Acceptable Use Violation Policy (AUVP)

Last updated: January 13, 2022

Overview

Payello is committed to ensuring that the platform is used for lawful and permitted activities only. In the event that a Payello user violates the Acceptable Use Policy, Payello is entitled to issue a penalty to the user of a reasonable amount based on damages that have already or could be caused by the user’s activities.
This Acceptable Use Violation Policy (AUVP) has been created with reference to dispute and fraud policies at Payello’s Partners including the card networks Visa, Mastercard and American Express, as well as other financial institutions associated with the Payello services. Payello users agree to follow all terms stated by Payello and the associated payment network agreements.
For the purpose of this policy, a "dispute" means any chargeback or payment reversal initiated by the customer contacting their payment method provider such as a bank, digital wallet operator or other financial institution.

Collecting Penalties

Payello is permitted to debit any associated payment instrument on the user’s account to recover fees, fines and penalties.
Where a user’s payment instrument currency is other than the penalty currency, the appropriate conversion is calculated using Payello’s currency exchange rates.

AUVP Warnings

Payello uses Early Warning notifications to notify users that they are reaching a threshold before penalties are issued and offers free support to help users fix associated issues.

Penalty Schedule

Payello will issue penalties according to the following schedule if a user violates the Acceptable Use Policy.
Penalties under this Schedule are issued in United States Dollars (USD).
Note that it does not matter if disputes are later reversed or won by you - they still count as a violation under this policy.

Liability Shift

When the 3D secure scheme is enabled on your checkout, the merchant (you) is not responsible for disputes where the buyer’s card information was used without their permission (fraudulent charge). Instead, the cardholder’s bank will reimburse them. This is known as Liability Shift.
However, if there is a large amount of fraudulent charges on your merchant account, the payment network operator may decide that Liability Shift is no longer eligible for your account. That means the cardholder’s bank will not cover losses for disputes where their card information was used without permission and that you will be liable for the cost of the fraudulent charges. You must implement appropriate measures to reduce fraud through your store.

Terminated Merchant Files

Card networks, such as Visa and Mastercard, operate databases known as Terminated Merchant Files (TMFs) that contain information about accounts that have been closed by card processors around the world for violations of card brand rules.
Payello reports all appropriate events to the card networks, including excessive chargebacks, fraud, laundering, data compromise, policy violations, non-compliance, and insolvency. Being placed on a TMF can have serious effects, preventing you from opening an account at another payment processor even as a new business.
If you believe you are wrongly listed in a TMF you must contact the processor that reported you, as removal from the TMF is only possible by them.
Records remain on the system for five years before being automatically purged.
Payello generally cannot process card payments for businesses listed on a TMF unless exceptional circumstances apply, such as the case of a legitimate merchant who had their identity stolen. You will still be able to use Payello to process other payment services if listed on a TMF such as Digital wallets, Bank transfers and Gift cards.