Parcelify Protect Merchant TOS

Effective Date: May 28th 2025
Jurisdiction: Ontario, Canada

These Merchant Terms of Service (“Merchant Terms”) govern the relationship between Clever Few Corp., an Ontario corporation doing business as Parcelify (“Parcelify,” “we,” “us,” or “our”) and merchants who integrate and offer the Parcelify Protect service to their customers (“Merchant,” “you,” or “your”).

By enabling Parcelify Protect within your e-commerce platform, or by otherwise making Parcelify Protect available to your customers, you agree to be bound by these Merchant Terms.

1. Service Description

Parcelify Protect is a post-purchase protection service that provides your customers with:

  • Parcel Insurance against loss or damage in transit (by Shipsurance)
  • Free Returns within 30 days of delivery
  • Price Match Guarantee for 30 days after purchase

Parcelify Protect appears as an optional protected shipping rate during your customers’ checkout process.

2. Integration and Implementation

2.1 Technical Integration

You agree to implement Parcelify Protect according to our current technical specifications and integration guidelines. We will provide necessary documentation, APIs, and reasonable technical support to assist with your integration.

2.2 Presentation Requirements

You must present Parcelify Protect as an optional shipping protection service to your customers during checkout. The service must be clearly labeled and include a brief description of benefits.

2.3 Customer Terms

You acknowledge that customers who select Parcelify Protect will be subject to the Parcelify Protect Customer Terms of Service. You agree not to misrepresent these terms to your customers.

3. Pricing and Billing

3.1 Pricing Structure

Parcelify Protect is priced as follows:

  • Orders ≤ $150: max($0.99, 3% of Order Value + $0.50)
  • Orders > $150: max($5.00, 2.5% of Order Value)

This pricing will be automatically calculated and presented to your customers as part of protected shipping rate options at checkout.

3.2 Revenue Share Agreement

As part of our partnership:

  • You will receive a 5% revenue share of all Parcelify Protect fees collected from your customers
  • This revenue share represents your commission for offering Parcelify Protect
  • Your revenue share will be calculated on each invoice and credited to your account automatically, typically weekly or biweekly, depending on your billing cycle.

3.3 Billing Process

Parcelify presents the Parcelify Protect fee as part of your checkout shipping rates. You are responsible for collecting payment from the customer and remitting Parcelify Protect fees in accordance with invoicing.

3.4 Payment Schedule

Parcelify will generate invoices on a biweekly basis for all Parcelify Protect fees collected in the previous period, less your 5% revenue share and approved claim amounts. Payment terms are net 7 days from invoice date.

3.5 Taxes

All fees are exclusive of applicable taxes. Each party is responsible for its own tax obligations.

4. Claims and Reimbursements

4.1 Claims Administration

Parcelify will:

  • Process all Parcelify Protect claims
  • Determine claim eligibility based on the Customer Terms of Service
  • Communicate claim decisions to you
  • Direct you regarding appropriate resolution (return, refund or replace)

4.2 Merchant Reimbursement

For approved claims, Parcelify will reimburse you for:

  • The cost of return shipping labels issued for free returns
  • The full cost of replaced items, including shipping, when replacement is deemed appropriate for free returns
  • Any price match refunds issued under the Price Match Guarantee

Reimbursements will be processed within 15 days of claim approval and may be:

  • Credited against outstanding invoices
  • Applied to your Parcelify account for future use
  • Paid directly to you

4.3 Processing Approved Claims

For approved Parcelify Protect claims, you agree to:

  • Issue return shipping labels when required for free returns
  • Process refunds or replacements as directed by Parcelify within 5 business days
  • Maintain accurate records of all claim-related transactions

5. Merchant Obligations

5.1 Accurate Order Information

You agree to provide accurate and complete order information to Parcelify, including but not limited to:

  • Order details (items, quantities, prices)
  • Customer contact information
  • Shipping carrier and tracking information
  • Order status updates

5.2 Customer Support Coordination

You agree to coordinate with Parcelify on customer support inquiries related to Parcelify Protect claims. This includes:

  • Promptly forwarding Parcelify Protect inquiries to our support team
  • Assisting with order verification when necessary
  • Processing approved returns and refunds in a timely manner

5.3 Order Fulfillment

You remain solely responsible for the fulfillment of customer orders, including:

  • Product quality and accuracy
  • Timely shipping and handling
  • Providing valid tracking information
  • Standard customer service

6. Parcel Insurance Coverage

6.1 Insurance Provider and Coverage

Parcel insurance for orders protected by Parcelify Protect is provided by Shipsurance, an independent third-party insurance provider. By accepting these Merchant Terms and enabling Parcelify Protect, you expressly agree to be bound by Shipsurance’s terms and conditions, which can be found at www.shipsurance.com/parcelify/terms.

