1. Introduction

This document explains Kustom’s Merchant Protection Program (MPP) in cases where a Shopper disputes a payment with their card issuer by claiming they did not authorize the Purchase. Such disputes are referred to in this document as “Unauthorized Transactions.”

The program helps protect you, the Merchant, by providing clear rules and requirements for coverage. If a dispute is lost, Merchants shall follow the chargeback rules outlined in this document.

Kustom reserves the right to modify this Merchant Protection Program at any time. All terms used herein are defined in the agreement between you and Kustom.

IMPORTANT: This program applies only to card transactions that are not processed through Klarna. If the payment was made via Klarna, the Merchant must contact Klarna directly and follow Klarna’s Merchant Protection Program for dispute resolution.

Clarification on Currency and Conversion 

Unless otherwise specified, all monetary amounts, thresholds, and limits referenced in this document are expressed in euro (EUR).

For interpretation purposes, the following reference currencies correspond to the equivalent of one (1) EUR, rounded to standard commercial exchange levels:

• 1 EUR ≈ 11 SEK (Swedish Krona)
  
  
• 1 EUR ≈ 11 NOK (Norwegian Krone)
  
  
• 1 EUR ≈ 7.5 DKK (Danish Krone)
  
  
• 1 EUR ≈ 1.10 USD (United States Dollar)
  
  
• 1 EUR ≈ 0.85 GBP (British Pound Sterling)
  
  

Where a Purchase is made in a currency other than euro, the transaction amount shall be converted into euro using the official exchange rate published by the European Central Bank (ECB) on the relevant transaction date. The above rates are provided solely for interpretative reference and do not replace the ECB rate applicable at the time of transaction.

2. General Requirements

For a claim relating to an Unauthorized Transaction to qualify for protection under this Program, all of the following conditions must be satisfied:

1. The Proof of Delivery (POD) must meet the requirements set out in Section 5.
   
   
2. The goods must have been shipped to the Shopper’s shipping address as approved at the time of purchase (or picked up in-store under Section 4.2 requirements).
   
   
3. Orders redirected to other addresses are not eligible, except for:
   
   
   1. Carrier redirection to a local pickup point (within 10 km of the original shipping address).
      
      
   2. Shopper-initiated redirection to a pickup location (within 10 km of the original shipping address).
      
      
4. The Merchant must respond to Kustom’s requests for documentation and order details by the deadline set in Kustom’s correspondence. If nothing else is communicated the deadline shall be five business days.
   
   
5. The order must have been approved at the time of purchase.

3. Handling Unauthorized Transactions

Merchants must follow these rules when dealing with Unauthorized Transaction claims:

• Respond promptly: Provide Kustom with all requested evidence within the set deadline.
  
  
• Provide compelling evidence:
  
  • Merchants must, to the extent reasonable, try to win the initial dispute. Only lost disputes are eligible for reimbursement by Kustom’s MPP.
    
    
  • Tracking ID and carrier details showing delivery to the approved shipping address.
    
    
  • Delivery confirmation (signature for orders > €700, or BankID/ID verification where applicable). Where the Purchase amount is in a currency other than euro, the amount shall be converted into euro using the official exchange rate published by the European Central Bank (ECB) on the relevant transaction date.
    
    
  • Recommended: IP logs, device fingerprinting, and checkout session information.
    
    
• Maintain documentation: Keep all relevant proof for at least 270 days from the order date.

4. Additional Requirements

4.1 Intangible Goods

For digital or intangible goods (e.g., digital licenses, online courses, subscriptions, tickets):

• The Merchant must provide proof of delivery (e.g., email confirmation, login data, usage/consumption record).
  
  
• Both delivery and consumption must be demonstrated for unauthorized claims.
  
  
• If consumption cannot be proven (e.g., before an event date), the Merchant must cancel the Purchase and issue a refund.
  
  
• Consumption records must be retained for 270 days.

4.2 Buy Online, Pick Up In-store

• Goods may only be handed out to the Shopper or an authorized representative.
  
  
• ID verification is required.
  
  
• Proof of pickup must include name, date/time, and items collected.
  
  
• For company purchases, a power of attorney is required from the recipient.
  
  
• Documentation must be entered in real time into the merchant system.
  
  
• For orders > €700, a copy of photo ID must be stored digitally.  Please see Section 3 for conversion of other currencies.
  
  
• Power of attorney for company purchases must be signed with eID.

5. Establishing Valid Proof of Delivery

The Merchants must provide the following details as POD for unauthorized transaction disputes:

• Date of delivery (YYYY-MM-DD).
  
  
• Recipient address (matching checkout address).
  
  
• Shopper’s full name and recipient’s full name (except in contactless delivery).
  
  
• Tracking ID and carrier information.
  
  
• For high-value orders (> €700): signature, BankID, or ID verification is mandatory.   Please see Section 3 for conversion of other currencies.
  
  
• For contactless deliveries: delivery photo or geolocation stamp must be included.

6. When a Card Dispute is Lost – Chargeback Rules

If the card issuer rules in favor of the Shopper:

• The transaction amount will be refunded to the Shopper via chargeback.
  
  
• Merchants must not attempt to recharge or re-bill the Shopper for the disputed order.
  
  
• Merchants may request reconsideration if new compelling evidence is obtained within 20 days of the chargeback.
  
  
• Merchants who fail to meet requirements three times within 12 months will be suspended from the program for six months.

7. How to Win an Unauthorized Transaction Case

In Favor of Merchant:

• The Merchant provided a valid POD within the required timeframe.
  
  
• Delivery confirmed to the correct, issuer-approved address.
  
  
• Strong supporting evidence (e.g., ID verification, IP/device match, signed receipt).
  
  

In Favor of Shopper:

• The Merchant did not respond on time.
  
  
• Invalid or missing POD.
  
  
• Delivery requirements not fulfilled.
  
  
• The Merchant failed to provide compelling evidence to the card network.

8. Exceptions

Unauthorized Transaction claims will not be eligible for protection if they involve:

• Items equivalent to cash (e.g., gift cards, currency).
  
  
• Services or private tuition.
  
  
• Donations (unless to a registered organization with official receipt).
  
  
• Financial products or investments.
  
  
• In-store card-present purchases.
  
  
• Goods shipped without tracking.
  
  
• Self-pickup without verification.
  
  
• Recurring/Card on file transactions or merchant initiated transaction