Can I get out of a contract (without paying penalties to cancel) if I find out the company's representive has been arrested for prostitution?

This is actually a very challenging question without seeing the contract itself and without knowing more details. As I understand your concern, your credit card processing company hired a representative who has prior convictions for prostitution. You actually met her and she was the representative that you worked with to initiate business with the credit card processing company. Without reviewing the contract, it would be very difficult to know what your obligations are under the contract, whether you have the right to cancel for no cause or only for cause and whether her prior guilty plea would be adequate cause.  Typically, there are terms and conditions in contracts of this kind that establish your obligations. These terms are very one-sided and written in favor of the party who drafted them. Termination clauses, including those arising out of breach of contract can usually be found toward the end of the agreement. It is unlikely that there is a morality clause in the agreement that would give you a right to terminate simply because she has been arrested for prostitution.  You may want to read the agreement and determine what it takes and costs to terminate, especially before activation. You may also want to consider being forthright about your reason and concerns. You may learn that her role does not enable her to see private information and she is simply in sales. This also is not a matter for typical customer service. You will likely need to escalate to higher management if you want to terminate the agreement without penalty. Perhaps it would be worthwhile going directly to the woman involved and letting her know that you have found this and that you are not prepared to work with her and her company due to concerns you have about the safety of information. She may be able to agree to let you out of the contract in amicable way.    Finally, be cautious and what you say on this topic to other people, whether it be her employer, co-workers or other people you or she may know. Make sure that you do your research and are correct in any statement about this woman. Defemination of character is a serious offense.