Common use of Excessive Chargebacks Clause in Contracts

Excessive Chargebacks. If Teleflora determines, in its sole and absolute discretion, that Merchant is incurring an excessive amount of Chargebacks, in addition to all other remedies to which Teleflora may be entitled under this Agreement or applicable law, Teleflora may take any or all of the following actions without the obligation to comply with the terms and conditions of Section 12.3: (i) review Merchant's internal procedures relating to the acceptance of or different procedures to avoid the incidence of future Chargebacks; (ii) establish a new rate that Teleflora shall charge Merchant to process its Chargebacks, effective immediately upon notice to Merchant; (iii) collect from Merchant an amount reasonably determined by Teleflora to be sufficient to cover anticipated Chargebacks (and related fees, fines, and penalties) for deposit into a Reserve Account; (iv) if Merchant is enrolled in the direct deposit plan, transfer Merchant to a check payment plan; and (v) terminate this Agreement pursuant to Section 7.2.