Terms of Service

Effective Date: November 13, 2025 Obsydian Pay LLC

Pennsylvania

1. Acceptance of Terms

By accessing or using the Obsydian Pay payment processing services ("Service"), you ("Merchant," "you," or "your") agree to be bound by these Terms of Service ("Terms"). If you do not agree to these Terms, you may not use the Service. Obsydian Pay LLC ("Obsydian Pay," "we," "us," or "our") provides payment processing services to businesses through integration with third-party applications. These Terms constitute a legally binding agreement between you and Obsydian Pay.

2. Service Description

Obsydian Pay is a payment facilitator that provides payment processing services to Merchants. Our services enable you to accept credit card, debit card, and other electronic payment methods from your customers. The Service is currently integrated with and accessible through SaddleWorks, a business management application for equine professionals. You access Obsydian Pay's payment processing services through the SaddleWorks platform. Payment processing services are provided through our partnership with Finix Payments, Inc. ("Finix"), a registered payment facilitator, and are subject to additional requirements set forth in these Terms.

3. Transaction Fees and Payment Terms

3.1 Transaction Fees

Obsydian Pay charges a fee for each transaction processed through the Service. The fee structure is as follows:

Standard Transaction Fee: 3.2% + $0.30 per successful transaction

Transaction fees are automatically deducted from each transaction before funds are settled to your bank account. For example, if you process a $100.00 transaction, you will receive $96.50 ($100.00 - $3.20 - $0.30 = $96.50).

3.2 Additional Fees

Additional fees may apply for:

• Chargebacks and disputes (as determined by card networks and Finix)
• Refunds and reversals
• ACH returns or failed transfers
• Expedited transfers (if available)

You will be notified of any additional fees before they are assessed when possible, or they will be clearly disclosed in your transaction reports.

3.3 Fee Changes

We reserve the right to modify transaction fees with thirty (30) days advance notice. Notice will be provided via email to your registered email address and through the SaddleWorks application. Continued use of the Service after a fee change constitutes acceptance of the new fee structure.

3.4 Settlement

Funds from processed transactions will be settled to your designated bank account according to the settlement schedule established during merchant onboarding, typically within 2-3 business days. Settlement timing may vary based on card network rules, bank processing times, and risk assessment.

3.5 Payment Authorization

By using the Service, you authorize Obsydian Pay and Finix to:

• Deduct transaction fees from your payments
• Debit your bank account for chargebacks, refunds, fees, or other amounts owed
• Hold or delay settlement of funds for risk management purposes
• Adjust settlements for errors or corrections

4. Payment Processing Services

4.1 Payment Processor

Payment processing services are provided by Finix, a registered payment facilitator. By using our payment processing features, you agree to comply with Finix's terms and the Payment Network Rules (Visa, Mastercard, American Express, Discover, and other card networks).

4.2 Merchant Responsibilities

As a Merchant using payment processing services, you are responsible for:

• Providing accurate business and banking information
• Maintaining compliance with all applicable laws and regulations
• Ensuring all transactions are legitimate and authorized
• Responding promptly to customer inquiries and disputes
• Maintaining adequate records of all transactions

4.3 Requirements for Card-Present Transactions

If you accept card-present transactions (in-person payments), you agree to comply with the following requirements at the point of sale:

1. Verify that the card is legitimate and valid and not visibly altered or mutilated

1. Capture card data using only approved point-of-sale equipment by inserting the card (chip card), swiping the card (magnetic stripe), or tapping/waving the card (contactless)

1. Ensure that the cardholder enters their PIN using the keypad if prompted or provides their signature unless you are participating in a "no signature required" or PINless program

1. Verify the card's "valid from date" and expiration date

1. Verify that the card number and expiration date on the card are the same as on the transaction receipt and the number displayed on the point-of-sale equipment

1. Verify that the name on the transaction receipt is the same as the name on the front of the card (if applicable)

1. Ensure that the cardholder appears to be the person shown in the photograph (for cards with a photograph of the cardholder)

4.4 Prohibited Practices

You shall not:

• Require a cardholder to complete a postcard or similar device that includes the cardholder account number, card expiration date, signature, or any other card account data in plain view when mailed

• Require a cardholder to provide fingerprints or other personal information, such as address, license, telephone number, or social security number as a condition for honoring a card, unless required to do so by Payment Network Rules

• Make a photocopy of a card or require the cardholder to provide a photocopy or facsimile of a card unless the photocopy or facsimile is required by a Payment Network or sponsor bank

4.5 Chargebacks and Disputes

You are ultimately responsible for all chargebacks, disputes, and reversals related to transactions processed through your account. This includes:

• Financial liability for all chargebacks and associated fees
• Responding to chargeback notifications within required timeframes
• Providing documentation and evidence to contest invalid chargebacks
• Reimbursing Obsydian Pay for any losses incurred due to chargebacks

You acknowledge that chargebacks may result in funds being debited from your settlement account or bank account, and you authorize such debits.

