Payment Processing Services
By using LAAB Investments LLC’s (also “CollectPOS,” “we,” “our,” or “us”) and/or our partners payment processing services and other payment methods that we may offer from time to time, you agree to be bound by both our Terms of Service (“General Terms”) and these additional payment processing terms and conditions (“Payment Terms”).
1. CollectPOS's Role
CollectPOS facilitates the processing of payments Customers receive from Buyers. This means that we collect, analyze and relay information generated in connection with these payments. We leverage a leading, reputable Payment Service Provider (“PSP”) to facilitate payments via the CollectPOS Services. The CollectPOS Services allow Customers to accept payments from any US-issued and most non-US issued credit, debit or prepaid cards, including American Express, Discover, Mastercard, and Visa. Please note that we reserve the right to remove or add cards that we accept at any time without notice.
The CollectPOS Services allow our customers (“Customers” or “you”) to accept payments for goods or services, including Card-based payments initiated with Cards bearing the trademarks of MasterCard International Inc., American Express Travel Related Services Company, Inc., and Visa Inc., among others (collectively, the “Networks”) that are made by our Customer’s customers (“Buyers”). We are not a bank. We do not offer banking services as defined by the United States Department of Treasury. If you are using the CollectPOS Services on behalf of yourself or a business and/or creating an account with CollectPOS (“Account”), you and/or that business accepts and agrees to these terms.
2. Authorization
Customers authorize us to hold, receive, and disburse funds on your behalf. Your authorization permits us to generate a paper draft or an electronic funds transfer to process each payment transaction that you authorize. Your authorizations will remain in full force and effect until your Account is closed or terminated.
3. Third Party Payment Service Provider and Hardware Provider
Users will be required to provide their credit card or bank account details to CollectPOS and the PSP retained by CollectPOS. As a condition of CollectPOS enabling payment processing services through the PSP, you agree to provide CollectPOS accurate and complete information about you and your business, and you authorize CollectPOS to share it and transaction information related to your use of the PSP services.
Customers may be required to register with the PSP, agree to a PSP Account Agreement and the Terms of Use of the PSP and go through a vetting process at the request of the PSP to set up their account with the PSP. By accepting these Terms of Use, each Customer agrees that they have downloaded or printed, and reviewed and agreed to the PSP Agreement. Please note that the Company is not a party to the PSP Agreement and that you, the PSP and any other parties listed in the PSP Agreement are the parties to the PSP Agreement and that the Company has no obligations or liability to any Customer under the PSP Agreement.
Company reserves the right, in its sole discretion (but not the obligation), to (i) place on hold any payments from the Buyer for Services and out of pocket expenses, or (ii) refund, provide credits or arrange for the PSP to do so.
Customers are required to register with our hardware provider Verifone as part of the setup process for using CollectPOS Services. The registration process is necessary to ensure the proper functioning of the CollectPOS Services. Customers should review Verifone’s terms of service and privacy policy during registration to understand their rights and obligations in relation to the use of Verifone’s hardware.
4. Unauthorized or Illegal Use
We may decide not to authorize or settle any transaction that you submit to us if we believe in our sole discretion that the transaction is in violation of these Terms of Use or any other CollectPOS agreement, or that it exposes Customers, other CollectPOS Users, the PSP or CollectPOS to harm. Harm includes fraud and other criminal acts as determined by CollectPOS in our sole discretion. If we reasonably suspect that your Account has been used for an unauthorized, illegal, or criminal purpose, you give us express authorization to share information about you, your Account, and any of your transactions with law enforcement. In addition, you agree that you will only be accepting payments on behalf of your business for the services that your business offers. You cannot accept payments on behalf of any other merchant, individual or entity. Any act to facilitate payment on behalf of another party other than the business and services you represent is in clear violation of Terms of Use and will be deemed to be criminal activity, punishable by law, for which you will be wholly responsible for.
