MERCHANT TERMS & CONDITIONS for availing

Unified Payment Interface

Unified Payment Interface” (UPI) is a payment method powered by the National Payment Corporation of India (NPCI) to simplify and provide a single interface for merchant payments and funds transfer. UPI is a channel that enables linking of multiple bank accounts into a single mobile app.

UPI enables customers to send and receive money from their smart phones with a single identifier, Virtual payments address; without needing to disclose any confidential details like bank account information or card number

DEFINITIONS

“Acquiring PSP” means IDFC FIRST BANK.

“Acquiring Bank” means IDFC FIRST Bank.

“Beneficiary” shall mean the person/entity including the Merchant who is receiving the monies through UPI.

“Customer/s” means the customers of Merchant.

“Merchant” shall mean client of IDFC FIRST Bank who is availing the UPI facility.

“Merchant Account” shall mean the Merchant’s current/overdraft/special savings account for BGB customers in case of societies maintained with IDFC FIRST Bank.

“Payment Service Provider (PSP)” shall mean the banks providing the PSP App or web channel to the Remitter and/or Beneficiary for carrying out UPI transactions.

“Pull Transaction” shall mean a collect request initiated through UPI which is a transaction where the Merchant is pulling funds from the Remitter by using the VPA.

“Push Transaction” shall mean a pay request initiated through UPI which is a transaction where the Remitter is pushing funds to the Merchant by using the VPA, scanning the QR code and Intent Mode.

“Remitter Bank” means bank where Remitter maintains its bank account.

“Remitter” shall mean the Customer/ Payer and/ or any person desirous of remitting/transferring the monies through UPI to the Merchant.

"TSP” shall mean any third-party service provider/application through which Merchant is providing services to end user and the same is integrated with Merchant’s application for UPI Plug-in.

“UPI” means Unified Payment Interface which is a service provided by National Payments Corporation of India to facilitate transfer of money using a Virtual Payment Address (VPA) that is mapped to an account of the Remitter and/or Beneficiary after complete validation.

“UPI Plug-in” means existing Payment Service Provider (PSP) applications (Sponsor bank applications) to extend their Software Development Kit (SDK) to TSP for Person to Merchant transactions and other limited UPI services as per business use-case of the Merchant.

“Virtual Payment Address (VPA)” means unique single identifier that identifies the Merchant .

IDFC FIRST Bank Limited would be the Acquiring Bank and Acquiring PSP for Merchant. Accordingly, a unique VPA would be created and mapped to Merchant current account. Once a VPA is deleted either by Bank or Merchant, the same address cannot be considered for the next 2 years.

There are various methods / arrangements through which UPI Push & Pull transactions can be implemented and desired funds can be collected by the Merchant from its Customers.

Few such methods include –

• UPI Static QR
• UPI Dynamic QR
• UPI Payouts
• UPI Intent Call Payments
• UPI Auto Pay (Mandate)

Depending on the Merchant’s requirement, necessary methods are discussed and mutually enabled for supporting UPI transactions.

