MONARCH TECHNOLOGIES, INC.

TERMS OF SERVICE

Effective Date: April 2026 | Version 1.9

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PLEASE READ THESE TERMS CAREFULLY BEFORE USING MONARCH’S PLATFORM OR SERVICES
By accessing or using any Monarch Technologies, Inc. product, service, API, portal, or platform (collectively, the “Services”), you agree to be bound by these Terms of Service (“Terms”). If you do not agree, you may not access or use the Services. These Terms constitute a legally binding agreement between you and Monarch Technologies, Inc.

1. DEFINITIONS

For purposes of these Terms, the following definitions apply:

“Monarch,” “we,” “us,” or “our” means Monarch Technologies, Inc., a Delaware corporation headquartered at 17595 Harvard Ave, Suite C-711, Irvine, CA 92614, and its subsidiaries, affiliates, and successors.
“User,” “you,” or “your” means any individual, business entity, government agency, financial institution, or other organization that accesses or uses the Services under an executed agreement with Monarch or pursuant to these Terms.
“Platform” means Monarch’s proprietary financial infrastructure software, APIs, portals, dashboards, and related technology made available to Users.
“ACH Services” means the automated clearing house payment initiation, origination, processing, and settlement services provided by Monarch as a certified Third-Party Sender (TPS) under the NACHA Operating Rules.
“Card Services” means the credit card and debit card payment acceptance, processing, and settlement services provided through Monarch’s payment infrastructure and card network relationships.
“Tax Remittance Services” means Monarch’s TRAC platform and related services that facilitate the automated collection and remittance of municipal taxes, utility user taxes (UUT), business license fees, short-term rental (STR) taxes, and other government-mandated collect-and-remit obligations on behalf of businesses and municipalities.
“Monarch Send / P2P Services” means the peer-to-peer and business-to-business money movement services enabling the electronic transfer of funds between verified Users and accounts through Monarch’s licensed money transmission infrastructure.
“Merchant Payout Services” means Monarch’s CAPIS commission disbursement, settlement, and payout infrastructure enabling the payment of commissions, residuals, and earned compensation to merchants, agents, and resellers via ACH or other supported methods.
“Settlement Funds” means money held by Monarch in trust in one or more pooled custodial accounts pending disbursement or remittance to the designated recipient.
“NACHA Operating Rules” means the rules and standards governing ACH transactions published by Nacha (formerly NACHA – The Electronic Payments Association), as amended from time to time, which constitute contractual obligations between financial institutions and third-party senders and are not federal or state statutes.
“Applicable Law” means all federal, state, and local laws, regulations, rules, orders, and guidance applicable to the Services, including but not limited to the Bank Secrecy Act (BSA), the USA PATRIOT Act, FinCEN regulations, state money transmitter statutes, the Electronic Fund Transfer Act (EFTA), Regulation E, the Gramm-Leach-Bliley Act (GLBA), PCI DSS standards, and any applicable tax collection ordinances.
“Authorized User” means an individual granted access to the Platform by a business User on whose behalf such individual acts.

2. SERVICES OVERVIEW

Monarch is a licensed financial technology company providing fintech infrastructure to businesses, financial institutions, and government entities. Monarch holds a Money Transmitter License (MTL) and operates as a certified Third-Party Sender (TPS) under NACHA. The following service categories are governed by these Terms:

2.1 ACH Payment Services

Monarch provides ACH debit and credit origination, processing, file submission, and settlement services to businesses. As a TPS, Monarch is responsible for compliance with the NACHA Operating Rules with respect to transactions it originates on behalf of its clients. ACH Services include, but are not limited to:

Business-to-business (B2B) and business-to-consumer (B2C) ACH debits and credits;
Same-day ACH and standard ACH processing windows;
Transaction monitoring, return handling, and reversal processing;
Account verification, micro-deposit verification, and pre-note validation;
ACH file origination and submission to the Originating Depository Financial Institution (ODFI);
Reporting, reconciliation, and audit trail documentation.

