What is Merchant Liability Exclusion | Insurance glossary by upcover

This exclusion applies to financial losses caused by credit card chargebacks, merchant-processing errors, or interchange-fee disputes. For example, if a client reverses a card payment after a job, the insurer will not reimburse the business. These are commercial payment risks rather than insurable events. Why it matters: It clarifies that insurance protects against loss or damage—not non-payment or transaction disputes.

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Related Term

Cybercrime & Fraud Cover (Business Pack)

Electronic Data Recovery (Business Pack)

Data Breach Cover (Business Pack)

All Category

Financial

Legal

Insurance Documents

Fundraising

Employment

Policy

Risk Management

E&O

D&O

Commercial Insurance

Cyber

Compliance

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