Cancellation Policy
This policy outlines the conditions under which the Service Agreement between the Payment Gateway Solution (“Provider” or “We”) and the Merchant (“Client” or “You”) may be terminated.
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1. Cancellation by the Merchant (Client)
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The Merchant may cancel the Service Agreement under the following conditions:
During the Initial Term: If there is a specified initial contract term (e.g., 12 months), the Merchant must provide written notice of cancellation [e.g., 60 days] prior to the desired termination date. Early termination penalties or fees may apply as defined in the master Service Agreement.
During Renewal Term: If the contract automatically renews, the Merchant must provide written notice of non-renewal [e.g., 30 days] before the end of the current service period.
Cancellation Process: All cancellation requests must be submitted in writing via [e.g., a designated account portal or certified email to legal@yourcompany.com]. Cancellation is effective only upon the Provider’s confirmation.
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2. Termination by the Provider (Payment Gateway)
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The Provider reserves the right to immediately suspend or terminate the Service Agreement without prior notice for any of the following reasons:
Breach of Terms: Any material breach of the Terms & Conditions, including failure to adhere to the security, data privacy, or KYC/AML obligations.
Excessive Risk/Fraud: The Merchant’s transaction activity exposes the Provider or the Card Networks (Visa, Mastercard, etc.) to unacceptable levels of financial risk, including:
Exceeding agreed-upon chargeback thresholds (often set by Card Network rules).
Engaging in suspicious, fraudulent, or illegal activity.
Regulatory Non-Compliance: The Merchant fails to comply with any applicable law, regulation, or directive from the State Bank of Pakistan (SBP) or any financial institution.
Prohibited Activities: Use of the payment gateway for any of the specifically prohibited business types or activities listed in the Service Agreement.
Non-Payment of Fees: Failure to pay outstanding service fees, chargeback fees, or penalties when due.
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3. Effect of Termination and Financial Settlement
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Upon termination or cancellation of the Service Agreement, the following shall apply:
Cessation of Service: The Merchant’s access to the Payment Gateway and API keys will be immediately deactivated.
Final Fees: The Merchant remains liable for all outstanding fees, penalties, and chargebacks accrued up to and following the effective termination date.
Fund Settlement: The Provider will perform a final financial reconciliation. Any remaining funds due to the Merchant will be settled, less any applicable reserves, chargeback liabilities, or outstanding fees.
Reserve Period: The Provider reserves the right to hold a rolling reserve (a portion of the Merchant’s funds) for a specified period (e.g., 90 to 180 days) after termination to cover potential future chargebacks and refunds. Any remaining reserve balance will be disbursed after this period.
Data Retention: We will retain Merchant and transaction data for the period required to comply with our legal, regulatory, and audit obligations (e.g., AML/CFT laws).