Payments Service Terms

Last updated: August 5th, 2025

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These terms (“Bonsai Payments Service Terms”) supplement the general Bonsai Terms of Service and govern any and all use of the Bonsai Payments Service.  Capitalized terms not defined in these Bonsai Payments Service Terms have the meanings set out in the Terms of Service.  
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1. Bonsai Payments Service. 
   
   1. Bonsai Payments Service Overview.  The Bonsai Payments Service is a white-labeled solution which facilitates acceptance of payments and payment processing for eligible Users, and which is provided by a third party payment processor as further described herein, and includes such other related financial features or tools which Bonsai may introduce or make available in the future. To facilitate your receipt of payment from your clients, Bonsai initiates the payment process by providing information to the Processor (as defined herein). Bonsai is not a bank, money services business, or a payment processor. The Processor shall be the sole provider of payment processing services to you under these Bonsai Payments Service Terms.
   2. Bonsai Business Account. As a part of the Bonsai Payments Service, the Bonsai Business Account is a white-labeled treasury solution which enables eligible Users to create and maintain a virtual prepaid access account which Users can store, spend, and manage funds, and make electronic payments and funds transfers to and from that account, and which is provided by a third party payment processor as described further herein. 
   3. Business Purposes. The Bonsai Payments Service is for business use only. You agree not to use it for personal or non-commercial purposes, and not to use it on behalf of any business other than the one under which your account is registered.  
   4. Related Features or Tools. Bonsai may occasionally offer new features or tools as part of the Payments Service. Unless otherwise stated, your use of these features will be governed by these Bonsai Payments Service Terms. Additional fees or terms may apply and be disclosed at the time you sign up or enable the feature. You may also be required to accept applicable third-party terms, which will be presented to you during activation.
2. Payment Processor.  The Processor under these Bonsai Payments Service Terms is either Stripe, Inc., directly or through its Affiliate, Stripe Payments Company, or the entity that is an affiliate of Stripe, Inc. that applies based on your location (the “Processor”, or “Stripe”). The processing and settlement of transactions through the Bonsai Payments Service ("Payment Processing") is carried out by the Processor under the separate terms of service listed in Section 3 below. Bonsai, in its sole and absolute discretion, reserves the right to determine the Processor that shall perform Payment Processing services for each transaction. 
3. Additional Terms.  If you are located in the United States, the Payment Processing is subject to the Stripe Connected Account Agreement, including the United States Stripe Services Agreement and the applicable Services Terms; if you are located in Canada, the Payment Processing is subject to the  Stripe Connected Account Agreement, including the Canada Stripe Services Agreement and the applicable Services Terms; if you are located in the United Kingdom, the Payment Processing is subject to the Stripe Connected Account Agreement, including the Ireland Stripe Services Agreement and the applicable Services Terms; if you are located in Australia, the Payment Processing is subject to the Stripe Connected Account Agreement, including the Australia Stripe Services Agreement and the applicable Services Terms (collectively, the “Processor Terms”). By accepting these Bonsai Payments Service Terms, you are also accepting and agreeing to be bound by all of the relevant Processor Terms, which, in each case, is the legal agreement between you and the applicable Processor. Bonsai is not a party to any of the Processor Terms and is not liable to you in respect thereof. In the event of any inconsistency between these Bonsai Payments Service Terms and any of the applicable Processor Terms, these Bonsai Payments Service Terms shall prevail, except in the event of any inconsistency between these Bonsai Payments Service Terms and the relevant Processor Terms concerning Payment Processing, in which case the applicable Processor Terms shall prevail.
   
   By accepting these Bonsai Payments Service Terms and the Processor Terms and using a Bonsai Business Account, you are agreeing to open a Financial Account (as defined in the Processor Terms) with the Processor.‍
4. Verification and User Information. ‍
   
   1. Verification; Accuracy of Information. To verify your identity, we may require additional information, including but not limited to, your company registration number or business number, your Taxpayer Identification Number, and, if applicable, your date of birth. You agree to provide all requested information to Bonsai in a timely manner. Your failure to comply with any of these requests in a timely manner may result in suspension or termination of your access to the Bonsai Payments Service. You authorize us to retrieve additional information about you from third parties and other identification services. You are responsible for all the information you provide in connection with registering for and using the Bonsai Payments Service. You hereby represent and warrant that you are providing true, accurate, and complete information to Bonsai, and shall fully indemnify Bonsai for any losses, costs, or expenses incurred by Bonsai, including without limitation attorneys’ fees and other legal expenses, or any third party arising as a result of your failure to provide accurate, timely, and complete information.
      
