Last updated: February 25, 2026
The Koopfy Payments LLC (“Koopfy”) Penalties Policy outlines the measures applicable in the event of violations of our Terms of Service, Product Policies, compliance guidelines, and regulatory requirements. By using the platform, the User acknowledges that they may be subject to fund holds, operational limitations, suspension, or permanent account termination depending on the severity of the violation.
1. Prohibited Products (Zero Tolerance)
The sale of illegal, counterfeit, cloned, fraudulent, or expressly prohibited products will result in immediate and permanent account termination. Available funds may be held for up to 210 days or longer if required to cover disputes, chargebacks, fines, or legal obligations. Koopfy may report the case to financial partners and regulatory authorities.
2. Restricted or High-Risk Products
Restricted or high-risk categories are subject to prior review. Penalties may include reserve increases, payout holds, withdrawal limitations, manual settlement, or account termination.
3. Fraud, Scams & Social Engineering
Includes phishing, store cloning, brand impersonation, fake government or banking pages, and deceptive schemes. Penalty: permanent termination, full fund retention, and reporting to authorities.
4. Excessive Chargeback Ratios
Chargeback levels above acceptable thresholds may result in reserve increases, fund holds, processing suspension, or termination.
5. KYC/KYB Irregularities
False or outdated information may lead to account suspension. Users have up to 15 days to remediate. Failure to comply may result in permanent closure.
6. Intellectual Property Violations
Counterfeit sales or unauthorized trademark usage may result in suspension, financial penalties, and termination.
7. Misrepresentation & Deceptive Practices
Unsubstantiated claims, misleading advertising, or unauthorized medical/financial promises may lead to product removal and account suspension.
8. Anti-Money Laundering (AML)
Suspicious transactions may result in immediate account restriction and reporting to regulatory authorities.
9. Risky Operations
Operations deemed high risk may be subject to rolling reserves, operational audits, and payout limitations.
10. Audit Rights
Koopfy may request documentation regarding product sourcing, suppliers, inventory, and brand authorization.
11. Inactivity
Accounts inactive for more than 30 days may have withdrawals suspended pending review.
12. Invalid or Irregular Business Entity
Accounts linked to invalid or deregistered entities may be suspended until compliance is restored.
These documents apply to merchants using the platform and, where relevant, to customers buying through checkouts powered by Koopfy.
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