Payments Policy

Diabetic Outlet Payments allows buyers and sellers to use various forms of payments on DiabeticOutlet.com, and Diabetic Outlet’s mobile apps and other services. Diabetic Outlet Payments users can pay with and accept payment by credit card, debit card, Diabetic Outlet Gift Card, Diabetic Outlet Rewards, Diabetic Outlet Coupon, some bank transfer services, PayPal, Apple Pay, Google Pay and Health Savings cards. This policy explains all of your rights and obligations when using Diabetic Outlet Payments.

This policy is a part of our Terms of Service. By using Diabetic Outlet Payments, you’re agreeing to this policy and our Terms of Use.

1. Accepting These Terms

The Diabetic Outlet Payments Policy (or the “Policy”) sets out your rights and responsibilities when you use Diabetic Outlet Payments on Diabetic Outlet’s services (we’ll refer to DiabeticOutlet.com, Diabetic Outlet’s mobile apps, and other services as our “Services”)y. By using Diabetic Outlet Payments, you’re agreeing to the Policy. The Policy is a legally binding contract between you and Diabetic Outlet.

1. Diabetic Outlet Payments

Diabetic Outlet Payments allows sellers to (a) accept payment by authorized credit and debit card transactions, some bank transfers services, PayPal, transactions using Apple Pay, and transactions using Google Pay, and Health Savings cards (b) have those funds credited to a seller’s payment account with Diabetic Outlet, and (c) have those funds deposited into a seller’s designated bank account.

Diabetic Outlet reserves the right to add or remove payment methods accepted by Diabetic Outlet Payments in its sole discretion, with notice where required by applicable law.

Diabetic Outlet Payments is only available to sellers who are at least 18 years old who register and are approved for a payment account with Diabetic Outlet. Diabetic Outlet Payments is currently available to sellers in the United States and and its territories.

Sellers may only use Diabetic Outlet Payments for the sale of items listed on DiabeticOutlet.com, and agree to ship sold items once a payment transaction is complete and reflected in their payment account. Diabetic Outlet reserves the right to terminate a seller’s access to Diabetic Outlet Payments if the seller uses Diabetic Outlet Payments in any other manner.

Buyers may authorize a payment with any major credit or debit card accepted by Diabetic Outlet. Buyers and Sellers benefit from Diabetic Outlet having visibility into payments made on Diabetic Outlet via Diabetic Outlet Payments, because it can make the Services easy to use and enables Diabetic Outlet to more effectively provide support to sellers or buyers where relevant. It also can help reduce fraud and other types of misuse of the DiabeticOutlet.com.

3. Third-Party Services

Diabetic Outlet has engaged third-party service providers to perform many of the services related to payment processing, including card processing, disbursements, identity verification, fraud analysis, and regulatory compliance.

Diabetic Outlet partners with Authorize.net, PayPal, Stripe, and other licensed payment providers to facilitate card payments and other payments and the disbursement of funds to sellers. If there are insufficient funds in your bank account when our provider processes the payment for your purchase, Diabetic Outlet reserves the right to contact you directly and to seek payment.

Diabetic Outlet may share your personal or transactional information with those third-party service providers for purposes related to payments processing.

By using a third-party service, you may also be subject to an agreement with the third party. For example, PayPal is a third-party service provided by PayPal Holdings, Inc. and is subject to the PayPal User Agreement. Apple Pay is a third-party service provided by Apple Inc. and is subject to the Apple Pay Terms and Conditions. Google Pay is a third-party service provided by Google Payment Corp. and is subject to the Google Pay Terms of Service. Payment methods made available by Authorize.net are subject to the Authorize.net’s Terms and use .

If Diabetic Outlet receives notice that your shop’s content or activity violates a third party’s service agreement, we may at our sole discretion take action against your account to comply with their policies. Such actions may include canceling a transaction, disabling listings from your shop, suspending or terminating your selling privileges, or removing certain payment methods.

