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Karsaaz Solutions

Refund & Chargeback Policy

This Refund & Chargeback Policy applies to services provided by:

Karsaaz Solutions

(a Sole Proprietorship established under the laws of Pakistan)

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

All payment authorization, clearing, settlement, and chargeback handling are conducted through regulated financial institutions.

1. Scope & Merchant Responsibility

Karsaaz Solutions facilitates payment routing and transaction processing only.

Merchants are solely responsible for:

  • Product or service delivery

  • Customer refund policies

  • Complaint resolution

  • Consumer law compliance

  • Accuracy of transaction descriptions

Karsaaz Solutions does not control merchant business practices and does not assume liability for merchant-customer disputes.

2. Refund Processing (AML-Safe Structure)

To ensure compliance with AML, CTF, and acquiring bank regulations:

  • Refunds shall be processed strictly to the original payment instrument used for the transaction.

  • Cash refunds are strictly prohibited.

  • Third-party transfers are strictly prohibited.

  • Alternate destination refunds are strictly prohibited.

Refunds may only be initiated within 90 days of the original transaction date unless otherwise required by acquiring bank or card scheme rules.

Refund processing timelines are subject to acquiring bank procedures and may vary.

Transaction processing fees may be non-refundable.

3. Refund Funding Obligation

If a refund is initiated after settlement has already been paid to the merchant and the merchant balance is insufficient:

The merchant shall fund the refund amount within two (2) business days of notice.

Failure to fund the refund amount may result in:

  • Deduction from future settlements

  • Adjustment against rolling reserve

  • Temporary suspension of services

4. Chargeback Window & Handling

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

Upon notification of a chargeback:

  • Merchant must provide required supporting documentation within specified timeframes.

  • Failure to provide documentation may result in automatic and permanent reversal.

Chargeback fees may apply and are non-refundable.

Excessive chargeback ratios may result in:

  • Increased rolling reserve

  • Higher Merchant Discount Rate (MDR)

  • Suspension

  • Termination

5. Fraud & Regulatory Reversal

If any transaction is classified as fraudulent, illegal, or non-compliant by acquiring banks, card schemes, or regulatory authorities:

Karsaaz Solutions reserves the right to:

  • Reverse such transactions

  • Recover funds from merchant settlements

  • Offset against rolling reserves

  • Invoice the merchant for outstanding amounts

6. Settlement Adjustments

Refunds, reversals, penalties, or disputes after settlement shall be:

  • Deducted from future settlements; or

  • Offset against rolling reserves; or

  • Invoiced to the merchant

Settlement timelines are indicative and subject to:

  • Acquiring bank processing

  • Fraud reviews

  • Regulatory holds

  • Reconciliation clearance

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

7. Regulatory Compliance

Refunds and chargeback handling are subject to:

  • State Bank of Pakistan regulations

  • AML / CTF requirements

  • Acquiring bank policies

  • Card scheme rules

Karsaaz Solutions reserves the right to freeze settlements where required by law or regulatory instruction.

8. Relationship with Terms & Conditions

This Refund & Chargeback Policy forms part of the Terms & Conditions governing merchant use of Karsaaz Solutions services.

In case of conflict, the Terms & Conditions shall prevail.