Effective ScopeApplies to all initiated and completed checkouts
Last RevisedOctober 21, 2026
JurisdictionIslamic Republic of Pakistan
REFUNDS & DISPUTE ARBITRATION
Executive Summary & Key Governance Takeaways
Plain-English operational breakdown of key merchant commitments under this agreement.
Customer Refund Requests: All consumer refund requests must be directed to and resolved by the merchant of record; Flux does not arbitrate product satisfaction.
Deduction from Available Balance: Refunds are debited directly from the merchant's available balance; if balance is insufficient, pending settlements are held until satisfied.
Non-Refundable Processing Fees: Original payment gateway MDR charges are consumed upon authorization and are strictly non-refundable upon reversal.
Chargeback Liability: Chargebacks and dispute reversals assessed by banking rails are debited immediately with a standard administrative dispute fee.
1.0
Purpose, Authority & Scope
1.1 Corporate Entity & Policy Objective
This Policy establishes the formal, binding protocol governing customer payment refunds, partial returns, double-entry ledger reversals, and chargeback arbitration across the payment routing ecosystem operated by Flux Pay (Private) Limited ("Flux Pay", "we", "us"), a private limited technology company incorporated in the Islamic Republic of Pakistan.
1.2 Applicable Standard
Refund mechanics adhere to commercial banking settlement conventions, payment network dispute guidelines, and merchant agreement terms.
2.0
Merchant Refund Authority & Mechanics
2.1 Direct Merchant Controls
Merchants maintain direct autonomy to initiate full or partial refunds for eligible payments via the Flux Merchant Dashboard or programmatically via the Refund API endpoint.
2.2 Eligibility Prerequisites
A refund can be processed only when:
The target payment has a verified server-completed status (completed);
The cumulative refund amount does not exceed the gross original payment value;
The request is initiated within the maximum refund window supported by the upstream rail (typically up to 60 calendar days from original checkout).
3.0
Ledger Accounting & Balance Reserves
3.1 Double-Entry Ledger Debit
Every approved refund triggers an atomic refund_debit journal entry against the merchant's available balance. This instantaneously reduces the merchant's available funds eligible for disbursement.
3.2 Insufficient Available Balance Protocol
If a merchant attempts to initiate a refund when their available balance is insufficient to cover the refund principal, the system will reject or queue the refund until subsequent pay-in collections settle or the merchant tops up their operating ledger. Flux never advances proprietary funds to finance merchant customer refunds.
4.0
Payment Rail Clearing Timelines
Once dispatched, refund credits follow the clearing schedules of the originating bank or mobile wallet rail:
Originating Channel
Typical Clearing Window
Settlement Rail
Maximum Dispute Window
JazzCash Mobile Wallet
1 to 2 Pakistani Business Days
Mobilink Microfinance Bank
60 Days from transaction
Easypaisa Mobile Wallet
1 to 2 Pakistani Business Days
Telenor Microfinance Bank
60 Days from transaction
Raast / OneQR Interbank
1 to 3 Pakistani Business Days
SBP Raast / 1Link Switch
45 Days from transaction
Commercial Bank Accounts
2 to 4 Pakistani Business Days
PRISM / 1Link IBFT
90 Days (Card / Account rules)
5.0
Non-Refundable Platform Fees
5.1 Merchant Discount Rate (MDR)
When a payment is refunded to a customer, the original Merchant Discount Rate (MDR) fee assessed on the initial transaction is retained by the payment rails and upstream banking networks to cover telecommunications and network switching costs.
5.2 Expedited Priority Review Fees
Fees paid for expedited priority KYC review cover operational compliance auditor costs and are strictly non-refundable once compliance analysis has commenced.
6.0
Customer Chargebacks & Retrieval Requests
When a payer files a claim of unauthorized charge, merchant fraud, or non-receipt of merchandise with their banking provider, the chargeback procedure is triggered:
Dispute Notification: Flux immediately alerts the merchant via email and marks the transaction as disputed in the portal.
48-Hour Evidence Submission: The merchant must provide formal fulfillment documentation within forty-eight (48) business hours.
Arbitration Assessment: The evidence is submitted to the acquiring bank and consumer wallet operator for adjudication.
Ledger Clawback: If the dispute is resolved against the merchant, the disputed amount and any bank processing penalties will be debited from the merchant's available balance.
7.0
Acceptable Documentary Evidence for Disputes
To successfully defend against customer dispute claims, merchants must provide authoritative documentary proof:
Physical Goods: Courier Air Waybill (AWB) bearing the buyer's delivery address, recipient signature, and courier tracking receipt (e.g., TCS, Leopards, Trax, PostEx).
Digital Services / Software: Server access logs, email confirmation records, IP address access timestamps, and account activation records matching the payer's verified contact details.
Pre-order / Custom Services: Written customer communication or service agreements explicitly agreeing to delivery timeframes.
8.0
Excessive Chargeback Velocities & Risk Sanctions
Merchants must maintain an aggregate dispute-to-transaction ratio below 1.0%. If a merchant exceeds this safety threshold in any 30-day period, Flux reserves the authority to:
Institute a mandatory rolling reserve of up to 15% of gross processing volume;
Delay payout settlement clearing from T+1 to T+7;
Suspend live checkout processing pending an exhaustive fraud review.
9.0
Automated State Machine Reconciliation & Idempotency Safeguards
To prevent duplicate refunds, orphaned return claims, or ledger imbalances, Flux utilizes an advanced distributed state machine architecture. Every refund dispatch relies on unique idempotency keys, cryptographically ensuring that network retries or gateway timeouts never result in double refund disbursements or duplicate merchant balance deductions.
10.0
Dispute Arbitration Desk & Merchant Inquiries
For urgent dispute assistance or evidence submission, merchants can reach our specialized Dispute Arbitration Desk:
Dispute Operations
Email: disputes@gofluxpay.com | compliance@gofluxpay.com Support Desk:Open Support Ticket (Category: Disputes & Chargebacks)
LEGAL & COMPLIANCE DESK
Questions Regarding Platform Policies?
Our dedicated Legal & Compliance Directorate is available to assist merchants with KYC documentation, corporate onboarding queries, and regulatory disclosures.