      You agree that Bonsai is permitted to contact and share information about you with the Processor and other third parties in order to provide the Bonsai Payments Service. This includes sharing information: (i) about Transactions (as defined herein) for regulatory or compliance purposes; (ii) for use in connection with the management and maintenance of the Bonsai Payments Service; (iii) to create and update our and their records about you, and to assist us and them in better serving you; and, (iv) to conduct our and their risk management process.‍
   2. User Authorization. You authorize Bonsai to collect certain payment-related information and data (including account and transaction data, and certain personal information about your end users), and to store, use, and process this information to provide the  Bonsai Payments Service and as outlined in our Privacy Policy.‍
   3. External Payout Account. You must provide Bonsai with the account information for an external payout account owned by you or your business in order to use the Bonsai Payments Service. You agree to notify us of any changes to your external payout account immediately. ‍
5. User Obligations.  ‍
   
   1. User Responsibilities. You assume sole and exclusive responsibility for your use of the Bonsai Payments Services. You also assume sole and exclusive responsibility for any Transactions you engage in. You are solely responsible for verifying the identity of your clients and of the eligibility of a presented payment method. Bonsai does not guarantee or assume any liability for transactions authorized and completed that may later be refunded, reversed, charged back, or otherwise disputed. You are solely responsible for all refunded, reversed or charged back transactions regardless of the reason for, or timing of the refund, reversal, chargeback or other dispute. You are responsible for obtaining your clients’ consent to be charged for each transaction, including any recurring payments, in accordance with applicable laws and card network rules. You will not impose any fee or surcharge that is prohibited by applicable law on a client for a Transaction. ‍
   2. Restricted Activities. You are required to obey all laws, rules, and regulations applicable to your use of the Bonsai Payments Service (e.g., including those governing financial services, consumer protections, unfair competition, anti-discrimination, or false advertising) and each payment transaction for which you use the Bonsai Payments Services to facilitate (“Transaction”). You may not use the Bonsai Payments Services to conduct any activities prohibited or deemed high risk by Bonsai as identified in our Acceptable Use Policy or to conduct a Prohibited or Restricted Business or transact with a Prohibited or Restricted Business, as defined under the Processor Terms (as defined herein). In addition, you may not use the Bonsai Payments Service for the following activities: (i) acting as a money services business, money transmitter, payment intermediary, aggregator or service bureau or otherwise resell our services on behalf of any third party; (ii) using the Bonsai Payments Service to process cash advances to your clients or yourself; (iii) using the Bonsai Payments Service for what you believe to be potentially fraudulent authorizations or fraudulent transactions; (iv) attempting to create a substitute or similar service through the use of, or access to, the Bonsai Payments Service; (v) using the Bonsai Payments Service, or a component of the Bonsai Payments Service, in a manner not authorized by Bonsai or outside of the intended use of the Bonsai Payments Service; (vi) paying yourself or an affiliated entity.‍
6. Authorization to Charge Payment Methods on File. To the extent permitted by law, we may collect any obligations you owe us under this Agreement by requesting that the Processor deduct the corresponding amounts from a Reserve Account (as that term is defined below) or from funds payable to you arising from the processing of Transactions. Fees will be assessed at the time a Transaction is processed and will be first deducted from the funds received for such Transaction. If these amounts are not sufficient to meet your obligations to us, we may charge the payment method associated with your account for any amounts owed to us. In addition to the authorizations set out in the Bonsai Terms of Service, you authorize us to charge any payment method we have on file for you, including your external payout account, for in the amount of any Losses we may incur related to your use of the Bonsai Payments Service, or any other amount you owe us. To process these charges, you expressly authorize Bonsai to: (a) initiate one-time or recurring debit transactions from any bank account we have on file for you or your affiliated accounts (e.g., via ACH), and (b) charge any credit or debit card account we have on file for you or your affiliated accounts. If a debit or charge is declined, you agree to instantly pay the outstanding amount directly to us. You also authorize us to make additional attempts to collect the amount due, in full or in part, until it is fully paid. We are not responsible for any fees you or your affiliated accounts may incur due to these charges, including overdraft or over-limit fees. For purposes of these Bonsai Payments Service Terms, “Losses” include chargebacks, refunds, returns, shortfalls, adjustments, settlements, liabilities, fines, penalties, fees, costs, and expenses, including attorneys’ fees and other legal expenses. If Bonsai incurs a chargeback or payment dispute fee (“Chargeback Fee”), you agree that we may charge the payment method we have on file in the amount of that fee. However, if you win the dispute and Bonsai is refunded the original fee, we will reimburse you accordingly.‍
7. Payment-Related Issues. 
   
