Merchant & Financial Terms of Service

2.1 Pakashop Is a Marketplace, Not a Bank

Pakashop is an independent technology marketplace platform. We are nota bank, deposit-taking institution, microfinance institution, or electronic money issuer. Pakashop's role is strictly to:

• Facilitate the listing and sale of goods between Vendors and Customers;
• Route customer payments through licensed, regulated payment partners; and
• Reconcile, hold, and disburse Vendor and Driver earnings in accordance with these Financial Terms.

All payment processing on the Platform is performed by:

• pawaPay — for all Mobile Money collections (Airtel Money, MTN Mobile Money, Zamtel Kwacha); and
• Flutterwave — for all card and global payment network processing (Visa, Mastercard, etc.).

pawaPay and Flutterwave are licensed electronic money institutions / payment service providers operating under applicable financial regulation. Pakashop leverages their licensed rails so that every Kwacha moving through the Platform is collected, settled, and disbursed through regulated channels.

2.2 Single-Currency Mandate — ZMW Only

All transactions on Pakashop are strictly denominated and executed in Zambian Kwacha (ZMW / "Kwacha" / "K"). This includes product listing prices, customer checkout amounts (including delivery fees), Pakashop's commission calculations, refunds, payout amounts, and the minimum payout threshold in Section 5.

Listing prices in foreign currency (USD, ZAR, etc.) is prohibited. If a card or international payment is tendered in foreign currency, Flutterwave converts the amount to ZMW at the prevailing settlement rate before it enters the Pakashop ecosystem. All downstream calculations are performed exclusively in ZMW.

3.1 How Customer Money Flows

When a customer places and pays for an order on Pakashop, the funds do not go directly to the Vendor. Instead, the full payment is collected into Pakashop's central corporate settlement accounts, held with our licensed payment partners. From there, Pakashop operates a virtual ledger that tracks each Vendor's entitlement.

3.2 The Escrow Hold — 7 Days from Delivery Confirmation

Upon confirmed delivery of an order (evidenced by delivery confirmation, OTP verification, or the delivery timestamp in the Platform's logistics system), the Vendor's share of that order's proceeds is credited to a virtual "Pending Pool"on the Platform's internal ledger.

Funds remain in the Pending Pool for exactly 7 (seven) calendar days from the delivery confirmation timestamp. This holding period exists to accommodate potential customer returns, disputes, or refund claims under our Return & Refund Policy (Section 4). During this period the funds are secured and segregated, are not yet withdrawable, and may be reversed in whole or in part if a valid customer claim is upheld.

Only after the 7-day escrow window closes without a successful customer claim do the funds move from the Pending Pool to your "Available Balance", making them eligible for the weekly payout cycle in Section 5.

4.1 The 7-Day Customer Window

In line with the consumer protection mandates of the Zambian Competition and Consumer Protection Commission (CCPC), Pakashop maintains a strict 7-Day Return and Refund Policy. Customers have 7 (seven) calendar days from the date of confirmed delivery to report:

• Defective items — goods that are faulty, damaged, or non-functional on arrival;
• Incorrect items — goods that differ from what was ordered (wrong product, variant, or specification); or
• Missing items — items absent from the delivered package relative to the order confirmation.

4.2 How Refunds Affect Your Ledger

If a customer's claim is validated by Pakashop's Dispute Resolution team within the 7-day window:

• The refund amount is deducted from the Pending Pool allocation of that order (if the escrow window is still open); or
• If the funds have already cleared to your Available Balance or been paid out, the amount is debited against your future Available Balance, which may result in a temporary negative ledger position to be settled from subsequent sales.

Pakashop acts as the refund administrator on behalf of the Vendor. By selling on the Platform, you irrevocably authorize Pakashop to debit your ledgerfor validated refunds, including refunds arising from Vendor fault. Disputed claims are adjudicated with reference to delivery evidence, product photographs, and CCPC-aligned fairness principles; Pakashop's determination is final and binding as between Vendor and Platform for ledger purposes, without prejudice to any statutory customer rights under Zambian law.

5.1 No Instant Per-Transaction Payouts

Payouts on Pakashop are not executed instantly, per transaction, or on demand. Pakashop aggregates all cleared Vendor and Driver funds into a single, consolidated weekly payroll cycle. This model allows Pakashop to batch disbursements efficiently, reconcile refunds and disputes before money leaves the ledger, and minimise transaction costs that would otherwise erode small-value earnings.

