Merchant Reserve Account. MAS may require Merchant to fund a reserve account for all future indebtedness of Merchant to MAS that may arise out of or relate to the obligations of Merchant under this Agreement (“Merchant Reserve Account”), including, but not limited to, Chargebacks and fees. Specific examples include, but are not limited to: (a) Merchant engages in any charge processing that creates an overcharge to a Cardholder by duplicating charges; (b) any activity designed by Merchant to circumvent a “call center” message when attempting to process a transaction; (c) any equipment cancellation fees; (d) Merchant breaches this Agreement, violates any representation, covenant or warranty herein, violates any applicable Card Association rule or applicable law; (e) the Addendum is in any way inaccurate or becomes inaccurate subsequent to MAS’s approval thereof; (f) Merchant changes its type of business stated in the Addendum without MAS’s prior written approval, which may be withheld for any reason; (g) fraud or Merchant processes an unauthorized charge, or other action that violates MAS’s applicable risk management standards or is likely to cause a loss; (h) Merchant has Chargebacks exceeding 1% of the total number of transactions completed by Merchant in any 30 calendar day period or shorter time period based on Merchant’s processing history; (i) excessive numbers of requests from consumers or issuing banks to retrieve documentation; (j) Merchant’s financial stability is in question or Merchant ceases doing business; (k) Merchant terminates this Agreement or (l) and any outstanding charges, losses or amounts for which Merchant is liable under this Agreement. Merchant shall have no right or ability to access, withdraw or transfer funds from the Merchant Reserve Account. Furthermore, Merchant authorizes MAS to monitor from time to time the Merchant Reserve Account to determine its adequacy and MAS may require Merchant to deposit additional amounts based upon Merchant’s processing history and/or anticipated risk of loss to MAS into the Reserve Account, the additional amounts of which shall be in MAS’s sole discretion. Further, MAS may fund the Merchant Reserve Account by deduction from payments due Merchant. The initial amount of the Merchant Reserve Account is provided for in the Addendum. The Merchant Reserve Account will be maintained for a minimum of 180 days after the later of the termination date of this Agreement or the date on which the last Chargeback is received or until su...
Merchant Reserve Account. EVERTEC may require, as a term of each Merchant Agreement, that a Merchant fund a Merchant Reserve Account. The parties agree that all right, title and interest with respect to the Merchant Reserve Account shall be owned by EVERTEC, subject to such rights relative to repayment of certain amounts held in the Merchant Reserve Account as are granted, if any, pursuant to the terms of the relevant Merchant Agreement, and subject to BPPR’s right to indemnity and under the terms of each such Merchant Agreement. For the avoidance of doubt, the parties hereby agree that EVERTEC and, if allowed pursuant to the terms of any Merchant Agreement, BPPR shall have full access to any Merchant Reserve Account, including the ability to withdraw funds therefrom.
Merchant Reserve Account. The Company will also retain the right to establish and fund an account (the “Merchant Reserve Account”) at WFB for retaining collateral withheld from Merchants’ sales transactions at all times during the terms of this Agreement and for up to six (6) months following any termination of the Agreement or for such longer period of time as is consistent with WFB’s liability for Transactions in accordance with Payment Company Rules; provided, however, that if the BINs and/or ICA’s are transferred to another financial institution that replaces the services provided by WFB hereunder, and the parties are able to negotiate a mutually acceptable assignment and assumption agreement that sets forth the terms and conditions of such transfer, the applicable Merchant Reserve Accounts will transfer in accordance with such assignment and assumption agreement. The Merchant Reserve Account balance shall be the amount of funds determined by Company that are sufficient to secure the risk associated with such Merchant, based on such Merchant’s risk profile. The applicable percentage for each category of Merchant shall be as stated in the Credit Policy, including adjustments.