   1. Holds, Cancellations, and Reversals; Suspicion of Unauthorized or Illegal Use. You agree to allow Bonsai to pause, terminate, or reverse any transfers processed through Bonsai Payments Services for illegal activity, fraud, risk or compliance purposes, which may include (a) instructing the Processor to withhold funds to offset chargeback or other fraud losses owed to Bonsai, (b) instructing the Processor to pause, cancel, delay, or reverse payouts for any reason, and (c) suspending your use of the Bonsai Payments Service. We may hold, cancel, or reverse any Transaction we determine to violate these Bonsai Payments Service Terms. We reserve the right to not provide the Bonsai Payments Service in respect of any Transaction you submit that we believe, in our sole discretion, is in violation of these Bonsai Payments Service Terms, or exposes you, Bonsai, the Processor, or any other third party to actual or potential risk of losses, or harm, including, but not limited to, fraud and other criminal acts. You hereby grant us authorization to share information with law enforcement about you, your Transactions, your use of the Bonsai Payments Services.
   2. Chargebacks. You may elect to contest chargebacks or other disputes assessed to your account. A chargeback means any instruction initiated by a Customer or their card issuer/bank to reverse, reject, or invalidate a processed Transaction, including but not limited to chargebacks and dispute procedures used by payment networks, on grounds such as fraud, unauthorized charge, duplicate billing, failure to deliver the product or service, or dissatisfaction with goods or services. You are fully responsible for any reversed or charged back transactions, including all associated processing fees imposed by the card issuer or bank (such as the Chargeback Fee), regardless of the reason or timing of the reversal. You also bear the primary responsibility for addressing and, if appropriate, disputing any chargeback related to a transaction involving your client. This may involve contacting the client directly and/or submitting supporting evidence to their card issuer. If you do not take timely action to resolve a chargeback, you authorize Bonsai to access your Bonsai account and, at our discretion, collect and submit relevant information or documentation to the applicable card company on your behalf. You grant us permission to share records or other information required with your client, your client’s financial institution, and your financial institution to help resolve any chargeback or dispute. You acknowledge that your failure to provide us with complete and accurate information in a timely manner may result in an irreversible chargeback being assessed. We do not assume any liability for our role or assistance in contesting chargebacks or disputes. If the chargeback or dispute is not resolved in your favor, we may recover the chargeback or dispute amount and any associated fees from you as described in this Agreement. We reserve the right, upon notice to you, to charge a fee for mediating or investigating chargebacks or disputes.
   3. Negative Account Balances. If your account carries a negative balance, for example, due to issuing refunds or because of disputes or chargebacks, that negative balance is considered a debt you owe to Bonsai. In addition to other rights under these Bonsai Payments Service Terms, Bonsai may: (i) charge any payment method on file, as authorized and described in these terms, to recover all or part of the negative balance; (ii) offset any future payments to your account and apply them toward the negative balance; (iii) adjust your payout schedule at any time without prior notice; and (iv) require you, at our sole discretion, to resolve the negative balance through a repayment plan. You acknowledge that maintaining access to the Bonsai Payments Service is contingent on your willingness to enter into such a repayment plan if requested. If you fail to enter into the plan or do not meet the agreed repayment terms, Bonsai may terminate your account or pursue other actions as permitted by law.‍
   4. Payment Disputes. All payment disputes between you and your clients related to your use of the Bonsai Payments Service are solely your responsibility. Such disputes are between you and your clients, not between you and Bonsai, or Bonsai and your clients. Bonsai has no liability or obligation in connection with any payment dispute involving you and any third party using the Bonsai Payments Service to process payments. You agree to indemnify, defend, and hold Bonsai harmless from any losses, damages, or claims arising from such disputes.‍
8. Fees; Taxes.
   