Transaction Processing

1. The Merchant using the UPI services shall comply with all such instructions as may be issued by the Acquiring Bank from time to time to secure transmission of data.
2. The Merchant hereby agrees that all refunds and chargeback transactions shall be its sole responsibility. The Acquiring Bank shall not be liable for any claims or disputes which may arise in connection with such refunds or chargeback transactions.
3. The Merchant has a strong risk management team which uses appropriate automated tools to check on each and every transaction and also does stringent manual check on random basis.
4. The Merchant shall duly fulfill all Transactions in accordance with the instructions of the Customers and as mutually decided between the Merchant and its Customers and shall not dispute or dishonour them for any reason whatsoever, other than reasons as mentioned herein or upon mutual agreement between the Customer and the Merchant.
5. The Merchant shall comply with all the technological standards, security procedures and system certifications as communicated by the Acquiring Bank from time to time and shall also ensure due compliance of the same.
6. The Merchant hereby undertakes and agrees not to describe itself as agent or representative of the Acquiring Bank, or to give warranties which may require the Acquiring Bank to undertake to or be liable for, directly or indirectly, any obligation and/or responsibility to the Customer or any third party. The Merchant shall not at any time require the Customer to provide them with any details of the bank accounts with the Acquiring Bank including the password, account number, Customer ID that may be assigned to the Customer, other than the details as required for the purposes of this Agreement.
7. Merchant agrees that the transactions originated under UPI are non-retractable as these are instantaneous/real time.
8. The Merchant & Bank shall ensure to keep confidential all information submitted by the Customers on the Merchant’s platform/website. The Merchant shall ensure that there are proper encryption and robust security measures to prevent any hacking of the information of the Customers. The Customers shall not be required or asked to disclose any confidential or personal data, which may be prejudicial to the interests of the Customer. The Merchant shall use the Customer's data only for the purpose of completing the Transaction for which it was furnished and shall not sell or otherwise furnish such information to any third party.
9. The Merchant agrees to put up notices, disclaimers or warranties as may be requested by IDFC FIRST Bank or other relevant parties and shall comply with the aforesaid requests forthwith.
10. The Merchant shall use the Current/Overdraft/Special Savings Account for BGB customers in case of societies as a settlement account only to collect all monies related to Transactions done through the availed channels.
11. In case the UPI services becomes inaccessible due to any break-down or other reasons directly attributable to the Merchant, the Merchant shall apprise the Acquiring Bank in writing of such inaccessibility / break down and the Merchant shall use commercially reasonable efforts to rectify /fix the problem at its own cost. Any liability, including any liability to Customers, arising out of inaccessibility of the UPI services due to any reason attributable to the Merchant, the Acquiring Bank shall not entertain any complaint or query of the Customers in this regard.
12. Notwithstanding anything contained herein, if the Acquiring Bank suspects that the Merchant has committed a breach of this Agreement or Applicable Law or dishonesty or fraud against the Acquiring Banks or any other persons, the Merchants or any Customer, as the case may be, the Acquiring Bank shall be entitled to suspend all payments under this Agreement to the Merchant, pending enquiries by the Acquiring Bank or enforcement agencies or regulators, NPCI etc.. The Acquiring Bank shall not be liable to pay any interest upon the suspended pay outs during or after the pendency of the inquiry.
13. The Merchant hereby agrees and understands to use allotted a merchant category code (“MCC”) by the Acquiring Bank in accordance with the relevant Card Association/NPCI guidelines and/ or the Governmental Authority and as per the projected category of business informed by the Merchant to the Acquiring Bank. The Merchant further agrees and understands that the MCC allotted shall be subject to the relevant pricing guidelines issued by the Card Associations/NPCI and/ or the Governmental Authority from time to time. The Merchant hereby further agrees and understands that the said merchant classification may be changed or revised from time to time by the relevant Card Association/NPCI and/ or the Governmental Authority which shall be informed to the Acquiring Bank. The Acquiring Bank shall thereafter inform the Merchant of any such change and basis such change reserves the right to review the pricing structure previously communicated to the Merchant.
14. The Merchant agrees and undertake to use the UPI services only for genuine and legitimate transactions and shall not use the UPI services for any illegal transactions / activities including sale or purchase of banned products. The Acquiring Bank shall not be responsible for reviewing or checking into Merchant’s compliance of these terms. Acquiring Bank reserves the right to suspend or terminate the UPI services, at its sole discretion, if it suspects that Merchant is using the UPI services for any illegitimate or fraudulent purposes.
15. The Merchant agrees that payment made in respect of which the authorizing bank raises a claim on the Bank shall be the financial responsibility of the Merchant. The Merchant agrees to the non-payment in respect of such order or the charging back of such uncollectable charge as the case may be without any demur or protest. The Merchant hereby authorizes the Bank to debit the Merchant's bank account to the extent of the aforesaid uncollectable amounts and any other moneys due for any reason to the Bank by the Merchant, or deduct the same from amounts payable to the Merchant.
16. The Merchant agrees that it is aware of the activities involved in the technical integration involved for TSP (Clauses are applicable Only if Services are Rendered by Merchant) in relation to the UPI services and the Merchant assumes all responsibility of the technical interface and any incidents (including but not limited to any data breach, fraud, regulatory aspects related to Infosec associated with integration with TSP). Merchant further agrees that IDFC FIRST Bank shall have no liability or obligation towards any erroneous transactions getting triggered due to a system bug on the application or system breakdown at TSP’s end or for any other reasons solely attributable to the TSP.
17. The Merchant shall integrate UPI software (if any) provided by the Bank in a manner that it will not capture, access, and store or try to store, sensitive customer data like Card Details, PIN, Expiry Date, OTP etc. All these details shall be captured only by UPI software provided by the Bank, whereas the Merchant’s platform/website shall only facilitate it, without any facility to store the sensitive Customer data.
18. The Merchant shall enter into Transactions only in Indian Rupees, unless otherwise permitted by the Bank in writing in advance.
19. The Merchant acknowledges that the UPI services may not be uninterrupted, error free and the Bank disclaims all warranties, including but not limited to, merchantability and fitness of the services for a particular purpose. The Merchant also acknowledges that the arrangement between NPCI and the Bank may terminate at any time, and UPI services may be withdrawn, without any prior notice or reason, whatsoever.
20. The Merchant agrees and confirms that the Bank’s sole obligation in the event of interruption in the UPI Services shall be to use all reasonable endeavors to restore the said services as soon as reasonably possibly.
21. The Merchant shall follow any and all additional guidelines that are released from NPCI, RBI or any other competent authority or by the Bank in connection with UPI services from time to time, and as communicated by IDFC FIRST Bank in writing. The Merchant agrees and undertakes to ensure compliance of all the aforesaid guidelines by the respective Merchants.
22. The Merchant shall take all precautions as may be feasible or as may be directed by IDFC FIRST Bank, the NPCI and other relevant parties to ensure that there is no breach of security of the Merchant’s platform/website, and/or the link between both parties is always maintained during the term of the contractual arrangement between the Merchant and IDFC FIRST Bank.
23. If in respect of any transaction, if the Acquiring Bank is intimated, whether by NPCI by the issuing bank, of the Customer requiring a refund of the Transaction amount, the Acquiring Bank shall notify them of the same by providing such details, data or information regarding the relevant Transaction as submitted by the Merchant. The Bank does not hold any role except the one stated above in the Charge Back transaction and refund process. The Acquiring Bank shall not be responsible for any Charge backs or refunds/or any indirect or direct claims/ disputes arising out the transactions between the Merchant and its Customers. It shall be the ultimate responsibility of the Merchant to resolve and settle the claims arising out of the chargeback transactions and refunds in accordance with the relevant NPCI Operating Guidelines and/or Applicable Law.
24. The Merchant agrees and understands that the Acquiring Bank may at its discretion determine that the Merchant is incurring an excessive amount of chargeback transactions, the Bank may establish controls or conditions governing the Transactions contemplated under this Agreement.
25. The Merchant shall provide a reasonable level of service support to the Customers. Such support shall include appropriate notice to Customers of means of contacting the Merchant in the event the Customer has questions regarding the nature or quality of the products and/or services and the procedures for resolving disputes.
26. The Merchant agrees and confirms that all risks associated with the delivery of the products and/or services by the Merchant shall be solely that of the Merchant. Any and all disputes regarding quality, merchantability, non- delivery and delay in delivery of the products and/or services or otherwise will be resolved directly between the Merchant and the Customer without making the Bank, the Service Providers and the acquiring banks a party to such disputes.
27. Merchant agrees and confirms that IDFC FIRST Bank reserves the right to call for logs, proofs, user details or documents at any time on account of audit, compliance, regulatory or legal requirements if necessary.
28. Merchant agrees and confirms that the minimum and maximum amount stipulated for UPI may be decided by IDFC FIRST Bank in accordance with the Guidelines set By NPCI or RBI, from time to time. However, at present the maximum stipulated limit is INR 1 Lac per transaction, INR 2 lakh per transaction for verified merchant categories (Capital Market, Collection, Insurance) and for other merchant categories such as Government Securities, IPO, Tax payments, Hospitals and Education services the limit is up to INR 5 lakhs per transaction
29. In a Pull Transaction, Merchant agrees and understands that it is subject to the approval and expiry period defined by the Merchant at the time of making such requests to the Remitter.
30. The Merchant agrees and confirms that the Bank shall not be liable to the Merchant for any loss or damage whatsoever or howsoever caused or arising, directly or indirectly, including without limitation, as a result of loss of data; interruption or stoppage of the Customer's access to and/or use of the payment gateway services; interruption or stoppage of Service Providers or acquiring bank website; non-availability of connectivity between the Merchant’s platform/website and the Bank’s software, UPI service etc.
31. The Merchant agrees that the Bank reserves its right to suspend the UPI Services provided herein in event the Merchant fails to observe the aforesaid covenants.
32. Merchant is responsible for the correctness of information supplied to IDFC FIRST Bank using or through any other means such as API Channels, electronic mail or written communication. IDFC FIRST Bank does not accept any liability for the consequences arising out of incorrect information supplied by the Merchant.
33. The Bank shall be entitled at any time to refuse total or partial payment to the Merchant, or, if payment has been made, to lien mark or debit the Merchant's Account with such amount or to seek immediate reimbursement from the Merchant, in any of the following situations:
    
