Updated at: 13-09-2022

Merchant Terms

Merchant Company ("Merchant"), a company incorporated under the Companies Act, 1956 and 2013 or partnership/sole proprietorship having its registered office in India ( here inafter refer as "Merchant" which expression shall unless repugnant to the subject or context shall mean and include its successors and permitted assigns) which has sought to use Payout Fintech Private Limited's services of First Part.

AND

PAYOUT FINTECH PRIVATE LIMITED ("Payout Fintech"), a company incorporated under the Companies Act, 2013, having its registered office at 1st floor, #83, 2nd street, Sowmiya Nagar, Perumbakkam Chennai, Tamil Nadu - 600100. (Which expression shall unless repugnant to the subject or context shall mean and include its successors and assigns); agree to the terms and conditions set out hereunder of the Second Part.

Terms and Definitions

  1. "API" means application programming interface provided by Payout Fintech to automate the payout operations;
  2. "BANK ACCOUNT" means a banking account maintained at bank by the End-customer or merchant
  3. End-customer / The beneficiary who receives the payments
  4. "SPONSOR BANKS" mean the banks / entities with whom Payout Fintech has partnered to provide payment solutions to the merchant by establishing software protocols and integrations via API
  5. "PAYOUT ACCOUNT” / “MERCHANT’S PAYOUT ACCOUNT” means the Account issued to merchant by the Payout Fintech to do payout operations
  6. "LOAD FUNDS” / “RECHARGE” means add funds to the merchant’s Payout account issued by Payout Fintech

Acceptance of Terms

Your use of services offered by PAYOUT FINTECH PRIVATE LIMITED. (Referred to Services in this document) is subject to the terms of this legal agreement between you and Payout Fintech. This page explains how the agreement is made up, and sets out some of the terms of that agreement (referred as Terms of Service (TOS) in this document). The name 'Payout Fintech ' has been used interchangeable with 'Payout Fintech .in’;

In order to use the Services, you must first agree to these Terms. You may not use the Services if you do not accept the Terms of Use. You can accept the Terms by:

Clicking to accept or agree or Login or Signup to the Terms, where this option is made available to you by Payout Fintech in the user interface for any particular Service; or

Actually, using the Services. In this case, you understand and agree that Payout Fintech will treat your use of the Services as acceptance of the Terms from that point onwards

Services being offered by Payout Fintech

Payout Fintech is constantly evolving in order to provide the best possible experience and information for its users. You acknowledge and agree that the form and nature of the Services which Payout Fintech provides may change from time to time without prior notice to you. However, Payout Fintech shall endeavour to provide notice on a best-efforts basis.

As part of this continuing process, you acknowledge and agree that Payout Fintech may stop (permanently or temporarily) providing the Services or particular feature to you for cause or to users generally at Payout Fintech 's sole discretion, by prior notice to you. You may stop using the services at any time. You do not need to specifically inform Payout Fintech when you stop using the Services.

You acknowledge and agree that if Payout Fintech disables access to your account due to any cause event or otherwise as duly intimated to you, you may be prevented from accessing the Services, your account details or any files or other content which is contained in your account. Payout Fintech shall endeavour to restore the access or resolve the issue at the earliest provided however the same is not due to any change in law / regulations.

You acknowledge and agree that while Payout Fintech may not currently have set a fixed upper limit on the number of transactions you may send or receive through the Services, such fixed upper limits may be set by Payout Fintech at any time by way of a prior notice, at Payout Fintech 's discretion.

Proprietary Rights

You acknowledge and agree that Payout Fintech (or Payout Fintech 's licensors) own all legal right, title and interest in and to the Services, including any intellectual property rights which subsist in the Services (whether those rights happen to be registered or not, and wherever in the world those rights may exist). You further acknowledge that the Services may contain information which is designated confidential by Payout Fintech and that you shall not disclose such information without Payout Fintech 's prior written consent.

Unless you have agreed otherwise in writing with Payout Fintech, nothing in the Terms gives you a right to use any of Payout Fintech 's trade names, trademarks, service marks, logos, domain names, and other distinctive brand features without their prior written permission.

