Dispute Resolution Policy

Version: 0.1

1. Complaint regarding customer order

Customers can raise dispute on shipped order for the following reasons:

• Transaction amount is different
• Request is made for the copy of the receipt
• Merchandise is defective or damaged
• Alleged fraudulent transaction investigated by the acquiring bank
• Multiple charges for the same order
• Merchant agreed to issue refund on merchandise returned or for any other reason
• Merchandise not as advertised
• Customer did not engage in or authorize this transaction
• Merchandise has not been delivered
• Cardholder is not in possession of the card used for the transaction
• Service not received from merchant
• Order was cancelled
• Customer paid for order by other payment method

In case of any of the above issues, customer should visit the Merchant website and refer to the terms & conditions, shipping policy, refund/exchange/return/cancellation policy and contact the Merchant to resolve the issue.

The Customer can initiate communication directly with the Merchant to resolve issues pertaining to a specific order through Merchant’s Website under the contact us (email or call support) option. The Customer can share the details of the transaction such as date of transaction, amount of transaction, Order ID shared by the Merchant, description of the problem with the Merchant.

In case the Customer do not get a satisfactory response or Merchant does not respond to Customer’s emails & phone calls within 10 working days from the date of transaction made by the Customer, then the Customer can contact LivQuik Technology (India) Private Limited to mediate and amicably resolve the issue. The Customer may provide LivQuik with the following details:

1. Date of transaction
2. Amount of transaction
3. Transaction ID
4. Order ID
5. Description of the problem
6. Details of email communication with the Merchant (Screenshot of the communication)

Once a complaint is raised, the Investigation Team would respond to the issue as per the timeline specified in escalation matrix under Customer Grievance Policy.

In the event, the Customer is not satisfied with Merchant’s response then the Customer can raise a chargeback ¹ with its issuing bank as a second option. These chargebacks will be raised with LivQuik by the Customer’s issuing bank and LivQuik shall assist to amicably resolve the issue.

1 Chargeback is the return of funds to a customer, initiated by the issuing bank of the payment mode used by a consumer. Chargeback is a dispute against a particular transaction raised by the cardholder (end-user) and reported to their card issuing bank. A chargeback is a provision by banks and card networks such as Visa, MasterCard, Rupay to protect Customers from unauthorized or fraudulent payments. Once the cardholder files a complaint, the bank reports the same to LivQuik and initiate s an investigative procedure

2. Chargeback transactions

A chargeback is a charge that is returned to a payment instrument after a customer successfully disputes an item on their account statement or transactions report.

There are several key players involved in the chargeback, including:

• Cardholder: The owner of the card involved in a
• Merchant: The party who sold the goods or services being
• Issuer: The entity who issued the card to the
• Acquirer: The entity tasked with acquiring payment on the merchant’s behalf (the Company in the instant case).
• Card Networks/ Associations: The card/ network (Visa, Mastercard, ) who oversees the process.

The concept of the chargeback system: if a cardholder has an issue with a transaction that cannot be resolved dealing directly with the merchant, then said cardholder can appeal directly to the Card Network. Outlined below are the broader steps involved in the chargeback process:

• Cardholder will challenge a transaction by contacting the issuer and raise a chargeback
• Issuer will review the request with concern raised by the customer. If the issuer and the Company determines that the claim is invalid, the chargeback will simply be declined.
• In case the issuer and the Company validate that an error has occurred, the case proceeds as per the extant process and timelines prescribed by the respective Card Network.
• When a chargeback request is received by the Company, it will provide the merchant with two options either to accept or dispute the chargeback, In case of dispute, the merchant will be required to provide the proof of service given or transaction related document as per the association guidelines.
• The Company will obtain relevant documents from its merchants
• The Company will then submit the appropriate response, along with supporting evidence, to the issuer via the card network.
• The issuer will then review the information and anyone of three processes may happen:
  • The issuer rules in the Company’s favor – The Company’s representment case sufficiently validates the original transaction. The transaction amount will be again charged to the

consumer’s account, and the funds will be returned to the Company’s escrow account.

