Payment Terms

Merchonic Payment and Funds Release Terms

Effective Date: July 29, 2026

IMPORTANT: These Terms govern payments, payment holds, releases, refunds, chargebacks, fees, taxes, and payouts on Merchonic. They should be read with the Merchonic Terms of Service, Dispute & Arbitration Policy, Disclaimer & Liability Policy, Privacy Policy, and applicable User Contract.

Escrow warning: Merchonic must not describe funds as being held in legal escrow unless a properly authorized escrow provider actually provides that service. If Merchonic uses Stripe Connect or another payment processor that delays transfers or payouts, the public website and these Terms should describe that arrangement accurately as payment processing, payment holding, delayed transfer, or funds release – not legal escrow.

1. Agreement and Scope

These Payment and Funds Release Terms (“Payment Terms”) form a binding agreement between each User and [LEGAL ENTITY NAME], doing business as Merchonic (“Merchonic,” “we,” “us,” or “our”). They apply whenever a Customer pays, a Vendor receives or becomes entitled to receive funds, or Merchonic facilitates a transaction through merchonic.com or a related service.

By authorizing a payment, accepting a Bid, submitting a payout request, or otherwise using a payment feature, you agree to these Payment Terms and the terms of the applicable payment processor. If a specialized in-product disclosure states a transaction-specific price, fee, deadline, or payment method, that disclosure supplements these Payment Terms.

2. Definitions

• “Customer” means a User who posts a Job, accepts a Bid, or purchases goods or services through the Platform.
• “Vendor” means a business or independent service provider that submits a Bid or provides goods or services.
• “User Contract” means the direct agreement formed between a Customer and Vendor when a Bid is accepted.
• “Contract Price” means the total amount payable under an accepted Bid and approved change orders, excluding separately stated taxes, fees, shipping, duties, or credits unless expressly included.
• “Funded Amount” means an amount successfully charged, received, or otherwise confirmed by the payment processor for a Job or Milestone.
• “Milestone” means a defined portion of a Job tied to a stated amount, deliverable, approval condition, and target date.
• “Release” means Merchonic or its payment provider initiating transfer or payout of an eligible amount to a Vendor, subject to processing times, reserves, reversals, and applicable law.
• “Payment Dispute” means a disagreement about payment, delivery, acceptance, release, refund, cancellation, chargeback, or a related transaction issue.
• “Payment Processor” means [PAYMENT PROCESSOR NAME] and any bank, card network, wallet provider, ACH operator, identity-verification provider, or other company involved in processing or paying out a transaction.

3. Payment Structure and Role of Merchonic

Merchonic provides marketplace and payment-facilitation features. Unless Merchonic expressly agrees otherwise, the Customer and Vendor – not Merchonic – are the parties to the User Contract. Merchonic may instruct or authorize its Payment Processor to charge Customers, delay or initiate transfers, issue refunds, maintain reserves, reverse entries, or take other payment actions permitted by these Payment Terms and processor rules.

Merchonic is not a bank, money transmitter, trustee, fiduciary, or licensed escrow company merely because payment is collected before Vendor payout. Funds may be held, safeguarded, allocated, or delayed by the Payment Processor under its regulated payment structure. Users do not earn interest on amounts associated with a Job unless applicable law expressly requires otherwise.

Before publication, Merchonic must identify the actual Payment Processor, connected-account structure, merchant-of-record or seller-of-record allocation, statement descriptor, and legal holder of funds.

4. Payment Accounts, Verification, and Payout Eligibility

Customers and Vendors must provide accurate payment, identity, tax, banking, beneficial-owner, and business information requested by Merchonic or the Payment Processor. A User authorizes reasonable verification and screening, including sanctions, fraud, account-ownership, and identity checks.

A Vendor is not eligible for payout until all required onboarding, verification, tax, banking, and processor requirements are completed. Merchonic or the Payment Processor may delay, reject, limit, or disable a payment method or payout where information is incomplete, inconsistent, expired, suspicious, or legally restricted.

Users are responsible for keeping payment and payout information current. Merchonic is not responsible for delay caused by incorrect bank details, expired cards, failed identity verification, processor review, banking holidays, or compliance holds, except to the extent required by law.