You acknowledge that:

  • Parcelify acts solely as a technology platform facilitating insurance claim submissions
  • All insurance coverage is subject to Shipsurance’s terms, conditions, and policy exclusions
  • Parcelify does not provide insurance coverage directly or guarantee claim approvals
  • Coverage limits and exclusions are determined by Shipsurance’s underwriting policies
  • Your acceptance of these Merchant Terms constitutes your acceptance of Shipsurance’s terms and conditions as they may be amended from time to time

6.2 Merchant Claim Submission Obligations

As the merchant, you are solely responsible for:

6.2.1 Initial Claim Assessment

  • Responding to customer reports of lost, damaged, or stolen packages within 2 business days
  • Conducting initial verification of delivery issues using tracking information
  • Determining whether the issue qualifies for insurance claim submission

6.2.2 Required Claim Submission Process

When a customer reports a delivery issue for a Parcelify Protect order, you must:

  1. Immediate Response: Acknowledge the customer’s report within 2 business days
  2. Documentation Collection: Gather all required claim documentation including:
    • Original order details and customer information
    • Shipping carrier tracking information
    • Photos of damaged goods (if applicable)
    • Customer statements or incident reports
  3. Claim Submission: Submit complete claim documentation to Shipsurance within 5 business days of customer report
  4. Customer Communication: Keep the customer informed of claim status and expected resolution timeframes

6.2.3 Claim Submission Requirements

You agree to maintain and provide accurate records including:

  • Proof of shipment and delivery attempts
  • Complete order and payment information
  • Customer contact information and incident reports
  • Any correspondence with shipping carriers
  • Photos or other evidence of package condition

6.3 Claim Processing and Resolution

6.3.1 Shipsurance Review Process

  • Shipsurance will review all claims based on their established criteria and policy terms
  • Review timeframes are determined by Shipsurance and may vary based on claim complexity
  • Additional documentation may be requested during the review process

6.3.2 Approved Claims

When Shipsurance approves a claim:

  • Reimbursement: You will receive direct reimbursement from Shipsurance for the covered loss amount
  • Customer Resolution: You must process customer refund or replacement within 5-10 business days of receiving Shipsurance payment
  • Record Keeping: You must maintain records of all claim-related transactions for audit purposes

6.3.3 Denied Claims

If Shipsurance denies a claim:

  • You will receive written notification with denial reasoning
  • You may appeal the decision directly with Shipsurance according to their appeal process
  • You remain responsible for customer service and any resolution outside of insurance coverage
  • Parcelify is not responsible for denied claims or customer satisfaction in such cases

6.4 Merchant Support and Resources

6.4.1 Parcelify Support

Parcelify will provide:

  • Technical integration support for claim submission systems
  • Training materials on proper claim documentation procedures
  • Access to claim status tracking tools
  • Escalation support for technical issues with claim submissions

6.4.2 Direct Shipsurance Relationship

You acknowledge that:

  • You will maintain a direct business relationship with Shipsurance for all claim-related matters
  • Shipsurance may require separate merchant agreements or verification processes
  • Claims processing timelines and requirements are controlled by Shipsurance
  • Any disputes regarding claim decisions must be resolved directly with Shipsurance

6.5 Performance Standards and Compliance

6.5.1 Claim Submission Performance

You agree to maintain the following performance standards:

  • Response Time: Acknowledge customer reports within 2 business days
  • Submission Time: Submit complete claims to Shipsurance within 5 business days
  • Resolution Time: Process approved refunds/replacements within 5-10 business days
  • Accuracy: Maintain claim submission accuracy rate of 95% or higher

6.5.2 Monitoring and Reporting

Parcelify reserves the right to:

  • Monitor your claim submission performance and accuracy
  • Require corrective action plans for performance below standards
  • Suspend or terminate Parcelify Protect access for consistent non-compliance
  • Audit claim handling procedures with advance notice

6.6 Limitations and Disclaimers

6.6.1 Parcelify Limitations

Parcelify expressly disclaims responsibility for:

  • Shipsurance’s claim decisions or processing timeframes
  • Merchant failure to submit claims or provide adequate documentation
  • Customer satisfaction when claims are denied or delayed
  • Any losses resulting from insurance coverage gaps or limitations

6.6.2 Merchant Acknowledgments

You acknowledge and agree that:

