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Terms of Service

Effective Date: May 19, 2026

ShotPay is preparing for public launch. These Terms of Service are published in advance of that launch and may be updated prior to launch as final regulatory review concludes. Questions about ShotPay’s Terms of Service may be directed to [email protected].

Please read these Terms of Service carefully. By accessing the ShotPay website, embeddable widget, or services, you agree to be bound by these Terms of Service, the ShotPay E-SIGN Consent Agreement, the ShotPay Privacy Policy, and any additional agreements you enter into through ShotPay (including any Customer Loan Agreement, Layaway Agreement, or applicable bank-partner notices). If you do not agree with these Terms, please do not access the ShotPay website or use ShotPay services. The headings in this Agreement are for reference purposes only. We recommend you print a copy of this Agreement for your records.

0. Header Notice

This Agreement is effective as of the Effective Date stated above. ShotPay Inc. (“ShotPay,” “we,” “us,” or “our”) provides a buy-now-pay-later (“BNPL”) and Layaway financial service for purchases at firearm-vertical retailers and other authorized merchants. These Terms govern the relationship between you and ShotPay.

1. What You’re Agreeing To

1.1 The Parties

These Terms create a binding agreement between you and ShotPay Inc., together with its subsidiaries and affiliates. “ShotPay,” “we,” “us,” or “our” refers to ShotPay Inc. “You” or “your” refers to the individual accessing or using our services.

1.2 Services

ShotPay provides: our website, embeddable merchant widget, mobile-responsive web application, customer dashboard, and our BNPL and Layaway financial products. We do not currently offer a native mobile application.

1.3 Eligibility

To use ShotPay services, you must be at least 18 years old (or 19 years old if you are a ward of the state in Nebraska) and a legal resident of the United States or its territories. You must have a valid U.S. mailing address, a valid U.S. bank account, and a verifiable identity.

1.4 Firearms-Specific Provision

21+ for firearm purchases. For any transaction involving the purchase of a firearm, you must be at least 21 years old. This floor applies to all firearm types, regardless of state minimum, in compliance with the federal Gun Control Act (18 U.S.C. §922(b)(1)) for handgun BNPL through FFL transfer. ShotPay enforces this floor at signup through our identity verification pipeline (Persona).

1.5 Changes to This Agreement

ShotPay may unilaterally change this Agreement from time to time. Any such changes will not impose additional obligations on you with respect to actions you took before the change became effective unless you specifically agree to such changes (for example, by confirming a new loan). You agree to accept any changes to this Agreement by using ShotPay services after changes have been posted. If we make any changes to this Agreement that we deem material, we will make a reasonable effort to inform you of such changes by email, in-product notification, or both. It is your responsibility to review the Agreement posted on our website from time to time.

2. How ShotPay Works

2.1 The Customer Journey

The typical ShotPay transaction proceeds as follows:

  1. You browse a participating merchant’s website and select items for purchase.
  2. At checkout, you select “Pay with ShotPay.”
  3. You provide identity and financial information, which we use to verify your identity (Customer Identification Program / Know Your Customer requirements) and assess your eligibility for our financial products.
  4. If approved, you pay 25% down at checkout (for BNPL) or your first installment (for Layaway). Subsequent installments are debited from your bank account on a biweekly schedule.
  5. You receive your merchandise from the merchant per their fulfillment schedule. For firearms, transfer occurs through a Federal Firearms Licensee (FFL), subject to applicable background check and waiting-period requirements.
  6. You pay your remaining installments according to your Payment Schedule. Upon completion, you are eligible to apply for additional transactions.

2.2 Promise to Pay

Before completing any transaction through ShotPay, we will secure your promise to pay by disclosing the terms and conditions applicable to that transaction (the “Loan Agreement” or “Layaway Agreement”) and obtaining your affirmative consent. By confirming your purchase, you promise to pay the Total Payments amount to ShotPay according to the Payment Schedule disclosed to you.

2.3 Interest Rate and Finance Charge

ShotPay’s Pay-in-4 and Layaway products both carry a 0% Annual Percentage Rate (APR). ShotPay does not charge interest to consumers. A platform fee may apply per transaction and will be disclosed to you in the applicable Loan Agreement or Layaway Agreement before you complete your purchase.

2.4 Late Payment Fee

ShotPay may charge a flat $8 late payment fee if a scheduled installment is not paid within the grace period stated in your Loan Agreement. State-specific caps may further limit or eliminate this fee. In five fee-restricted states (Alabama, Arizona, Mississippi, Vermont, Washington), no customer-facing fee is charged.

3. Credit Report Authorization and Reporting

3.1 Credit Report Authorization

You expressly authorize ShotPay to obtain consumer reports from consumer reporting agencies about you (1) when you request offers or apply for a loan, (2) periodically throughout the term of your loan, (3) to determine eligibility for and establish your prequalification amount while you are logged into your ShotPay account, and (4) from time to time in connection with our marketing efforts or with any other services that we may offer or that you may obtain from us.

