Chargeback & Dispute Policy

This Chargeback & Dispute Policy (“Policy”) explains how Paydios handles payment disputes, chargebacks, customer complaints relating to Transactions, and associated merchant responsibilities.

This Policy forms part of the Paydios Merchant Agreement / Payment Services Agreement and the Paydios Terms & Conditions .

Paydios may update this Policy from time to time to reflect changes in applicable law, card-network rules, Payment Partner requirements, or Paydios risk procedures.

A chargeback is a payment dispute initiated through a Customer's card issuer, bank, payment provider, card network, or other applicable financial institution.

A chargeback may result in some or all of the disputed Transaction amount being reversed from the Merchant.

Chargebacks may arise for reasons including:

• Fraud or suspected unauthorized use;
• Customer claims that goods or services were not received;
• Goods or services materially different from what was represented;
• Duplicate Transactions;
• Processing errors;
• Subscription or recurring-billing disputes;
• Refund-related disputes;
• Cancellation disputes; or
• Other reasons recognized by the applicable payment network or Payment Partner.

The actual dispute categories and procedures may vary depending on the payment method and Payment Partner.

A refund is a payment returned to the Customer by the Merchant or by Paydios under its customer-protection and refund procedures.

A chargeback is initiated through the Customer's bank, card issuer, payment provider, or applicable payment network.

Once a formal chargeback has been initiated, issuing a refund does not

necessarily cancel the chargeback process. The applicable Payment Partner or financial institution determines how the matter is handled.

Paydios will manage chargeback and dispute communications with applicable Payment Partners on the Merchant's behalf where supported by the relevant payment method and partner.

When Paydios receives a dispute, it may:

• Notify the Merchant;
• Provide available dispute information;
• Request evidence;
• Review the Transaction;
• Determine whether to challenge or accept the dispute;
• Submit evidence to the applicable Payment Partner;
• Communicate with the Payment Partner;
• Apply the applicable financial adjustment; and
• Communicate the outcome when available.

Paydios does not control the final decision of a Customer's issuing bank, card network, or other institution responsible for adjudicating the dispute.

The Merchant must cooperate fully with Paydios in connection with disputes.

The Merchant must provide requested information and evidence within the timeframe specified by Paydios.

The Merchant must not knowingly provide false, misleading, incomplete, or fabricated information.

Failure to cooperate may result in:

• Acceptance of the dispute;
• Continued or increased reserves;
• Additional funds Holds;
• Settlement restrictions;
• Account suspension;
• Account termination; or
• Other appropriate action.

Unless a shorter deadline is required by the applicable Payment Partner, network, or dispute process, the Merchant must provide requested evidence to Paydios within three (3) business days of Paydios's request.

The Merchant acknowledges that Paydios may provide a shorter operational deadline where necessary to meet an external Payment Partner or network deadline.

The Merchant is responsible for ensuring that its contact information and account notifications are monitored.

Failure to provide evidence within the applicable deadline may result in Paydios accepting or not contesting the dispute.

Payment-network and issuer deadlines may be different from Paydios's internal deadline. Paydios may therefore require evidence sooner than the external deadline to allow sufficient time for review and submission.

Depending on the reason for the dispute, Paydios may request some or all of the following:

• Transaction records;
• Order information;
• Invoice;
• Customer name and contact information;
• Product or service description;
• Proof of delivery;
• Shipping confirmation;
• Tracking information;
• Delivery confirmation;
• Customer communications;
• Emails;
• Chat records;
• Customer support records;
• Accepted terms and conditions;
• Refund and cancellation policy acceptance;
• Cancellation records;
• Proof of service completion;
• Digital access records;
• Login or usage records;
• IP address or device information where legally appropriate;
• Evidence of prior transactions with the Customer;
• Proof of refund;
• Evidence of authorization;
• Contracts;
• Signed documents; and
• Other information reasonably relevant to the dispute.

The type of evidence required may vary depending on the dispute reason and Payment Partner.

Evidence should be accurate, complete, relevant, and organized so that the dispute reviewer can understand the transaction history.

Payment networks and issuing banks ultimately determine whether submitted evidence is sufficient to overturn a dispute.

Paydios may, without obtaining separate Merchant approval:

• Accept a dispute;
• Decline to contest a dispute;
• Submit available evidence;
• Determine that insufficient evidence exists;
• Determine that contesting the dispute is not reasonably justified; or
• Take another appropriate action.

Paydios may consider:

• Available evidence;
• Dispute reason;
• Transaction history;
• Merchant history;
• Fraud indicators;
• Customer complaints;
• Payment Partner requirements;
• Cost of representment;
• Likelihood of success; and
• Other applicable circumstances.

The Merchant authorizes Paydios to exercise these rights.

