Common use of Credit Memoranda Clause in Contracts

Credit Memoranda. You will issue a Credit Receipt instead of making a cash advance or providing a check, disbursement or refund on any Card transaction. Processor and/or Bank will debit the Merchant Account for the total face amount of each credit memorandum submitted to Processor. You will not submit to Processor or Bank a credit relating to any Sales Draft not originally submitted to Processor and Bank, nor will You submit a credit that exceeds the amount of the original Sales Draft. You cannot submit or process a credit transaction that does not correspond to a previous transaction on the original Sales Draft. Full refunds must be made for the exact dollar amount of the original transaction, including tax, handling charges, etc. You are solely responsible for paying all refunds submitted to Processor on your Merchant Account. Processor assumes no responsibility, duty or obligation for verifying any credits or refunds. Do not process a credit transaction after a Chargeback is received. Credits issued after a Chargeback has been received may not be recoverable and You are financially responsible for both the credit and the Chargeback in that situation. YOU ARE SOLELY RESPONSIBLE FOR SECURING YOUR TERMINALS AND TO INSTITUTE APPROPRIATE CONTROLS TO PREVENT EMPLOYEES AND OTHERS FROM SUBMITTING CREDITS THAT DO NOT REFLECT BONA FIDE RETURNS OR REIMBURSEMENTS FOR TRANSACTIONS. You will, within the time period specified by the Law or Operating Regulations, whichever is shorter, provide Processor with a credit memorandum or credit statement for every return of goods or forgiveness of debt for services that was the subject of a Card transaction.

Credit Memoranda. You will issue a Credit Receipt instead of making a cash advance or providing a check, disbursement or refund on any Card transaction. Processor and/or Bank will debit the Merchant Account for the total face amount of each credit memorandum submitted to Processor. You will not submit to Processor or Bank a credit relating to any Sales Draft not originally submitted to Processor and Bank, nor will You submit a credit that exceeds the amount of the original Sales Draft. You cannot submit or process a credit transaction that does not correspond correspondence to a previous transaction on the original Sales Draft. Full refunds must be made for the exact dollar amount of the original transaction, including tax, handling charges, etc. You are solely responsible for paying all refunds submitted to Processor on your Merchant Accountmerchant account. Processor assumes no responsibility, duty or obligation for verifying any credits or refunds. Do not process a credit transaction after a Chargeback is received. Credits issued after a Chargeback has been received may not be recoverable and You are financially responsible for both the credit and the Chargeback in that situation. YOU ARE SOLELY RESPONSIBLE FOR SECURING YOUR TERMINALS AND TO INSTITUTE APPROPRIATE CONTROLS TO PREVENT EMPLOYEES AND OTHERS FROM SUBMITTING CREDITS THAT DO NOT REFLECT BONA FIDE RETURNS OR REIMBURSEMENTS FOR TRANSACTIONS. You will, within the time period specified by the Law or the Operating Regulations, whichever is shorter, provide Processor with a credit memorandum or credit statement for every return of goods or forgiveness of debt for services that was the subject of a Card transaction. ii. Revocation of Credit. Processor or Bank may refuse to accept any Sales Draft or revoke the prior acceptance of a Sales Draft in at least the following circumstances: (a) the transaction giving rise to the Sales Draft was not made in compliance with all terms and conditions of this Agreement, the Rules, the Laws, and/or the Operating Regulations; (b) the Bank or Processor receives notification that the Cardholder disputes his or her liability to Merchant for any reason including, but not limited to, those Chargeback rights enumerated in the Operating Regulations; or (c) the transaction giving rise to the Sales Draft was not directly between You and the Cardholder. You acknowledge and agree that You are not entitled to retain, and will pay Bank and Processor, as appropriate, any amount previously credited to You for a Sales Draft not accepted by Processor or, where provisionally accepted, that is subsequently revoked.