4. Diabetic Outlet’s Rights and Responsibilities

Diabetic Outlet Payments functionality may be made available, modified, or discontinued by us at any time without notice and is subject to the limitations in Diabetic Outlet’s Terms of Use.

As a security measure, we may impose transaction limits on buyers and sellers. For example, we may impose limits relating to the value of any transaction, deposit, or adjustment, or limits relating to the cumulative value of all transactions, deposits, or adjustments during a period of time. We may also impose limits related to the number of transactions per day or other period of time. We will not be liable to a seller: (a) if we do not proceed with a transaction, deposit, or adjustment that would exceed any limit established by us, or (b) if we permit a buyer to withdraw from a transaction.

Diabetic Outlet may refuse service of Diabetic Outlet Payments to anyone, for any reason, at any time.

Diabetic Outlet reserves the right to decline or refund transactions that we believe to be high risk, fraudulent, in violation of trade sanctions, or otherwise in violation of Diabetic Outlet’s Terms of Use.

In the event that a buyer does not make payment for the purchase of a legitimate item sold using Diabetic Outlet Payments (e.g., where the buyer used a stolen or unauthorized credit card), Diabetic Outlet may provide limited payment protection to the seller, in the interest of fairness.

Diabetic Outlet maintains records associated with transactions on Diabetic Outlet Payments and does not pass any secure data, including credit card numbers or bank account information, to any sellers. Sellers will only receive shipping information and limited buyer account information necessary to complete the order. Diabetic Outlet’s Privacy Policy further explains how Diabetic Outlet handles user information.

5. Seller Rights and Responsibilities

A. Use of Diabetic Outlet Payments. Using Diabetic Outlet Payments will result in your store accepting payment through authorized credit and debit card transactions, health savings cards, some bank transfer services, PayPal, Apple Pay, and Google Pay. Sellers must provide all required information and complete all required steps, including verifying your bank account, for compliance purposes.

B. Payment Accounts. Payment accounts are only available to individuals who are eligible to be sellers on DiabeticOutlet.com. A payment account allows sellers to track payment amounts, refunds, and fees related to transactions and seller services. Sellers must provide accurate personal information as requested during registration, and are responsible for maintaining and updating that information as necessary. Sellers will not impersonate any person or use any name they are not legally authorized to use. Sellers authorize us, and authorized agents, to verify their information (at registration and on occasion when using the Services) by accessing public records and obtaining credit reports about the sellers. Diabetic Outlet verifies sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions.

C. Disputes. Sellers agree to resolve any disputes directly with a buyer, and in accordance with our Seller Policy and Terms of Service. In the event that a dispute is escalated to Diabetic Outlet’s Support Team, Diabetic Outlet reserves the right to issue a refund to a buyer and recoup such funds from the seller if a transaction is found to be in violation of Diabetic Outlet’s policies.

In the event that a buyer submits a chargeback, Diabetic Outlet will respond to the credit card networks on behalf of the seller involved in the transaction; the seller agrees to provide any requested information to us within five calendar days of the request. Diabetic Outlet reserves the right to recoup funds associated with buyer chargebacks from the seller.

D. Communications. We will inform sellers of each transaction, or of other information pertaining to Diabetic Outlet Payments, using standard communication procedures, including by email.

E. Refunds. Refunds or adjustments paid by Diabetic Outlet to buyers for payments made through Diabetic Outlet Payments may be initiated using the refund functionality in the seller’s payment account for a period of 90 days after the purchase was made. The Diabetic Outlet Payments Platform does not have refund functionality after 90 days from the original purchase date. Any such funds paid by Diabetic Outlet to cover refunds will be deducted from the seller’s payment account balance. If there are insufficient funds to cover the amount of the refund, the balance will be charged to the seller’s card on file or added to the seller’s payment account. Refunds issued by Diabetic Outlet will be in the original form of payment, and if such payment is not available, an Diabetic Outlet credit will be issued.