ACH transactions are processed in asynchronous batch cycles, not in real time. Settlement timing is subject to Federal Reserve processing windows and ODFI availability. Monarch does not guarantee specific settlement times, though it will use commercially reasonable efforts to submit files within agreed processing windows.

2.2 Credit Card and Debit Card Payment Services

Monarch provides card payment acceptance and processing infrastructure to merchant clients, including:

Credit card and debit card transaction authorization, capture, and settlement;
Chargeback management, dispute handling, and representment support;
Card data tokenization and PCI DSS-compliant data handling;
Recurring billing and subscription payment management;
Merchant onboarding, underwriting, and account management;
Integration with WooCommerce and other e-commerce platforms via Monarch’s ACH and card plugins.

Card Services are subject to applicable card network rules (Visa, Mastercard, and others) in addition to these Terms. Merchant accounts are subject to individual Merchant Processing Agreements (MPAs) which govern transaction limits, reserve requirements, prohibited product categories, and settlement terms. In the event of conflict between an MPA and these Terms, the MPA controls with respect to card processing.

2.3 Automated Tax Collection and Remittance Services

Through its TRAC (Tax Remittance and Clearinghouse) platform, Monarch provides automated tax collection and remittance services on behalf of businesses and directly to city and county governments, including:

Automated calculation of applicable municipal tax obligations (UUT, business license fees, STR taxes, and other collect-and-remit tax types);
Collection of tax funds from businesses at point of transaction or on a periodic basis via ACH;
Remittance of collected tax funds to the appropriate government taxing authority in accordance with applicable ordinances and remittance schedules;
Reporting, reconciliation, and audit-ready documentation for both business clients and government partners;
Integration with municipal billing and ERP systems;
White-label tax compliance portals for city and county partners.

Monarch acts as a technology-enabled payment intermediary and tax remittance agent. Monarch does not provide tax advice, legal opinions, or determinations of tax liability. Businesses using Tax Remittance Services are solely responsible for the accuracy of the underlying tax data submitted to Monarch and for ensuring that their tax obligations are correctly reflected in the amounts remitted. Government partners accessing TRAC pursuant to a separate municipal services agreement are subject to the terms of that agreement, which supplements these Terms.

2.4 P2P and Business Money Movement Services (Monarch Send)

Monarch Send provides peer-to-peer and business-to-business money movement services through Monarch’s licensed money transmission infrastructure, including:

Electronic fund transfers between verified Monarch account holders;
Mobile-initiated transfers and wallet-based disbursements;
Cash pickup and disbursement services in conjunction with authorized cash logistics partners;
Cross-border transfer services to supported jurisdictions, subject to applicable licensing and compliance requirements;
Real-time payment status notifications and transfer history.

Monarch Send is available only to Users who have completed Monarch’s identity verification and KYC/AML onboarding process. Transfer limits, geographic availability, and supported currencies are subject to Monarch’s then-current operational parameters, which may be updated from time to time with notice to Users. Monarch is not a bank and does not offer deposit accounts or FDIC-insured products through Monarch Send.

2.5 Merchant Payout Services (CAPIS)

Monarch’s CAPIS (Commission APIs) platform provides commission management, calculation, and payout disbursement infrastructure for merchants, agents, and sales networks, including:

Automated monthly commission calculation based on configurable compensation plans;
Multi-tier hierarchy management for ISO, agent, and sub-agent payout structures;
ACH disbursement of earned commissions and residuals;
Payout method management with five-business-day hold control on newly registered bank accounts;
ISO single-mode and split-mode disbursement options;
Detailed commission ledger, audit trail, and producer self-service portal;
1099 preparation support and year-end compensation reporting.

Merchant Payout Services are provided under a collect-then-disburse settlement model. Monarch will only disburse commission credits after corresponding contra debit entries have settled. Disbursement timing is subject to ACH processing windows and applicable hold periods. Monarch is not responsible for delays caused by incorrect banking information provided by the recipient or by the recipient’s financial institution.

