Merchants are required to indemnify Checkout.com for any losses arising from Vault Data that is stolen or misused, regardless of the source or cause of the theft or misuse.
This analysis describes what Checkout.com's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This indemnification obligation is stated without qualification as to fault or causation, meaning merchants may bear financial liability for losses arising from Vault Data incidents even in circumstances where the merchant did not cause or contribute to the event. The practical scope of this obligation may depend on jurisdiction and applicable law.
Interpretive note: The absence of a fault or causation qualifier creates interpretive uncertainty regarding whether the indemnification obligation is enforceable in its broadest reading under applicable law in all jurisdictions.
Under this clause, merchants are contractually obligated to indemnify Checkout.com for losses from stolen or misused Vault Data in any manner, which may include scenarios where the theft or misuse originates from sources outside the merchant's direct control. The agreement does not limit this obligation by reference to merchant fault or negligence.
Cross-platform context
See how other platforms handle Merchant Indemnification for Stolen or Misused Vault Data and similar clauses.
Compare across platforms →"The Company must indemnify Checkout.com for any Losses incurred if the Vault Data stored by the Company with Checkout.com is found to be stolen or misused in any manner.Excerpt from Checkout.com's Terms
REGULATORY LANDSCAPE: Broad indemnification clauses in data processor agreements may interact with GDPR Article 82, which addresses liability allocation between controllers and processors in data breach scenarios, and may be subject to challenge in jurisdictions …
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This indemnification obligation is stated without qualification as to fault or causation, meaning merchants may bear financial liability for losses arising from Vault Data incidents even in circumstances where the merchant did not cause or contribute to the event. The practical scope of this obligation may depend on jurisdiction and applicable law.
Under this clause, merchants are contractually obligated to indemnify Checkout.com for losses from stolen or misused Vault Data in any manner, which may include scenarios where the theft or misuse originates from sources outside the merchant's direct control. The agreement does not limit this obligation by reference to merchant fault or negligence.
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