For each chargeback received, Paydios may charge the Merchant a chargeback fee equal to 12% of the disputed amount , subject to applicable pricing, commercial agreements, and Payment Partner requirements.

For example, if the disputed amount is $1,000, the applicable chargeback fee would be $120.

This chargeback fee is separate from:

• The disputed Transaction amount;
• Refund amounts;
• Payment Partner or network fees;
• Network assessments; and
• Other costs that may apply.

Where a Payment Partner separately charges Paydios a fee, Paydios may also pass that applicable fee to the Merchant where permitted under the Merchant's pricing or agreement.

The Merchant is responsible for the disputed Transaction amount and applicable chargeback-related amounts.

Paydios may recover these amounts from:

• Available Merchant Funds;
• Pending settlements;
• Future settlements;
• Reserves;
• Funds subject to a Hold; or
• Other amounts payable to the Merchant.

Paydios may apply such amounts without obtaining additional authorization from the Merchant where permitted under the Merchant Agreement.

If a chargeback causes the Merchant's account to become negative, the Merchant remains fully responsible for the resulting negative balance.

The Merchant must satisfy the negative balance when requested by Paydios.

The obligation survives:

• Suspension;
• Account closure;
• Termination; and
• Expiration of this Agreement.

Paydios may pursue lawful recovery methods for outstanding amounts.

Paydios may establish, increase, or maintain a Reserve when the Merchant's chargeback activity creates actual or reasonably anticipated financial exposure.

A Reserve may be used to cover:

• Chargeback amounts;
• Chargeback fees;
• Refunds;
• Reversals;
• Network assessments;
• Customer claims;
• Fraud losses; and
• Other payment-related obligations.

A Reserve may remain in place even when the Merchant has otherwise qualified for a faster settlement schedule.

A Merchant's normal settlement schedule does not eliminate or reduce the Merchant's Chargeback responsibility.

For example, a Merchant operating under the standard T+30 settlement schedule remains responsible for Chargebacks, refunds, reversals, and other obligations arising from its Transactions.

Paydios may apply additional Holds or Reserves where reasonably necessary regardless of the Merchant's normal settlement schedule.

Paydios may continuously or periodically monitor a Merchant's dispute and Chargeback activity.

If the Merchant's Chargeback rate reaches or exceeds 1% , Paydios may place the Merchant under enhanced risk review.

Depending on the circumstances, Paydios may:

• Request additional information;
• Require additional evidence procedures;
• Increase a Reserve;
• Extend settlement timing;
• Increase or maintain a Funds Hold;
• Restrict payment methods;
• Reduce processing limits;
• Require additional fraud controls;
• Suspend processing; or
• Terminate the Merchant account.

A 1% Chargeback rate is an enhanced-risk review threshold , not an automatic guarantee of suspension or termination.

Paydios may take action below 1% where the nature or severity of the disputes creates material risk.

Paydios may take additional action where a Merchant experiences:

• Rapidly increasing Chargebacks;
• Repeated Chargebacks;
• Fraud-related Chargebacks;
• High-value Chargebacks;
• Multiple disputes relating to the same business practice;
• Excessive refund complaints;
• Customer complaints concerning non-delivery; or
• Other patterns indicating elevated risk.

Paydios may increase the Merchant's financial or operational controls accordingly.

A Customer may contact Paydios directly regarding a payment.

Where Paydios reasonably determines that customer protection is appropriate, Paydios may issue a full or partial refund without prior Merchant approval .

This may occur where:

• Goods or services were not delivered;
• Goods or services were materially different from what was represented;
• The Merchant is unresponsive;
• The transaction appears unauthorized or fraudulent;
• The Merchant has been suspended or terminated;
• The Merchant fails to provide sufficient fulfillment evidence; or
• Another legitimate customer-protection or payment-related reason exists.

Paydios may generally notify the Merchant after the refund is initiated where reasonably practicable.

The Merchant remains financially responsible for the refund unless otherwise agreed.

Where Paydios receives a Customer complaint before a formal chargeback has been completed, Paydios may determine that a refund is more appropriate than allowing the matter to proceed through the formal dispute process.

Paydios may consider:

• The Customer's complaint;
• Merchant response;
• Available evidence;
• Transaction history;
• Cost and timing of the dispute process;
• Payment Partner requirements;
• Customer-protection considerations; and
• Other relevant circumstances.

A Paydios-issued refund does not prevent a financial institution from separately taking action where a formal chargeback has already been initiated or otherwise permitted under applicable rules.

Where a Customer reports an unauthorized or potentially fraudulent Transaction, Paydios may:

• Investigate the Transaction;
• Restrict related funds;
• Refund the Customer;
• Reverse the Transaction where possible;
• Provide information to Payment Partners;
• Suspend the Merchant; or
• Take other appropriate action.

