Common use of Merchant Reserve Account Clause in Contracts

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 such later time as MAS determines that the release of the funds to Merchant is prudent, in the best interest of MAS, and commercially reasonable, and that Xxxxxxxx’s account with MAS is fully resolved. Upon expiration of this 180-day period, any balance remaining in the Merchant Reserve Account may be released to Merchant. MAS will inform Xxxxxxxx in writing of any charges debited to the Merchant Reserve Account during this 180-day

Merchant Reserve Account. MAS may require Merchant to fund a reserve account at FIRSTBANK 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 such later time as MAS determines that the release of the funds to Merchant is prudent, in the best interest of MAS, and commercially reasonable, and that XxxxxxxxMerchant’s account with MAS is fully resolved. Upon expiration of this 180-day period, any balance remaining in the Merchant Reserve Account may be released to Merchant. MAS will inform Xxxxxxxx Merchant in writing of any charges debited to the Merchant Reserve Account during this 180-dayday period. If, however, the Merchant Reserve Account is insufficient to cover Merchant’s indebtedness to MAS, then MAS shall submit a written demand for payment to Merchant, which Merchant shall remit the entire payment within 3 business days. Any dispute with regard to the Merchant Reserve Account shall be between MAS and Merchant and each waives any claims against FIRSTBANK for loss or damage arising out of any charges or debits to the Merchant Reserve Account.

Merchant Reserve Account. MAS Bank may require Merchant to fund a reserve account at Bank (“Merchant Reserve Account”) for all future indebtedness of Merchant to MAS Bank that may arise out of or relate to the obligations of Merchant under this Agreement (“Merchant Reserve Account”)Agreement, 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 Merchant’s Application is in any way inaccurate or becomes inaccurate subsequent to MASBank’s approval thereof; (f) Merchant changes its type of business approvaloftheapplication;(f)Merchantchangesitstypeofbusiness stated in the Addendum Application without MASBank’s prior written approval, which may be withheld for any reason; (g) fraud or Merchant processes an unauthorized charge, or other action that violates MASBank’s applicable risk management standards or is likely to cause a loss; (h) Merchant has Chargebacks exceeding 11.5% 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 accessBank, withdraw or transfer funds from the Merchant Reserve Account. Furthermore, Merchant authorizes MAS to monitor from time to time time, may monitor the Merchant Merchant’s Reserve Account to determine its adequacy adequacy, and MAS Bank may require Merchant to deposit additional amounts based upon on the Merchant’s processing history and/or and anticipated risk of loss to MAS the Bank into the Reserve Account, the additional amounts of which shall be in MASBank’s sole discretion. Further, MAS Bank may fund the Merchant Merchant’s Reserve Account by deduction from payments due to the Merchant or a charge against the Merchant’s Operating Account or against any of the Merchant’s accounts at the Bank. The initial amount of the Merchant Reserve Account is provided for in the AddendumApplication. 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 such later time as MAS the Bank determines that the release of the funds to Merchant is prudent, in the best interest of MASBank, and commercially reasonablecommerciallyreasonable, and that Xxxxxxxx’s account with MAS Bank is fully resolved. Upon expiration of this 180-day period, any balance remaining in the Merchant Reserve Account may will be released paid to Merchant. MAS Xxxx will inform Xxxxxxxx the Merchant in writing of any charges debited to the Merchant Reserve Account during this 180-dayday period. If, however, the Merchant Reserve Account is insufficient to cover Merchant’s indebtedness to Bank, then Bank shall submit a written demand for payment to Merchant, which Merchant shall remit the entire payment within 3 business days. This Paragraph 6 shall survive this Agreement’s termination until Bank terminates the Merchant Reserve Account.