Payment Processing Terms

Version: 2.0
Effective Date: March 1, 2026
Last Updated: February 27, 2026

PAYMENT PROCESSING TERMS

These Payment Processing Terms ("Terms") govern all payment transactions between you ("Customer," "you," or "your") and Carpet Installers Direct, LLC ("Platform," "we," "us," or "our"). By making a purchase through our Platform, you agree to these Terms.

1. Payment Methods

1.1 Accepted Payment Methods

Platform accepts:

• Credit cards: Visa, MasterCard, American Express, Discover
• Debit cards: Visa Debit, MasterCard Debit
• ACH bank transfer: For orders exceeding $5,000

1.2 Payment Processor

All payments are processed securely through Stripe (stripe.com). Platform does NOT store your full credit card number, CVV, or other sensitive payment credentials. For details on how Stripe handles your payment data, see Stripe's Privacy Policy at https://stripe.com/privacy.

1.3 Payment Security

• All transactions are encrypted using TLS 1.2 or higher
• Platform maintains PCI-DSS compliance through Stripe
• Fraud detection and prevention measures are active on all transactions

2. Pricing Structure

2.1 Three Service Tiers

Platform offers three service tiers with the following pricing model:

2.2 Material Markup Explained

The material markup covers Platform's operational costs including:

• Order processing and quality control
• Cutting diagram creation and specification packets
• Delivery coordination and logistics
• Credential verification (Assisted and Full Service tiers)
• Customer support

All customers pay a flat 15% markup over wholesale cost, regardless of service tier. There is no separate "member" or "guest" pricing — every order uses the same transparent 15% markup.

2.3 Installer Loyalty Rebates

Installers enrolled in Platform's Membership Program earn loyalty tiers that determine the installer rebate on each completed order. The customer price is always 15% over wholesale — loyalty tiers do not affect what you pay. Instead, higher-tier installers earn a larger rebate from the distributable margin:

Your price at checkout is always based on the flat 15% markup. Installer rebates are paid by Platform to the installer and do not affect your order total.

2.4 Minimum Order Values

Orders below these minimums cannot be processed.

2.5 Shipping Costs

• Shipping costs are calculated based on carrier rates and delivery distance
• Platform does NOT add a markup to shipping costs
• Shipping cost is displayed at checkout before payment confirmation
• Shipping method: LTL freight or standard freight depending on order size

2.6 Sales Tax

• Sales tax is charged based on your delivery address as required by applicable law
• Tax amount is calculated and displayed at checkout
• Platform collects and remits sales tax to the appropriate taxing authority

3. Payment Timing

3.1 Materials Only Orders

• Full payment due at checkout — Materials cost + markup + shipping + tax
• Payment is charged immediately upon order confirmation
• No installments or deferred payments

3.2 Assisted and Full Service Orders

• Full payment due at checkout — Materials cost + markup + shipping + tax + installation labor (held in escrow)
• Payment is charged in full at order confirmation
• The installation labor portion is held in escrow until installation is complete (see Section 4)
• The materials portion is used to place the order with the mill

3.3 Order Confirmation

After successful payment, you receive:

1. Order confirmation email with order number, itemized breakdown, and estimated delivery date
2. Payment receipt with transaction ID for your records
3. Specification packet (for Assisted and Full Service) — sent once cutting diagrams are finalized

4. Escrow Payment System

4.1 What Is Escrow?

For Assisted (BYOI) and Full Service orders, the installation labor payment is collected at checkout and held securely by Platform until installation is complete. This protects both you and the installer.

4.2 How Escrow Works

1. At Checkout: You pay the full order amount. The installation labor portion is separated and placed in escrow.
2. Materials Ship: The materials portion is used to fulfill your carpet order.
3. Installation Occurs: Your installer completes the work.
4. Auto-Release Period: Payment to the installer is automatically released 3 calendar days after the scheduled installation date.
5. Pre-Release Reminder: You receive an email reminder 1 day before auto-release, notifying you of the upcoming release and giving you the opportunity to report issues.

4.3 Reporting Issues Before Escrow Release

If you experience problems with the installation:

1. Report within 3 days of the scheduled installation date (before auto-release)
2. Submit documentation — Photos, description of issue, communications with installer
3. Escrow is paused — The installation labor payment is held pending resolution
4. Platform facilitates communication between you and installer
5. Resolution: Escrow is released when the issue is resolved, or per the dispute resolution process

4.4 After Escrow Releases

Once the escrow period passes without a reported issue, payment is released to the installer automatically. After release, Platform cannot reverse the payment. If you discover issues after escrow release, your recourse is directly with the installer (see Coordination Services Agreement Section 7).

4.5 Escrow Is Not a Guarantee

Escrow protects against non-performance, not quality. Escrow does NOT:

• ❌ Guarantee installation quality
• ❌ Act as an insurance policy
• ❌ Provide Platform authority to judge disputes
• ❌ Ensure installer will correct issues

5. Refunds

5.1 Refund Eligibility

5.2 Restocking Fees

• Standard stock materials: 10% restocking fee for returns
• Custom-cut materials: 20% restocking fee (materials are cut to your specification)
• Special orders (over 500 sq ft): Non-returnable unless defective
• Restocking fee waived if return is due to Platform error or manufacturer defect

5.3 How to Request a Refund

1. Contact support@carpetinstallersdirect.com within the applicable timeframe
2. Provide your order number and reason for refund request
3. For defective/damaged materials: Include photos documenting the issue
4. Platform reviews request and responds within 2 business days
5. Approved refunds are issued to the original payment method

5.4 Refund Processing

• Credit card refunds: 5–7 business days after approval
• ACH refunds: 7–10 business days after approval
• Refunds appear on your statement as a credit from "CARPET INSTALL DIRECT"

6. Chargebacks and Disputes

6.1 Contact Us First

If you have an issue with a charge, please contact us before filing a chargeback with your bank. We can resolve most issues faster than the chargeback process, which can take 45–90 days.

