Alipay requires PPRO to closely monitor unauthorized payments. These are payments that get reported by consumers to Alipay and subsequently by Alipay to PPRO.

Types of user disputes with which the Company shall assist Alipay include but are not limited to the following:

• Processing Errors
  • Incorrect transaction code (credit processed as a debit or visa-versa)
  • Incorrect amount
  • Duplicate processing
  • Paid by other methods
• Consumer Disputes
  • Goods/services not received
  • Goods/services not as described (return of goods or cancellation of services)
  • Damaged/defective goods/services (return of goods or cancellation of services)
  • Refund not processed
  • Canceled/returned goods/services and no refund
  • Discount not applied
  • Payment received but not recognized by the merchant

Thresholds

• The accumulative amount of unauthorized payments submitted exceeds:
  • RMB 5,000 (approximately EUR 660) and
  • 1/100,000 of the total transaction value of the transactions submitted to the same Merchant for 3 consecutive months
• The accumulated amount of unauthorized payments submitted by the Company exceeds:
  • RMB 50,000 (approximately EUR 6,600) and
  • 1/10,000 of the total transaction value of the transactions submitted in each of the two consecutive months

Penalties

There is no concept of penalties. The consequence of violating thresholds is account closure. These limits apply to the PPRO partner level (not merchant level).

Notifications

PPRO will notify you via email of any new chargeback cases. You can respond to the case as described in the Dispute Process section.

Cases that cannot be resolved in favor of the merchant will be debited via a chargeback event in the Payment Gateway. You receive a report of these chargeback events on a daily basis via SFTP.

Dispute process

When an Alipay user initiates a complaint/dispute (the "User Complaint") with Alipay, Alipay must send PPRO an email with:

• the relevant transaction information
• the reason for the user complaint
• the request that PPRO can make a refund to the Alipay user, take other actions requested by Alipay to address the user complaint with the PPRO CPs, or both

PPRO would share such requests with the CPs via e-mail.

1. The CP reviews the Alipay request within three (3) calendar days. If the CP decides to accept the Alipay request without contacting the merchant, it will:
   1. Notify PPRO
   2. Initiate a refund to the Alipay user by itself through the PPRO provided-API
   3. Take remedial actions within three (3) calendar days from the date the CP response is sent

If the CP decides to dispute the Alipay Request without contacting the merchant, the CP will send the response ("Company Response") to PPRO at its designated email address within three (3) calendar days stating the reasons for denying the Alipay request.

2. Unless the CP acts in accordance with Clause 1 above, the CP will contact the relevant merchant immediately and request:
   1. relevant documentation relating to the user complaint
   2. the Alipay request and a decision by the merchant to accept or deny the Alipay Request (the “Merchant Response”)

The CP will ensure that the merchant responds within seven (7) calendar days (the “Merchant Response Deadline”) from the date Alipay Request is sent.

3. If the CP receives the Merchant Response and determines, based on a reasonable person standard, that such response constitutes sufficient ground to deny the Alipay Request, the Company will forward PPRO the Merchant Response via return of email within three (3) calendar days from the date the Merchant sends the CP the Merchant Response (the “Merchant Response Date”).
4. If the CP receives the Merchant Response and determines, based on a reasonable person standard, that the response does not constitute sufficient ground to deny the Alipay Request or the Merchant accepts the Alipay Request, the Company will either:
   1. instruct the Merchant to fully implement the Alipay request by initiating a Refund to the Alipay user and taking remedial actions within three (3) calendar days from the Merchant Response Date or
   2. fully implement the Alipay Request itself by initiating the refund to the Alipay user through the PPRO-provided API provided and take Remedial Actions directly within five (5) calendar days from the Merchant Response Date.
5. If the CP does not receive any Merchant Response by the Merchant Response Deadline, it will notify Alipay immediately and fully implement the Alipay request by initiating a Refund by itself through the PPRO-provided API provided to the Alipay user and take Remedial Actions within three (3) calendar days from the Merchant Response Deadline.
6. If Alipay receives the CP Response or Merchant Response denying the Alipay request and determines, based on a reasonable person standard, that such response constitutes sufficient ground to deny the User Complaint, Alipay shall close the User Complaint in favor of CP and Merchant.
7. If:
   1. Alipay receives the CP Response or Merchant Response denying Alipay request but determines, based on a reasonable person standard, such response does not constitute sufficient ground to deny the user complaint,
   2. CP and/or Merchant does not implement Alipay Request even though it should do so in accordance with this User Dispute Guideline or
   3. Alipay does not receive any response from the CP within fifteen (15) calendar days from the date Alipay Request is sent, Alipay shall notify the CP of its decision (“Alipay Decision”) whether
      1. the User Complaint is legitimate,
      2. a Refund should be made to the User and (z) any Remedial Actions should be taken.
8. The CP shall fully implement the Alipay Decision by initiating a Refund and taking Remedial Actions within three (3) calendar days from the date Alipay Decision is sent (“Company Implementation Deadline”).
9. If the CP fails to implement Alipay Decisions by the Company Implementation Deadline, Alipay shallbe entitled to implement Alipay Decision including processing such Refund and/or take the Remedial Actions at the sole costs of the Company.