Merchant Reserve Account. MAS may, at any time, require Merchant to fund a reserve account for all current and future indebtedness of Merchant to MAS that may arise out of or relate to the obligations of Merchant under this Agreement (the “Merchant Reserve Account”), including, but not limited to, Chargebacks and fees. Specific examples include, but are not limited to: (a) Merchant engages in any charge processing that creates an overcharge to a Cardholder by duplicating charges; (b) any activity designed by Merchant to circumvent a “call center” message when attempting to process a transaction;
Merchant Reserve Account. MAS may, at any time, require Merchant to fund a reserve account for all future indebtedness of Merchant to MAS that may arise out of or relate to the obligations of Merchant under this Agreement (the “Merchant Reserve Account”), including, but not limited to, Chargebacks and fees. Specific examples include, but are not limited to: (a) Merchant engages in any charge processing that creates an overcharge to a Cardholder by duplicating charges; (b) any activity designed by Merchant to circumvent a “call center” message when attempting to process a transaction; (c) any equipment cancellation fees; (d) Merchant breaches this Agreement, violates any representation, covenant or warranty herein, violates any applicable Card Association rule or applicable law; (e) the Addendum is in any way inaccurate or becomes inaccurate subsequent to MAS’ approval thereof; (f) Merchant changes its type of business stated in the Addendum without MAS’ prior written approval, which may be withheld for any reason; (g) fraud or Merchant processes an unauthorized charge, or other action that violates MAS’ applicable risk management standards or is likely to cause a loss; (h)
Merchant Reserve Account. Processor may require Merchant and/or Guarantor to immediately establish a Reserve Account against current and future indebtedness when Processor suspects fraudulent, improper, suspi¬cious, or other out of the ordinary activity and/or in the event Processor deems merchant to be financially insecure, in Processor’s sole discretion. Failure of Merchant and/or Guarantor to fund the reserve can result in immediate cancellation of this Agreement, suit for specific enforcement, and/or damages. Merchant and/or Guarantor agree that Processor may deduct at any time any amount owed Processor pursuant to this Agreement from the Reserve Account, the designated deposit account and other applicable accounts or funds. At the time of such deduction or establishment of a reserve, any amounts shall be deemed the property of Processor. Any reserve will be held by Processor for a period of time as is consistent with Processor’s liability for in¬debtedness purchased from Merchant and/or Guarantor under applicable MASTERCARD, VISA and DISCOVER Card regulations. Processor shall be entitled to charge Merchant and/or Guarantor a per transaction fee for any chargeback, suspected fraudulent transaction or other transactions subject to a reserve account. Processor shall also be entitled to collect and be reimbursed for any out of pocket expenses including the costs of personnel associated with the collection of any chargeback and administration of any transaction subject to fraudulent, improper, suspicious, or out of the ordinary characteristics. In the event Processor suspects fraud or improper, suspicious, or out of the ordinary activ¬ity, and/or in the event Processor deems merchant to be financially insecure, in Processor’s sole discretion, Processor may immediately estimate the amount of the potential losses, fees, and costs and require Merchant and/or Guarantor to establish a reserve account for the full amount of the estimate. Payment of the reserve estimate shall be immediate. In the event Merchant and/or Guarantor fails to establish the reserve account and/or funds available to Processor are inadequate to meet the estimate of Processor, after thirty (30) days Processor may charge interest at the highest lawful rate on any amount requested which results in a chargeback and for which the reserve was inadequate to cover such chargeback. In no event shall Processor charge interest in excess of the applicable maximum lawful rate. In the event that any amount of interest charged s...
Merchant Reserve Account. EVERTEC may require, as a term of each Merchant Agreement, that a Merchant provide funds to a deposit account, which in all cases must be maintained at BPPR, for the deposit of funds received from Merchants pursuant to their respective Merchant Agreements as collateral against losses (i.e., reserves) (the “Merchant Reserve Account”). Funds received from multiple Merchants may be deposited and commingled within a single Merchant Reserve Account solely to the extent permitted by the relevant Merchant Agreements. EVERTEC shall maintain and implement Industry Standard controls with respect to any commingling of funds received from multiple Merchants, including by ensuring that the Merchant Reserve Account is adequately funded and controlling the disbursements of funds to Merchants. The parties agree that all right, title and interest with respect to the Merchant Reserve Account(s) shall be owned by EVERTEC, subject to such rights relative to repayment of certain amounts held in the Merchant Reserve Account(s) as are granted, if any, pursuant to the terms of the relevant Merchant Agreement, and subject to BPPR’s right to indemnity under the terms of each such Merchant Agreement (if any) and Section 2.13. For the avoidance of doubt, the parties hereby agree that EVERTEC shall have full access to any Merchant Reserve Account, including the ability to withdraw funds therefrom. EVERTEC may require that such funds held as collateral by EVERTEC pursuant to their respective Merchant Agreements can be deposited in the Operating Account or Hold Account.