For full refunds to buyers who used an Diabetic Outlet Coupon towards their underlying purchase, the buyer will be refunded the amount they paid as part of the purchase, and Diabetic Outlet will be refunded the amount contributed by Diabetic Outlet via the Diabetic Outlet Coupon. For partial refunds to buyers who used an Diabetic Outlet Coupon towards their underlying purchase, refunds will be made to the buyer and Diabetic Outlet proportionate to the amount contributed to the underlying purchase (in Diabetic Outlet’s case via an Diabetic Outlet Coupon).

Diabetic Outlet reserves the right to refund buyers and recoup such refunded amounts from the seller where the seller has been refused service by Diabetic Outlet in accordance with Diabetic Outlet’s Terms of Use; and/or in circumstances where a seller is under Reserve as detailed in Section 7 (Deposit); and/or in circumstances where the seller has unfulfilled or overdue orders.

Fully refunded transactions may be eligible for cancellation in accordance with our Cancellation Policy.

F. International Trade Laws. You agree that your use of Diabetic Outlet Payments will not involve any countries, entities, individuals, or items prohibited by sanctions, embargoes, regulations, or orders administered by the US Department of Treasury’s Office of Foreign Assets Control (“OFAC”) or other government agencies.

G. Information on Cardholder Charges. Please note that your bank or card provider may charge additional fees (including cross-border fees) for transactions that you make on Diabetic Outlet. These fees are not charged by Diabetic Outlet and are at the discretion of your bank. Please contact your bank for further details.

6. Appointment of Diabetic Outlet as Limited Collection Agent for Sellers

Each seller appoints Diabetic Outlet as its agent for the limited purpose of receiving, holding, and settling payments to seller. Diabetic Outlet will settle payments that are actually received by Diabetic Outlet to each seller, less any amounts owed to Diabetic Outlet and subject to these Terms. Each seller agrees that a buyer payment received by Diabetic Outlet, on behalf of seller, satisfies the buyer’s obligations to make payment to seller, regardless of whether Diabetic Outlet actually settles such payment to seller. If Diabetic Outlet does not settle any such payments as described in these Terms to a seller, such seller will have recourse only against Diabetic Outlet and not the buyer.

7. Deposits

A. Payment Account.

All funds resulting from a completed transaction will be reflected as a balance in a seller’s payment account. Transactions are considered complete at the later of once the payment is approved by Diabetic Outlet or our fraud analysis service provider. Any refunds, adjustments, or other amounts paid to buyers in connection with purchases, or for funds received since the last payment day, are also applied to the seller’s payment account balance.

Funds displayed in a seller’s payment account balance are eligible for deposit (the “Available Funds”) into a seller’s bank account, subject to any applicable reserve(s) and corresponding reserve limit, hold, or deposit delay, as described in Section B. Reserves; Holds and Delays below, and as otherwise determined by the seller’s bank.

A deposit minimum also applies to deposits. Funds will only be available for deposit if they exceed the applicable deposit minimum.

B. Reserves; Holds and Delays

To protect the security and integrity of our marketplace, the users of the Diabetic Outlet, Diabetic Outlet may take account-level or transaction-level actions based on risk-based criteria, like the criteria listed below. Some of our decisions about reserves, holds and delays may be based on criteria that demonstrates a seller’s ability to fulfill orders in a manner consistent with Diabetic Outlet’s policies. These criteria are essential to our management of risk and the protection of Diabetic Outlet and our users. Diabetic Outlet reserves the right to use a combination of reserves, deposit delays, and holds on your account.

Reserves.

A Reserve is an amount of money pending settlement as indicated in your payment account. A Reserve will be placed on your account if we believe there may be a high level of financial risk associated with you, your account, your business model, or your transactions.

