Regarding Non-Bank Card transactions or Non-Bank Services for a Crowne Plaza franchise, what is the Bank's responsibility and liability?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
pting these risks and that you are agreeing to comply with the rules and requirements of Visa®, Mastercard®, Discover®, American Express®, and other Card Organizations. With respect to Chargebacks – we do not decide which transactions are charged back and we do not control the ultimate resolution of Chargebacks. While we can attempt to reverse a Chargeback to the Issuer, we can only do so only if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a formal appeal process. Sometimes, your customer may be able to successfully chargeback a Card transaction even though you have provided your goods or services and otherwise are legally entitled to payment from your customer. While you still may be able to pursue claims directly against that customer, neither we nor the Issuer will be responsible for such transactions. You are responsible for all Chargebacks and adjustments associated with the transactions that you submit for processing.
- 1.4 Card Types. Your Agreement indicates the types of payments you are enabled to accept. Depending on the equipment you are using to accept Card transactions, you may not be able to accept Debit Cards through use of a PIN.
- 1.5 Bank Responsibilities; Non-Bank Services. Notwithstanding anything in the Agreement to the contrary, Bank only provides, and its obligations and liability are limited to, sponsorship, settlement, and related Bank services for certain Card transactions, which do not include Non-Bank Card transactions or Non-Bank Services. Bank is not responsible for, and has no liability to you in any way with respect to, Non-Bank Card transactions or Non-Bank Services. See Section 16.1 for additional details.
2 Services And Third Party Services
- 2.1 The Services. The term "Services" means the activities we undertake to authorize, process, and settle Card transactions undertaken by Cardholders at your Locations, and all other equipment, products, and services we provide under the Agreement. Subject to Card Organization Rules, Services may be performed by Servicers, only Processor, our Affiliates, our agents, or our service providers. You may use the Services only for your own proper business purposes and only in accordance with the Agreement. You may not use the Services for personal, household, or non-commercial purposes.
- 2.2 Exclusivity. During the term of the Agreement, you will use us as your exclusive provider of all Services within the United States of America except with respect to POS terminal transactions initiated at parking, spa, gift shop, restaurant, bars, and lounge locations.
- 2.3 Service Records. We will retain legible copies of all transaction records in accordance with Applicable Law and Card Organization Rules.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the Bank has no responsibility or liability to the franchisee regarding Non-Bank Card transactions or Non-Bank Services. The FDD specifies that the Bank's obligations are limited to sponsorship, settlement, and related services for certain card transactions, explicitly excluding Non-Bank Card transactions or Non-Bank Services.
For a Crowne Plaza franchisee, this means that any issues arising from transactions processed through Non-Bank Cards or related services are not the responsibility of the Bank. The franchisee must resolve these issues directly with the processor or other relevant parties involved in those transactions. This distinction is crucial for understanding where liability lies and who to contact in case of disputes or errors related to payment processing.
This lack of liability extends to various aspects of Non-Bank Services, ensuring that the Bank is not held accountable for any problems that may arise. The agreement for Discover Card transactions, American Express Card transactions, and other Non-Bank Services is solely between the franchisee and the Processor, further emphasizing the Bank's exclusion from these transactions. Therefore, Crowne Plaza franchisees need to be aware of this division of responsibility and manage their relationships with processors accordingly.
The Crowne Plaza franchisee should carefully review the terms and conditions of their agreements with processors for Non-Bank Services to fully understand their rights and obligations. This includes understanding the fees, dispute resolution processes, and other key provisions that govern these transactions. This ensures that the franchisee is prepared to handle any issues that may arise without relying on the Bank for assistance.