Refund and Cancellation Policy

1. Purpose

This Refund and Cancellation Policy explains how refunds, cancellations, and chargebacks are handled in connection with payment transactions that are transmitted through the E-xact payment gateway. This policy is published in accordance with Visa and Mastercard operating regulations, which require that clear refund and cancellation terms be publicly accessible.

Important

E-xact Transactions (Canada) Ltd. is a payment gateway; a technology platform that securely transmits electronic payment authorization messages between merchants and their payment processors or acquiring banks. E-xact does not move, hold, settle, or have custody of funds at any point in the transaction lifecycle. Refunds and chargebacks are initiated, approved, and settled by the merchant, the acquiring bank, and the card network; not by E-xact.

2. Definitions

Payment Gateway: A technology platform that transmits electronic payment authorization messages between a merchant and the merchant’s payment processor or acquiring bank. E-xact operates solely as a payment gateway.
Merchant: A business that accepts payment cards and uses the E-xact gateway to transmit authorization messages.
Cardholder: An individual who holds a credit or debit card issued by a financial institution and uses it to make a purchase from a merchant.
Acquiring Bank: The financial institution that maintains the merchant’s account and receives settlement funds from the card networks on the merchant’s behalf.
Issuing Bank: The financial institution that issued the cardholder’s credit or debit card.
Payment Processor: The entity that facilitates communication between the acquiring bank and the card networks and manages the settlement of funds to the merchant.
Card Network: Visa, Mastercard, or other payment card brands that operate the networks through which authorization, clearing, and settlement messages flow.
Refund: A credit transaction initiated by a merchant to return funds to a cardholder for a previous purchase.
Chargeback: A dispute initiated by a cardholder through their issuing bank to reverse a transaction. Chargebacks are governed by card network rules.
Representment: The process by which a merchant challenges a chargeback by submitting evidence to the acquiring bank and card network.

3. E-xact’s Role in Refunds and Chargebacks

E-xact’s role in the refund and chargeback process is limited to the transmission of electronic messages. Specifically:

E-xact transmits refund authorization messages from the merchant’s system to the merchant’s payment processor or acquiring bank.
E-xact transmits chargeback notification messages between the processor or acquiring bank and the merchant’s systems, where applicable.
E-xact does not approve, decline, or influence refund or chargeback decisions.
E-xact does not hold, disburse, withhold, or redirect funds at any stage of the refund or chargeback process.
E-xact does not act as an intermediary, arbiter, or decision-maker in any dispute between a cardholder and a merchant.

All refund and chargeback decisions are made by the merchant, the acquiring bank, the payment processor, and/or the card network. E-xact has no authority or involvement in these decisions.

4. Refund Policy

4.1 Merchant Responsibility

Refunds are governed entirely by the individual merchant’s own refund policy. Each merchant that uses the E-xact gateway is responsible for:

Establishing and publishing their own refund and return policy for their customers.
Deciding whether to approve or decline a refund request.
Initiating the refund transaction through their point of sale system, online checkout, or the E-xact Real-time Payments Manager (RPM) portal.
Ensuring their refund policy complies with Visa and Mastercard operating regulations and applicable Canadian consumer protection laws.

E-xact does not set, enforce, or override any merchant’s refund policy. Cardholders seeking a refund must contact the merchant from whom they made the purchase directly.

4.2 How a Refund Is Transmitted Through E-xact

    
            Step
            Action
            Description
            Responsible Party
        

    
            1
            Customer requests a refund
            The customer contacts the merchant directly to request a refund for goods or services.
            Customer / Merchant
        

            2
            Merchant approves the refund
            The merchant reviews the request against their own refund policy and decides whether to approve or decline it. E-xact has no involvement in this decision.
            Merchant
        

            3
            Merchant initiates the refund transaction
            The merchant submits a refund transaction through their point of sale, online checkout, or merchant portal (RPM).
            Merchant
        

            4
            E-xact transmits the refund message
            E-xact transmits the electronic refund authorization message from the merchant’s system to the merchant’s payment processor or acquiring bank. E-xact does not hold, move, or disburse any funds.
            E-xact (message transmission only)
        

            5
            Processor and acquiring bank settle the refund
            The payment processor and acquiring bank process the refund and return the funds to the cardholder’s issuing bank for credit to the cardholder’s account.
            Processor / Acquiring Bank / Issuing Bank
        