5. Accepted Bids, Milestones, and Funding

5.1 Accepted Bid

When a Customer accepts a Bid, the Customer authorizes payment of the amounts shown at checkout or in the accepted Bid, including approved taxes, shipping, platform fees, processing fees, and later approved change orders. A Vendor should not begin production until the Platform confirms that the required amount is funded or otherwise authorizes work to begin.

5.2 Milestones

A Milestone should state the deliverable, amount, due date, review period, objective acceptance criteria, and whether shipping or physical delivery is required. The sum of all Milestones and approved change orders should match the amount the parties intend to pay. Merchonic may limit the number, size, duration, or funding schedule of Milestones.

5.3 Authorization and Capture

A card authorization is not necessarily a completed charge. Authorizations may expire, be released, or fail before capture. Merchonic may require a new authorization or payment method if an authorization expires or is declined. ACH, bank-transfer, or other payments may remain pending until finally settled and may later be returned or reversed.

5.4 Insufficient or Failed Funding

If payment fails, is reversed, or becomes unavailable, Merchonic may pause the Job, prevent Release, request replacement payment, cancel an unfunded Milestone, offset an available balance, or take another reasonable action. A Vendor is not required to continue unfunded work unless the Vendor separately agrees in writing.

6. Fees, Taxes, Currency, and Pricing

All applicable Merchonic fees must be disclosed before the User authorizes the transaction or in an incorporated fee schedule. Fees may include a Customer service or processing fee, Vendor service fee, withdrawal or payout fee, currency-conversion fee, dispute fee, chargeback-related fee, rush or optional-service fee, or other clearly disclosed charge.

Unless the applicable disclosure states otherwise, fees are earned when the related service is provided and may be non-refundable, except where required by law or where Merchonic determines that a fee was charged in error. Merchonic may deduct Vendor fees and authorized offsets from a Release.

Prices may be displayed in U.S. dollars or another supported currency. Currency conversion may be performed by the Payment Processor or financial institution at its rate and may include a spread or fee. Merchonic does not guarantee exchange rates.

Merchonic or the Payment Processor may calculate, collect, withhold, remit, or report sales tax, use tax, value-added tax, backup withholding, or other amounts where reasonably believed required. Users remain responsible for tax information and obligations not handled by Merchonic. Claims of exemption may require a valid resale or exemption certificate before payment.

7. Work Submission, Shipment, Delivery, and Evidence

For digital work, a Vendor must submit the deliverable through the Platform or another approved method. For physical goods, a Vendor must update the Job with shipment information and provide the tracking number, carrier, shipment date, destination, quantity, and other evidence reasonably requested.

A shipping label, carrier scan, delivery confirmation, photograph, signed proof of delivery, Platform message, proof approval, production record, or other reliable documentation may be considered in a release or dispute decision. Tracking alone does not conclusively prove that goods conformed to the User Contract.

The User Contract should state who bears shipping, insurance, customs, duties, loss, damage, failed delivery, and return costs. Merchonic is not a carrier and does not control carrier performance.

8. Review, Acceptance, Revisions, and Automatic Release

8.1 Review Period

The Customer has [REVIEW PERIOD, e.g., 7 calendar days] after documented delivery or Platform submission to approve the applicable Milestone, request a permitted revision, or open a Payment Dispute. The review period for custom physical goods should begin upon documented delivery, not merely when a shipping label is created.

8.2 Approval

Approval authorizes Release for the approved amount. Approval may occur through an express Platform action or, if clearly disclosed before payment, through automatic approval after the review period expires without a timely dispute.

8.3 Automatic Release

Merchonic may automatically initiate Release after the disclosed review period if the Customer takes no action and no qualifying dispute, chargeback, fraud hold, legal hold, or safety issue is pending. Merchonic should provide a reminder before automatic Release when reasonably practicable.

8.4 Revisions

A revision request must be within the accepted Bid, included revision allowance, approved proof, or documented change order. A revision request does not automatically restart the review period indefinitely. After resubmission, the Customer receives the remaining review period or [REVISED REVIEW PERIOD] as disclosed in the Job, whichever applies. Repeated, abusive, or out-of-scope revision requests may be rejected or require a paid change order.

8.5 Partial Acceptance

A partial Release is permitted only when the amount and accepted portion are clearly identified and the remaining balance is preserved for completion, refund, or dispute. Partial Release does not waive claims concerning portions not accepted unless the parties expressly agree otherwise.