3.2 Credit Reporting

At launch, ShotPay does not report Pay-in-4 or Layaway payment activity (positive or negative) to consumer reporting agencies. We may furnish information to consumer reporting agencies for accounts placed into collections or in default. If we change this policy in the future, we will notify you in advance.

4. Servicing, Collection, and Communications

You agree to allow ShotPay to send you payment reminders from time to time. You agree that payment reminders may take the form of email, SMS, in-app notification, or any other available communication method, subject to applicable law and your communication preferences. If you fail to pay an amount you owe to ShotPay under this Agreement or any other agreement, ShotPay may engage in collection efforts to recover such amounts, including contacting you directly, submitting your information to a collections agency, or taking legal action. Specific consent rules for SMS and other electronic communications are detailed in our TCPA Consent.

You may opt out of text messages at any time by replying STOP to any ShotPay text message or by disabling SMS notifications in your account settings. Reply HELP for assistance. Message frequency varies based on account activity. Message and data rates may apply. Consent to receive text messages is not a condition of any purchase or use of ShotPay services. For questions, contact [email protected] or (844) SHOTPAY.

5. Acceptable Use Policy

In connection with your use of ShotPay services, you will not:

  1. Breach this Agreement, any other agreement or terms you have agreed to with ShotPay, or engage in any activities that violate applicable law, statute, regulation, or ordinance;
  2. Infringe ShotPay’s or any third party’s intellectual property rights, or rights of publicity or privacy;
  3. Act in a manner that is defamatory, libelous, threatening, or harassing to ShotPay or its personnel;
  4. Provide false, inaccurate, or misleading information;
  5. Pay any obligation to us with stolen funds, ill-gotten gains, or funds procured through identity theft or fraud;
  6. Refuse to cooperate in an investigation or provide confirmation of your identity or any personal information you provide to us;
  7. Attempt to receive funds from multiple parties for the same transaction (e.g., dispute a charge with ShotPay while also disputing it with the merchant or your bank);
  8. Control an account that is linked to another account that has engaged in restricted activities;
  9. Use your account or our services in a manner that we reasonably believe to be an abuse of any bank-transfer system or payment-network rules;
  10. Take any action that imposes an unreasonable load on our infrastructure, transmit viruses or similar harmful code, use anonymizing proxies, or use any robot, spider, or other automated device or process to monitor or copy our website without our prior written permission;
  11. Take any action that may cause us to lose services from our payment processors or other suppliers;
  12. Use our services to test payment behaviors;
  13. Circumvent determinations about your account such as suspensions or other restrictions;
  14. Fail to provide any information about you that we may reasonably and legally request;
  15. Reveal any password, one-time passcode, or PIN to anyone else;
  16. Act in an inappropriate, abusive, or threatening manner to our employees, agents, or other users.

5.1 Firearms-Specific Acceptable Use

You additionally agree, in connection with any firearm-related transaction processed through ShotPay, that you will not:

Engage in a "straw purchase" — purchasing a firearm on behalf of another person — in violation of 18 U.S.C. §922(a)(6);

Use ShotPay services if you are a "prohibited person" under 18 U.S.C. §922(g), including but not limited to persons with felony convictions, fugitives, persons subject to a domestic-violence restraining order, or persons convicted of a misdemeanor crime of domestic violence;

Make any false statement on ATF Form 4473 or any analogous state form;

Purchase any item that is prohibited in your state of residence or destination state (e.g., features banned by California assault-weapon law, magazine-capacity limits in New Jersey or Massachusetts);

Purchase a firearm for export without complying with applicable ATF Form 6, DSP-5, or ITAR requirements;

Use ShotPay services for any firearm purchase if you are under 21 years of age.

6. Working with Third Parties

If you grant express permission to a third party to take specific actions on your behalf, or access particular information about your ShotPay account, you acknowledge that we may disclose to that third party the account information you have authorized. Granting permission to a third party does not relieve you of any of your responsibilities under this Agreement. You will not hold ShotPay responsible for, and you will indemnify ShotPay from, any liability arising from the actions or inactions of such third parties in connection with the permissions you grant.

You authorize your wireless carrier to use or disclose information about your account and your wireless device, if available, to ShotPay or its service providers for the duration of your relationship with us, solely to help identify you or your wireless device and to prevent fraud. See our Privacy Policy for how we treat your data.

7. Disputes and Arbitration

The full arbitration provision, including a class-action waiver, a 30-day opt-out right, and an exception for claims under the Military Lending Act, is set forth in our Arbitration Provision, which is incorporated by reference into these Terms.

Key consumer rights summarized:

30-day opt-out window: You may opt out of the arbitration provision by written notice within 30 days of account creation.

Right to small claims court.

Public-injunctive relief in California: Preserved consistent with McGill v. Citibank.

Military Lending Act exception: Members of the armed services and their dependents are not bound by the arbitration provision for MLA-covered transactions.