    1. The transaction is for any reason unlawful or a fraudulent transaction or invalid transactions;
    2. The goods and/ or services covered by the transaction are rejected or returned or the transaction or part thereof, is validly cancelled or terminated by a Customer or if the merchant fails to provide at all or to the Customer's satisfaction, goods and/ or services to the Customer
    3. The Customer disputes the nature, quality or quantity of the goods and/ or services covered by the transaction and or the transaction itself.
    4. There has been a breach of these terms by the Merchant;
    5. invalid transactions (including chargeback/refund and our related losses);
    6. any fees or charges or any fees or penalties or fines imposed by and any other regulatory bodies / competent authority/compliances/agencies/ banks etc. for violation of applicable Rules and Regulations or acts or omissions or Chargeback’
    7. government charges or tax claims or any extra costs incurred for the Merchant or Merchant transactions related to UPI services, incurred after termination of this agreement;
    8. The Merchant shall ensure that the transaction information (e.g. Merchant Category Code (MCC), transaction type, payment identifiers, etc.) sent through the APIs or any other mode to the Bank is correct and any claims, demands, disputes, fines or losses incurred due to or arising in connection with supply of any incorrect information sent by Merchant shall be the sole responsibility and liability of the Merchant.
    9. Any other event or circumstance which Bank shall from time to time notify to the Merchant to have occurred at the date of the transaction.
34. The Bank shall be entitled to debit the merchant's account at any time for the chargeback disputes raised, and in case of shortfall of balance in merchant account, a lien will be marked for recovering the chargeback amount inclusive of any penalties charged as per the process.
    1. An email will be sent to the merchant on their registered email id notifying on the chargeback details and submission of required proofs within TAT for defending the chargeback/dispute raised.
    2. The merchant will need to visit the branch to submit the necessary evidence within TAT. If no response is received from merchant within the provided TAT chargeback acceptance will attract penalty of Rs. 100 per day from date of transaction.
    3. In case the chargeback is settled in favor of merchant, the chargeback debited amount will be reverse back in merchant’s account on completion of chargeback cycle the TAT will be 75 days from date of chargeback representment done. The merchants can also visit the branch and request for reversal as an exception.
    4. In case the merchant accepts the chargeback, the amount debited will not be reversed in the merchant account and penalty will also be levied if applicable.

