square, as for me it's significantly cheaper over the year even though Square's per charge rate is higher.

I think I have 1 more year left on the terminal lease. It's rather disturbing how much they charge to break the contract, considering I've been with them for 4 years and they still want a grand to get out of it early. Lessoned learned however.
Jr. Member
Feb 18, 2014
158 posts
27 upvotes
Kimberley-Robyn wrote:
Jan 7th, 2016 9:54 pm
The most important task is to be vigilant and aware of what your real rates and fees are supposed to be. If you start discovering charges that were never mentioned on your contract, if you find unfair terms in your contract that were not clearly explained to you , then you have legal grounds to challenge and potentially void the contract. Remember that unscrupulous processing companies rely on the fact that most business owners are busy running their stores, and don't have time or energy to learn legalese. These companies also bank on the reality that many folks become intimidated at the idea of fighting a big company payment processor.
If you are being bullied and ripped off by your provider send me a private message. Perhaps I can help.
Unfair terms that were not verbally explained is not grounds to get out of a contract. Onus is on the person signing the contract to know what they are getting into. By no means does this excuse the provider from unscrupulous business practices, but merchants need to be aware.

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