Chargeback & Cyber Fraud Penalty Policy
Kadyan Paygate India OPC Pvt. Ltd.
1. Purpose
This policy outlines Kadyan Paygate's approach to managing chargebacks and cyber fraud, ensuring transparency, accountability, and security across our payment ecosystem.
2. Applicability
Applicable to all users, businesses, and merchants using Kadyan Paygate's services across platforms for electronic payment processing.
3. Chargebacks & Merchant Obligations
A chargeback is a transaction dispute initiated by a customer. Merchants must respond to chargeback notifications within 5 business days with valid documentation. Failure to do so may result in forfeiture.
4. Cyber Fraud Definition
Cyber fraud includes activities like phishing, identity theft, carding, data breaches, and unauthorized access to our systems for fraudulent transactions.
5. Chargeback Handling Fees
• Merchant Wins: ₹1000 processing fee applicable.
• Merchant Loses: ₹500 investigation fee + transaction reversal.
• Reinstatement Fee: ₹1500 post-dispute closure.
• High Dispute Merchants: Administrative hold on settlements until resolution.
6. Merchant Responsibilities
Merchants are required to fulfill orders accurately, maintain transaction records, and promptly report suspicious activities.
7. Cyber Fraud Detection & Response
We employ real-time monitoring, velocity checks, and fraud detection systems. Confirmed fraud cases are reported to legal and cybercrime authorities. Platform access may be restricted during investigations.
8. Penalties & Consequences
• Confirmed fraud leads to permanent blacklisting.
• Legal proceedings initiated for fraudulent activities.
• Payouts suspended; services revoked.
• Settlements may be withheld until resolution.
• Penalties range from ₹5000 to ₹25,000 based on severity.
• Payment gateway recovery and legal costs will be recovered from the merchant.
9. Service Impact
For merchants under investigation:
• Pay-In services may be suspended.
• Pay-Outs held until resolution.
• Real-time risk monitoring and KYC re-verification may be enforced.
10. Repeated Offenses
Merchants involved in repeated chargebacks or cyber frauds will face escalated penalties, mandatory security deposits, and may be reported to regulatory authorities.
11. Dispute Mediation
While Kadyan Paygate facilitates dispute resolutions, final outcomes depend on the policies of banks and card networks.
12. Grievance Redressal
For chargeback or fraud-related concerns, contact:
Grievance Officer: [Name]
Email: support@kadyanpaygate.com
Phone: +91-XXXXXXXXXX
13. Policy Review & Updates
This policy is reviewed annually or as required by legal or operational developments. Updates may be made without prior notice.