3. ELIGIBILITY AND ACCOUNT REGISTRATION

To access and use the Services, you must:

Be a legally formed and validly existing business entity, government agency, or individual of legal age (18 or older) in your jurisdiction;
Provide accurate, complete, and current information during registration and maintain the accuracy of such information throughout the Term;
Complete Monarch’s know-your-customer (KYC) and anti-money laundering (AML) onboarding process, including submission of all required identification, business documentation, beneficial ownership information, and any additional due diligence materials Monarch reasonably requests;
Execute any additional service-specific agreements required by Monarch, including MPAs, municipal services agreements, or API licensing agreements;
Not be subject to any sanctions administered by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), the U.S. Department of State, or any other applicable sanctions authority.

Monarch reserves the right to decline, suspend, or terminate any account or application at its sole discretion, including for failure to satisfy onboarding requirements, violation of these Terms, Applicable Law, or NACHA Operating Rules, or for risk management reasons Monarch is not obligated to disclose.

4. AUTHORIZED USE AND PROHIBITED ACTIVITIES

4.1 Authorized Use

You may use the Services solely for lawful business purposes in accordance with these Terms, your service agreement with Monarch, and all Applicable Law. You agree to use the Services only to conduct transactions that are legally permissible, properly authorized by the relevant account holders, and consistent with Monarch’s then-current acceptable use policies.

4.2 Prohibited Activities

You may not use the Services to:

Initiate or facilitate unauthorized transactions, including transactions lacking proper written authorization from the account owner as required under the NACHA Operating Rules and Regulation E;
Process transactions related to illegal goods or services, including controlled substances without appropriate licensing, human trafficking, or unlawful gambling;
Engage in money laundering, structuring, fraud, identity theft, or any activity that violates the Bank Secrecy Act or related AML statutes;
Circumvent or attempt to circumvent Monarch’s transaction monitoring, velocity controls, or fraud detection systems;
Submit inaccurate, false, or misleading transaction data, tax remittance data, or account information to Monarch;
Use the Services to facilitate transactions for persons or entities on any OFAC, FinCEN, or applicable sanctions list;
Reverse-engineer, decompile, scrape, or otherwise attempt to extract the source code or proprietary logic of Monarch’s Platform;
Transmit malicious code, conduct denial-of-service attacks, or otherwise attempt to compromise the security or integrity of Monarch’s systems;
Exceed applicable transaction limits, velocity thresholds, or daily processing caps established by Monarch or its banking partners without prior written authorization.

Violations of this Section 4.2 may result in immediate suspension or termination of access, withholding of Settlement Funds pending investigation, notification to relevant law enforcement or regulatory authorities, and civil or criminal liability.

5. FEES, SETTLEMENT, AND FINANCIAL TERMS

5.1 Fees

Fees for the Services are set forth in your applicable service agreement, merchant processing agreement, or order form. Unless otherwise stated in a separate agreement, fees may include transaction processing fees, platform access fees, monthly service fees, chargeback fees, and tax remittance service fees. Monarch reserves the right to modify its fee schedule upon thirty (30) days prior written notice. Continued use of the Services after the effective date of a fee change constitutes acceptance of the new fees.

5.2 Settlement

Settlement of funds processed through the Platform will occur in accordance with the settlement schedule specified in your service agreement. For ACH transactions, Monarch operates on a collect-then-disburse model: credits will only be made available for disbursement after corresponding debit entries have cleared and settled through the ACH network. Monarch may withhold settlement or impose a reserve in the following circumstances:

Elevated chargeback or return rates exceeding network or Monarch-established thresholds;
Pending fraud investigations, compliance reviews, or legal holds;
Unresolved disputes, chargebacks, or reversals;
Breach of these Terms or your service agreement;
Direction from Monarch’s ODFI, card networks, or regulatory authorities.

5.3 Taxes

You are solely responsible for determining and paying all taxes, levies, and assessments imposed on your business activities, except to the extent that Monarch’s Tax Remittance Services have been expressly engaged and configured to collect and remit specific taxes on your behalf. Monarch’s collection and remittance of taxes under the TRAC platform does not constitute tax advice and does not relieve you of ultimate responsibility for the accuracy of amounts remitted.