• The issuer rules in favor of the cardholder – The Company’s “compelling evidence” did not convince the issuer to reverse the chargeback. The amount is credited by the issuer into the customer’s wallet.
• The merchant wins, but the issuer files a second

Chargeback Request Flow (Indicative)

3. Chargeback procedure

For Merchants’ it is best to avoid any kind of Chargebacks in high volumes as banks and card networks may label your business as a fraudulent/high risk business, hampering their image and present agreement rates. A customer has a timeframe of 180 days to file a Chargeback, which means their sales are reversible for that time period. Furthermore, a high number of Chargebacks may lead to the Banks holding other remittances for the business as well and even a ban of online payment services may be imposed upon the business.

Merchant explicitly agrees that all payments made in respect of any Customer Order, in respect of which the Customer or Issuing Bank raises a claim, demand, dispute or Chargeback on LivQuik or the Facility Providers for any reason whatsoever or in case of refund initiated by the Merchant shall be the financial responsibility of the Merchant. The Chargeback or refund shall be processed as per the set processes of Facility Providers as denoted:

• Issue Raised: Once an Issue/Dispute is raised by the customer and LivQuik is intimated of the same, we shall notify our Merchant about the issue/dispute with the relevant details as provided by the bank regarding the transaction.

• Assess the Chargeback: Merchant would then be required to assess the dispute and provide a detailed explanation regarding the product/service delivery. If in case the product/service has NOT been provided, the Merchant would be responsible to review the situation and determine if the customer is still willing to accept the product/service delivery. If in case the product/service has been delivered, then the Merchants shall be responsible to share ‘Proof of Delivery’, Invoices and other legally acceptable proofs of product/service delivery.

• Rendering Proofs: Once the issue/dispute has been assessed by the Merchant, it is the sole responsibility of the Merchant to timely render all documents regarding the transactions in order to contest the Dispute as Facility Providers generally provide a window of 5 working days to represent the Chargeback. Failure to do so within the specified time frame may result in the Merchant losing the Chargeback.

Once the Chargeback is received and the Merchant is ordered to make payment of the Chargeback amount or in case of Refund once the Refund requested is initiated by the Merchant, the Merchant is required to make the payment of the Chargeback/ Refund amount as the case may be without any demur or protest, dispute or delay.

The Merchant shall make the payment of Chargeback amount within 48 hours from the time of receiving the request for making payment of Chargeback and or in case of Refund immediately at time of initiating the refund. The Merchant explicitly agrees that all Refunds and Chargebacks shall be the sole responsibility of the Merchant and LivQuik shall not be liable for any claims or disputes which may arise in connection with such Refunds or Chargebacks to the Merchant or its Merchants.

LivQuik shall have the absolute right to withhold the payment in case of anticipated Chargebacks or excessive chargebacks raised against Merchant. The Merchant further agrees to indemnify LivQuik in respect of any claims, disputes, penalties, cost and expenses arising directly or indirectly in relation Refunds or Chargebacks for all transaction initiated and instructed through the Merchant’s Site.

If LivQuik and/or the Facility Providers determine that the Merchant and/or its business associates are incurring an excessive amount of Chargebacks or Refunds, LivQuik may establish controls or conditions governing the Transactions contemplated under this Terms and Conditions, including without limitation, by

• establishing new processing fees or additional costs,
• by requesting a fixed reserve in an amount reasonably determined by LivQuik to cover anticipated Chargebacks and Refunds
• delaying or suspending pay-outs to Merchant,
• refuse to process any transactions
• adjusting the Chargeback and Refund amount from the Customer Charge payable to Merchant
• imposing penalty amount if any charged by Facility Providers
• charge interest over the Chargeback and Refund amount
• terminating or suspending LivQuik

The Merchant explicitly authorizes LivQuik to debit the Merchant’s current balance amounts with LivQuik to the extent of the aforesaid Chargeback and Refund and any other moneys due to LivQuik by the Merchant. If there are insufficient funds available therein; the Merchant shall within 48 (forty-eight) hours on receipt of the e-mail from LivQuik regarding the claim undertakes forthwith without any demur, protest, dispute or delay, to pay to LivQuik, the amount of the Chargeback/dispute/Refund to the extent to which such funds prove inadequate.