  • Insurance claim outcomes are beyond Parcelify’s control
  • You remain primarily responsible for customer satisfaction regardless of insurance claim status
  • Failure to properly submit claims may result in customer disputes and potential chargebacks
  • You should maintain adequate business insurance to cover gaps in Shipsurance coverage

6.7 Insurance Exclusions and Limitations

You acknowledge that Shipsurance coverage may exclude or limit:

  • High-value items above specified thresholds
  • Certain product categories (as defined in Shipsurance terms)
  • Packages without proper tracking or delivery confirmation
  • Claims submitted outside specified timeframes
  • Losses due to merchant error or negligence

Full exclusions and limitations are detailed in Shipsurance’s policy terms, which you are responsible for understanding and communicating to customers as appropriate.

7. Parcelify Obligations

7.1 Technical Support

Parcelify will provide reasonable technical support to assist with integration, troubleshooting, and ongoing maintenance of the Parcelify Protect service.

7.2 Reporting

Parcelify will provide you with regular reports detailing:

  • Revenue share calculations
  • Settlement summaries

8. Term and Termination

8.1 Term

These Merchant Terms commence on the date you enable Parcelify Protect and continue until terminated by either party.

8.2 Termination for Convenience

Either party may terminate these Merchant Terms at any time for any reason. Termination is effective immediately upon:

  • Your disabling of Parcelify Protect within your e-commerce platform; or
  • Parcelify’s electronic notification of termination and/or deactivation of your access to Parcelify Protect

No advance notice period is required by either party for termination.

8.3 Termination for Cause

Either party may terminate these Merchant Terms immediately if the other party:

  • Materially breaches these Merchant Terms
  • Becomes insolvent, files for bankruptcy, or ceases business operations
  • Engages in fraudulent, deceptive, or illegal practices

8.4 Effect of Termination

Upon termination:

  • You must immediately cease offering Parcelify Protect to your customers
  • All outstanding payments remain due and payable
  • Parcelify will continue to process and honor all valid Parcelify Protect claims for orders placed prior to termination
  • Sections 3.2-3.5, 4.2, 4.3, 8, 9, 10, 11, 12, and 13 shall survive termination

9. Representations and Warranties

9.1 Mutual Representations

Each party represents and warrants that:

  • It has the full power and authority to enter into and perform these Merchant Terms
  • Its performance will not violate any agreement or obligation between it and any third party
  • It will comply with all applicable laws, rules, and regulations

9.2 Merchant Representations

You represent and warrant that:

  • All products you sell comply with applicable laws and regulations
  • You have all necessary rights to sell the products offered in your store
  • You will maintain accurate records of all transactions involving Parcelify Protect
  • You will not misrepresent Parcelify Protect or its benefits to your customers

9.3 Parcelify Representations

Parcelify represents and warrants that:

  • It has all necessary rights and authorities to offer Parcelify Protect
  • It will process claims fairly and in accordance with the Customer Terms of Service
  • It will maintain appropriate insurance coverage to support the Parcelify Protect service

10. Limitation of Liability

10.1 Limitation of Damages

NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.2 Cap on Liability

EACH PARTY’S TOTAL CUMULATIVE LIABILITY TO THE OTHER FOR ALL CLAIMS ARISING FROM OR RELATING TO THESE MERCHANT TERMS SHALL NOT EXCEED THE AMOUNT PAID OR PAYABLE BY YOU TO PARCELIFY DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

10.3 Exceptions

The limitations in Sections 9.1 and 9.2 shall not apply to:

  • Either party’s indemnification obligations
  • Breaches of confidentiality obligations
  • Your payment obligations
  • Claims arising from either party’s gross negligence, willful misconduct, or fraud

11. Indemnification

11.1 Merchant Indemnification

You agree to indemnify, defend, and hold harmless Parcelify and its officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, costs, expenses, and fees (including reasonable attorneys’ fees) arising out of or related to:

  • Your breach of these Merchant Terms
  • Your products or services
  • Your violation of any law or the rights of a third party
  • Your failure to properly process customer orders or returns

11.2 Parcelify Indemnification

Parcelify agrees to indemnify, defend, and hold harmless you and your officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, costs, expenses, and fees (including reasonable attorneys’ fees) arising out of or related to:

  • Parcelify’s breach of these Merchant Terms
  • Claims that Parcelify Protect infringes a third party’s intellectual property rights
  • Parcelify’s violation of any law

11.3 Indemnification Procedure

The indemnified party shall: (i) promptly notify the indemnifying party of the claim; (ii) give the indemnifying party reasonable assistance in defending the claim; and (iii) give the indemnifying party sole control over the defense and settlement of the claim, provided that the indemnifying party shall not settle any claim without the indemnified party’s prior written consent if such settlement attributes liability to or requires any admission or action by the indemnified party.

