MerchantRateCheck
Negotiable
$0 (modern processors) to $1,500+ (full liquidated damages)

Early Termination Fee (ETF)

A fee charged for closing a merchant account before the contract ends. Often $295–$500 flat, sometimes the entire remaining contract value (Toast, Lightspeed, some Clover ISOs).

Early termination fees are the single biggest reason merchants stay stuck with bad processors. ETFs come in two flavors: flat ($295–$500, common on legacy ISO accounts) and liquidated damages (the remaining months of the contract, common on Toast and some Clover ISOs).

What to look for in your contract: search for 'early termination', 'cancellation fee', 'liquidated damages', or 'ETF'. The ETF is usually buried in the merchant agreement — not the rate sheet. Always get this in writing before signing.

How to avoid one: choose month-to-month processors (Stripe, Square, Helcim, Stax, Dharma, National Processing). Their pricing is competitive and there's zero penalty for leaving.

Example calculation

A merchant on a 3-year Toast contract at $89/mo software fee, 18 months in, who cancels: liquidated damages = 18 remaining months × $89 = $1,602 ETF. That's separate from any hardware lease still owed.

Who charges it
Most legacy ISOs, Clover resellers, Toast, Lightspeed, some bank programs.
Typical range
$0 (modern processors) to $1,500+ (full liquidated damages)

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Industries most affected

RestaurantRetail StoreAuto Repair Shop

Frequently asked questions