Payout Fintech shall also not use the trade names, trademarks, service marks, logos, domain names, and other distinctive brand features without prior permission of the Merchant.

Prohibited Services

You agree you will not accept payments in connection with the following businesses, business activities or business practices: Payout Fintech is providing virtual account service so we could not identify where our virtual accounts used, so merchant is the sole responsibilities not use Payout Fintech 's service in prohibited services

Engaging in any form of licensed or unlicensed aggregation or factoring

Age restricted products or services,

Bidding fee auctions,

Collection agencies,

Chain letters,

Cheque Encashment, wire transfers or money orders,

Counterfeit goods (e.g. knock-offs, imitations, bootlegs)

currency exchanges or dealers,

Firms selling business opportunities, investment opportunities, mortgage consulting or reduction, credit counselling, repair or protection or real estate purchases with no money down,

Drug paraphernalia,

Fortune tellers,

"Get rich quick" schemes;

Gambling (including but not limited to lotteries, Internet gaming, contests, sweepstakes, or offering of prizes as an inducement to purchase goods or services),

Sports forecasting or odds making,

Illegal products or services,

Money transmitters or money service businesses,

Multi-level marketing or pyramid schemes,

Online, mail, or telephone order pharmacies or pharmacy referral services,

Pseudo pharmaceuticals,

Quasi-cash or stored value,

Securities brokers,

Sexually-oriented or pornographic products or services,

Shipping or forwarding brokers,

Substances designed to mimic illegal drugs,

Telemarketing,

Timeshares,

Online, mail, or telephone order tobacco or e-cigarette sales,

Weapons and munitions

Credits that can be monetized, re-sold or converted to physical or digital goods or services or otherwise exit the virtual world,

Products/services intended to inflict or promote revenge, harassment, and other forms of abuse, humiliation and intimidation, or

In case of any changes on the above list, Payout Fintech will notify the Merchant at the earliest.

Payout Service

Payout Fintech follow guideline prescribed by regulators, Sponsor Banks and internal compliance team to meet KYC policy, AML and Combating the Financing of Terrorism policies, accordingly your reasonable cooperation is required to the extent applicable.

Payout Fintech is not responsible for any wrong/misuse/fraudulent money transferred from merchant’s Payout account by using their Payout credentials. Merchants should make sure the safety & security of Payout account’s Username and Passwords with API Credentials.

Merchant shall be responsible for undertaking necessary steps to ensure beneficiaries that would receive funds from the merchant’s Payout account.

Payout Fintech shall not be privy to the transaction between the Merchant and the beneficiaries in any manner whatsoever, Payout Fintech only performs services as an intermediary between the Merchant and the beneficiaries of funds.

The Merchant shall ensure that it deducts and performs all the compliances related to tax regulations relating to either Goods and Services Tax or Income Tax about the payments that are made to the beneficiary.

The merchant shall be responsible for funding, maintaining and managing the Payout account.

Payout Fintech recommend to merchant verify and validate beneficiary before sending any funds to the merchant

Payout Fintech also provide service to verify / validate the beneficiary accounts where disbursement is made to confirm that such disbursement is to a verified account also names match against KYC