5.2 Payout Day: Friday, 15:00 CAT

The Weekly Payout Day is strictly every Friday at 15:00 Central Africa Time (CAT). At 15:00 CAT each Friday, the Platform's automated disbursement engine snapshots the Available Balance of every eligible Vendor and Driver and pushes qualifying balances to registered Mobile Money wallets.

If a Friday is a Zambian public holiday, the payout executes on the next business day, communicated in advance on the Platform dashboard. No interest or compensation accrues on funds during such a delay.

5.3 Minimum Payout Threshold: K50.00 ZMW

Funds move from the virtual ledger to physical wallets only if your Available Balance is K50.00 (Fifty Kwacha) or more.

• Balances below K50.00 automatically roll overto the following Friday's payout run, without penalty, fee, or forfeiture.
• There is no limit to how many weeks a sub-threshold balance may roll over.
• The threshold may be reviewed from time to time; any change will be communicated with at least 14 days' notice via the Platform and/or SMS.

5.4 Payout Destination: Your Registered Mobile Money Wallet

All Vendor and Driver disbursements are pushed directly to your registered Mobile Money walletvia Pakashop's automated disbursement pipelines, supporting Airtel Money, MTN Mobile Money, and Zamtel Kwacha.

You are responsible for ensuring that:

• Your registered Mobile Money number is active, correct, and in your own name (matching your KYC records);
• Your wallet is within the applicable balance limits imposed by your Mobile Network Operator (see Section 7); and
• You notify Pakashop at least 48 hours before Friday 15:00 CAT of any wallet number changes — changes after the weekly snapshot take effect from the following cycle.

Payouts will neverbe made to a third party's wallet, a foreign wallet, or a bank account unless the relevant verification and update procedures have been completed with Pakashop Support.

6.1 Pakashop's Platform Fee Model

• Flat Platform Commission: Pakashop deducts an agreed percentage commission from each completed sale. The applicable rate for your category is displayed on your Vendor Dashboard and in your Vendor Agreement.
• Processing costs absorbed: The technical payment processing costs — including API fees charged by pawaPay for Mobile Money collections and by Flutterwave for card processing — are absorbed within Pakashop's flat commission. Vendors and Drivers are not charged a separate per-transaction processing fee, and no hidden processing surcharge is added to customers at checkout on the basis of payment method.
• No payout disbursement fee: Pakashop does not charge you a fee to push your earnings to your Mobile Money wallet.

Any future change to the commission structure or introduction of additional platform service fees will be communicated with at least 14 days' notice.

6.2 Network Cash-Out Fees — Your Responsibility

Important clarification on carrier charges: Pakashop covers the technical API costof transferring your earnings from Pakashop's settlement accounts into your Mobile Money wallet. Once the money arrives in your wallet, it is yours, in full, as reflected on your ledger statement.

However, standard network carrier withdrawal fees — the charges levied by MTN, Airtel, or Zamtel when you convert mobile money to physical cash at an agent booth anywhere in Zambia — are the sole responsibility of the Vendor or Driver. These cash-out tariffs are set and collected by the Mobile Network Operators (MNOs), not by Pakashop, and are outside the Platform's control. Pakashop has no involvement in, and earns nothing from, agent-level cash-out fees.

7.1 Know Your Wallet Tier

Mobile Money wallets in Zambia are subject to balance and transaction limits prescribed under Bank of Zambia regulations and implemented through MNO wallet tiers. Depending on your registration/KYC tier with your MNO, typical limits include K10,000 or K20,000 in maximum wallet balance (with associated per-transaction and daily caps).

As a Vendor or Delivery Agent, it is your sole responsibility to:

• Know your wallet tier and its applicable limits;
• Maintain a wallet balance low enough to receive your Pakashop payout without breaching the cap; and
• Upgrade your KYC tier with your MNO if your expected weekly earnings regularly approach your current limit.

7.2 Failed Payouts Due to "Wallet Limit Exceeded"

If your Friday payout fails because the network operator returns a "Wallet Limit Exceeded" (or equivalent) error:

• Your funds will not be lost, and will not be returned to customers or absorbed by the Platform. They are securely held back on Pakashop's internal ledger under your name;
• An automated notification (SMS and/or in-app alert) will be pushed to you immediately, instructing you to clear or upgrade your wallet before the next cycle;
• Your held funds will be automatically re-queued for the next Friday payout run at 15:00 CAT, once your wallet is able to receive them; and
• Multiple consecutive failed cycles may result in Pakashop Support contacting you directly, and continued failure may lead to a request to update your payout destination details.

Pakashop shall bear no liability for delayed access to funds caused by MNO-imposed wallet limits, nor for any cash-out fees you incur in clearing your wallet.