5. Accepted Cards
CollectPOS works with any US-issued and most non-US issued credit, debit, prepaid, or gift cards (“Cards”) with a Visa, MasterCard, or Discover logo. We may remove or add Cards that we accept at any time without prior notice. We will generally only process Cards that receive an authorization from the applicable Network and Card issuer. You understand that there may be times when the Buyer may not be the authorized user of the Card or that such Buyer may otherwise contest the transaction through the Chargeback process (described below). You agree to comply with the Chargeback process and to liability associated with such Chargebacks.
6. Network Rules That Apply
The Networks require that you and CollectPOS comply with all applicable bylaws, rules, and regulations (“Network Rules”). The Networks amend their rules and regulations from time to time. CollectPOS may be required to change these Terms of Use in connection with amendments to the Network Rules. Significant portions of the Network Rules are available to the public at www.visa.com, www.mastercard.com, and www.americanexpress.com.
Network Rules currently prohibit you from dispensing cash on any Card transaction. The Rules also restrict your ability to assess a surcharge or split a single transaction into multiple transactions except in certain limited situations.
Your use of Network logos is governed by the Rules; you agree to familiarize yourself with and to comply with these requirements.
7. Access to Account Funds
Subject to the payout schedule identified below, we will deposit amounts received by us for transactions you submit through the CollectPOS Services (less any applicable Fees) to your verified bank account.
In the event the bank account you link to your Account is incorrect and CollectPOS is not able to debit or credit the bank account, the bank account will be de-linked from your Account.
In the event that you do not have an ACH-enabled bank account linked to your Account, you may request a physical check. Check requests may be subject to a processing fee and an identity verification process. It is your obligation to request a check or otherwise link an ACH-enabled bank account to your Account in order to receive your funds.
Funds for any given transaction will not be deposited until the transaction is deemed complete. Transactions will be deemed complete when we have received or sent the funds and when we or the designated financial institutions have accepted the transaction or funds.
8. Standard Schedule of Payouts
Once you validate your US bank account, and have ten dollars or more in your Account, CollectPOS will automatically initiate a payout to your bank account at the end of every business day when you have more than ten dollars in your account. Payouts to your bank account for payments received before 4pm Pacific Time will usually fund the next business day.
9. Availability of Funds
Should CollectPOS need to conduct an investigation or resolve any pending dispute related to your Account, we may defer payout or restrict access to your funds for the entire time it takes for us to do so. We also may defer payout or restrict access to your funds as necessary to comply with applicable law or court order, or if otherwise requested by law enforcement or governmental entity.
10. Taxes
You are responsible for determining any and all taxes assessed, incurred, or required to be collected, paid, or withheld for any reason in connection your use of our software and the CollectPOS Services (“Taxes”). You also are solely responsible for collecting, withholding, reporting, and remitting correct Taxes to the appropriate tax authority. We are not obligated to, nor will we determine whether Taxes apply, or calculate, collect, report, or remit any Taxes to any tax authority arising from any transaction. CollectPOS specifically disclaims any liability for Taxes.
If in a given calendar year you receive $600 or more in gross payments through the CollectPOS Services or its authorized third-party payment processors, CollectPOS will report annually to the Internal Revenue Service (“IRS”), as required by law, your name, address, Tax Identification Number (such as your Social Security Number (SSN), or Employer Identification Number (EIN)), the total dollar amount of payments you received in the calendar year, and the total dollar amount of payments you received for each month in the calendar year.
11. Customer Care
Each Customer, as a separate entity from CollectPOS, is solely responsible for all customer service issues relating to such Customer’s goods or services, including without limitation, any services performed or offered, pricing, order fulfillment, order or appointment cancellation, returns, refunds and adjustments, rebates, functionality and warranty, and feedback concerning experiences with such Customer, any personnel, their policies or processes. In performing customer service, Customers must present themselves as a separate entity from CollectPOS. As between Customers and CollectPOS, CollectPOS is solely responsible for customer service issues relating to any Account, payment, Card processing, debiting or crediting.
