Can this agreement be signed electronically?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the signer's intent, consent, attribution, and record retention are satisfied.

Are consumer disclosures required for electronic records?

If the agreement is consumer-facing, ESIGN requires a consumer consent disclosure that explains the right to paper, how to withdraw consent, and how the electronic record will be accessed.

When is notarization required?

Notarization depends on state law and the document's subject; some states require notarization for certain payment-related powers or security interests. Check the applicable state rules before execution.

Who must sign to bind the merchant?

An authorized signatory with authority under corporate records or LLC operating agreements must sign. Verify signer authority against formation documents or a corporate resolution.

How do I cancel or revoke this agreement?

Follow termination provisions in the agreement. Revocation typically requires written notice per the contract terms and may include cure periods and final settlement calculations.

How should executed agreements be stored?

Store signed copies and audit trails in encrypted archives with retention aligned to IRS, HIPAA, and contractual requirements; ensure records are reproducible and accessible for audits.

Electronic Signature
Templates
Miscellaneous
Payment Services Agreement

Payment Services Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

PAYMENT SERVICES AGREEMENT

This Payment Services Agreement (Agreement) is entered into as of by and between:

Service Provider: Provider Address: Client: Client Address:

Recitals

WHEREAS, Service Provider operates payment processing, settlement and reconciliation services for merchants and businesses and possesses technical and operational capabilities to effectuate electronic collections and disbursements; and

WHEREAS, Client desires to engage Service Provider to provide payment processing services under the terms and conditions set forth in this Agreement, and Service Provider agrees to provide such services to Client subject to the terms herein.

WHEREAS, the parties intend that this Agreement govern the allocation of risk, fees, data security obligations, and procedures for settlement and dispute resolution between them.

Scope of Work

Service Provider shall provide payment services to Client including, without limitation: card acceptance, automated clearing, settlement of funds, transaction routing, refund processing, chargeback handling, reporting, and related technical and support services as set forth below. Services shall be provided in accordance with industry standards and applicable law.

Detailed Scope of Services:

Payment Terms

Fees. Client shall pay Service Provider the fees described in this section. The parties agree the fee structure shall be: transaction fee of $ per transaction and a percentage of gross transaction volume equal to % unless otherwise agreed in writing.

Monthly/Minimum Fees. Client shall pay a monthly account maintenance fee of $ and a minimum monthly processing threshold of $ .

Payment Schedule. Settlements of funds to Client shall occur on a basis subject to applicable holds, chargeback reserves, and processing windows. Specific settlement timing and methods are described in the payment schedule below.

Payment Schedule / Special Instructions:

Late Payments. A late fee of shall be payable on any undisputed amount not received by Service Provider within days of the invoice due date. Interest shall accrue thereafter at a rate of per month.

Term and Termination

Term. The term of this Agreement shall commence on and shall continue until unless earlier terminated as provided herein.

Termination for Convenience. Either party may terminate this Agreement for convenience upon days' prior written notice to the other party.

Termination for Cause. Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure such breach within days after receipt of written notice of breach.

Confidentiality

Each party (Recipient) shall keep in strict confidence and not disclose to any third party any Confidential Information of the other party (Discloser) received in connection with this Agreement. "Confidential Information" includes business information, pricing, transaction data, customer and cardholder data, technical and security information, and other non-public information. Confidentiality obligations survive termination for a period of years, except to the extent otherwise required by law or compelled by a court of competent jurisdiction (in which case the Recipient shall provide prompt notice to Discloser where permitted).

Data Security and Compliance

Service Provider shall implement and maintain administrative, physical and technical safeguards designed to protect cardholder data and other sensitive information against unauthorized access, disclosure, alteration, and destruction. Each party shall comply with applicable payment network rules, card brand and processor requirements, and applicable data protection laws. In the event of a suspected data breach, the party discovering the incident shall notify the other party within days and cooperate in mitigation and investigation.

Representations, Warranties and Covenants

Each party represents and warrants that it has the corporate power and authority to enter into this Agreement, that the execution and performance of this Agreement will not violate any other agreement or law applicable to it, and that it will perform its obligations in a commercially reasonable manner consistent with industry practice.

