Objective

Parties

• Payer: The individual or organisation who initiated a payment to a merchant on Paylony.
• Merchant: The organisation registered on Paylony for the purpose of receiving payments
• Paylony: The payment gateway that processes the payments by the payer to the merchant.

Dispute Resolution Process

• Erroneous debits on a transfer attempt.
• Erroneous transfer due to error by the Payer.
• Successful transfer but not reflecting on the merchant’s application.

• Payer lodges complaint with his bank.
• Payer’s bank logs the dispute against our partner bank who was involved in processing that specific transaction.
• The partner bank logs the dispute on Paylony and the merchant is automatically notified of the dispute.
• The merchant can either accept the dispute or reject the dispute and provide the following proof.
• Evidence of provision of service to the customer.
• Evidence of a successful reversal with regards to the disputed transaction.
• Where the merchant accepts the dispute, funds will be reversed from the merchant’s account to the sender’s account if funds are available or the disputed amount may be deducted from the next settlement.
• Where the merchant provided proof to reject the dispute, the sending institution will be notified with the proof and the dispute should be considered invalid.
• For a dispute where proof has been provided, the Payer’s bank is expected to notify the Payer of the reason the dispute was rejected.
• If the Payer logs the dispute again for the same transaction, then the case may be referred to arbitration.

Fraudulent Transaction Resolution Process

• Defrauded customer lodges complaint with his bank.
• Defrauded customer’s bank logs the dispute against our partner bank/card processor who was involved in processing that specific transaction.
• The partner bank reports the fraudulent transaction to Paylony.
• Paylony immediately notifies the merchant of the fraudulent transaction.
• The merchant is expected to cooperate fully by taking the following actions:
• The merchant must provide full KYC information of the customer who is the beneficiary of the fraudulent transaction including:
• 1. BVN
• 2. Full Name
• 3. Email
• 4. Phone Number
• 5. Address
• 6. Official ID
• 7. Any other KYC information available
• If a part or whole of the funds for the fraudulent transaction are still available, then the funds should be restricted and the customer should be prevented access to such funds.
• If the funds have been sent to another account or accounts, the merchant must provide full details of the destination account(s) as well as the amounts sent and the dates.
• If value has been given for the funds, the merchant must provide full details of the beneficiary of the value which could be a phone number, meter number etc as well as proof of rendering value.
• The merchant will be required to refund funds that were restricted successfully to Paylony for onward processing to the defrauded customer.

Turn Around Times (TAT)

• Description TAT
• Time for a merchant to respond to a dispute logged on Paylony 24 hours
• Time for a merchant to respond to a reported fraudulent transaction 12 hours

Merchant Liability