  1. For every Merchant’s Payout account Payout Fintech assigns a virtual account, to load funds to the account via NEFT / RTGS / IMPS modes
  2. As per KYC policy, Merchant should load funds to the Payout virtual account from Merchant's current account only. Payout Fintech will automatically and manually verify the account source
  3. If merchant transferred payments from any other payment gateways, Payout Fintech will seek the written confirmation from the merchant about the payments, in this case merchant to confirm the payment initiated from them
  4. Payout Fintech strictly does not allow credits from any other account sources, Payout Fintech have the rights to return / hold the credits or freeze the account
  5. Payout Fintech does not allow payments transferred to any other Virtual accounts / Nodal accounts to avoid fraudulent transactions
  6. Payout Fintech do periodic internal audits on monthly/ quarterly / yearly basis
  7. Sponsor banks also do periodic audits Payout Fintech provides the merchant, customer details if required and transaction related details if required
  8. As per KYC policy, we also recommend to verify the actual beneficiary’s name as per the bank records using account verification API using penny drop testing before sending any payments to the bank accounts.
  9. Payout have two types of accounts classified as Standard and Restricted account, Below two terms applicable to Payout Restricted accounts
  10. Payout Restricted Account Payout Fintech set the max transaction limit as 9.5 Lac per transaction
  11. Payout Restricted Account: It is provided to merchant for the Payout purpose limited to the following Payout transactions
    1. Payments to individual customers not companies (KYC Verified, remitter account verified customers)
    2. Refund to customers
    3. Bank account verification / Penny drop testing
    4. Moving funds to Merchant's own current account
  12. Payout Restricted Account In the Payout Restricted account, payouts NOT allowed to the following but not limited, In case if we identify such transactions, Merchant have to provide explanations with support documents
    1. Virtual accounts / Other payment gateway / Nodal accounts / Escrow accounts
    2. Any companies
    3. Vendor payment / supplier payment
    4. Salary
    5. Any payments other than your customer / your own current account
  13. Payout Standard Account: Payout Fintech set the max transaction limit based on business use case
  14. Payout Standard Account: Standard account support following kind of legal payment transactions
    1. Vendor payment / supplier payment to individual or companies
    2. Salary
    3. Refunds
    4. Bank account verification / Penny drop testing
    5. Cashbacks and rewards
    6. Business use case based with prior written approval
  15. Payout Fintech will notify the merchant about the transactions which does not follow the Payout policy, Merchant should provide the explanation with in two working days
  16. If merchant do such transactions continuously Payout Fintech have the rights to suspend the service
  17. Payout Fintech have internal monitoring system to monitor about high value and high-volume payments to accounts, Payout Fintech might ask for the beneficiary KYC details, declaration and any support document if required
  18. Payouts to UPI handle not allowed only Refunds allowed to UPI handles
  19. Merchant should only do transactions related to the merchant’s organisation

Technical Issues

In case of any technical issues, please raise a support ticket by emailing support@payoutfintech.in

Your responsibilities

As a merchant user of the service, you and your company/entity shall be held responsible for all activities conducted with your account usage.

As a merchant you will use the services provided for your company/entity purposes and not for any other third party/parties.

Your usage is subject to all applicable local, state, national and foreign laws, treaties and regulations.

You, your company/entity indemnify Payout Fintech and its owners against any misuse, damage claims of any sort/nature solely due to your negligent acts or omissions.

You will not interfere with our services or try to access them using a method other than the interface and the instructions that we provide.

You shall not modify or make derivative works based on the Payout Fintech Service or content.

You shall not access or reverse engineer the service in order to build a competitive product or service, build a product using similar ideas, features, functions or graphics of the service, or copy any ideas, features, functions or graphics of the service.

Limitation of Liability

You understand that Payout Fintech uses third party vendors, banks and hosting partners to provide the necessary hardware, storage and related technology to run the Services. We do not guarantee that the Services will be bug-free, uninterrupted although efforts would be taken to provide a clean working environment. Neither Party shall be responsible for any indirect, special or remote damages.

Law-enforcement agencies

If requested for information or refund or hold of funds or any merchant's transaction details from a law-enforcement agency, we will provide the same to them at the earliest

If the Law-enforcement Agency provides notice to suspend/block the Merchant’s account. Payout Fintech will suspend/block the account on the receipt of the notice and written notice will be sent to the Merchant at the earliest.

Warranty Disclaimer

You agree that your use of Payout Fintech shall be at your sole risk. All Services provided by Payout Fintech are available as is, without warranty save and except as agreed herein or under any service level agreement.

Indian Law and Chennai jurisdiction

The terms of services shall be governed and interpreted by the laws of India. All disputes, differences or claims with respect to any matter arising out of or relating to the agreement shall be finally settled through the provisions of the arbitration and conciliation act 1996, as amended from time to time, having seat of arbitration and jurisdiction at Chennai, India.