Platform Terms & Financial Operating Agreement

Effective Date: November 8, 2026 • Last Updated: November 2026

Welcome to Shopmummy. This Financial Operating Agreement and Terms of Service governs the financial mechanics, escrow custody, payout releases, and customer refund procedures across all online storefronts, conversational channels (WhatsApp, Instagram, Facebook), and social commerce integrations hosted on the platform.

1. Custody and Holding of Customer Funds

When a buyer submits payment for an order on any store powered by Shopmummy, the transaction is collected through our regulated payment processing partners (including Paystack, Bachs, and Stripe).

Fiduciary Custody: Customer payments are held in segregated platform clearing accounts designated for merchant settlement. Neither Shopmummy nor the merchant can deploy these funds for operational expenses prior to order delivery.
Escrow Ledger Status: Immediately upon successful payment capture, the net sale proceeds (after deducting payment processor fees and platform service fees) are posted to the merchant's ledger as PENDING balance.

2. Payout Schedule & Fund Release

Funds do not become eligible for withdrawal immediately upon order placement. To protect buyers and guard against non-delivery or dispute risk:

Delivery Confirmation: Physical orders must be marked as delivered with verifiable courier tracking. Digital orders are fulfilled immediately with secure, single-use download grants.
Return Window Expiry: Funds automatically transition from PENDING to AVAILABLE status only after the store's configured return window (default 7 days from verified delivery, or up to 30 days as configured by the merchant) has elapsed without an active dispute.
Payout Initiation: Once funds are in AVAILABLE balance, the merchant may request a payout to their verified commercial bank account. Payouts are processed via automated direct clearing transfers.

3. Customer Refunds and Returns

Shopmummy operates an automated source-of-funds refund engine ensuring buyer protection:

Source Payment Reversal: All refunds are executed directly via the original payment gateway adapter back to the customer's originating card or bank account.
Order Cancellation: If an unfulfilled paid order is cancelled by the merchant or customer, an automated gateway refund is triggered immediately, and the ledger posting is reversed.
Return Approval: If a customer submits a return request within the statutory return window and the merchant approves it, the refund is initiated through the payment gateway.
Fair Account Debiting: If order funds have already been released to the merchant's AVAILABLE balance, the refund is debited from AVAILABLE. If funds are still in escrow, it debits the PENDING balance, ensuring no double-deduction.
Multi-Supplier Fulfillment Isolation: In multi-supplier split orders, a return or refund on one fulfillment line holds only that specific fulfillment; sibling fulfillments on the same order release independently.

4. Merchant Identity Verification (KYC)

In compliance with financial regulations and anti-money laundering (AML) laws:

All merchants must submit valid government-issued identification and business documentation to achieve VERIFIED KYC status before accepting customer payments or requesting payouts.
Designated pilot merchants operate under supervised trial conditions prior to public signup. Unverified stores outside the supervised pilot program cannot process live customer transactions or disburse wallet payouts.

5. Merchant Security & Credential Invalidation

To maintain the integrity of merchant wallets and store administrative access:

Password resets immediately increment the user's session security version, invalidating all active JWT tokens across all devices.
Merchants are responsible for maintaining confidentiality of their credentials and must notify Shopmummy support immediately upon suspecting unauthorized account access.

6. Contact & Disputes