Without prejudice to any other of LivQuik’s rights and remedies, in the event that the Merchant does not make any payment to LivQuik by its due time (within 48 hours) or on demand as required, LivQuik shall be entitled to charge interest on such overdue amount upon completion of the said 48 (Forty-Eight) hours (as the case may be) until the date of payment in full, at the rate of 3-6 % per month, solely as per LivQuik’s discretion and the Merchant cannot not dispute this.

It is agreed that any claim or dispute arising out of non-payment of Refund / insufficient balance shall be the absolute liability of the Merchant and further the Merchant explicitly indemnifies LivQuik and the Facility Providers against any claims, dispute initiated by any Customers / Facility Provider or any third party / authority enforced on LivQuik, Acquiring Banks/ Card Schemes/etc. for the non-refund of such transactions.

The Merchant explicitly agrees that the refunds initiated by Merchant shall be routed to the original method of payment unless specifically agreed between the Merchant and Customer to credit through an alternate mode. The Merchant hereby confirms that LivQuik has no responsibility if Refunds are processed through alternate mode agreed between Merchant and Customer, however, the Merchant is required to provide a payment settlement proof with the Customer to LivQuik if in case the payment settlement is rendered through a different mode.

The Merchant agrees that TDR charged by LivQuik shall not be refunded by LivQuik irrespective of any Chargeback or Transaction being disputed, rejected or refunded.

The amount of the refund/adjustment must include any associated taxes required to be refunded and cannot exceed the amount shown as the total on the original sales data except by the exact amount required to reimburse the customer for postage (if any) that the Customer paid to return Product. The Merchant understands that if Merchant’s refund policy prohibits returns or is unsatisfactory to the Customers, LivQuik may still receive a Chargeback relating to the Disputed Transaction.

4. Cancellation of Orders / Refunds / Returns

In cases of queries related to the cancellation of Orders/Refunds/Returns the Customer should directly contact the Merchant and follow instructions as specified in the return/refund/cancellation policy on the Merchant Website. Please note that LivQuik only facilitate online payments for Merchants and do not handle shipping or order dispatch.

In cases of failed transaction, order not generated at the time of transaction on Merchant’s Website or refund is initiated, then the Customer should get the credit in its bank account within 5-7 business days. In case the Customer has not received the amount, the Customer may contact the Merchant for further details, as the refunds are initiated from Merchant’s end.

In case the Merchant declines to process the refund to the Customer for cases where services/products were not delivered by the Merchant, the Customer may contact LivQuik for resolution on the same.

5. Reporting potential fraud or unauthorized transactions or fraudulent merchant

The Customer can immediately write to the Nodal Officer with respect to the transaction that was not

authorized by the Customer or reporting about the fraudulent Merchant with a subject line “Reporting Fraud”. The Customer also has an option to raise a chargeback for such unauthorized transaction.

6. Best-practices for hassle-free transactions

As mentioned above, communication with the merchant is the best recourse to prevent disputes. You can also follow these tips to avoid disputes:

• Clearly understand the product service description before making a
• Make sure to review the T&C, return & cancellation, refund policies on the merchant website before making a payment.
• Wait 7-10 business days for the delivery of tangible items or services, and one business day for the – delivery of digital items (from the date of transaction) before filing a complaint.
• Follow the seller’s instructions to return your purchase. Remember to keep a copy of your return shipping receipt.
• Only enter details on secure Look for an https connection and valid security certificates.
• Don’t enter credit card details on suspicious merchant websites as it may be a phishing
• Keep your antivirus software and browsers up to date
• If your item is defective and it is under warranty, you must contact the manufacturer for repair or replacement.
• In case of issues related to bank processing, you should wait for 5-7 business days & check for refund status in your bank statement. In case the refund is not reflecting in your bank account then you may contact LivQuik for refund related queries.

