TERMS & CONDITIONS

Karsaaz Solutions

(a Sole Proprietorship established under the laws of Pakistan)

Last Updated: 2026-25-02

These Terms and Conditions (“Agreement”) govern the use of payment gateway and transaction processing services provided by Karsaaz Solutions (“Company”, “we”, “us”, “our”).

By integrating our APIs or using our services, you (“Merchant”, “Client”, “User”) agree to these Terms.

1. Nature of Services & Regulatory Position

Karsaaz Solutions operates as a Technology-Based Online Payment Gateway and Merchant Aggregation Platform.

Karsaaz Solutions acts solely as a technology service provider and merchant aggregator operating under agreements with licensed acquiring banks in Pakistan.

All payment authorization, clearing, and settlement are conducted by regulated financial institutions operating under the framework of the State Bank of Pakistan.

Karsaaz Solutions:

• Does not independently provide regulated financial services
• Does not accept deposits
• Does not operate as a bank

The business is operated as a sole proprietorship and does not constitute a regulated financial institution.

2. Merchant Onboarding & Approval

To use our services, merchants must:

• Be legally registered (if applicable)
• Provide NTN and business documentation
• Submit valid bank account details
• Provide CNIC of authorized signatory

We reserve the absolute right to:

• Approve or reject merchant applications
• Conduct AML and risk screening
• Request additional documentation
• Suspend onboarding if risk indicators are identified

Approval does not constitute regulatory endorsement.

3. API Integration & Technical Responsibility

Merchants agree that:

• APIs will be used strictly for lawful business purposes
• API credentials must remain confidential
• Any misuse, manipulation, or reverse engineering is prohibited
• Secure server-side integration is mandatory

Merchants are solely responsible for:

• Security of their systems
• Storage and protection of API credentials
• PCI-DSS compliance (if applicable)

Merchant shall notify Karsaaz Solutions within 24 hours of any actual or suspected data breach impacting payment transactions.

Karsaaz Solutions is not liable for:

• Merchant-side coding errors
• Incorrect API implementation
• Security vulnerabilities on merchant systems

4. Transaction Processing

All transactions are subject to:

• Issuing bank authorization
• Acquiring bank approval
• Card scheme rules (where applicable)
• Fraud and compliance checks

We do not guarantee:

• 100% transaction approval
• Uninterrupted service availability
• Bank-side uptime

Declined transactions are the responsibility of issuing institutions.

5. Settlement, Rolling Reserve & Holds

Settlement timelines shall be defined in the commercial agreement (e.g., T+1, T+2) but are indicative and subject to:

• Acquiring bank processing
• Reconciliation clearance
• Fraud review
• Regulatory holds

Karsaaz Solutions shall not be liable for delays caused by banks, card networks, fraud reviews, or regulatory investigations.

Funds are settled through designated acquiring banks.

Rolling Reserve

Karsaaz Solutions reserves the absolute right to maintain a rolling reserve of 5% to 10% of processed transaction value where risk indicators, chargeback ratios, or regulatory concerns are identified.

180-Day Hold

In case of fraud suspicion, excessive disputes, regulatory inquiry, or termination, settlement funds may be withheld for up to 180 days to cover potential reversals, penalties, or chargebacks.

Chargebacks, reversals, penalties, or disputes may be deducted from settlements or reserves.

6. Fraud Clawback Protection

If any transaction is subsequently classified as fraudulent, illegal, or non-compliant by acquiring banks, card schemes, or regulatory authorities, Karsaaz Solutions reserves the right to:

• Reverse such amounts
• Recover from merchant settlements
• Offset against rolling reserves
• Invoice the merchant accordingly

7. Fees & Charges

Merchants agree to pay:

• Merchant Discount Rate (MDR)
• Transaction processing fees
• Chargeback handling fees
• Integration/setup fees (if applicable)

All fees are exclusive of applicable taxes under Pakistani law.

8. Chargebacks & Disputes

Chargebacks may be initiated up to 180 days or longer depending on card scheme regulations.

In case of a customer dispute:

• Merchant must provide proof of service/delivery within required timeframe
• Failure to respond may result in automatic and permanent reversal

Excessive chargeback ratio may result in:

• Increased rolling reserve
• Higher MDR
• Account suspension
• Termination

Chargeback-related fees are non-refundable.

9. Prohibited Businesses

Merchants may not use the payment gateway for:

• Illegal gambling
• Adult content
• Narcotics
• Fraud schemes
• Unauthorized cryptocurrency trading
• Unlicensed financial services
• Multi-level marketing schemes
• Sanctioned goods
• High-risk digital subscription models
• Any business prohibited under Pakistani law

Violation may result in immediate suspension and reporting to authorities.

10. AML & Regulatory Compliance

We may monitor transactions in accordance with:

• Anti-Money Laundering (AML) regulations
• Counter Terrorism Financing (CTF) requirements
• Regulatory guidelines issued under the State Bank of Pakistan framework
• Acquiring bank compliance policies

We reserve the right to:

• Block suspicious transactions
• Freeze merchant accounts
• Report suspicious activity to relevant authorities

11. Data Security

We implement reasonable technical safeguards.

However, we are not responsible for:

• Bank network failures
• Third-party processor downtime
• Cyberattacks beyond reasonable control
• Merchant-side data breaches

Merchant remains solely responsible for system security and API credential protection.

12. Indemnification (Expanded)

Merchant agrees to fully indemnify and hold harmless Karsaaz Solutions from any and all:

• Regulatory penalties
• Card scheme fines
• Acquiring bank penalties
• AML/CTF violations
• Prohibited product violations
• Fraud-related losses
• Customer disputes arising from merchant conduct
• Legal expenses and enforcement costs

This indemnity shall survive termination.

13. Limitation of Liability

Karsaaz Solutions shall not be liable for:

• Indirect or consequential damages
• Loss of profits
• Business interruption
• Bank or network downtime

Total liability shall not exceed the total service fees paid in the preceding three (3) months.

14. Suspension & Termination

We may suspend or terminate services if:

• Fraud is suspected
• Excessive chargebacks occur
• Terms are violated
• Regulatory instruction is received

Pending settlements may be held up to 180 days for risk mitigation.

15. Governing Law

This Agreement shall be governed by the laws of Pakistan.

Disputes shall be subject to the jurisdiction of courts located in Karachi, Pakistan.