    The Merchant shall not be entitled to, transfer or assign any of its rights or obligations under the contractual arrangement contemplated herein.

    The Merchant shall be responsible and accountable for proper and prudent maintenance of authorization letters/required necessary documents with regard to Transactions and provide in such form and manner as may be required by the Bank from time to time, information and related documentation in respect of transactions.

    The Merchant understands that the Bank shall have the sole discretion to amend or supplement any of the aforesaid terms and conditions from time to time. IDFC FIRST Bank may communicate the so amended terms and conditions by hosting the same on its website viz. https://www.idfcfirstbank.com/personal-banking/payments/upi-payments. I/We agree to keep ourselves updated of such changes and be bound by the terms as are in force from time to time.

    The Merchant shall have the right to terminate the UPI Services by giving 30 days prior written notice to the Bank.

    These terms and conditions shall be governed by and construed according to the laws of India and each party submits to the non- exclusive jurisdiction of the courts of Mumbai, in the event of any dispute.

    Mode of Execution

    1. Merchant is aware that this document is an electronic record in terms of Information Technology Act, 2000 and rules there under as applicable to electronic records in various statutes as amended by the Information Technology Act, 2000. This electronic record is generated by a computer system and does not require any physical signatures.
    2. Electronic communications shall be deemed to have been received by the Merchant when we send the electronic communication to the email address / mobile number / details provided by Merchant or any other third party.
    3. Merchant hereby expressly acknowledges and confirms that the Merchant has read, verified, understood, irrevocably agreed to and accepted and delivered all the terms and conditions contained herein electronically by ticking / clicking / checking "I/we Agree" or "I/we Agree and Accept" or any similar icon/tab/option on the online system / Website / portal / platform of the Bank as well as by entering the one time password ("OTP") provided to the Merchant's mobile number registered with the Bank or linked with Unique Identification Authority of India (UIDAI/Aadhaar Authority) or also biometric verification through UIDAI, and that there is no requirement of Merchant's physical signature or of the Merchant signing this T&C in physical form. The Merchant also acknowledges that the execution of this T&C would be complete only once the same is accepted by the Bank. The Bank shall be deemed to have accepted and signed this T&C electronically by way of sending an email/ letter through its officer or the Facilitator to the Merchant and attaching therewith the copy of this T&C. For the purpose of stamp duty, any writing on a stamp paper or franked page associating the stamp paper or such franked page with this document will be as good as making the stamp paper/franked page an integral part of this document.
    4. The parties agree that either party may use a computer-based system to issue certain Confirmations and that each such Confirmation executed by a party by means of an electronically-produced signature, shall have the same legal effect as if, such signature had been manually written on such Confirmation and that such Confirmation shall be deemed to have been signed by such party for the purposes of any statute or rule of law that requires such Confirmation to be signed. The parties acknowledge that, in any legal proceedings between them in any way relating to this Agreement, each party expressly waives any right to raise any defense or waiver of liability based upon the execution of a Confirmation by a party by means of an electronically- produced signature.
    5. If the PAN of the Merchant is not linked with Aadhar, the Merchant agrees to get it linked within 90 days of availing of this service.