Payment Holding Service Agreement
Terms governing secure payment holding for Pilot projects.
1. Service Overview
FEND AI, Inc. provides payment holding services (escrow) for pilot programs conducted through the platform. This agreement governs the secure holding and release of funds between enterprises and startups.
2. Definitions
- Payer: The enterprise organization funding the pilot program
- Payee: The startup organization providing services for the pilot
- Held Funds: Money deposited into the escrow service
- Milestone: Defined deliverable or checkpoint for fund release
3. How the Service Works
Fund Deposit
- Payer deposits full pilot amount plus applicable fees
- Funds are held in FDIC-insured accounts
- Confirmation sent to both parties upon receipt
Milestone-Based Releases
- Funds released based on agreed-upon milestones
- Payee submits completion notification
- Payer has 5 business days to approve or dispute
- Automatic release if no response within review period
4. Fees and Costs
- Escrow service fee: 1% of total held amount
- Payment processing fees apply per standard rates
- Dispute resolution fee: $100 per contested milestone
- All fees deducted from held funds before release
5. Fund Security
Security measures for held funds:
- Funds held in segregated, FDIC-insured accounts
- No commingling with company operational funds
- Regular financial audits and compliance reviews
- Secure, encrypted transaction processing
6. Dispute Resolution
Dispute Process
- Either party may dispute milestone completion
- Disputed funds remain held pending resolution
- Platform mediation available at no additional cost
- Professional arbitration available for complex disputes
Resolution Timeline
- Initial review: 5 business days
- Platform mediation: 10 business days
- External arbitration: 30 business days
7. Automatic Releases
Funds may be automatically released in the following circumstances:
- Milestone approved by Payer within review period
- No response from Payer within 5 business days
- Final milestone completion (project end)
- Mutual agreement between parties
8. Refunds and Cancellations
Project Cancellation
- Mutual cancellation: Funds released per agreement
- Unilateral cancellation: Subject to dispute resolution
- Breach of contract: Funds held pending resolution
Refund Processing
- Refunds processed within 5-10 business days
- Original payment method used when possible
- Processing fees are non-refundable
9. Limitations and Exclusions
The payment holding service does not:
- Guarantee project success or completion
- Provide legal advice or project management
- Evaluate technical merit of deliverables
- Act as a party to the underlying pilot agreement
10. Compliance and Regulation
- Service operates under Delaware financial services regulations
- Anti-money laundering (AML) compliance procedures
- Know Your Customer (KYC) verification requirements
- Regular regulatory reporting and audit compliance
11. Liability and Insurance
- Professional liability insurance coverage
- Cyber security insurance for data protection
- Liability limited to amount of held funds
- Force majeure protections for extraordinary circumstances
12. Contact Information
For questions about the payment holding service:
Payment Holding Services
FEND AI, Inc.
131 Continental Dr Suite 305
Newark, DE 19713, USA
Email: [email protected]
Phone: (650) 735-2255