The Merchant must cooperate with any resulting investigation.

Merchants are encouraged to communicate with Customers and resolve legitimate complaints promptly.

A Merchant may contact a Customer regarding a dispute where permitted by applicable law and payment-network rules.

However, the Merchant must not:

• Pressure a Customer to withdraw a legitimate dispute;
• Misrepresent the dispute process;
• Threaten a Customer for filing a dispute;
• Submit false evidence; or
• Attempt to circumvent the formal dispute process.

Even if a Customer agrees to withdraw a dispute, the Merchant must comply with any remaining Paydios or Payment Partner evidence requirements where applicable.

Where available through the applicable Payment Partner or payment network, Paydios may support additional stages of the dispute process, including representment or other review stages.

The availability of additional dispute stages depends on:

• Payment method;
• Card network;
• Payment Partner;
• Dispute reason;
• Applicable rules; and
• Available evidence.

Paydios does not guarantee that a dispute can be contested or escalated at every stage.

The final decision in a card or payment-network dispute may be made by the applicable:

• Issuing bank;
• Acquiring institution;
• Card network;
• Payment Partner;
• Wallet provider; or
• Other designated dispute-resolution authority.

Paydios does not guarantee the outcome of any dispute.

Paydios's role is to facilitate the dispute process and take the actions available to it under its agreements and applicable rules.

Submitting evidence does not guarantee that a dispute will be overturned.

The quality of evidence, the dispute reason, Payment Partner rules, card-network rules, and the decision of the applicable financial institution all affect the outcome.

Paydios may determine that contesting a dispute is not reasonably justified in a particular circumstance.

Suspension, closure, or termination of a Merchant account does not eliminate the Merchant's responsibility for Transactions processed before termination.

Chargebacks, refunds, reversals, and other claims may arise after termination.

The Merchant remains liable for those obligations.

Paydios may retain or apply available Reserves or held funds to satisfy such obligations.

If held funds are insufficient, the Merchant remains responsible for the remaining balance.

After suspension or termination, Paydios may continue to hold applicable funds for up to 180 days , or longer where permitted under the Merchant Agreement if unresolved or reasonably anticipated Chargebacks, refunds, reversals, customer claims, network assessments, or other liabilities remain.

Where a new liability arises during a Hold period, Paydios may extend the applicable Hold in accordance with the Merchant Agreement.

Merchants should retain sufficient Transaction records and evidence for the period reasonably necessary to respond to disputes.

Records may include:

• Order information;
• Invoices;
• Delivery confirmations;
• Tracking information;
• Customer communications;
• Refund records;
• Cancellation records;
• Terms acceptance;
• Digital access records;
• Service-completion records; and
• Other Transaction evidence.

Paydios may request evidence at any time where reasonably necessary.

Different payment methods may have different:

• Dispute rules;
• Response deadlines;
• Evidence requirements;
• Fees;
• Reversal procedures;
• Escalation processes; and
• Final decision procedures.

Paydios may apply the rules applicable to the specific payment method and Payment Partner involved.

If a Merchant disagrees with a Paydios decision relating to a Chargeback, refund, Reserve, Hold, or other dispute-related action, the Merchant may contact:

legal@paydios.io

The Merchant and Paydios should first attempt to resolve the issue directly.

Any formal dispute between Paydios and the Merchant will be handled under the dispute-resolution provisions of the Paydios Merchant Agreement / Payment Services Agreement .

This Policy does not create a separate dispute-resolution process between Paydios and the Merchant.

Paydios's decision not to contest a particular Chargeback, temporarily release funds, or take action against a Merchant does not waive Paydios's rights concerning future Transactions or disputes.

Paydios may update this Policy from time to time to reflect:

• Changes in payment-network rules;
• Changes in Payment Partner requirements;
• Changes in law;
• Fraud trends;
• Chargeback trends;
• New payment methods;
• New risk controls; or
• Operational changes.

The updated Policy becomes effective when posted unless otherwise stated.

For general support:

help@paydios.io

For legal, compliance, Chargeback, or dispute matters:

legal@paydios.io

For commercial inquiries:

sales@paydios.io

United States

ZeroFlux Technologies, Inc. / Paydios 169 Washington AveDover, NJ 07801 United States

Pakistan

ZeroFlux Technologies (Private) Limited Office No. 8, 4th Floor, Trade Center, Business Park B Block, Gulberg GreensIslamabad Capital TerritoryPakistan

By using Paydios, the Merchant acknowledges that it has read, understood, and agreed to this Chargeback & Dispute Policy and the provisions of the Paydios Merchant Agreement relating to disputes, refunds, reserves, funds holds, and Merchant financial responsibility.