Settlement Redirection Clause Samples
The Settlement Redirection clause allows for payments or settlements that would normally be directed to one party to instead be redirected to another designated party. In practice, this clause specifies the conditions and procedures under which such redirection can occur, such as upon written instruction or in the event of a change in circumstances. Its core function is to provide flexibility in the handling of settlement funds, ensuring that payments can be efficiently rerouted to the appropriate recipient and reducing administrative complications or delays.
Settlement Redirection. Merchant acknowledges that any payment made, or credit given to Merchant as settlement for a Transaction is an advance of funds, until the Transaction is not capable of being subject in whole or in part to a Chargeback or other adjustment. Processor and Bank may monitor Merchant’s transactions and may, at their sole discretion, refuse to process, Chargeback, reverse, or redirect the proceeds of any transaction which Processor or Bank deems or suspects to be fraudulent, suspicious, unusual, or unauthorized, that varies from transactions typical of Merchant’s business or those set forth on the Merchant Application, that is submitted through unauthorized payment methods, or which Bank or Processor otherwise determine, in their sole discretion, to be in violation of this Agreement, the Rules, Laws, or likely to be a Chargeback. Redirected transactions will be deposited into a Reserve Account and held in such Reserve Account until, at Processor’s sole discretion: (a) an investigation related to such transactions has been completed and Processor and Bank deem the maintenance of such amount is unnecessary to secure the obligations of Merchant with respect to such transactions; or (b) such amount is released in accordance with Section 6.4. Processor and Bank shall have no liability to Merchant or any third party for the redirection of any funds otherwise due to Merchant into a Reserve Account.