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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."
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
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
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
Retail
E-commerce
Hospitality
Professional Services
Healthcare
Travel and Tourism
Food and Beverage
Entertainment
Education
Transportation
Technology
Financial Services
Legal
Finance
Operations
Compliance
Risk Management
Treasury
Merchant Services
Payment Operations
Commercial
Business Development
E-commerce
Retail Operations
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
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