Deposit of Fraudulent Transactions. Merchant must not knowingly submit and Servicer must not knowingly transmit any transaction that is illegal or that the Merchant should have known was illegal. Additionally a Merchant must not deposit any transaction that is known to be either fraudulent or not authorized by the Cardholder. Merchant shall not accept or deposit any fraudulent Card transaction and may not present for processing or credit, directly or indirectly, a Card transaction which originated with any other merchant or any other source. Merchant shall not deposit Card transactions evidencing sales that were solicited by outbound telemarketing activities. If Merchant deposits any such transactions, Servicers may hold funds and/or demand a Reserve Account. Perpetrators of fraudulent Card transactions will be referred to law enforcement officials and may be subject to Card Association penalties.
Appears in 4 contracts
Samples: Processing Agreement, Processing Agreement, Processing Agreement
