Third Party Payment Contract for Australia

Third Party Payment Contract Template for Australia

This document is an Australian-law governed agreement that establishes and regulates the relationship between parties involved in a third-party payment arrangement. It outlines the terms and conditions for processing payments through an intermediary, including payment mechanisms, service provider obligations, compliance requirements, security measures, and risk allocation. The agreement incorporates relevant Australian regulatory requirements, including those under the Payment Systems (Regulation) Act 1998, Banking Act 1959, and Anti-Money Laundering legislation, while establishing clear operational procedures and liability frameworks for all parties involved.

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What is a Third Party Payment Contract?

The Third Party Payment Contract is essential for businesses operating in Australia that require intermediary payment processing services. This document is typically used when a business needs to establish a formal arrangement for processing payments through a third-party service provider, whether for regular operational transactions, subscription payments, or large-volume payment processing. The contract ensures compliance with Australian payment systems regulations, banking laws, and consumer protection requirements while defining the rights, obligations, and liabilities of all parties involved. It addresses crucial aspects such as payment mechanisms, security protocols, service levels, and dispute resolution procedures, making it particularly relevant in today's digital payment landscape.

What sections should be included in a Third Party Payment Contract?

1. Parties: Identifies and defines all parties to the agreement: the payor, payee, and the third-party payment provider

2. Background: Sets out the context and purpose of the agreement, including the relationship between parties

3. Definitions: Defines key terms used throughout the agreement

4. Payment Terms: Details of payment arrangements, including amount, frequency, and payment mechanisms

5. Service Provider Obligations: Specific obligations of the third-party payment provider

6. Payor Obligations: Responsibilities and obligations of the party making the payment

7. Payee Obligations: Responsibilities and obligations of the party receiving the payment

8. Fees and Charges: Details of all fees, charges, and who bears the costs

9. Security Measures: Security requirements and protocols for payment processing

10. Compliance: Regulatory compliance requirements including AML/CTF obligations

11. Liability and Indemnity: Allocation of risks and responsibilities between parties

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

13. Dispute Resolution: Process for handling disputes between parties

14. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

What sections are optional to include in a Third Party Payment Contract?

1. Integration Requirements: Technical specifications for system integration, required when payment processing involves IT system integration

2. Foreign Exchange: Provisions for handling foreign currency transactions, required for international payments

3. Service Levels: Specific performance metrics and service levels, needed for high-volume or critical payment arrangements

4. Business Continuity: Disaster recovery and business continuity provisions, important for critical payment services

5. Data Protection: Additional privacy and data protection provisions, required when handling sensitive personal data

6. White Labeling: Provisions for white-label services, needed when payment service is branded under another name

What schedules should be included in a Third Party Payment Contract?

1. Fee Schedule: Detailed breakdown of all fees and charges

2. Service Level Agreement: Detailed performance metrics and service standards

3. Technical Requirements: Technical specifications and integration requirements

4. Security Protocols: Detailed security procedures and requirements

5. Authorized Representatives: List of authorized persons who can act on behalf of each party

6. Payment Processing Procedures: Detailed operational procedures for payment processing

7. Compliance Requirements: Detailed regulatory compliance procedures and requirements

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

E-commerce

Retail

Technology

Banking

Insurance

Healthcare

Real Estate

Professional Services

Telecommunications

Education

Government Services

Relevant Teams

Finance

Legal

Compliance

Treasury

Accounts Payable

Procurement

Risk Management

Operations

Commercial

Vendor Management

Payment Operations

Financial Technology

Relevant Roles

Chief Financial Officer

Finance Manager

Payment Operations Manager

Compliance Officer

Legal Counsel

Treasury Manager

Accounts Payable Manager

Procurement Manager

Financial Controller

Risk Manager

Operations Director

Commercial Manager

Vendor Relations Manager

Payment Systems Administrator

Financial Technology Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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