9. Release and Vendor Payout

After approval or another valid release event, Merchonic may instruct the Payment Processor to make the eligible amount available for Vendor payout, less fees, taxes, refunds, reversals, reserves, offsets, and amounts subject to review. “Released” does not mean the Vendor has received cleared funds in its bank account.

Payout timing depends on the Payment Processor, payout method, country, verification status, risk review, banking network, holidays, and reserve requirements. Estimated payout dates are not guarantees.

Merchonic may correct duplicate, erroneous, fraudulent, or unauthorized Releases. To the extent permitted by law, the Vendor authorizes Merchonic or the Payment Processor to debit an available balance, future Releases, or an authorized payment method for amounts owed.

10. Reserves, Holds, Delays, and Negative Balances

Merchonic or the Payment Processor may place or maintain a reasonable reserve, delay a Release or payout, or restrict a payment account when necessary to address expected refunds, chargebacks, fraud, account compromise, sanctions, legal process, unusually high risk, delivery uncertainty, product-safety concerns, excessive disputes, or processor requirements.

Where reasonably practicable and legally permitted, Merchonic will provide notice of a material hold and the information needed to resolve it. Merchonic is not required to disclose confidential fraud-detection methods or information that could compromise security.

If a User has a negative balance or owes Merchonic money, Merchonic may offset future amounts, request immediate payment, charge an authorized payment method, refer the balance for collection, or suspend payment features, subject to applicable law.

11. Cancellations and Refunds

11.1 Before Work Begins

An unfunded Job may be cancelled without Release. A funded Job may be cancelled by mutual agreement or as otherwise permitted by the User Contract and Platform Policies. Fees already incurred may remain non-refundable if clearly disclosed and legally permitted.

11.2 After Work Begins

After work or production begins, refunds depend on completed work, purchased materials, approved proofs, non-cancellable supplier commitments, custom manufacturing, shipping, and the User Contract. Custom or personalized goods may not be eligible for a full refund merely because the Customer changes its mind.

11.3 Defective, Short, Damaged, or Nonconforming Goods

For a supported claim, the available remedy may include correction, reprint, replacement, completion of a shortage, partial refund, full refund, return, or another commercially reasonable remedy. The remedy should account for severity, usability, cure feasibility, time sensitivity, consumed materials, and the accepted specifications. Merchonic may require photographs, samples, carrier records, return of goods, or preservation of evidence.

11.4 Refund Method and Timing

Refunds are generally returned to the original payment method unless unavailable, prohibited, or otherwise required by law. Processing time depends on the Payment Processor and financial institution. Merchonic may not issue a refund exceeding the amount actually received for the disputed transaction, excluding amounts that applicable law requires to be refunded.

11.5 Unclaimed or Unused Funds

Unclaimed balances, failed refunds, dormant credits, or other funds may be handled under applicable abandoned-property law. Merchonic may request updated payment information or remit qualifying funds to a governmental authority where required.

12. Payment Disputes

12.1 Opening a Payment Dispute

A User must open a Payment Dispute through the Platform within the applicable review or claim period and provide a clear explanation and available evidence. Merchonic may reject untimely claims except where law, fraud, safety, or extraordinary circumstances require review.

12.2 Evidence

Relevant evidence may include the Job post, accepted Bid, change orders, messages, proofs, approvals, production records, photographs, videos, samples, shipping records, tracking, delivery confirmation, inspection records, invoices, and other reliable information. Users must preserve evidence and cooperate reasonably.

12.3 Interim Action

While a dispute is pending, Merchonic may pause Release, preserve funds, restrict account activity, request return or inspection of goods, prevent disposal of evidence, or take another reasonable interim action.

12.4 Platform Determination

Merchonic may make an administrative payment determination based on the Platform record and submitted evidence. Any stated target, such as 30 days, is an estimate and not a guaranteed deadline. Merchonic may extend review when evidence is incomplete, the transaction is complex, a carrier or processor investigation is pending, or law requires more time.

A Merchonic payment determination allocates funds within the Platform process; it is not a court judgment and does not eliminate rights that cannot legally be waived. Any arbitration or court process involving Merchonic is governed by the Dispute & Arbitration Policy. User-to-User rights may also be subject to the User Contract and applicable law.