12. Refunds and Returns
By accepting payment Card transactions with CollectPOS, you agree to process returns of, and provide refunds and adjustments for, your goods or services through your Account in accordance with these Terms of Use and Network Rules. Network Rules require that you will (a) maintain a fair return, cancellation or adjustment policy; (b) disclose your return or cancellation policy to Buyers at the time of purchase, (c) not give cash refunds to a Buyer in connection with a Card sale, unless required by law, and (d) not accept cash or any other item of value for preparing a Card sale refund. The amount of the refund/adjustment must include any associated taxes required to be refunded and cannot exceed the amount shown as the total on the original sales data except by the exact amount required to reimburse the Buyer for postage that the Buyer paid to return merchandise. If you accept returns and are making an uneven exchange of merchandise (e.g., the sales price is not the same), you must issue a credit for the total amount of the merchandise being returned and complete a new sale for any new merchandise. Please be aware, if your refund policy prohibits returns or is unsatisfactory to the Buyer, you may still receive a Chargeback relating to such sales.
You can process a refund through your Account up to sixty (60) days from the day you accepted the payment. If your available CollectPOS balance is insufficient to cover the refund, CollectPOS will request your authorization to withdraw up to the requested refund amount from your bank account. CollectPOS will then withdraw the amount you were paid (the sale amount minus the initial transaction fee) from your bank account, and credit it back into your Buyer’s Card. The Fees are also refunded by CollectPOS, so the full purchase amount is always returned to your Buyer. CollectPOS has no obligation to accept any returns of any of your goods or services on your behalf.
13. Liability for Chargebacks and Fraudulent Actions
The amount of a transaction may be reversed or charged back to your Account (a “Chargeback”) if the transaction (a) is disputed, (b) is reversed for any reason by the Network, our processor, or a Buyer or our financial institution, (c) was not authorized or we have any reason to believe that the transaction was not authorized, (d) is allegedly unlawful, suspicious, or in violation of the terms of these Terms of Use.
CollectPOS is not liable for any losses relating to Chargebacks, fraudulent charges, or other actions by any User that are deceptive, fraudulent or otherwise invalid as determined in CollectPOS’s sole discretion (“Fraudulent Actions”). By using the CollectPOS Services, you hereby release CollectPOS from any liability arising from Fraudulent Actions. You will also use best efforts to promptly notify CollectPOS of any Fraudulent Actions which may affect the CollectPOS Services. CollectPOS reserves the right, in its sole discretion, to terminate the account of any User that engages in, or enables any other User to engage in, Fraudulent Actions.
14. CollectPOS Collection Rights for Chargebacks
For any transaction that results in a Chargeback, we may withhold the Chargeback amount in a Reserve. We may debit the amount of any Chargeback and any associated Fees, fines, or penalties listed in the Fee Schedule or assessed by the Association or our processor from your Account (including without limitation any Reserve), any proceeds due to you, your bank account, or other payment instrument registered with us. If you have pending Chargebacks, we may delay payouts from your Account. Further, if we reasonably believe that a Chargeback is likely with respect to any transaction, we may withhold the amount of the potential Chargeback from payments otherwise due to you under these Terms of Use until such time that: (a) a Chargeback is assessed due to a Buyer’s complaint, in which case we will retain the funds; (b) the period of time under applicable law or regulation by which the Buyer may dispute that the transaction has expired; or (c) we determine that a Chargeback on the transaction will not occur. If we are unable to recover funds related to a Chargeback for which you are liable, you will pay us the full amount of the Chargeback immediately upon demand. You agree to pay all costs and expenses, including without limitation attorneys’ fees and other legal expenses, incurred by or on behalf of us in connection with the collection of all Account deficit balances unpaid by you. In the event of a Chargeback, you are required by law to release the funds to CollectPOS while the dispute investigation is underway. If there is a Chargeback for which CollectPOS is unable to recover and hold funds for while the dispute resolution process is underway, you must make them available immediately upon CollectPOS’s request. Failure to do so is deemed fraudulent, criminal activity and will be punishable by law. In addition, you will also be responsible for all costs and expenses, including without limitation attorney’s fees and other legal expenses, incurred by CollectPOS to reclaim the funds for this Chargeback.