Contact: support@carpetinstallersdirect.com or [Phone Number]

6.2 Chargeback Process

If you file a chargeback with your bank or credit card company:

1. Platform is notified by Stripe of the dispute
2. Platform provides evidence to the bank (contract, delivery confirmation, communications)
3. Your bank reviews the evidence and makes a determination
4. If the chargeback is upheld, your account may be flagged or suspended

6.3 Fraudulent Chargebacks

Filing a chargeback for a legitimate charge (products received as described, services rendered as agreed) may constitute fraud. Platform reserves the right to:

• Suspend your account pending investigation
• Pursue collection of the disputed amount
• Report fraudulent activity to appropriate authorities
• Recover chargeback fees ($15 per disputed transaction)

7. Installer Payments

7.1 How Installers Are Paid

For Assisted and Full Service orders:

1. Customer pays full amount at checkout (materials + installation labor)
2. Installation labor portion is held in escrow
3. After installation + 3-day escrow period, payment is released to installer
4. Installer receives payment via Stripe Connect to their connected account
5. Platform does NOT take a fee from the installer's labor payment

7.2 Installer Membership Fees

Certified Installers enrolled in the Membership Program pay a $20/month membership fee directly to Platform. This is separate from and unrelated to customer payments. See the Installer Membership Agreement for details.

7.3 Installer Payment Disputes

If an installer disputes a payment:

• Installer contacts Platform support
• Platform reviews escrow records, installation date, and customer report (if any)
• If escrow was properly held due to a customer-reported issue, Platform facilitates resolution
• Platform does NOT act as arbitrator between customer and installer

8. Taxes and Reporting

8.1 Sales Tax

• Platform collects and remits sales tax on material purchases
• Tax rates are determined by your delivery address
• Tax amount is displayed at checkout and on your receipt

8.2 Tax Reporting — Installers

• Platform issues IRS Form 1099-K to installers who receive $600 or more in escrow payments during a calendar year (per current IRS thresholds)
• Installers are responsible for reporting all income and paying applicable taxes
• Platform does NOT withhold income tax from installer payments (installers are independent contractors)

8.3 Tax Reporting — Customers

• Platform does NOT provide tax advice
• Your purchase receipts include all information needed for tax record-keeping
• Consult your tax advisor regarding deductibility of carpet purchases

9. Account and Billing

9.1 Account Required

A customer account is required for:

• Assisted (BYOI) orders
• Full Service (Certified) orders
• Order tracking and history
• Escrow status monitoring

Materials Only purchases may be completed as a guest or with an account.

9.2 Billing Information

You are responsible for:

• Providing accurate billing information (name, address, payment method)
• Keeping your payment method current
• Notifying us of any changes to your billing information

9.3 Failed Payments

If a payment fails:

• Platform will attempt to process the payment once more
• If the second attempt fails, you will be notified by email
• Your order will not be processed until payment is successfully completed
• Pending orders with failed payment are cancelled after 48 hours

10. Currency

All prices are quoted and charged in United States Dollars (USD). Platform does not support foreign currencies at this time.

11. Pricing Changes

11.1 Price Lock

Your order price is locked at the time of purchase. We will not increase the price of materials or add fees after you complete checkout.

11.2 Platform Pricing Updates

Platform may update markup rates, minimum order values, or shipping cost calculations at any time. Changes apply to new orders only and do not affect existing orders.

11.3 Notice of Changes

Material changes to pricing structure will be communicated via:

• Email notification (if you have an account)
• Updated Payment Processing Terms on our website

12. Third-Party Services

12.1 Stripe

Payment processing is provided by Stripe, Inc. By using our Platform, you also agree to Stripe's Terms of Service (https://stripe.com/legal). Platform is not responsible for Stripe outages or processing delays caused by Stripe.

12.2 Shipping Carriers

Shipping is provided by third-party freight carriers. Platform is not liable for carrier delays, lost shipments, or damage in transit beyond what is covered by carrier insurance. Shipping damage must be reported within 48 hours of delivery.

13. Governing Law

These Payment Processing Terms are governed by Georgia law. Disputes related to payments are subject to the Dispute Resolution & Arbitration Agreement.

14. Contact Information

For payment questions, refund requests, or billing issues:

Carpet Installers Direct
Email: support@carpetinstallersdirect.com
Phone: [Phone Number]
Address: [Physical Address, Georgia]
Business Hours: Monday–Friday, 9 AM – 5 PM EST

Effective Date: March 1, 2026
Version: 2.0
Document ID: PAY-TERMS-2026-v2.0

Attorney Review Notes

⚠️ IMPORTANT: This document should be reviewed by a Georgia-licensed attorney before use. Key areas requiring review:

1. Escrow compliance — Verify 3-day auto-release escrow complies with Georgia money transmission laws and Stripe Connect requirements
2. Refund policy — Ensure refund terms comply with Georgia consumer protection requirements
3. Chargeback provisions — Verify chargeback fee recovery and account suspension language is enforceable
4. Tax collection — Confirm sales tax nexus obligations and reporting requirements
5. 1099-K threshold — Verify current IRS reporting thresholds ($600 as of 2024, subject to change)
6. Arbitration reference — Ensure consistent with separate Arbitration Agreement
7. Loyalty tier rebates — Confirm adequate disclosure of flat 15% markup and installer rebate structure

Recommended attorney budget: $200–400 for Payment Terms review