13. Chargebacks, ACH Returns, and External Payment Disputes

A chargeback, card dispute, ACH return, bank reversal, or wallet claim is controlled by the financial institution or payment network and may occur even after Platform approval or Release. Users should first use the Merchonic dispute process when feasible, but nothing here prohibits a legally protected billing right.

A User may not initiate an external payment dispute fraudulently, make contradictory claims, or use a chargeback to avoid a valid payment. Merchonic may provide transaction records to the Payment Processor, bank, or network and may suspend the account or recover losses caused by an improper dispute.

If an external dispute results in a debit, Merchonic may reverse a related Release, deduct the amount and associated processor fees from a Vendor balance or future payout, or seek repayment, except where Merchonic contractually accepted the risk or law requires otherwise.

14. Prohibited Payment Conduct

• Using stolen, unauthorized, fraudulent, or misrepresented payment information.
• Processing a sham transaction, self-payment, cash advance, money transfer, or transaction unrelated to a genuine Merchonic Job.
• Splitting, routing, or disguising a transaction to evade fees, limits, sanctions, reporting, verification, or processor rules.
• Moving a Merchonic-introduced transaction off Platform in violation of the Terms of Service.
• Colluding to create false deliveries, reviews, refunds, disputes, or chargebacks.
• Attempting to withdraw funds tied to fraud, infringement, illegal goods, safety violations, or another prohibited activity.
• Interfering with payment verification, reserves, recovery, evidence preservation, or a lawful investigation.

15. Off-Platform Payments and Non-Circumvention

Users must use Platform-approved payment methods for relationships and Jobs subject to Merchonic’s non-circumvention rules. Off-Platform payment removes Merchonic payment protections and may expose Users to fraud, nonpayment, tax, recordkeeping, and enforcement risks. Merchonic is not responsible for an unauthorized off-Platform payment.

The applicable non-circumvention period, any permitted conversion or buyout process, and related fee must be stated in the Terms of Service or a clearly incorporated fee schedule. Merchonic should not rely on an unstated period.

16. Purchase Orders, Credit, and Invoice Terms

A purchase order does not create credit terms or override these Payment Terms unless Merchonic or the Vendor expressly accepts it in writing. Any Customer credit, net-payment terms, invoice billing, deposit exception, or post-delivery payment arrangement must be separately approved and may require a credit review, guarantee, deposit, limit, late fee, or collection terms.

Terms printed on a Customer purchase order, procurement portal, check, or other document do not bind Merchonic unless accepted in a writing signed by an authorized Merchonic representative.

17. Records and Electronic Authorization

Users consent to electronic payment records, invoices, receipts, notices, and signatures. Merchonic may retain evidence of payment authorization and acceptance, including the applicable terms version, date, time, account, device, Internet Protocol address, checkout disclosures, and transaction identifiers.

Users must review statements and promptly report suspected errors or unauthorized transactions. Contractual reporting deadlines do not limit rights that applicable law does not allow Merchonic to waive.

18. Changes to Payment Terms and Payment Features

Merchonic may change supported payment methods, processors, payout options, limits, fees, reserves, or these Payment Terms. Material changes will be posted with an updated effective date and additional notice where legally required or reasonably appropriate. A change will apply prospectively unless law or processor rules require otherwise.

A transaction already accepted will generally remain subject to the pricing and material payment terms disclosed at acceptance, except for taxes, legal requirements, fraud prevention, processor mandates, or changes the parties approve.

19. Relationship to Other Policies

The Terms of Service govern general Platform use. These Payment Terms control payment-specific subjects. The accepted Bid and approved change orders control the commercial scope and price between Customer and Vendor but cannot override Merchonic fees, payment controls, prohibited conduct, reserves, chargeback rights, or legal obligations. The Dispute & Arbitration Policy governs legal disputes involving Merchonic, while these Payment Terms govern the administrative allocation and movement of transaction funds.

20. Contact and Legal Notices

Merchonic is operated by [LEGAL ENTITY NAME], a [STATE AND ENTITY TYPE], with a mailing address at [MAILING ADDRESS]. Payment-support questions may be sent to [email protected]. Formal legal notices must be sent to [LEGAL NOTICE EMAIL] and the mailing address above unless another incorporated policy requires a different method.