Under what circumstances can Circle K charge the Purchaser's account or require an immediate refund for a transaction?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
%) in any twelve-month period.
- (b) Seller shall accept from Purchaser all transactions generated as a result of purchases made with authorized Transaction Cards and shall process such purchases in accordance with the terms in the Card Guide. At Seller's option, Seller shall pay the amount of the transactions to Purchaser, after deducting all processing and transaction fees, by: (i) check to Purchaser; (ii) a credit to Purchaser's bank account by EFT; or (iii) setting off the amount against Purchaser's account with Seller.
- (c) For each transaction not authorized, disputed by a customer, or otherwise subject to chargeback under the Card Guide, Seller may either charge the amount to Purchaser's account or require Purchaser to make immediate refund to Seller, including refund by draft or EFT initiated by Seller, without any deduction for any transaction and/or processing fees.
Source: Item 23 — RECEIPTS (FDD pages 100–359)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K has the right to charge the amount to the Purchaser's account or demand an immediate refund from the Purchaser under specific circumstances related to transaction cards. These circumstances arise when a transaction is not authorized, is disputed by a customer, or is otherwise subject to a chargeback as outlined in the Circle K Card Guide. The refund may be required via draft or EFT initiated by Circle K, without any deduction for transaction or processing fees.
This policy means that Circle K franchisees bear the risk of financial loss from problematic transactions. It is the franchisee's responsibility to ensure that all transaction card processes comply with the Circle K Card Guide to minimize the risk of chargebacks and disputes. Failure to comply with the Card Guide can also lead to Circle K limiting or terminating the franchisee's participation in the Transaction Card program.
Furthermore, Circle K reserves the right to charge back sales transaction amounts in general. The franchisee is obligated to maintain records of each sales transaction, including the actual draft generated by the sale, for at least six months from the transaction date. Any debit/credit card transactions charged back due to non-compliance with the Circle K Card Guide or customer disputes will be the franchisee's responsibility. This highlights the importance of adhering to Circle K's policies and maintaining thorough records to mitigate potential financial liabilities.
Additionally, if the Purchaser fails to maintain sufficient funds in its account for EFT transactions, Circle K may impose a service charge for each rejected transaction, regardless of whether the payment is later made. Circle K may also require subsequent payments to be made via cash, certified or cashier's check, money order, or other means acceptable to Circle K prior to or upon delivery of the product. An insufficient funds fee may also be charged for each insufficient funds payment.