5.4 Reversals and Returns

ACH returns are processed in accordance with the NACHA Operating Rules. Monarch will debit your settlement account for the amount of any returned item plus applicable return fees. You acknowledge that Monarch may be liable to its ODFI for return rates that exceed acceptable thresholds and that you may be required to fund a reserve or accept processing restrictions if your return rate is excessive. For tax remittance transactions, Monarch will process reversals in accordance with applicable municipal ordinances and the terms of the relevant government services agreement.

6. ACH AUTHORIZATION AND COMPLIANCE REQUIREMENTS

6.1 Authorization Requirements

You agree that each ACH debit entry you initiate through Monarch’s platform is properly authorized in writing (or oral authorization documented as required) in accordance with the NACHA Operating Rules. For consumer transactions, written authorization must be obtained prior to the first debit and must meet the content requirements specified in the NACHA Operating Rules, including a clear statement of the debit amount, frequency, account information, and right to revoke. For business-to-business (CCD) transactions, authorization must be in the form of a trading partner agreement or other written instrument.

6.2 Originator Obligations

As an Originator using Monarch’s TPS services, you represent and warrant that:

All ACH entries submitted are authorized, legitimate, and comply with Applicable Law and the NACHA Operating Rules;
You will maintain authorization records for a minimum of two (2) years from the date the authorization is revoked or expires;
You will promptly notify Monarch of any disputes, revocations, or known authorization deficiencies;
You will not initiate debit entries against accounts where you have received notice that the account holder disputes the authorization or has revoked it;
Your return rate for unauthorized entries (NACHA Return Codes R05, R07, R10, R29, R51) will not exceed one-half percent (0.5%) of originated debit entries in any rolling sixty (60) day period.

6.3 Audit Rights

Monarch reserves the right to audit your ACH origination practices, authorization records, and compliance procedures upon reasonable notice. You agree to cooperate fully with any audit and to provide documentation within the timeframes Monarch specifies. Monarch may share audit findings with its ODFI as required under the NACHA Operating Rules. Audit rights survive termination of these Terms for a period of three (3) years.

7. COMPLIANCE, KYC/AML, AND REGULATORY OBLIGATIONS

Monarch operates as a Money Services Business (MSB) registered with FinCEN and a licensed money transmitter in applicable jurisdictions. You acknowledge and agree that:

Monarch is required by law to collect, verify, and retain customer identification information and to file Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) as required under the Bank Secrecy Act and FinCEN regulations;
You will promptly provide any additional information or documentation Monarch requests to satisfy its KYC, AML, OFAC screening, or enhanced due diligence obligations;
Monarch may, without prior notice, suspend or restrict your account or transactions if Monarch determines, in good faith, that continued processing may violate Applicable Law or expose Monarch to regulatory, legal, or reputational risk;
Monarch will not be liable for any damages, losses, or business interruption arising from account suspension or transaction holds initiated in good faith compliance with Applicable Law or regulatory direction;
You will maintain your own BSA/AML compliance program if required by Applicable Law for your business activities, and Monarch’s compliance program does not substitute for your independent compliance obligations.

8. DATA SECURITY AND PRIVACY

8.1 Security Standards

Monarch maintains a security program designed to comply with PCI DSS requirements and applicable data protection laws, including the Gramm-Leach-Bliley Act (GLBA). Monarch employs industry-standard controls including AES-256 encryption for data at rest, TLS 1.2+ for data in transit, tokenization of sensitive payment data, multi-factor authentication for administrative access, and continuous transaction monitoring. Monarch is pursuing PCI DSS certification and SOC 2 Type II attestation as part of its ongoing compliance roadmap.

