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Merchant Agreement for Switzerland

Merchant Agreement Template for Switzerland

A comprehensive commercial agreement governed by Swiss law that establishes the terms and conditions for merchant services, including payment processing, transaction handling, and related services. This document outlines the rights, obligations, and responsibilities of both the service provider and the merchant, incorporating Swiss regulatory requirements, data protection standards, and financial services regulations. It addresses key aspects such as fee structures, service levels, security requirements, and compliance obligations while ensuring alignment with Swiss commercial law principles and banking regulations.

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What is a Merchant Agreement?

The Merchant Agreement serves as the primary contractual framework for establishing and governing commercial relationships between service providers and merchants in Switzerland. This document is essential when a business wishes to accept payments, process transactions, or engage in e-commerce activities through a service provider's platform. The agreement encompasses comprehensive terms covering payment processing, security protocols, data protection, and compliance requirements under Swiss law. It addresses crucial aspects such as fee structures, settlement procedures, and risk management, while ensuring compliance with Swiss banking regulations and consumer protection laws. The Merchant Agreement is specifically designed to protect both parties' interests while facilitating smooth commercial operations in accordance with Swiss legal requirements and industry standards.

What sections should be included in a Merchant Agreement?

1. Parties: Identification and details of the contracting parties - the service provider and the merchant

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Services: Detailed description of services provided to the merchant

5. Merchant Obligations: Key responsibilities and commitments of the merchant

6. Service Provider Obligations: Key responsibilities and commitments of the service provider

7. Fees and Payment Terms: Payment structure, fees, charging mechanisms, and payment processing details

8. Security Requirements: Security standards, protocols, and compliance requirements

9. Data Protection and Privacy: Obligations regarding personal data handling and privacy compliance under Swiss law

10. Intellectual Property: IP rights, licensing, and usage permissions

11. Representations and Warranties: Legal assurances and guarantees from both parties

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. Term and Termination: Duration of agreement and termination provisions

14. Confidentiality: Protection of confidential information and trade secrets

15. Governing Law and Jurisdiction: Swiss law application and jurisdiction details

What sections are optional to include in a Merchant Agreement?

1. Integration Services: Required when technical integration with merchant systems is needed

2. Chargebacks and Disputes: Include for agreements involving payment processing services

3. Multi-Currency Processing: Required for merchants operating in multiple currencies

4. Marketing and Branding: Include when co-branding or marketing obligations exist

5. Insurance Requirements: Include when specific insurance coverage is required

6. Compliance with Card Scheme Rules: Required for credit card payment processing

7. Business Continuity: Include for critical service relationships

8. Anti-Money Laundering Compliance: Required for high-risk or financial services merchants

What schedules should be included in a Merchant Agreement?

1. Schedule 1 - Service Level Agreement: Detailed service levels, performance metrics, and remedies

2. Schedule 2 - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

3. Schedule 3 - Technical Specifications: Technical requirements, API documentation, and integration details

4. Schedule 4 - Security Standards: Detailed security protocols, requirements, and compliance standards

5. Schedule 5 - Data Processing Agreement: Detailed terms for personal data processing under Swiss law

6. Appendix A - Merchant Onboarding Form: Merchant's business and account details

7. Appendix B - Approved Products/Services: List of products/services approved for sale

8. Appendix C - Contact Details: Key contacts and escalation procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Publisher

Ƶ

Cost

Free to use

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