The short answer
When a business leaves a card processor, the processor’s own agreement decides what happens. This page sets out what three US agreements say: Stripe, Square and Helcim.
Four things matter when leaving:
- How to end it, and whether notice is needed.
- Fees for leaving, if any.
- Money still in the account.
- Money held back after you go, called a reserve: funds a processor keeps to cover refunds and chargebacks.
A chargeback is a sale reversed after the customer disputes it with their bank.
How each one ends
| Provider (US) | How to end it, per its terms |
|---|---|
| Stripe | “User may terminate this Agreement at any time by closing its Stripe Account via the Stripe Dashboard.” |
| Square | “You can also choose to deactivate your account at any time.” Square’s help page says this is done from Square Dashboard. |
| Helcim | “You may terminate your Account at any time by calling Helcim’s Support team during Business Hours and following the instructions provided.” |
Each provider can also end the relationship. Stripe “may terminate this Agreement or close User’s Stripe Account at any time.” Square says it “can terminate or deny you access to our services at any time, for any reason.” Helcim “reserves the right to terminate your Account for any reason, without notice, at any time.”
Fees for leaving
None of the pages we read from these three providers lists an early termination fee.
- Square’s US pricing page says: “No hidden fees or locked-in contracts. Cancel or switch anytime.” Its help page says there is “no cost to keep your account open if you’re a seasonal business, using our subscription products, or switching to a new processor.”
- Square also says subscriptions linked to the account must be cancelled separately.
- Helcim’s US terms say that on termination, “you will not be entitled to any refunds of any fees, pro rata or otherwise”.
Other processors can charge to leave. That is set in each contract, and this page does not cover them. For how these fees work in Canada, see Early Termination Fees. Equipment leases from other companies are also not covered here; see Equipment Leases for the Canadian sources.
Money still in the account
Stripe. “Stripe accounts cannot be closed with an existing balance.” Stripe says “positive balances must first be paid out to the bank account on file” and “negative balances must first be brought to zero”. Scheduled payouts “will still occur”.
Square. “Closure of your Square Account will cancel any pending transactions. Any funds that we are holding in custody for you at the time of closure, less any applicable Fees, will be paid out according to your payout schedule”. Square also says that once deactivated, an account cannot be reactivated, and that payment history is no longer available. It suggests exporting payment history, the Item Library and the Customer Directory first.
Helcim. On termination, the business agrees to “complete all pending Transactions”, “stop accepting new Transactions” and “remove all Helcim or payment network logos from your website”.
Money held back after you leave
| Provider (US) | Holds and reserves after leaving, per its terms |
|---|---|
| Stripe | Defines a reserve as “collateral funds which Stripe holds and controls to satisfy any liabilities or potential liabilities”. Its support page says closing “doesn’t release the owner from any liability related to the account balance.” |
| Square | “If an investigation is pending at the time you close your Square Account, we may hold your funds”. If you are later found entitled to them, “we will release those funds to you.” |
| Helcim | May require “an additional reserve” after termination, kept “for a minimum of six (6) months from the termination date” or until Helcim decides release is prudent. The balance left after that “will be paid to you.” |
Refunds and chargebacks after you leave
Stripe says: “Once you close your Stripe account, you’ll no longer be able to process any refunds”. It suggests keeping the account open until refunds and disputes are resolved.
Square’s payment terms say termination “does not relieve you of obligations to pay Fees or costs accrued prior to the termination, Chargebacks, and any other amounts owed”. The terms list the chargeback and reserve sections among those that “survive termination”.
More on chargebacks: Chargebacks.
When the processor ends it
Helcim’s US terms list reasons it may end an account, including “Chargebacks in excess of Association monitoring guidelines”, “Non-payment of any amounts owing to us”, and appearing “on the Association Terminated Merchant File; or any other merchant watch list”.
Square’s terms say it will “take reasonable steps to notify you of termination” by email or at the next sign-in. Stripe says it “will notify User in accordance with Law.”
What this page does not cover
- Contracts from processors other than these three, including any early termination fees.
- Third-party equipment leases.
- State laws on contracts.
This page sets out what the agreements say. It is not legal advice.
Where to go from here
Before switching, last month’s statement shows what the current processor charges. See Reading a US Merchant Statement and Square (United States). For the Canadian version of this page, see How to Switch Processors in Canada. Want a partner to review your statement? We will put you in touch. Start the free statement review.