8.2 Your Security Obligations

You are responsible for:

Maintaining the confidentiality of your API credentials, access tokens, and login credentials;
Implementing appropriate access controls to limit the Services to Authorized Users;
Promptly notifying Monarch of any known or suspected unauthorized access to your account or credentials;
Not transmitting cardholder data, full account numbers, CVV/CVC codes, or PIN data to Monarch except through Monarch’s approved, tokenized payment channels;
Complying with PCI DSS requirements applicable to your role as a merchant, sub-merchant, or payment facilitator.

8.3 Privacy

Monarch’s collection, use, and disclosure of personal information is governed by its Privacy Policy, available at monarch.is/privacy-policy, which is incorporated into these Terms by reference. By using the Services, you consent to Monarch’s data practices as described in the Privacy Policy. Monarch does not sell personal information to third parties for their own marketing purposes.

9. INTELLECTUAL PROPERTY

All right, title, and interest in and to the Platform, APIs, documentation, algorithms, trade secrets, trademarks, and other intellectual property developed or owned by Monarch are and remain the sole and exclusive property of Monarch Technologies, Inc. These Terms do not convey any license or ownership interest except the limited right to access and use the Services as expressly provided herein. You may not use Monarch’s trademarks, logos, or brand assets without prior written consent. All feedback, suggestions, or enhancement requests you provide to Monarch regarding the Platform may be used by Monarch without restriction or compensation to you.

10. REPRESENTATIONS AND WARRANTIES

10.1 Your Representations

By using the Services, you represent and warrant that:

You have full legal authority to enter into and perform these Terms and any applicable service agreement;
Your use of the Services does not violate Applicable Law, third-party rights, or any agreement to which you are a party;
All information provided to Monarch is accurate, complete, and not misleading;
You are not aware of any pending or threatened investigation, regulatory action, or litigation that would materially affect your ability to perform your obligations under these Terms;
If you are a business entity, you are validly formed, in good standing in your state of organization, and have all licenses, permits, and approvals required to conduct your business activities.

10.2 Disclaimer of Warranties

THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. MONARCH DISCLAIMS ALL WARRANTIES, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. MONARCH DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED, ERROR-FREE, OR FREE FROM SECURITY VULNERABILITIES. NO ADVICE OR INFORMATION OBTAINED FROM MONARCH SHALL CREATE ANY WARRANTY NOT EXPRESSLY STATED IN THESE TERMS.

11. LIMITATION OF LIABILITY AND INDEMNIFICATION

11.1 Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MONARCH AND ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, AND SERVICE PROVIDERS SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOST PROFITS, LOST REVENUE, LOSS OF DATA, OR BUSINESS INTERRUPTION, ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICES, EVEN IF MONARCH HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. MONARCH’S TOTAL CUMULATIVE LIABILITY ARISING OUT OF OR RELATED TO THESE TERMS SHALL NOT EXCEED THE TOTAL FEES PAID BY YOU TO MONARCH IN THE THREE (3) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM. NOTHING IN THESE TERMS SHALL LIMIT LIABILITY FOR FRAUD, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT.

11.2 Indemnification

You agree to indemnify, defend, and hold harmless Monarch, its affiliates, and their respective officers, directors, employees, agents, and successors from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to: (a) your use of the Services; (b) your breach of these Terms or any applicable service agreement; (c) your violation of Applicable Law, the NACHA Operating Rules, card network rules, or any regulatory requirement; (d) any unauthorized ACH transactions, chargebacks, or fraudulent activity originating from your account; (e) your negligence or willful misconduct; or (f) any third-party claims arising from your business operations.

12. TERM AND TERMINATION

These Terms are effective as of the date you first access or use the Services and continue until terminated. Either party may terminate these Terms upon thirty (30) days written notice. Monarch may terminate or suspend access immediately upon written notice in the event of: (a) material breach of these Terms not cured within five (5) business days after notice; (b) violation of Applicable Law, the NACHA Operating Rules, or card network rules; (c) direction from Monarch’s ODFI, a banking partner, or a regulatory authority; (d) insolvency, bankruptcy, or assignment for the benefit of creditors; or (e) evidence of fraud, money laundering, or conduct that poses material risk to Monarch or its financial institution partners.