7. Chargeback / Dispute Management System

DMS or Dispute Management will constitute of:

1. Chargeback Management System (CMS)
2. Dispute Management System (DMS – For Other methods apart from cards)

Chargeback Management System (CMS)

A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or on credit cards.

There are several key players involved, including:

• Cardholder: The owner of the card involved in a
• Merchant: The party who sold the goods or services being
• Issuer: The bank who issued the card to the
• Acquirer: The bank tasked with acquiring payment on the merchant’s
• Card Association: The card brands (Visa, Mastercard, ) who oversee the process.

Stages of Chargeback

1. Retrieval Request
   1. It is just a request raised by the cardholder to know the transaction This is non- financial request, hence no credit debit involved here.

b. Timeframe: 30 days (This in non-financial impact, Bank gives 5 days)

2. Chargeback
   1. This is first stage of Chargeback where cardholder claims the transaction in order to get the refund within specified timeframe by Visa/Maser/Rupay
   2. The Issuer can only make chargeback for a valid reason as described in VISA/MC/Rupay

c. Timeframe

1. Visa- 30 days (Bank gives 5 days to the merchant)
2. Master-45 days (Bank gives 5 days to the merchant)
3. Rupay-15 days (Bank gives 5 days to the merchant)

3. Second Level/Pre-Arbitration:

1. This is second stage of the chargeback. In the case cardholder does not agree for the documentation provided at first stage by merchant then he/she can go for this stage through issuing bank.
2. This stage merchant needs to be very careful while representing the case, any wrong representation can lead to penalty charges.

c. Timeframe:

1. Visa- 30 days (Bank gives 3/5 days to the merchant)
2. Master-45 days (Bank gives 3/5 days to the merchant)
3. Rupay-15 days (Bank gives 3/5 days to the merchant)

4. Arbitration

1. This is final stage of the chargeback. A process whereby financial liability for Transactions processed through Interchange that are presented and charged back is determined by VISA/MC.
2. If merchant fail to represent the chargeback, then penalty charges applicable for $500 along with the dispute amount.

c. Timeframe:

1. Visa- 6 days (Bank gives 48 hours to the merchant)
2. Master-6 days (Bank gives 48 hours to the merchant)
3. Rupay-6 days (Bank gives 48 days to the merchant)

Chargeback Process Flow

Transaction search

CMS will help to trace the transaction along with the merchant details and will show the basic transaction details as listed below. If any transactions are debited for chargeback, then it should also reflect here as Chargeback. Same ways if merchant wins the chargeback case, then it should reflect as credit along with the date & amount of the same. Some acquiring partners will have a debit first and some will do it post defending the case basis win or loss. The same needs to be factored while designing CMS.

Below are the basic parameters which CMS / MPI will require:

1. Merchant Name
2. Merchant ID
3. Date of Transaction along with time
4. Date of settlement
5. Transaction Amount
6. Settled Amount
7. Refund details (status, date, amount)
8. Transaction ID (Merchant Transaction Reference)
9. RRN
10. Auth Code
11. Chargeback Debit (status, date, amount)
12. Chargeback credit (status, date, amount)

In this way one can view a single transaction detail however we will require bulk query option as we would be growing in transaction and vis-a-vis disputes as well.

Bulk query

Bulk query helps process search and execution more faster & results in more productivity.