When a Reserve is applied on your payment account, it means that a percentage of the funds in your payment account balance is held on an ongoing basis, and will not be made available for disbursement as Available Funds for a specified period of time. The Reserve percentage applies to amounts from your sales that would otherwise be available for disbursement. The percentage Reserve applied to your account is determined by your risk level and is used to create a threshold amount (explained in detail below) that applies to your payment account balance while you are in Reserve. You’ll be notified by email if a Reserve is applied to your Payment Account. The email you receive notifying you that you are in Reserve will include details of the Reserve, including the period of Reserve and the percentage applied to your Payment Account.

Threshold Reserve Amount applicable to your Account
The threshold reserve amount is the amount of funds you must have in your Payment Account while you’re in Reserve before you’ll have money available to disburse to your bank account (the “Threshold Reserve Amount”). The Threshold Reserve Amount will maintain the percentage Reserve that has been applied to your account. As a result, it may increase and decrease as appropriate to reflect new activity in your payment account, like sales you’ve received, refunds and chargebacks, charges to your payment account where applicable, as well as and Reserve amounts released to you. The Threshold Reserve will also determine the amount of funds available to be disbursed to your bank account as Available Funds and the amount of funds that are pending, because they are still in Reserve. Funds in excess of the Threshold Reserve Amount are available to you for disbursement as described in Section 7A above. Funds below the Threshold Reserve Amount are your Reserved funds and are not available for disbursement until the end of the applicable Reserve period. If your Reserve funds are used to cover any charges and your Reserve funds fall below the Threshold Reserve Amount, funds from subsequent sales will be applied to your Reserve funds to help you meet and maintain your Threshold Reserve Amount. You can view your Threshold Reserve Amount, as well as any Reserved funds and funds available to you for disbursement (Available Funds), in your Payment Account.

Reserve funds will be used to address potential financial risk such as refunds, chargebacks, claims, or seller fees and charges, where your Available Funds do not sufficiently cover such charges. Reserve funds that are not used to address refunds, chargebacks, claims or seller fees, where applicable, will be released to you in full at the end of the corresponding Reserve period on a rolling basis. However, Reserve funds will not be released if, during the Reserve period relating to a particular sale, a buyer raises a case against you, or files a chargeback, and you do not have sufficient funds in your Available Funds to cover a potential refund. Diabetic Outlet relies on different risk factors (and whether and how these factors have changed over time) to determine whether and how much of a Reserve should be applied to your payment account, including:

How long you’ve been in business on Diabetic Outlet (including how long since you’ve made your first sale)
Details of your sales (including volume and average sales earnings)
The extent of any backlog of orders from your shop
Availability of shipping tracking information
Types of goods you sell (whether they’re ready to ship or made to order)
Ratio of cases (disputes) opened by buyers in respect of your sales
Suspensions or warnings already received
Estimated delivery times; and
Shipping status of active orders

Types of Account Reserves:

A fixed reserve is a fixed percentage of your payment account balance at the time a Reserve is placed on your account, which will be held for a specified period of time. After that, the same percentage of each of your subsequent sales will be held in Reserve, each for a specified period of time. Reserve funds will be held for such period and where applicable, will be used to address chargebacks, refunds, and pay seller fees. Reserve funds will be released on a rolling basis after the corresponding Reserve period expires, unless a case is raised against you by a buyer. Any funds above the Threshold Amount of your Reserve will be available to be disbursed as described in Section 7A.

