WalletPlug Chargeback and Dispute Policy

Effective Date: March 1, 2024

This Chargeback and Dispute Policy ("Policy") governs all chargebacks, disputes, retrieval requests, reversals, cardholder claims, and related matters for transactions processed through the WalletPlug platform.

This Policy forms an integral part of the WalletPlug Terms of Service and Merchant Services Agreement. By using WalletPlug, every Merchant agrees to be legally bound by this Policy.

1. Purpose

This Policy is designed to:

• Protect WalletPlug, its banking partners, and payment networks from financial and regulatory risk.

• Define the Merchant's responsibilities for chargebacks and disputes.

• Establish procedures for dispute handling.

• Ensure compliance with card network, banking, and regulatory requirements.

WalletPlug reserves the sole and absolute right to interpret, enforce, modify, or apply this Policy.

2. Definitions

Chargeback means any transaction reversed by a card issuer or payment network following a cardholder dispute.

Dispute means any claim, inquiry, retrieval request, fraud claim, authorization claim, consumer complaint, or cardholder challenge relating to a transaction.

Reversal means any returned, cancelled, reversed, or failed transaction before or after settlement.

3. Merchant Responsibility

The Merchant bears full financial responsibility for all transactions processed through WalletPlug.

The Merchant is solely responsible for:

• All chargebacks.

• All disputes.

• All reversals.

• Fraudulent transactions.

• Unauthorized transactions.

• Customer complaints.

• Card network fines.

• Bank penalties.

• Investigation costs.

• Legal costs arising from the Merchant's business.

WalletPlug is not responsible for losses resulting from customer disputes, fraud claims, unauthorized transactions, friendly fraud, or issuer decisions.

4. Chargeback Fee

A non-refundable Chargeback Processing Fee of USD 75.00 will be charged for every chargeback received, regardless of:

• whether the Merchant wins or loses the dispute;

• whether the transaction is later reversed;

• whether the customer later withdraws the dispute;

• whether funds are recovered.

The USD 75.00 fee covers administrative processing, banking costs, investigation, compliance, and card network handling fees.

The Merchant expressly authorizes WalletPlug to deduct the USD 75.00 chargeback fee, together with the disputed transaction amount and any related costs, from:

• available account balance;

• pending settlements;

• reserve funds;

• future payouts;

• any payment method on file;

• or any funds otherwise payable to the Merchant.

If sufficient funds are unavailable, the Merchant must immediately pay the outstanding balance upon demand.

Failure to pay outstanding chargeback fees may result in suspension, termination, collections, legal action, and reporting to banking or payment partners.

5. Dispute Notification

WalletPlug may notify the Merchant when a dispute is received.

Failure by WalletPlug to notify the Merchant does not relieve the Merchant of liability.

The Merchant is responsible for monitoring their account and responding promptly.

6. Merchant Response Requirements

Merchants must submit complete and accurate supporting documentation within the deadline specified by WalletPlug or the applicable payment network.

Failure to provide sufficient evidence before the deadline may result in:

• automatic forfeiture of the dispute;

• permanent loss of disputed funds;

• additional monitoring;

• increased reserves.

Late submissions will not be accepted unless expressly approved by WalletPlug.

7. WalletPlug Rights

WalletPlug has sole discretion to:

• represent or decline to represent any dispute;

• determine whether evidence is sufficient;

• submit or withhold documentation;

• accept or reject settlement opportunities;

• recover funds;

• write off disputes;

• suspend processing during investigations.

WalletPlug does not guarantee that any dispute will be won.

8. Chargeback Monitoring

WalletPlug continuously monitors Merchant chargeback ratios and risk profiles.

Merchants with elevated dispute levels may be subject to one or more of the following actions without prior notice:

• increased reserve requirements;

• delayed settlements;

• payout holds;

• rolling reserves;

• transaction limits;

• processing restrictions;

• account review;

• temporary suspension;

• permanent account termination.

WalletPlug may determine acceptable chargeback thresholds at its sole discretion and may modify such thresholds at any time.

9. Fraud, Abuse, and High-Risk Activity

Where WalletPlug reasonably believes that fraud, abuse, money laundering, prohibited activity, excessive disputes, or other financial risk exists, WalletPlug may immediately:

• reject transactions;

• delay settlements;

• freeze funds;

• place reserves;

• suspend payouts;

• terminate Merchant services;

• report activity to acquiring banks, payment processors, card networks, regulators, or law enforcement authorities where legally permitted.

WalletPlug's decisions regarding risk management are final.

10. Non-Refundable Fees

The following fees are strictly non-refundable under all circumstances:

• processing fees;

• gateway fees;

• fixed transaction fees;

• monthly fees;

• reserve administration fees;

• Chargeback Processing Fees (USD 75.00 each);

• investigation costs;

• compliance costs.

These fees remain payable regardless of the outcome of any dispute.

11. Negative Balances

If a Merchant account becomes negative for any reason, including chargebacks, disputes, reversals, refunds, fines, or fees, the Merchant must immediately repay the outstanding amount.

WalletPlug may recover unpaid amounts through any lawful means, including:

• deductions from future settlements;

• reserve funds;

• payment methods on file;

• debt collection agencies;

• legal proceedings.

The Merchant remains liable after account closure until all obligations are fully satisfied.

12. Refunds

Issuing a refund does not prevent or eliminate a chargeback.

If a customer files a chargeback after receiving a refund, the Merchant remains fully responsible for:

• the chargeback amount;

• the USD 75.00 Chargeback Processing Fee;

• all related losses and costs.

13. No Liability

WalletPlug is a payment technology platform and is not responsible for:

• customer dissatisfaction;

• product quality;

• service quality;

• delivery issues;

• fraud committed by customers;

• issuer decisions;

• bank decisions;

• card network rulings.

The Merchant assumes all commercial risk associated with its business.

14. Final Decisions

All decisions made by WalletPlug concerning chargebacks, disputes, reserves, risk controls, account restrictions, and related matters are final, except where prohibited by applicable law or payment network rules.

15. Policy Updates

WalletPlug may modify this Policy at any time without prior notice.

Continued use of the WalletPlug platform after any amendment constitutes acceptance of the revised Policy.

16. Acceptance

By creating or using a WalletPlug Merchant Account, the Merchant acknowledges that they have read, understood, and agreed to this Chargeback and Dispute Policy.

The Merchant further acknowledges and agrees that:

• every chargeback will incur a mandatory, non-refundable USD 75.00 Chargeback Processing Fee;

• the Merchant is fully liable for all chargebacks, disputes, reversals, fines, penalties, and related losses;

• WalletPlug may deduct all amounts owed from any balances, reserves, settlements, or future payouts without additional authorization.