Step	Action	Description	Responsible Party
1	Customer requests a refund	The customer contacts the merchant directly to request a refund for goods or services.	Customer / Merchant
2	Merchant approves the refund	The merchant reviews the request against their own refund policy and decides whether to approve or decline it. E-xact has no involvement in this decision.	Merchant
3	Merchant initiates the refund transaction	The merchant submits a refund transaction through their point of sale, online checkout, or merchant portal (RPM).	Merchant
4	E-xact transmits the refund message	E-xact transmits the electronic refund authorization message from the merchant’s system to the merchant’s payment processor or acquiring bank. E-xact does not hold, move, or disburse any funds.	E-xact (message transmission only)
5	Processor and acquiring bank settle the refund	The payment processor and acquiring bank process the refund and return the funds to the cardholder’s issuing bank for credit to the cardholder’s account.	Processor / Acquiring Bank / Issuing Bank

4.3 Refund Timelines

The time it takes for a cardholder to receive a refund depends on several factors outside of E-xact’s control, including:

The merchant’s internal review and approval process.
The acquiring bank’s settlement cycle.
The issuing bank’s processing time for crediting the cardholder’s account.

Refund authorization messages are transmitted by E-xact in real time once the merchant initiates the refund transaction. Any delays in the cardholder receiving the credited amount are attributable to the merchant, acquiring bank, or issuing bank; not to E-xact.

5. Cancellation Policy

5.1 Cancellation of a Purchase

The cancellation of a purchase or order is a matter between the cardholder and the merchant. Each merchant sets their own cancellation terms, including deadlines, restocking fees, and exceptions. E-xact has no involvement in the cancellation decision.

If a merchant approves a cancellation and a refund is warranted, the merchant initiates the refund transaction and E-xact transmits the authorization message as described in Section 4.2.

5.2 Void Transactions

If a transaction has been authorized but has not yet been settled by the acquiring bank, the merchant may submit a void transaction to cancel the original authorization. E-xact transmits the void message to the payment processor. A void prevents the transaction from settling and no funds are exchanged. Voids are only possible before the acquiring bank’s daily settlement cutoff.

5.3 Cancellation of E-xact Gateway Services

Merchants wishing to cancel their E-xact gateway service agreement should refer to the terms set out in their Processing and Service Agreement with E-xact, including any applicable notice periods. Cancellation of gateway services does not affect the merchant’s obligations to honour refunds for transactions previously transmitted through the E-xact gateway.

6. Chargeback and Dispute Process

6.1 Overview

A chargeback occurs when a cardholder disputes a transaction with their issuing bank. Chargebacks are governed by Visa and Mastercard operating regulations and are resolved through the card network’s dispute resolution process. E-xact does not participate in the resolution of chargebacks.

6.2 Chargeback Flow

The following table describes the end-to-end chargeback flow and identifies the responsible party at each step.

  
    
        Step
        Action
        Description
        Responsible Party
      

    
        1
        Cardholder contacts their issuing bank
        The cardholder disputes a charge with the bank that issued their credit or debit card.
        Cardholder / Issuing Bank
      

        2
        Issuing bank initiates a chargeback
        The issuing bank files a chargeback through the card network (Visa or Mastercard) to the acquiring bank.
        Issuing Bank / Card Network
      

        3
        Acquiring bank receives the chargeback
        The merchant’s acquiring bank receives the chargeback notification and debits the disputed amount from the merchant’s settlement account.
        Acquiring Bank
      

        4
        Merchant is notified
        The acquiring bank or payment processor notifies the merchant of the chargeback and requests supporting documentation if the merchant wishes to dispute it.
        Acquiring Bank / Processor
      

        5
        E-xact transmits chargeback messages
        Where applicable, E-xact transmits the electronic chargeback notification messages between the acquiring bank or processor and the merchant’s systems. E-xact does not make any decisions regarding the outcome of the chargeback.
        E-xact (message transmission only)
      

        6
        Merchant responds or accepts
        The merchant either provides representment documentation to challenge the chargeback or accepts the chargeback. This decision is made entirely by the merchant.
        Merchant
      

        7
        Card network arbitrates (if disputed)
        If the merchant disputes the chargeback, the card network (Visa or Mastercard) reviews the evidence and renders a final decision.
        Card Network
      