Indemnification and Limitation of Liability

Indemnification. Each party shall indemnify, defend and hold harmless the other party from and against any third-party claims, losses, liabilities, damages, fines and costs (including reasonable attorneys' fees) arising out of the indemnifying party's negligent acts, willful misconduct, or breach of its obligations under this Agreement.

Limitation of Liability. Except for liability arising from a party's gross negligence, willful misconduct, fraud, or indemnification obligations, neither party's aggregate liability under this Agreement shall exceed the greater of (i) the total fees paid by Client to Service Provider in the immediately preceding months or (ii) $ .

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws rules. Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration if the parties mutually agree; otherwise, the parties submit to the exclusive jurisdiction of the courts located in the county of the governing law state.

Entire Agreement; Amendments

This Agreement, together with any schedules and exhibits executed by the parties, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements and understandings. No amendment or modification shall be effective unless in writing and signed by authorized representatives of both parties.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses provided above or to such other address as a party may designate in writing. Notices shall be deemed given when delivered in person, by certified mail, or by nationally recognized overnight courier.

Miscellaneous

Assignment. Neither party may assign this Agreement without the prior written consent of the other except to a successor in interest by merger or sale of substantially all assets, provided the assignee assumes all obligations hereunder.

Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Service Provider:

By:

Date:

Client:

By:

Date:

What a Payment Services Agreement Is and when it applies

A Payment Services Agreement is a written contract between a merchant (or platform) and a payment services provider that defines how payment processing, settlement, fees, chargebacks, refunds, data security, and regulatory compliance will be handled. It clarifies roles (merchant, acquirer, gateway), sets pricing and settlement schedules, describes permitted payment methods, and allocates liability for fraud, PCI scope, and third-party integrations. The agreement also typically addresses dispute resolution, termination rights, data retention obligations, and required notices for consumer-facing arrangements.

Why a clear Payment Services Agreement matters

A complete agreement reduces operational and regulatory risk by documenting fees, settlement timing, chargeback handling, and security responsibilities. It provides evidence needed for audits, supports compliance with network rules and laws, and limits exposure from disputes and data breaches.

Typical parties who prepare or sign this agreement

The Payment Services Agreement is used by a range of organizations that accept or facilitate payments; roles vary by business model and regulatory needs.

Merchants and online sellers that accept card, ACH, or digital wallet payments and need documented processing terms and settlement schedules.
Payment processors, acquiring banks, and gateway providers that must specify fees, dispute processes, and compliance responsibilities.
SaaS platforms and marketplaces that onboard sellers and need merchant onboarding, passthrough liability, and fund-flow rules.

Consider which of these roles applies before completing signature and onboarding steps so the agreement reflects operational reality and regulatory controls.

Core sections to include in a professional Payment Services Agreement

A professionally drafted agreement groups obligations into distinct sections so parties can find responsibilities quickly and meet audit requirements.

Parties & Definitions

Clearly identify each contracting entity, legal names, contact details, and key defined terms such as "Settlement Date," "Chargeback," and "Authorized Transaction."

Services & Scope

Describe accepted payment types, processing limits, transaction routing, recapture mechanisms, and any subprocessor or partner relationships used to handle payments.

Fees & Settlement

Specify fee schedule, interchange passthrough, monthly statements, settlement timing, reserve requirements, and conditions for holdbacks or adjustments.

Security & Compliance

Assign responsibility for PCI DSS scope, encryption, breach notification, and any HIPAA or industry-specific safeguards when protected health information is involved.

Chargebacks & Disputes

Define chargeback liability, representments, dispute timelines, evidence requirements, and who pays chargeback fees and fines.

Termination & Liability

State termination triggers, cure periods, post-termination settlement, indemnities, limitations of liability, and survival clauses for critical provisions.

Step-by-step: completing a Payment Services Agreement

Follow these sequential tasks to prepare and finalize the agreement with minimal friction.

01

Gather documents: Collect tax ID, bank details, corporate formation documents, and KYC data.
02

Draft or review terms: Confirm fees, settlement timing, chargeback rules, and security responsibilities.
03

Complete form fields: Enter accurate names, dates, bank info, and fee schedules.
04

Sign and distribute: Execute signatures, retain copies, and send countersigned agreement to all parties.

Configuring a digital workflow for this agreement

Set up an eSigning workflow to capture signatures, authentication, and retention automatically.

