AI Dispute Manager — Terms of Service (Commission Model)

1. Service Description

(a) Zenoti Payments offers an AI Dispute Manager feature (“Service”) that assists merchants enrolled in Zenoti Payments (“you” or “Merchant”) in responding to payment chargebacks raised against transactions processed through Zenoti Payments.

(b) A chargeback occurs when a customer’s issuing bank reverses a payment on the customer’s behalf. Card networks impose a response deadline — typically between seven (7) and forty-five (45) days from the date of the dispute notice — within which a merchant must submit supporting evidence to contest the reversal.

(c) The Service operates in two modes:

(i) Standard Mode (no additional fee): Zenoti pre-populates an evidence package based on available transaction data. You may review, edit, upload additional documents, and add a cover letter before the deadline. If no action is taken before the deadline, the pre-populated package is auto-submitted on your behalf.

(ii) AI-Assisted Mode (fee applicable): Zenoti uses AI to automatically generate an evidence package and cover letter tailored to the specific dispute. The AI-generated package is automatically submitted on your behalf in accordance with the response timeline agreed at the time of activation. You are responsible for reviewing the AI-generated evidence before the submission deadline. If you disagree with the AI-generated evidence, you may upload and submit your own evidence package in its place before the deadline.

2. Fees

(a) Standard Mode is included with your Zenoti Payments subscription at no additional charge.

(b) For AI-Assisted Mode, Zenoti charges a success-based commission of twenty percent (20%) of the net recovered amount for each dispute that results in a successful outcome (i.e., a chargeback decided in your favor). No fee is charged for disputes that are not won.

(c) In addition to the commission described above, your payment processor (such as Stripe or Adyen) may charge its own separate per-dispute handling fee. This processor fee is determined solely by the processor, is independent of Zenoti’s commission, and applies regardless of the dispute outcome.

(d) The commission will be deducted from your Zenoti Payments payout following confirmation of a successful dispute outcome.

3. Activation and Consent

(a) AI-Assisted Mode may be activated through the Zenoti Payments dashboard at any time.

(b) Activation requires your acknowledgment of the applicable fee structure, the automatic submission terms, and your acceptance of these Terms, confirmed via a checkbox at the time of activation. This electronic acceptance constitutes a valid and binding agreement; no wet signature is required.

(c) By activating AI-Assisted Mode, you authorize Zenoti to generate evidence packages and cover letters on your behalf and to submit them automatically in accordance with the response timeline agreed at activation.

(d) You acknowledge that once the submission deadline has passed, no further changes can be made to the submitted evidence package.

4. Merchant Obligations

(a) You are responsible for ensuring that all data maintained in the Zenoti system — including transaction records, guest profiles, service agreements, and cancellation policies — is accurate and up to date. The quality of the AI-generated evidence package depends on the accuracy and completeness of this data.

(b) You are responsible for reviewing the AI-generated evidence package before the submission deadline. If you disagree with the AI-generated content, you must upload and submit your own evidence package before the deadline. Failure to review the AI-generated evidence before the deadline shall be treated as your acceptance of that evidence for submission.

(c) If you choose to submit your own evidence package, you confirm that its contents are truthful, accurate, and compliant with the rules of the applicable card network.

(d) You must not use the Service to submit false, misleading, or fabricated evidence in connection with any dispute.

(e) You are responsible for monitoring submission deadlines and reviewing AI-generated evidence in a timely manner. While the Service provides reminders, Zenoti is not liable for missed review windows or any resulting loss.

(f) You must comply with the rules and requirements of the relevant card networks (including but not limited to Visa, Mastercard, American Express, and Discover) when using the Service.

5. Merchant-Submitted Evidence

(a) If you disagree with the AI-generated evidence package, you may upload your own evidence documents and cover letter and submit them before the response deadline. Your submission will replace the AI-generated package.

(b) If you begin building a manual evidence package before activating AI-Assisted Mode for the same dispute, that draft will be preserved in the system and may be referenced when preparing your own submission.

(c) Only one evidence package — either the AI-generated package or your own submission — will be sent to the processor. If you submit your own evidence before the deadline, the AI-generated package will not be submitted.

6. Switching Between Modes

(a) You may switch between Standard Mode and AI-Assisted Mode at any time through the Zenoti Payments dashboard.

(b) A switch to AI-Assisted Mode takes effect immediately and applies to new disputes raised from that point forward.

(c) A switch back to Standard Mode applies to new disputes going forward. Disputes already in progress under AI-Assisted Mode shall continue to be processed under AI-Assisted Mode terms — including automatic submission and the applicable commission on a successful outcome — until those disputes are fully resolved.

7. AI Limitations and Disclaimer

(a) The Service uses AI to generate evidence packages and cover letters. This output is intended as a decision-support tool to assist your response and does not constitute legal advice.

(b) Chargeback outcomes are determined solely by the issuing bank and the applicable card network. Zenoti has no influence over and makes no representations regarding the outcome of any dispute.

(c) Zenoti does not guarantee that the use of AI-Assisted Mode will result in a higher dispute win rate or any specific outcome.

(d) AI-generated content is based on the data available in the Zenoti system at the time of generation. You are responsible for reviewing it and determining whether it accurately reflects the circumstances of the dispute before the submission deadline.

8. Data and Storage

(a) Dispute data and metadata are stored in Zenoti’s secure database. Evidence documents are stored in Zenoti’s cloud storage infrastructure (Microsoft Azure and/or Amazon Web Services). All data is encrypted in transit and at rest.

(b) Dispute records are retained to meet card network compliance requirements.

(c) You represent and warrant that you have the right to share guest or customer personal data with Zenoti for dispute processing purposes, and that such sharing complies with applicable privacy and data protection laws.

(d) Zenoti may use anonymized and aggregated dispute outcome data to improve AI model performance. Individual merchant or guest data will not be shared with third parties for training purposes.

9. Limitation of Liability

(a) In no event shall Zenoti be liable for indirect, incidental, consequential, or punitive damages, including loss of revenue or profits, even if advised of the possibility of such damages.

(b) Zenoti shall not be liable for any chargeback decision, including a loss resulting in a chargeback being decided against you.

(c) Zenoti shall not be liable for any outcome resulting from evidence that was automatically submitted on your behalf where you had the opportunity to review and replace that evidence before the submission deadline but did not do so.

10. Consent and Acknowledgment

By activating and using the AI-Assisted Mode of the Service, you:

(i) Confirm your understanding that the AI-generated evidence package will be automatically submitted on your behalf in accordance with the agreed response timeline;

(ii) Accept responsibility for reviewing the AI-generated evidence before the submission deadline and submitting your own evidence if you disagree with it;

(iii) Acknowledge that chargeback decisions are made by issuing banks and card networks, and that Zenoti has no control over such decisions; and

(iv) Agree to be bound by the additional terms and conditions available at Terms and Conditions — Zenoti.