EukaPay Refund Policy (Merchants)

To prevent any potential financial liability in refunds, merchants can opt for Rolling Reserve or PAD refunds.

Option A: Rolling Reserve

10% of each transaction is set aside as the rolling reserve. This reserved amount acts as a safeguard to ensure that there are sufficient funds available to process any future refunds that might be requested by customers.

In Payouts, the merchant receives the remaining amount after deducting the 10% reserve from their available transaction funds. In the next payout, any unused reserve from the previous period is added to the new payout total.  Then, a new set of reserve amounts is created based on the transactions of the current period.

Given the aforementioned information, merchants have a maximum refundable amount of current total revenue + rolling reserve funds available since the last payout. Furthermore, it is important to take note that immediately after a payout, only the remaining unused rolling reserve amount is available for refund. 

Sample scenario:

1. Merchant A has a running balance of $100 and decides to make a payout. $10  is credited; this serves as the 10% rolling reserve until the next payout and exists as "Funds Held by EukaPay". Merchant, now, has a total payout of $90 minus any applicable fees. 
2. New transactions have been made and Merchant A currently holds $300 in its running balance. Merchant A can make a maximum refund of $310( running balance of $300 + last period's rolling reserve of $10).
3. Merchant A submits another payout on its current balance of $300, wherein 10% of that is translated as the new rolling reserve. Consequently, the total payout balance of Merchant A is the sum of $270,  $10 (previous rolling reserve or remaining rolling reserve from previous period), and deductible fees. 

Option B: Pre-Authorized Debit (PAD)

PAD refers to a payment method that allows an authorized party, such as EukaPay, to withdraw funds directly from an individual's bank account. It is a convenient and automated way of making recurring payments, such as monthly bills, subscription fees, or refunds.

To set up a pre-authorized debit, the individual provides their consent and provides their bank account information to the authorized party. Once the pre-authorized debit is established, the authorized party has the ability to initiate withdrawals from the individual's bank account on predetermined dates or for specific amounts. The individual's bank account is debited automatically, eliminating the need for manual payments.

Overall, pre-authorized debit simplifies recurring payments by allowing authorized parties to withdraw funds directly from an individual's bank account with their consent. It offers convenience and helps individuals manage their financial obligations more effectively.

It's important to note that pre-authorized debits are governed by specific regulations and guidelines, such as those outlined by the Automated Clearing House (ACH) in the United States or the Canadian Payments Association (CPA) in Canada. These regulations ensure that the process is secure, transparent and that individuals have appropriate rights and protections related to their bank accounts and payment authorizations.

Refund Options Overview