Material Breach of Service via Systemic Technical Failures: Your payment gateway has consistently malfunctioned, resulting in a frequent error pattern where client transactions are flagged as "could not process" or declined, despite the funds being successfully drawn from the client's account. This system failure occurred approximately 5 to 20 times per month over a 12-month period, creating severe accounting disruptions and damaging our client relationships.
Improper Implementation of Chargeback Fees: When your customer service department intervened to correct your gateway's duplicate transactions by refunding our clients, your system penalized our business by assessing chargeback fees. Your company charged us penalty fees for correcting errors caused entirely by your own software glitches.
Unilateral and Unannounced Rate Increases: Your company increased our credit card processing rates without providing prior written notification, which directly violates contract disclosure requirements and standard industry compliance.
We have spent the last six months attempting to resolve these issues in good faith. Because your company has failed to maintain a functional, secure processing environment and has unilaterally altered billing terms, you are in material breach of contract. Consequently, the Merchant Services Agreement is null and void. We explicitly reject and deny any Early Termination Fees (ETF), cancellation fees, or liquidated damages. Your attempt to withhold funds or demand an exit fee under these circumstances constitutes predatory extraction.