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Merchant Agreement Template for New Zealand

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Key Requirements PROMPT example:

Merchant Agreement

"I need a standard Merchant Agreement for my small retail business in Auckland, New Zealand, to accept credit card and EFTPOS payments starting from March 2025, with basic payment processing terms and standard security requirements."

Document background
The Merchant Agreement serves as the foundational contract for businesses in New Zealand seeking to accept electronic payments through a payment service provider. This document is essential for establishing the commercial relationship between payment processors and merchants of any size or industry. The agreement comprehensively addresses payment processing services, including card payments, digital wallets, and other electronic payment methods, while ensuring compliance with New Zealand's regulatory requirements. It outlines crucial aspects such as fee structures, settlement terms, security protocols, and dispute resolution procedures. The Merchant Agreement is particularly important in the current digital economy, where electronic payment processing is fundamental to business operations, and must comply with various New Zealand laws including financial services regulations, privacy laws, and consumer protection legislation.
Suggested Sections

1. Parties: Identifies and provides full legal details of the contracting parties - the payment service provider/acquirer and the merchant

2. Background: Sets out the context of the agreement, including the merchant's business nature and desire to accept payments through the provider's services

3. Definitions: Defines key terms used throughout the agreement, including technical payment processing terminology

4. Service Description: Details the payment processing services to be provided, including supported payment methods and currencies

5. Merchant Obligations: Specifies the merchant's responsibilities, including compliance with security standards, processing procedures, and operational requirements

6. Provider Obligations: Outlines the provider's commitments regarding payment processing, settlement, and support services

7. Fees and Charges: Details all fees, charges, and payment terms including transaction fees, monthly fees, and settlement arrangements

8. Security Requirements: Specifies security protocols, PCI DSS compliance requirements, and data protection obligations

9. Chargebacks and Disputes: Procedures for handling customer disputes, chargebacks, and associated responsibilities

10. Term and Termination: Specifies the agreement duration, renewal terms, and termination provisions

11. Liability and Indemnification: Outlines liability limitations, indemnification obligations, and risk allocation between parties

12. Confidentiality: Defines confidential information and obligations regarding its protection

13. General Provisions: Standard legal provisions including governing law, dispute resolution, and amendment procedures

Optional Sections

1. Equipment Lease: Required when the provider supplies payment terminals or other hardware to the merchant

2. Multi-Currency Processing: Include when the merchant requires ability to process transactions in multiple currencies

3. Integration Services: Needed when the provider offers API or software integration services

4. Value-Added Services: Include when additional services like analytics, fraud prevention, or loyalty programs are offered

5. International Operations: Required for merchants operating across multiple jurisdictions

6. High-Risk Activities: Include for merchants in high-risk industries requiring additional compliance measures

7. Data Analytics and Reporting: When advanced reporting and analytics services are provided

8. Business Continuity: Include for critical merchant operations requiring detailed disaster recovery provisions

Suggested Schedules

1. Schedule 1: Fee Schedule: Detailed breakdown of all fees, charges, and commission structures

2. Schedule 2: Service Level Agreement: Specific performance metrics, support levels, and response times

3. Schedule 3: Technical Requirements: Technical specifications for integration, security, and operational requirements

4. Schedule 4: Processing Rules: Detailed operational procedures and requirements for transaction processing

5. Schedule 5: Supported Payment Methods: List of supported payment types and associated terms

6. Appendix A: Definitions: Extended definitions of technical and industry-specific terms

7. Appendix B: Security Standards: Detailed security requirements and compliance standards

8. Appendix C: Territory Coverage: List of covered geographical areas and any territory-specific terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















































Clauses



































Relevant Industries

Retail

E-commerce

Hospitality

Professional Services

Healthcare

Travel and Tourism

Food and Beverage

Entertainment

Education

Transportation

Technology

Financial Services

Relevant Teams

Legal

Finance

Operations

Compliance

Risk Management

Treasury

Merchant Services

Payment Operations

Commercial

Business Development

E-commerce

Retail Operations

Relevant Roles

Chief Financial Officer

Finance Director

Commercial Director

Payment Operations Manager

Compliance Officer

Legal Counsel

Risk Manager

Treasury Manager

Accounts Receivable Manager

Business Development Manager

Operations Director

Merchant Services Manager

E-commerce Manager

Retail Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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