   1. Processing Fees. You agree to pay all applicable processing fees associated with any transactions conducted through the Bonsai Payments Service.
   2. Service Fees. Fees for the Service are collected by Bonsai in accordance with the Bonsai Terms of Service.  
   3. Taxes. You are solely responsible for determining and complying with any tax obligations (“Taxes”) that may apply to your transactions and payments received through the Bonsai Payments Service. This includes assessing, collecting, reporting, and remitting the appropriate Taxes to the relevant tax authorities in your jurisdiction, your clients’ jurisdictions, or any other applicable location.
   4. Fee Increases. We may update our fees at any time. Any changes will take effect fourteen (14) days after notice is posted on your account or on our website. By continuing to use the Bonsai Payments Service after such notice, you are deemed to have accepted the updated fees. In the event of any discrepancy between the fees shown in your account’s billing section and those listed on our public pricing page, the fees displayed in your account will prevail.
   5. Penalties and Fines. In addition to the fees, you are also responsible for any penalties and fines imposed on you or on us by any bank, money services business, payment network, financial institution, Processor, or other financial intermediary, including collection fees, dispute fees, and interest incurred, resulting from your use of the Bonsai Payments Service in a manner not permitted by these Bonsai Payments Service Terms, such financial intermediary’s applicable terms, or applicable law.
9. ‍Tax Forms. Bonsai delivers tax-related documents, such as IRS Form 1099-K, electronically, and by using the Bonsai Payments Service, you consent to receive these materials in digital form only. Physical copies may not be issued. Where legally permitted, Bonsai may also submit required tax forms on your behalf to relevant tax authorities, including federal or state agencies. It is your responsibility to ensure you can access and retain these electronic records.‍
10. Term and Termination.   
    
    1. Term. These Bonsai Payments Service Terms are effective beginning when you accept the Bonsai Payments Service Terms when signing up to the platform, and terminate upon termination of the Bonsai Terms of Service unless terminated earlier pursuant to Section 10.2 below.
    2. Termination. Bonsai reserves the right to end your access to the Bonsai Payments Service and to terminate these Terms at any time, with or without cause, by providing notice. We may also suspend your use of the Bonsai Payments Service or revoke access to your Bonsai Payments Account without prior notice under certain conditions, including but not limited to:
       
       1. If you engage in business activities that Bonsai does not support, as outlined in our Acceptable Use Policy;
       2. if we determine your account presents an elevated risk, such as potential fraud, credit exposure, or other security concerns;
       3. if you violate any requirement outlined in these Terms or in the Processor’s terms;
       4. if directed to do so by a payment processor, card issuer, or network authority. Should the Processor Terms be terminated for any reason, Bonsai may also choose to terminate these Bonsai Payments Service Terms in its sole discretion.
    3. Effects of Termination. Upon termination of these Bonsai Payments Service Terms, we will immediately discontinue your access to the Bonsai Payments Service. 
       
       Termination does not release you from your obligations under these Terms. Bonsai or the Processor may retain funds as necessary to cover any unresolved obligations, including chargebacks, refunds, fees, or ongoing investigations or legal processes.
       
       Following termination, you agree to immediately discontinue all use of the Bonsai Payments Service. The license granted to you under these Terms will be revoked. You acknowledge that Bonsai will not be liable for any compensation, reimbursement, or damages related to your use of the Bonsai Payments Service, the termination or suspension of your access, or any loss of access to your account data. You also remain responsible for any outstanding fees, fines, or other financial obligations incurred through your use of the Service prior to termination.
       
       Termination of these Bonsai Payments Service Terms does not automatically close your Bonsai account, unless Bonsai chooses to do so at its sole discretion.‍
    4. Customer Service. Bonsai will use its commercially reasonable efforts to provide you with customer support to help resolve issues relating to the Bonsai Payments Service. The Processor retains sole and exclusive responsibility for payment processing of transactions, including the settlement of funds, but Bonsai will provide reasonable assistance in liaising between you and the Processor concerning the payment processing services. You assume sole and exclusive responsibility for providing customer service or support to your clients for any and all issues related to your products and services, including, but not limited to, issues arising from the processing of payments through the Bonsai Payments Service.
    5. ‍General; Updates to these Bonsai Payment Service Terms. All provisions of the Bonsai Terms of Service that apply generally to use of the Service apply to the Bonsai Payments Service. These Bonsai Payments Service Terms may be updated by Bonsai from time to time in accordance with the terms on updates set out in the Bonsai Terms of Service.
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