HitPay Merchant Monitoring Programme
Monitoring Dispute Rate: As part of our commitment to providing a secure payment platform, the Merchant Monitoring Programme will closely monitor the dispute rate of our merchants. The dispute rate will be calculated as the proportion of the number of disputes to the total number of card transactions undertaken through HitPay. (a) Merchants with a dispute rate exceeding 0.5% will be subject to the conditions of the programme as applicable. (b) Merchants that are identified as having a high susceptibility to fraud and chargebacks - with 10 or more failed transactions per day and whose customers have been observed engaging in fraudulent behaviours, may be subject to the same programme. The programme will consist of three aspects that may be applicable to merchants as required.
- Adjustments to the Merchant Discount Rate (MDR): In line with our commitment to providing fair and sustainable services, we may need to make adjustments to the Merchant Discount Rate (MDR) for certain merchants. The MDR is the percentage of each transaction that HitPay retains as a fee for our payment processing services. Merchants enrolled in the Merchant Monitoring Programme will experience a 2% MDR increase. These adjustments are based on an evaluation of your transaction history and risk profile. We understand that this may impact your business financially, but it is essential to ensure that we can continue supporting your operations effectively.
- Risk Reserve Requirement: To safeguard your business and protect against chargebacks and disputes, merchants identified under the Merchant Monitoring Programme will be required to maintain a risk reserve. This may range from 20-50% of your businesses’ average monthly card payments volume on HitPay. The reserve amount will be determined based on your transaction history and risk profile. This reserve acts as a buffer and helps cover potential liabilities arising from disputed transactions. We want to assure you that the reserve will only be utilised if necessary and any unused funds will be returned to you upon exit of the HitPay Merchant Monitoring Programme.
- Review and Re-evaluation: We believe in the importance of regularly evaluating the performance of our merchants. After a period of 6 months, we will review your dispute rate and transaction history to assess the effectiveness of the Merchant Monitoring Programme. If we observe significant reductions in your dispute rate and overall performance, we will re-evaluate the risk reserve requirement and MDR adjustment applied to your HitPay account and adjust it accordingly.
| HitPay Merchant Monitoring Programme Conditions | |||
| Condition | Additional MDR applied to account | Risk Reserve Requirement | Review of account status |
| Dispute Rate is greater than 0.5% | Additional 2% on top of default rate | Additional risk reserve requirement will be imposed. The amount will be determined based on a businesses’ transaction history and risk profile | The account will be reviewed 6 months from the date of entry into the Programme to re-assess it’s dispute rate and transaction performance. |
| Merchants who exceed more than 10 failed transactions on a daily basis; fraud behaviours observed from customers | Additional risk reserve requirement will be imposed. The amount will be determined based on a businesses’ transaction history and risk profile | The account will be reviewed 6 months from the date of entry into the Programme to re-assess it’s dispute rate and transaction performance. | |
High-Risk Transaction Policy
High-Risk Transactions: To protect both your business and our platform from potential chargebacks, HitPay reserve sthe right to identify and flag high-risk transactions. These are transactions that are deemed to have a higher likelihood of chargebacks or disputes based on specific indicators. While we understand that not all flagged transactions may result in disputes, this measure allows us to take proactive steps to minimize potential risks.
- Payout Pause for High-Risk Transactions: For transactions flagged as high-risk, HitPay reserves the right to pause payouts for up to 4 months from the transaction date. During this period, the funds related to the high-risk transactions will be held securely in your HitPay account. This measure ensures that sufficient funds are available to cover potential chargebacks while maintaining a stable payment environment.
- Release of High-Risk Transaction Funds: To release funds related to high-risk transactions, merchants are expected to provide information and supporting documents to demonstrate the legitimacy of the transaction. These documents may include, but are not limited to, proof of delivery or fulfillment to the customer. By providing these details, you help us ensure a smooth and secure transaction process for both your business and your customers.
- In addition to the aforementioned conditions, if HitPay determines your account operations to be fraudulent in nature, all transactions will be promptly refunded from the available balance, and your account will be permanently deleted. Subsequent sign-up attempts will be rejected to maintain the integrity of the HitPay platform and protect users from potential fraudulent activities.
Proactive Refunding of Transactions with Fraud Warnings
In our commitment to maintaining the highest standards of security and protecting our users from potential risks, HitPay has implemented a proactive approach towards transactions that receive fraud warnings from card networks and banks. This policy is an addition to our existing high-risk transaction policy and outlines the procedures for handling such flagged transactions.
1. Proactive Refunding:
- HitPay will proactively initiate refunds for transactions that are flagged with fraud warnings by card networks and banks.
- The objective is to promptly address potential fraudulent activities, safeguarding both our users and the integrity of our platform.
- Any transaction that triggers fraud warnings or alerts from card networks or banks will be subject to proactive refunding.
- Fraud warnings may include but are not limited to chargebacks, alerts on suspicious activities, or notifications received from financial institutions