Upon termination: (i) all licenses granted hereunder cease; (ii) any outstanding Settlement Funds will be held by Monarch for a period sufficient to resolve pending transactions, returns, chargebacks, and disputes before release, subject to applicable offsets; (iii) you will promptly cease all use of the Platform and return or destroy any confidential information of Monarch in your possession; and (iv) all provisions of these Terms that by their nature should survive termination shall survive, including Sections 5, 6, 7, 8, 9, 10, 11, 12, and 13.

13. DISPUTE RESOLUTION AND GOVERNING LAW

13.1 Governing Law

These Terms are governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law principles, except to the extent superseded by applicable federal law, including the Electronic Fund Transfer Act, the Bank Secrecy Act, and other federal financial regulatory statutes.

13.2 Arbitration

Except for claims seeking injunctive or equitable relief, any dispute arising out of or relating to these Terms or the Services shall be resolved by binding arbitration administered by the American Arbitration Association (AAA) under its Commercial Arbitration Rules. Arbitration shall be conducted in Orange County, California. The arbitrator’s decision shall be final and binding and may be entered as a judgment in any court of competent jurisdiction. YOU WAIVE YOUR RIGHT TO A JURY TRIAL AND TO PARTICIPATE IN A CLASS ACTION.

13.3 Informal Resolution

Before initiating arbitration, the parties agree to attempt to resolve any dispute informally by providing written notice to the other party specifying the nature of the dispute and the relief sought. The parties shall attempt to resolve the dispute in good faith for a period of thirty (30) days after notice is received before either party may initiate arbitration proceedings.

14. GENERAL PROVISIONS

14.1 Entire Agreement

These Terms, together with any applicable service agreements, MPAs, municipal agreements, and Monarch’s Privacy Policy, constitute the entire agreement between you and Monarch with respect to the Services and supersede all prior or contemporaneous representations, understandings, or agreements. In the event of conflict between these Terms and a separately executed service agreement, the service agreement controls.

14.2 Amendments

Monarch may amend these Terms at any time by posting revised Terms at monarch.is or by providing direct written notice. Continued use of the Services following the effective date of any amendment constitutes acceptance. If you do not agree to an amendment, you must discontinue use of the Services and notify Monarch in writing.

14.3 Assignment

You may not assign or transfer your rights or obligations under these Terms without Monarch’s prior written consent. Monarch may assign these Terms or any of its rights hereunder in connection with a merger, acquisition, change of control, or sale of all or substantially all of its assets, with notice to you.

14.4 Force Majeure

Monarch shall not be liable for any failure or delay in performance due to causes beyond its reasonable control, including acts of God, natural disasters, government actions, sanctions, Federal Reserve or banking system outages, cybersecurity incidents attributable to third parties, or public health emergencies.

14.5 Severability

If any provision of these Terms is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The invalid provision shall be modified to the minimum extent necessary to make it enforceable.

14.6 Waiver

No failure or delay by Monarch in exercising any right under these Terms shall constitute a waiver of that right. Any waiver must be in writing and signed by an authorized representative of Monarch to be effective.

14.7 Notices

Notices to Monarch must be sent in writing to: Monarch Technologies, Inc., Attn: Legal, 17595 Harvard Ave, Suite C-711, Irvine, CA 92614, with a copy to service@monarchsupportservices.com. Notices to you will be sent to the email address or address on file in your account.

14.8 Regulatory Disclosures

Monarch is registered as a Money Services Business with the Financial Crimes Enforcement Network (FinCEN) and holds Money Transmitter Licenses in applicable U.S. states. A current list of licensed states is available upon request. Monarch is a certified Third-Party Sender (TPS) under the NACHA Operating Rules. Monarch is not a bank, and funds held in connection with the Services are not insured by the Federal Deposit Insurance Corporation (FDIC) unless otherwise specified in a separate banking services agreement.

Questions? Contact us at service@monarchsupportservices.com | 805-316-7078 | monarch.is