        8
        Funds are adjusted
        Based on the outcome, the acquiring bank either returns the funds to the merchant’s settlement account or confirms the debit. E-xact is not involved in any movement of funds.
        Acquiring Bank
      

  

Step	Action	Description	Responsible Party
1	Cardholder contacts their issuing bank	The cardholder disputes a charge with the bank that issued their credit or debit card.	Cardholder / Issuing Bank
2	Issuing bank initiates a chargeback	The issuing bank files a chargeback through the card network (Visa or Mastercard) to the acquiring bank.	Issuing Bank / Card Network
3	Acquiring bank receives the chargeback	The merchant’s acquiring bank receives the chargeback notification and debits the disputed amount from the merchant’s settlement account.	Acquiring Bank
4	Merchant is notified	The acquiring bank or payment processor notifies the merchant of the chargeback and requests supporting documentation if the merchant wishes to dispute it.	Acquiring Bank / Processor
5	E-xact transmits chargeback messages	Where applicable, E-xact transmits the electronic chargeback notification messages between the acquiring bank or processor and the merchant’s systems. E-xact does not make any decisions regarding the outcome of the chargeback.	E-xact (message transmission only)
6	Merchant responds or accepts	The merchant either provides representment documentation to challenge the chargeback or accepts the chargeback. This decision is made entirely by the merchant.	Merchant
7	Card network arbitrates (if disputed)	If the merchant disputes the chargeback, the card network (Visa or Mastercard) reviews the evidence and renders a final decision.	Card Network
8	Funds are adjusted	Based on the outcome, the acquiring bank either returns the funds to the merchant’s settlement account or confirms the debit. E-xact is not involved in any movement of funds.	Acquiring Bank

6.3 E-xact’s Involvement

E-xact’s involvement in the chargeback process is limited to:

Transmitting chargeback notification messages between the acquiring bank or processor and the merchant’s systems, where the merchant’s integration supports this message type.
Providing transaction log data to the merchant upon request, to assist the merchant in preparing representment documentation.

E-xact does not:

Make any determination as to the validity of a chargeback.
Withhold, release, or redirect funds in connection with a chargeback.
Represent the merchant in the dispute process.
Communicate directly with the cardholder or issuing bank regarding the dispute.

6.4 Merchant Obligations

Merchants using the E-xact gateway are responsible for:

Monitoring chargeback notifications received through their acquiring bank or processor.
Responding to chargebacks within the timelines set by Visa and Mastercard (typically 30 calendar days from the date of notification, though this may vary by card network and reason code).
Maintaining the transaction records, delivery confirmations, and other documentation necessary to support representment.
Keeping chargeback ratios below the thresholds set by the card networks to avoid enrollment in monitoring programs or penalties imposed by the acquiring bank.

7 Guidance for Cardholders

If you are a cardholder and have a question about a charge on your statement that was processed through an E-xact merchant:

Contact the merchant directly. The merchant’s name will appear on your card statement. The merchant is responsible for their own refund and cancellation policy.
If you are unable to resolve the issue with the merchant, contact the bank that issued your credit or debit card to initiate a dispute (chargeback).
Your issuing bank will guide you through their dispute resolution process, which is governed by Visa or Mastercard rules.

E-xact cannot process refunds, reverse charges, or intervene in disputes on behalf of cardholders. We are a payment gateway and do not have access to merchant settlement accounts or cardholder funds.

7. Guidance for Cardholders

If you are a cardholder and have a question about a charge on your statement that was processed through an E-xact merchant:

Contact the merchant directly. The merchant’s name will appear on your card statement. The merchant is responsible for their own refund and cancellation policy.
If you are unable to resolve the issue with the merchant, contact the bank that issued your credit or debit card to initiate a dispute (chargeback).
Your issuing bank will guide you through their dispute resolution process, which is governed by Visa or Mastercard rules.

E-xact cannot process refunds, reverse charges, or intervene in disputes on behalf of cardholders. We are a payment gateway and do not have access to merchant settlement accounts or cardholder funds.

8. Contact Information

For questions about this policy or for assistance with transaction log requests, merchants may contact:

E-xact Transactions (Canada) Ltd.

717 – 1030 West Georgia St., Vancouver, BC, Canada

Email: support@e-xact.com

Cardholders with questions about a charge should contact the merchant directly or their issuing bank. E-xact is unable to assist cardholders with refund requests or dispute inquiries.