• To extract the refund details for number of transaction’s (This will include already chargeback
• Transaction’s)
• To extract the merchant transaction reference number with RRN or Auth code (unique parameters for any transaction)

Flow of CMS

1. Step1

1. 1. Our Acquiring partner bank will receive chargeback from issuing bank through network & upload the relevant docs / request for information on the front-end access we will be

This access will be classified at acquiring bank level and will be created as per bank to bank

1. Apart from this, the chargeback cases should be uploaded as per the stages of chargeback described earlier (RR, First level, Pre-Arbitration, Arbitration).
2. Whenever Acquirer will upload the cases in CMS it should be triggered at our end through an email alert to the risk Basis this alert, this risk team will login into DMS and start process of closing the request received from the bank.

2. Step2

1. The data received from the bank in the CMS will have the stage of chargeback. CMS will also showcase the acquirer that has raised the Chargeback along with other details.
2. We (Risk Team) will validate the dispute as per the reason
3. If the transaction is already refunded
   1. We will recall this transaction with refund
4. If the transaction is not refunded
   1. It will move to merchant queue to check service rendered or not

3. Step3

1. Merchant will check services rendered or not according to dispute reason code & will share with the response accordingly. CMS will also have merchant leg as well. All such transactions will be flagged to merchants. Merchants will receive daily alert of all new cases and reminder alerts via email and SMS (case to case basis) for existing cases to which they need to provide relevant explanations and supporting docs within stipulated TAT (this will vary from bank to bank). Note: The front to this will be integrated to MMS console access that merchant will

4. Step4

1. We (Risk Team) will then validate these documents & will either to reject or approve basis the completion of the document.
2. Approve- Moves to acquiring bank’s
3. Reject- Moves to merchant queue to
4. When we will approve the transaction with the document’s then should go to the Bank with consolidated report along with the short remarks inputted in system. All proofs should be available to with the acquirer for download along with a report (in excel) for cases received at their end.

5. Step5

1. Acquiring bank will validate submitted documents & reports and will have rights either to reject or approve.
   1. Close- If documents are correct then the case will be closed to with remarks by acquiring bank in CMS.
   2. Reject- Moves to us (Risk Team) to
2. Reopen Case- If the acquiring bank comes back with new requirements for the same dispute, then the case will be reopened under this option. This will have to be provisioned every new entry that gets created as an option.

6. Step6

1. Basis on response & decision by acquirer case will be defended or accept on network

Important Note:

In this each & every step whether Case rejected, accepted or new entry of chargeback, the autogenerated email to respective stake holders will ensure TAT is maintained and followed.

Format of Chargeback request

This is the basic format in which Bank is generally used to send the chargeback details in excel.

1. CB Type
2. Case ID
3. Date of CB
4. CB Amount
5. Transaction Amount
6. ARN
7. RRN
8. Auth Code
9. Reason code
10. Reason Description
11. Duplicate ARN
12. Duplicate RRN
13. Duplicate Auth Code
14. Merchant Transaction Reference

The above parameters must reflect in CMS when user will search along with type of dispute (RR, first level, second level, Arbitration)

To find any transaction detail the below parameters should be available.

1. Case ID
2. ARN
3. RRN
4. Auth
5. Merchant Transaction Reference

When any case will be search & details will appear then it should be reflected as per status mentioned below

1. Approved-forwarded to Bank/Aggregator.
2. Rejected-Review again
3. Closed

Dispute Management System (DMS) – Other Payment Methods

This will be the 2nd element of Dispute Management System which will be used for NetBanking, Wallets, UPI and Pay@Ease.

Flow:

1. Each partner will have a dedicated login, through which they will login and uploaded dispute related data along with uploading necessary docs.
2. Post custoff, our Risk team will download the data and flag it to relevant merchants for their
3. Merchants will review it accordingly and provide their standby uploading relevant
4. Basis merchant feedback, the same will be screened by our Risk All approved cases will be tagged to relevant partner and non-approved cases will be sent back to merchant for rework.
5. On receipt of response, all approved cases will be actioned by partner appropriately. For all rejected cases it will be sent back to our bucket back for resolution.