4.6 Dispute Investigation Obligations

You agree to provide all information reasonably requested by Obsydian Pay or card networks to complete investigations relating to disputes, chargebacks, or suspected fraudulent activity. This includes but is not limited to:

• Transaction receipts and records
• Proof of delivery or service completion
• Customer communications
• Supporting documentation for the transaction
• Any other information relevant to the dispute

Failure to provide requested information in a timely manner may result in automatic liability for the disputed amount and associated fees.

4.7 Reserve Accounts and Holdbacks

We reserve the right, in our sole discretion or as required by card networks, to establish reserve accounts or implement holdbacks on settlement funds to cover potential chargebacks, refunds, or other liabilities.

5. Account Registration and Security

5.1 Merchant Onboarding

To use the Service, you must complete the merchant onboarding process through the SaddleWorks application. During onboarding, you will be required to provide:

• Business information (business name, type, address, tax ID)
• Personal information for business owners and principals
• Bank account information for settlement
• Supporting documentation as required by Finix and card networks

You agree to provide accurate, current, and complete information during the onboarding process. Providing false or misleading information may result in immediate termination of your account and may constitute fraud.

5.2 Underwriting and Approval

Your application to use the Service is subject to approval by Obsydian Pay and Finix. We reserve the right to decline any application or terminate any account based on:

• Creditworthiness and risk assessment
• Business type or industry
• Processing history
• Regulatory or compliance concerns
• Any other factors in our sole discretion

5.3 Account Information Updates

You agree to promptly update your account information to keep it accurate, current, and complete. Failure to maintain accurate information may result in delays in fund settlement, account suspension, or termination.

5.4 Account Security

You are responsible for maintaining the security of your SaddleWorks account credentials, as these provide access to the Service. You agree to notify SaddleWorks and Obsydian Pay immediately of any unauthorized access or use of your account.

5.5 Account Termination

Your Obsydian Pay account is linked to your SaddleWorks account. If you terminate your SaddleWorks account or your SaddleWorks subscription ends, your Obsydian Pay account will also be terminated, as there is currently no other method to access the payment processing services. We also reserve the right to suspend or terminate your account at any time for:

• Violation of these Terms
• Fraudulent or illegal activity
• Excessive chargebacks or disputes (typically exceeding 1% of transaction volume)
• Non-payment of fees or negative balance
• Risk management purposes
• Violation of Payment Network Rules
• Providing false or misleading information
• Any other reason in our sole discretion

Upon termination, any pending settlements may be held for up to 180 days to cover potential chargebacks or disputes.

6. Data Retention and Deletion

6.1 Active Accounts

While your Obsydian Pay account is active and you continue to use the Service through SaddleWorks, we will retain your data to provide payment processing services and maintain transaction records.

6.2 Post-Termination Retention

After your Obsydian Pay account is terminated (whether by you terminating your SaddleWorks account, SaddleWorks subscription ending, or by us for any reason), we will retain your data for six (6) months for business continuity, chargeback resolution, legal, and operational purposes.

6.3 Transaction Records

Payment transaction records, including transaction details, receipts, and settlement information, will be retained for a minimum of seven (7) years to comply with:

• IRS and tax regulations
• Payment network requirements
• State and federal recordkeeping laws
• Anti-money laundering regulations

6.4 Data Deletion

After six (6) months following account termination, non-transactional data (such as business details, contact information, and account settings) will be permanently deleted from our systems, except for:

• Transaction records (retained for 7 years as noted above)
• Data required for legal, compliance, or regulatory purposes
• Data subject to legal holds or ongoing disputes

6.5 Backup Retention

Data deleted from production systems may persist in backups for up to thirty (30) additional days before being permanently purged.

6.6 Chargeback Reserve Period

If your account is terminated and you have a history of chargebacks or high-risk transactions, we may retain the ability to debit your bank account for chargebacks and fees for up to 180 days following termination.

