Common use of Chargebacks Clause in Contracts

Chargebacks. 3.1 Provider will charge back to Merchant and Merchant will pay Provider, the amount of each Transaction which Merchant or a Merchant Affiliate submits to Provider for processing that is subject to Chargeback to Provider for any reason under the Operating Rules, or to the extent Provider receives claims regarding the Transactions from Cardholders under other provisions of law. A Chargeback may occur for any one or more of several reasons under the Operating Rules or through operation of consumer protection laws, such as the Truth in Lending Act and the Fair Credit Billing Act. Merchant may not enter into interchange any Transaction that was previously charged back to Merchant Bank and returned to Merchant, irrespective of Cardholder approval.