12. Confidentiality

12.1 Definition

“Confidential Information” means all non-public information disclosed by one party to the other that is designated as confidential or that, given the nature of the information or circumstances surrounding its disclosure, reasonably should be considered confidential. Confidential Information includes, but is not limited to, business plans, financial information, customer data, pricing strategies, and proprietary technology.

12.2 Exclusions

Confidential Information does not include information that: (i) is or becomes publicly available through no fault of the receiving party; (ii) was known to the receiving party prior to disclosure; (iii) is rightfully received by the receiving party from a third party without confidentiality obligations; or (iv) is independently developed by the receiving party without use of the disclosing party’s Confidential Information.

12.3 Obligations

Each party agrees to: (i) use the other party’s Confidential Information solely for the purposes of fulfilling its obligations under these Merchant Terms; (ii) protect the confidentiality of the other party’s Confidential Information with the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care; and (iii) not disclose the other party’s Confidential Information to any third party without the other party’s prior written consent, except as required by law.

12.4 Required Disclosure

If either party is required by law to disclose the other party’s Confidential Information, it shall, to the extent legally permitted: (i) promptly notify the other party; (ii) cooperate with the other party’s efforts to limit or contest such disclosure; and (iii) limit the disclosure to only that information which is legally required to be disclosed.

13. Data Protection and Privacy

13.1 Data Processing

Each party agrees to comply with all applicable data protection and privacy laws. To the extent either party processes personal data on behalf of the other, the parties shall enter into a separate data processing agreement if required by applicable law.

13.2 Customer Data

You authorize Parcelify to collect, use, and process customer data solely for the purpose of providing and improving Parcelify Protect services. Parcelify shall not use customer data for any other purpose without your explicit consent.

13.3 Ownership of Data

You own all customer data collected through your e-commerce platform. Parcelify owns all data generated through the provision of Parcelify Protect services, including claims data, analytics, and aggregate statistics.

13.4 Security Measures

Both parties agree to implement and maintain appropriate technical and organizational measures to protect customer data against unauthorized or unlawful processing, accidental loss, destruction, or damage.

14. General Provisions

14.1 Relationship of Parties

The relationship between the parties is that of independent contractors. Nothing in these Merchant Terms creates any agency, partnership, joint venture, or other form of joint enterprise between the parties.

14.2 Notices

All notices must be in writing and will be deemed given when: (i) delivered personally; (ii) sent by confirmed email; (iii) sent by commercial overnight courier; or (iv) sent by registered or certified mail to the address specified during account registration or to such other address as the party may designate.

14.3 Assignment

Neither party may assign these Merchant Terms without the prior written consent of the other party, except that either party may assign these Merchant Terms without consent to a successor in interest in connection with a merger, acquisition, or sale of all or substantially all of its assets. Any assignment in violation of this section shall be void.

14.4 Force Majeure

Neither party shall be liable for any failure or delay in performance caused by circumstances beyond its reasonable control, including but not limited to acts of God, natural disasters, terrorism, riots, or war.

14.5 Entire Agreement

These Merchant Terms constitute the entire agreement between the parties regarding the subject matter hereof and supersede all prior and contemporaneous agreements, proposals, or representations, written or oral, concerning its subject matter.

14.6 Modification

Parcelify may modify these Merchant Terms by providing at least thirty (30) days’ prior notice. Your continued use of Parcelify Protect after the effective date of any modification constitutes your acceptance of the modified terms.

14.7 Waiver

No failure or delay by either party in exercising any right under these Merchant Terms shall constitute a waiver of that right.

14.8 Severability

If any provision of these Merchant Terms is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall be enforced to the fullest extent under law.

14.9 Governing Law

These Merchant Terms shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without giving effect to any principles of conflicts of law.

14.10 Dispute Resolution

Any dispute arising from or relating to these Merchant Terms shall be finally settled by binding arbitration administered by the ADR Institute of Canada (ADRIC) in accordance with its arbitration rules. The place of arbitration shall be Toronto, Ontario. The language of arbitration shall be English. Judgment on any award may be entered in any court having jurisdiction.

15. Contact Information

Clever Few Corp. – Parcelify
📧 protect@cleverfew.co
📍 Parcelify, 33 Main St W, Grimsby, ON L3M 1R3

By enabling Parcelify Protect, you acknowledge that you have read, understood, and agree to these Merchant Terms.