15. Excessive Chargebacks
If we determine that you are incurring an excessive amount of Chargebacks, we may establish controls or conditions governing your Account, including without limitation, by (a) establishing new processing fees, (b) creating a Reserve in an amount reasonably determined by us to cover anticipated Chargebacks and related fees, (c) delaying payouts, and (d) terminating or suspending the CollectPOS Services.
16. Contesting Chargebacks
You agree to assist us when requested, at your expense, to investigate any of your transactions processed through the CollectPOS Services. To that end, you permit us to share information about a Chargeback with the Buyer, the Buyer’s financial institution, and your financial institution in order to investigate and/or mediate a Chargeback. We will request necessary information from you to contest the Chargeback. If the Chargeback is contested successfully, we will release the reserved funds to your Account. If a Chargeback dispute is not resolved in your favor by the Network or issuing bank or you choose not to contest the Chargeback, we may recover the Chargeback amount and any associated fees as described in these Terms of Use. You acknowledge that your failure to assist us in a timely manner when investigating a transaction, including providing necessary documentation within fifteen (15) days of our request, may result in an irreversible Chargeback. We reserve the right, upon notice to you, to charge a fee for mediating and/or investigating Chargeback disputes.
17. CollectPOS Set-off Rights
You grant us a security interest in, as well as a right of setoff against, and hereby assign, convey, deliver, pledge and transfer to us, as security for repayment of any obligations due under these Terms of Use, all of your right, title, and interest in and to all of your accounts with us. However, this grant will not apply to any accounts for which the grant of a security interest would be prohibited by law. You authorize us, without prior notice to you and irrespective of (i) whether we have made demand under these Terms of Use or any other related agreements; and (ii) whether the obligation is contingent, matured or unmatured, to the extent permitted by law, to collect, charge, and/or setoff all sums owing on the indebtedness against any and all such accounts and other obligations, and our option, to administratively freeze or direct any third party bank holding the account to freeze all such accounts to allow us to protect our security interest, collection, charge and setoff rights as provided for in this section.
To the extent permitted by law, we may set off against the balances for any obligation you owe us under these Terms of Use, including without limitation any Chargebacks. All Fees are charged at the time we process a transaction and are deducted first from the transferred or collected funds and thereafter from the balance in your Account. If you owe us an amount that exceeds your balance, we may charge or debit a payment instrument registered in your Account or any connected Account (as well as set off against any balance in any connected Account). Your failure to fully pay amounts that you owe us on demand will be a breach of these Terms of Use. You will be liable for our costs associated with collection in addition to the amount owed, including without limitation attorneys’ fees and expenses, collection agency fees, and any applicable interest.
18. Inactive Accounts
If there is no activity in your Account (including access or payment transactions) for at least two years, consecutively, and you have a balance, we will notify you by sending an email to the email address associated with your Account and give you the option of keeping your Account open and maintaining the balance, withdrawing the balance, or requesting a check. If you do not respond to our notice within thirty days, we will automatically close your Account and escheat your funds in accordance with applicable law, and if permitted, to CollectPOS.
19. Processing Error
We will attempt to rectify processing errors that we discover. If the error resulted in your receipt of less than the amount to which you were entitled, CollectPOS will credit your Account for the difference. If the error results in your receipt of more than the amount to which you were entitled, CollectPOS will debit the extra funds from your Account. CollectPOS will only correct transactions that you process incorrectly if and when you notify us of such an error. Your failure to notify us of a processing error within thirty days of when it first appears on your electronic transaction history will be deemed a waiver of any right to amounts owed to you.
20. Customer’s Loyalty Program
Customers may offer loyalty programs to Buyers. If a Customer offers such a loyalty program, the Customer(and not CollectPOS) is responsible for ensuring that its program and any associated rewards are compliant with applicable federal and state laws, including laws governing prepaid cards and special offers such as rebates and coupons. Customers agree to make available to Buyers any terms and conditions applicable to such Customer’s loyalty program.