A variable reserve is a percentage, determined as appropriate by Diabetic Outlet, of a seller’s payment account balance (i) delayed prior to being included as part of a seller’s Available Funds for a period of up to 180 days or (ii) deducted from a seller’s payment account as a reserve for a period of up to 90 days. A variable reserve may be placed on a seller’s payment account balance in addition to any applicable Fixed Reserve in Diabetic Outlet’s sole discretion. Account Reserves are placed on an account on a case by case basis, in reference to the factors listed above and other risk-based criteria, and are reviewed from time to time. Diabetic Outlet may deem a seller eligible for reduction in the percentage or removal of a Reserve due to a change in our risk-assessment of a seller based on the factors listed above, or as a result of a seller’s positive performance, such as a reduction in cases or an improvement in the seller’s fulfillment of orders. Diabetic Outlet may increase the Reserve percentage held and/or the period for which the Reserve applies based on our re-review of a seller account against the factors listed above, and other risk-based criteria. If we change the terms of a Reserve due to a change in our risk assessment, we’ll notify you of the new terms.

Holds and Delays. In some cases, deposits to a seller’s bank accounts could be temporarily delayed by an issue at Diabetic Outlet, Diabetic Outlet’s third-party service providers, or a seller’s bank. We’ll do our best to communicate with any affected seller as soon as we can.

Separately, if we believe that a seller’s actions may result in buyer disputes, chargebacks, increased risk of fraud, counterfeiting, or other claims, then we may, in addition to any applicable Reserve and in our sole discretion, put a hold or deposit delay on the seller’s payment account balance.

A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 180 days after the estimated delivery date, or (b) completion of any investigation regarding the seller’s actions.
Deposit delays are defined as the number of days between a sale and the day the net amount from the sale becomes available for deposit, provided the payment has been completed. A deposit delay may be between 0 and 180 days. A deposit delay is applied across all transactions for a seller and the number of days is reflected in each seller’s payment account.

If Diabetic Outlet places a hold or deposit delay on a seller’s account, we’ll do our best to communicate with the affected seller as appropriate as soon as we can.

We always work hard to avoid and minimize any delays. However, please note that Diabetic Outlet is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits.

C. Scheduled Deposits. Diabetic Outlet will instruct our payments partners to initiate a deposit of a seller’s Available Funds into the seller’s bank account on a daily, weekly, biweekly, or monthly basis. Sellers can select the frequency of disbursements from their payment account in their account settings. When a seller selects daily disbursements, disbursements will be made on each day that the seller’s payment account has a balance equal to or greater than the minimum daily disbursement thresholds listed below. When a seller selects weekly, biweekly, or monthly disbursements, disbursements will be made on every applicable Monday. In this policy we’ll refer to the date of disbursement as the “Payment Date.” Deposits into a seller’s bank account will generally be credited within three (3) to five (5) business days from the date Diabetic Outlet initiates the deposit request. The actual timing of the deposit may depend on how quickly a seller’s bank processes the request.

The Payment Date will fall on the next business day (Monday through Friday, excluding bank holidays) if the scheduled Payment Date falls on a non-business day. If a seller elects to change the frequency of disbursements, the following deposit will be initiated on the next business day if the seller selects daily disbursements, or on the next applicable Monday if the seller selects weekly, biweekly, or monthly disbursements. When a seller either initially provides or later changes their bank account information, the seller must wait at least five (5) calendar days to request a deposit into a bank account as a security precaution. The next scheduled deposit after a change to bank account information will occur on the next applicable Payment Date after a period of five (5) calendar days from the date of the requested change.

E. Escheatment. If Diabetic Outlet cannot settle funds into a seller’s bank account, or the seller is refused service by Diabetic Outlet under Diabetic Outlet’s Terms of Use, the funds will remain with Diabetic Outlet and the balance remains available in the seller’s payment account. It is the seller’s sole responsibility to update their bank account information to receive the funds, if applicable. If a seller fails to update the information to claim the funds within a certain period of time, or Diabetic Outlet cannot release funds to the seller for compliance reasons, Diabetic Outlet will escheat the funds to the relevant government authority as required in order to comply with applicable escheatment laws.