7. Acceptable Use Policy

You agree not to use the Service to process payments for:

• Illegal goods or services
• Fraudulent transactions
• Transactions without proper customer authorization
• Prohibited business types as defined by card networks and Finix (including but not limited to: illegal drugs, weapons, adult content, gambling in prohibited jurisdictions, and other high-risk categories)
• Money laundering or terrorist financing
• Transactions that violate Payment Network Rules

You also agree not to:

• Submit false or misleading transaction information
• Process payments on behalf of third parties without authorization
• Split transactions to avoid transaction limits
• Engage in any practice designed to circumvent card network rules
• Use stolen or fraudulent payment information
• Interfere with or disrupt the Service
• Attempt to gain unauthorized access to systems
• Violate the rights of cardholders or other parties

8. Service Availability and Support

8.1 No Uptime Guarantee

THE SERVICE IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS. WE DO NOT GUARANTEE THAT THE SERVICE WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE. Payment processing services may experience downtime due to:

• Scheduled maintenance (we will provide advance notice when possible)
• Third-party service outages (including Finix, card networks, or banking systems)
• Technical issues or system failures
• Security incidents

We are not liable for any losses resulting from service interruptions or downtime.

8.2 Service Modifications

We reserve the right to modify, suspend, or discontinue any aspect of the Service at any time, with or without notice, including features, functionality, or fee structures.

8.3 Support

Support for payment processing issues is provided through the SaddleWorks application support channels. For urgent payment processing issues, contact info@obsydianpay.com.

9. Intellectual Property

9.1 Ownership

Obsydian Pay retains all rights, title, and interest in and to the Service, including all payment processing software, technology, APIs, and intellectual property. These Terms do not grant you any ownership rights in the Service.

9.2 Transaction Data

You retain ownership of your transaction data. However, you grant us a limited license to use, store, and process your transaction data solely to:

• Provide payment processing services
• Comply with legal and regulatory requirements
• Detect and prevent fraud
• Improve the Service
• Generate anonymized and aggregated analytics

9.3 Feedback

Any feedback, suggestions, or ideas you provide about the Service become our property, and we may use them without obligation to you.

10. Legal Compliance and Data Sharing

10.1 Legal Requests

We will comply with valid legal requests, including subpoenas, warrants, and court orders. We may disclose your information when required by law or when we believe disclosure is necessary to:

• Comply with legal obligations
• Protect our rights or property
• Prevent fraud or illegal activity
• Protect the safety of users or the public

10.2 Law Enforcement Cooperation

We reserve the right to cooperate with law enforcement agencies and may disclose information without notice to you when we believe it is appropriate to investigate, prevent, or take action regarding illegal activities or suspected fraud.

11. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, OBSYDIAN PAY SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES, RESULTING FROM:

• Your use or inability to use the Service
• Unauthorized access to or alteration of your data
• Service interruptions or downtime
• Errors or inaccuracies in the Service
• Third-party conduct or content
• Any other matter relating to the Service

OUR TOTAL LIABILITY TO YOU FOR ANY CLAIMS ARISING FROM THESE TERMS OR YOUR USE OF THE SERVICE SHALL NOT EXCEED THE AMOUNT YOU PAID TO US IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

12. Indemnification

You agree to indemnify, defend, and hold harmless Obsydian Pay, its affiliates, officers, directors, employees, and agents from any claims, liabilities, damages, losses, costs, or expenses (including reasonable attorneys' fees) arising from:

• Your use of the Service
• Your violation of these Terms
• Your violation of any rights of another party
• Your violation of applicable laws or regulations
• Chargebacks, disputes, or fraud related to your transactions
• Any negligent or wrongful conduct

13. Dispute Resolution

13.1 Governing Law

These Terms shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its conflict of law provisions.

13.2 Jurisdiction

Any legal action or proceeding arising under these Terms shall be brought exclusively in the state or federal courts located in Pennsylvania, and you consent to personal jurisdiction in such courts.

13.3 Informal Resolution

Before filing any formal legal action, you agree to first contact us to attempt to resolve the dispute informally.

14. Modifications to Terms

We reserve the right to modify these Terms at any time. We will provide notice of material changes by:

• Posting the updated Terms with a new Effective Date
• Sending email notification to your registered email address
• Displaying a notification within the Service

Your continued use of the Service after the effective date of modified Terms constitutes acceptance of the changes. If you do not agree to the modified Terms, you must cancel your subscription.

15. Severability

If any provision of these Terms is found to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary, and the remaining provisions shall remain in full force and effect.

16. Entire Agreement

These Terms, together with our Privacy Policy and any other agreements referenced herein, constitute the entire agreement between you and Obsydian Pay regarding the Service and supersede all prior agreements and understandings.

17. No Waiver

Our failure to enforce any right or provision of these Terms shall not constitute a waiver of such right or provision.

18. Assignment

You may not assign or transfer these Terms or your rights under these Terms without our prior written consent. We may assign these Terms without restriction.

19. Contact Information

For questions about these Terms, please contact us at:

Obsydian Pay LLC

Email: info@obsydianpay.com Website: www.obsydianpay.com ---

By using the Service, you acknowledge that you have read, understood, and agree to be bound by these Terms of Service.