Field	Configuration
eSignature delivery and authentication method	Email link with optional SMS OTP or KBA depending on risk
Authentication strength and signer verification	Use email + phone or identity proofing for higher-risk merchants
Payment integration and tokenization	Connect gateway API for card token storage and secure vaulting
Notification and archival settings	Immediate email on execution and encrypted archival for retention

Technical and platform requirements for eCompletion

Confirm platform and file compatibility before sending the agreement for signature.

Integrations: Salesforce, NetSuite, Google Workspace
File formats: PDF, DOCX, HTML
Authentication options: Email, SMS OTP, SSO

Ensure chosen platform supports audit trails, encryption (TLS 1.2/1.3), and archival export to meet internal and regulatory requirements.

Routing and submission: where the agreement goes next

A typical routing sequence ensures each party receives the correct version and evidence of execution.

Upload document: Sender uploads the agreement and applies signature fields.
Assign signers: Enter signers and set signing order or parallel signing.
Authenticate signers: Use email link, SMS OTP, or identity proofing as required.
Store executed copy: All parties receive signed PDF and audit trail on completion.

Time-sensitive items and typical processing expectations

Track key deadlines that affect settlement, dispute rights, and reporting obligations.

Effective Date:

The agreement takes effect on the signed Effective Date entered by parties.

Settlement timing:

Funds typically settle within 1–3 business days after batching and hold review.

Chargeback windows:

Dispute response windows commonly span 7–120 days depending on network and reason.

Monthly reconciliation:

Run reconciliations within 30 days to resolve discrepancies and reserves.

Tax reporting:

Issue tax forms and reports per standard IRS timelines when applicable.

Key onboarding and operational milestones

Milestones guide implementation from negotiation through live processing and routine operations.

01

Negotiation complete

Terms finalized and signed by authorized representatives.

02

Onboarding & KYC

Identity verification, KYC checks, and contract data collection completed.

03

Integration & testing

Gateway/API integration and transaction test cycles finished.

04

Go live

Processing begins under agreed settlement and reporting cadence.

Common preparation mistakes to avoid

Entering an incorrect bank routing or account number, which delays payouts and requires manual correction with the bank.
Failing to itemize fees and surcharges clearly, creating disputes over interchange passthrough and monthly reconciliation.
Ignoring chargeback procedures and evidence requirements, which can increase liability and cause excess financial risk.
Neglecting to limit PCI scope and specify responsibilities, increasing breach exposure and compliance costs.

Primary penalties and risks of an incomplete or incorrect agreement

Chargeback Liability: Merchant may bear chargeback costs and fines.

Noncompliance Fines: Card networks or regulators may assess penalties.

Tax Reporting Penalties: Late or incorrect information returns can trigger IRC §6721 penalties.

Fraud Exposure: Improper authentication increases fraud losses.

Contract Termination: Provider may suspend or terminate processing rights.

Reputational Harm: Customer trust and business relationships can suffer.

eSignature vendor pricing and capability snapshot for Payment Services Agreement workflows

Compare starting prices and key features to select a signing platform that supports compliance, bulk send, and audit trails.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (premium plan)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Yes (BAA)	Yes (BAA)	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about Payment Services Agreement completion and eSigning

Answers to common questions about execution, enforceability, notarization, and recordkeeping for Payment Services Agreements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the signer's intent, consent, attribution, and record retention are satisfied.
Are consumer disclosures required for electronic records?
If the agreement is consumer-facing, ESIGN requires a consumer consent disclosure that explains the right to paper, how to withdraw consent, and how the electronic record will be accessed.
When is notarization required?
Notarization depends on state law and the document's subject; some states require notarization for certain payment-related powers or security interests. Check the applicable state rules before execution.
Who must sign to bind the merchant?
An authorized signatory with authority under corporate records or LLC operating agreements must sign. Verify signer authority against formation documents or a corporate resolution.
How do I cancel or revoke this agreement?
Follow termination provisions in the agreement. Revocation typically requires written notice per the contract terms and may include cure periods and final settlement calculations.
How should executed agreements be stored?
Store signed copies and audit trails in encrypted archives with retention aligned to IRS, HIPAA, and contractual requirements; ensure records are reproducible and accessible for audits.

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