8. Recoupment

A. We reserve the right, in our sole discretion, to seek reimbursement from a seller in any of the following circumstances: (a) we provide a refund to a buyer because a seller did not promptly deliver the goods or we otherwise determine, consistent with Section 5 (Seller Rights and Responsibilities], that a refund is warranted in a particular circumstance, (b) we discover erroneous or duplicate transactions related to a seller, (c) we receive a chargeback from a buyer’s credit card issuer or reversal of payment for the amount of a buyer’s purchase from a seller, or (d) a seller does not act in accordance with Diabetic Outlet’s policies.

B. We may obtain reimbursement of any amounts owed by a seller to Diabetic Outlet by deducting from future payments owed to the seller, reversing any credits to the seller’s payment account balance, charging the seller’s card on file, charging the seller’s payment account, or seeking reimbursement from the seller by any other lawful means, including by using third-party collections services. You authorize us to use any or all of the foregoing methods to seek reimbursement. Diabetic Outlet may suspend your selling privileges at any time pending payment of your outstanding balance.

9. Payment Processing Fees

A. Overview. Diabetic Outlet charges a fee (the “Payment Processing Fee”) for processing each transaction through Diabetic Outlet Payments. The fee amount will be assessed on the gross order amount, including shipping and tax (if applicable). Payment Processing Fees will be reflected in your payment account and will be deducted from the total amount of the payment at the time the payment is considered complete. We reserve the right to modify the Payment Processing Fee at any time. For deposits below designated thresholds, a deposit fee of 3% + 0.25 USD will apply. Deposit fees are deducted from your Available Funds and reflected in your payment account at the time of your scheduled deposit. In the event of any partial or full refunds credited back to a buyer, the Payment Processing Fee and other applicable fees will be recalculated based on the adjusted sale price. The difference between the original Payment Processing Fee and the adjusted Payment Processing Fee will be applied to the refund amount being credited back to the seller. Other applicable fees will be refunded to the seller’s payment account. Deposit fees will be refunded if the deposit is returned to a seller’s payment account.

B. Value-Added Tax (VAT). Depending on your business status and location, Diabetic Outlet may be required to charge VAT on seller fees accrued each month and remit it to the relevant tax authority. VAT is collected on Diabetic Outlet Payments processing fees for sellers.

C. Interest. Diabetic Outlet may earn interest (or other compensation) from the balances in our bank accounts because of the timing difference between our being paid by buyers and our paying sellers (when our bank account is being debited to pay Available Funds in payment accounts to sellers).

10. Reporting Obligations

Internal Revenue Service regulations require that we file a Form 1099-K to report unadjusted annual gross sales information for sellers located in the United States or being paid in USD in certain circumstances.

To comply with these regulations, sellers who approach 150 (one hundred and fifty) transactions in a calendar year, regardless of sales volume and aggregated across his or her Shops, will be required to provide taxpayer-identification information to Diabetic Outlet.

To comply with these reporting obligations, Diabetic Outlet requires your your taxpayer name and ID as you approach the VAT sales threshold or local reportable threshold. Your Diabetic Outlet selling privileges may be suspended until you provide this information.

11. Termination

Sellers may terminate this contract and their acceptance of Diabetic Outlet Payments at any time by adjusting the Settings in their account with Diabetic Outlet. Diabetic Outlet may also terminate or suspend a seller’s use of Diabetic Outlet Payments at any time.

Upon termination, any non-disputed Available Funds will be deposited into a seller’s bank account. Diabetic Outlet reserves the right, upon termination of access to Diabetic Outlet Payments, to set off against any payments to be made to the seller, an amount determined by us to be adequate to cover any anticipated chargebacks, refunds, adjustments, or other amounts that might be paid to buyers in connection with purchases from the seller’s payment account for a prospective 180-day period. At the end of the 180-day period following termination, we will disburse to the seller any amount not used to offset chargebacks, refunds, adjustments, or such other amounts paid to buyers, or seek reimbursement from the seller via any of the means authorized in this Policy for any additional amount required to offset chargebacks, refunds, adjustments, or other amounts paid to buyers, as applicable.