Who is responsible for all activity and transactions that occur in connection with the Merchant Account or through Merchant Systems for an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
. You acknowledge and agree that you will not use, or provide Cardholder data access to, any Merchant Provider until you receive our approval (which approval shall not be unreasonably withheld) and, if required, confirmation of our registration of that Merchant Provider with applicable Card Organizations.
- (b) Merchant Provider Compliance. You must ensure that you and Merchant Providers: (i) comply with the registration process which can involve site inspections, background investigations, provision of financial statements, and any other information required by us or a Card Organization; (ii) comply with the periodic and other reporting required by a Card Organization; and (iii) comply with all applicable Card Organization Rules, including without limitation, those requiring security of Cardholder data. You may allow Merchant Providers access to Cardholder data only for purposes authorized under and in conformance with the Card Organization Rules. You are responsible for all our costs and expenses associated with our review, approval, certification (and recertification as may be required by us or the Card Organization Rules) and registration of any Merchant Providers.
- 4.7 Data Security Measures; Fraud. Security features such as CAPTCHA, velocity filters, the Address Verification Service, and requiring a Card Verification Code for Card Not Present Transactions can help combat fraud. Using AVS when submitting Authorization requests for Card Not Present Transactions can help you identify potentially fraudulent transactions and can help lower Card Organization interchange rates, but it does not guarantee a transaction is valid and the AVS response does not impact whether an Authorization request is approved or denied. We may charge you an AVS fee for any AVS request you submit, even if we are not able to provide a response to the request. You are responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through your Merchant Systems and/or your Merchant Account (regardless of any AVS response that you receive).
- 4.8 Costs. If you or a Merchant Provider (or other Third Party used by you) are determined by any Card Organization, regardless of any forensic analysis or report, to be the likely source of any loss, disclosure, theft or compromise of Cardholder data or Card transaction information or are determined to have caused Cardholder data to be put at risk (together, "Compromised Data Events") and regardless of your belief that you have complied with the Card Organization Rules or any other security precautions and are not responsible for the Compromised Data Event, you must promptly pay us for all related expenses, claims, assessments, fines, losses, costs, penalties, and Issuer reimbursements imposed by the Card Organizations against us (together, "Data Compromise Losses"). In addition to the foregoing, you must also pay us promptly for all expenses and claims made by Issuers against us alleging your responsibility for the Compromised Data Event, apart from any claim procedures administered by the Card Organizations. We agree not to pass through to you any amounts imposed upon us by the Card Organizations in connection with our Data Security Event.
5 Settlement
5.1 Settlement Generally. We will be required to settle only Card transactions made using Cards of Card Organizations that (a) we support for full acquiring services and (b) you have elected to accept and we have approved.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the franchisee is responsible for all activity and transactions that occur in connection with the Merchant Account or through Merchant Systems. Specifically, the franchisee is liable for Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through their Merchant Systems and/or Merchant Account, regardless of any AVS (Address Verification Service) response received. This means that even if a franchisee uses security measures like AVS, they are still responsible for any fraudulent transactions that occur.
This responsibility extends to data security breaches. If the franchisee or a Merchant Provider is determined to be the source of a data compromise event, they must promptly pay Atwell Suites for all related expenses, claims, assessments, fines, losses, costs, penalties, and Issuer reimbursements imposed by Card Organizations. This includes expenses and claims made by Issuers alleging the franchisee's responsibility for the data compromise event, even apart from claim procedures administered by the Card Organizations. However, Atwell Suites agrees not to pass through to the franchisee any amounts imposed upon them by the Card Organizations in connection with their own Data Security Event.
The franchisee is also responsible for ensuring that any Merchant Providers they engage comply with data security standards and registration processes. Before engaging a Merchant Provider, the franchisee must provide Atwell Suites with the provider's legal name, contact information, and intended function, and must receive approval from Atwell Suites before allowing the Merchant Provider access to Cardholder data. The franchisee is responsible for all costs and expenses associated with Atwell Suites's review, approval, certification, and registration of any Merchant Providers.
Furthermore, the franchisee is expected to promptly and carefully review statements or reports reflecting Card transaction activity and notify Atwell Suites of any discrepancies or errors in writing within 90 days. Failure to do so may result in Atwell Suites not being obligated to investigate or effect any related adjustments. The franchisee is also responsible for configuring their Merchant Systems to receive, access, and view Electronic Communications from Atwell Suites, including disabling spam filters and monitoring their email accounts and related websites for information related to their Merchant Account.