Terms & Conditions

Your Terms and Conditions document is a B2B service contract outlining the rights, obligations, and liabilities between your payment gateway and the merchant.

A. Core Definitions and Scope

• Services: Detailed description of the services provided (e.g., transaction processing, authentication, fraud screening, settlement, reporting, API access).

• Merchant: The business entity agreeing to the terms.

• Cardholder: The end-customer making a payment through the Merchant’s platform.

• Prohibited Activities: A list of business types or activities (e.g., illegal services, gambling, high-risk, unlicensed services) that are strictly forbidden from using your gateway.

B. Merchant Obligations

• Compliance: Merchant must maintain compliance with all applicable laws in Pakistan and the rules set by Card Organizations (Visa, Mastercard).

• PCI DSS: Merchant must ensure that their systems and environment where payment data is handled meet the necessary PCI DSS standards, or use only compliant methods (e.g., hosted payment pages) to minimize scope.

• KYC/Documentation: Merchant must provide complete, accurate, and up-to-date business and personal documentation as required for continuous KYC/AML monitoring.

• Display of Policies: Merchant must display its own clear and fair Return, Refund, and Privacy Policies to its customers.

• Security: Merchant is solely responsible for the security of its website, systems, and all passwords/API keys associated with its gateway account.

C. Financial & Settlement Terms

• Fees and Charges: Clear schedule of fees (e.g., per-transaction fee, monthly fee, setup fee) and the process for fee deduction (usually automatically from settlement funds).

• Settlement: Details on the settlement cycle (e.g., T+2 days) and the designated bank account for receiving funds.

• Chargebacks:

  • Chargeback Fee: A fixed fee charged to the Merchant for every chargeback initiated, regardless of the outcome.

  • Liability: The Merchant is fully liable for all financial losses resulting from unauthorized transactions, chargebacks, and fines levied by card networks.

  • Withholding Funds: Your right to withhold or offset settlement funds to cover potential or existing chargeback liabilities.

D. Security, Liability, and Indemnity

• Service Availability: Specification of the agreed-upon Service Level Agreement (SLA) for gateway uptime (e.g., 99.5%) and the process for reporting downtime.

• Limitation of Liability: A critical clause stating that your liability is limited (e.g., to the fees paid by the Merchant in the preceding month) and excluding liability for indirect, incidental, or consequential damages (like lost profits or data loss).

• Indemnity: Merchant agrees to indemnify and hold your company harmless against all claims, fines, or losses arising from the Merchant’s breach of the terms, negligence, fraud, or misuse of the services.

• Suspension and Termination: Your right to immediately suspend or terminate the Merchant’s account (without prior notice) in cases of:

  • Breach of terms.

  • High volume of fraudulent transactions/chargebacks.

  • Violation of AML/KYC requirements.

  • Bankruptcy or insolvency.

E. General Legal Provisions

• Governing Law: The agreement shall be governed by the laws of Pakistan.

• Dispute Resolution: The process for resolving disputes (e.g., initial negotiation, followed by binding arbitration or exclusive jurisdiction of courts in [City, Pakistan]).

• Amendments: Your right to unilaterally update or modify the Terms with a clear notice period to the Merchant.