8. Disclaimer of Warranty

SHOTPAY AND ITS AFFILIATES MAKE NO COMMITMENTS OR WARRANTIES ABOUT (I) THE CONTENT, RELIABILITY, OR AVAILABILITY OF THE SERVICES, OR FOR ANY BREACH OF SECURITY ASSOCIATED WITH THE TRANSMISSION OF SENSITIVE INFORMATION THROUGH THE SERVICES, OR (II) THE ACCURACY, RELIABILITY, OR COMPLETENESS OF THE CONTENT ON THE WEBSITE OR THROUGH THE SERVICES. SHOTPAY AND ITS AFFILIATES DISCLAIM, WITHOUT LIMITATION, ANY WARRANTY OF ANY KIND WITH RESPECT TO THE SERVICES, INCLUDING ANY WARRANTY REGARDING NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE.

9. Limitation of Liability

SHOTPAY AND ITS AFFILIATES HAVE NO LIABILITY WHATSOEVER FOR YOUR USE OF ANY PRODUCT AVAILABLE FROM OR THROUGH THE WEBSITE OR THE USE OF THE SERVICES. IN PARTICULAR, SHOTPAY AND ITS AFFILIATES ARE NOT LIABLE FOR ANY COMPENSATORY, DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS, LOSS OF PROFITS, LITIGATION, OR THE LIKE).

MLA exception: This limitation of liability does not apply to borrowers covered by the Military Lending Act (10 U.S.C. §987), consistent with the MLA carve-out in our Arbitration Provision.

10. One-Year Statute of Limitations

You and ShotPay both agree that, regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to your use of the ShotPay services, these Terms of Service, or the Privacy Policy must be filed within one (1) year after such claim or cause of action arose, or be forever barred.

11. Indemnification

You agree to indemnify, defend, and hold harmless ShotPay and its affiliates from any liability, including reasonable attorneys’ fees, related to your use of the services or any violation of these Terms of Service.

12. Right to Dispute Purchases

You have certain rights to dispute purchases made through ShotPay, consistent with the Fair Credit Billing Act (FCBA) and analogous state laws. The full dispute procedure is set forth in your Customer Loan Agreement and is incorporated by reference into these Terms.

13. Account Termination

13.1 Termination by You

You may terminate this Agreement by closing your ShotPay account. Before we can close your account, you must pay any outstanding amounts you owe in full, including any fees or expenses incurred. To close your account, contact us at [email protected] or use the “Close Account” option in your customer dashboard.

13.2 Limitations on Closure

You may not close your account:

While you have an outstanding loan or layaway balance owed to ShotPay.

During an active investigation of suspected fraud, ACH disputes, or other potential violations, until such investigation is complete (up to 180 days).

During an active dispute or chargeback proceeding.

13.3 Dormant Accounts

ShotPay may close accounts that have been inactive for twelve (12) consecutive months, subject to applicable state escheatment laws for any remaining balance.

13.4 Termination by ShotPay

The privileges granted to you under this Agreement will terminate immediately and automatically without notice from ShotPay if, in our sole discretion, you fail to comply with any term or provision of this Agreement.

14. Governing Law

The governing law and venue for this Agreement are set forth in the Customer Loan Agreement §11 and incorporated by reference here. Generally, this Agreement is governed by the laws of the State of Delaware, except that consumer-protection laws of your state of residence may apply to the extent they provide greater protection.

15. Miscellaneous

No third-party beneficiaries: This Agreement is for the benefit of you and ShotPay only.

Government use: Use of ShotPay services by U.S. government entities is subject to the restrictions in FAR 12.212 and DFARS 227.7202.

Entire agreement: This Agreement, together with the Loan Agreement, Layaway Agreement, Privacy Policy, and E-SIGN Consent, constitutes the entire agreement between you and ShotPay.

Severability: If any provision is held unenforceable, the remaining provisions remain in full force and effect.

Headings: Section headings are for convenience only and do not affect interpretation.

Force majeure: Neither party is liable for delays or failures caused by events beyond reasonable control.

No waiver: A waiver of any breach is not a waiver of subsequent breaches.

Construction: This Agreement will not be construed against the drafter.

USA PATRIOT Act CIP Disclosure: To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. We may ask for your name, address, date of birth, and other information that allows us to identify you. We may also ask to see your driver's license or other identifying documents.

16. Firearm-Specific Provisions

16.0 Firearms Vertical

The following provisions address requirements specific to lawful commerce in the firearms industry.

16.1 Lawful Purchase

ShotPay services may only be used for lawful firearm purchases from merchants holding a valid Federal Firearms License (FFL). At every firearm-related transaction, you represent and warrant that: (a) you will comply with all federal, state, and local firearms laws; (b) you intend to take personal delivery of the firearm at the destination FFL; (c) you are not a “prohibited person” under 18 U.S.C. §922(g); (d) you are at least 21 years of age; and (e) you are not making a straw purchase under 18 U.S.C. §922(a)(6).

16.2 Background Check Requirement

All firearm transfers require successful completion of a background check through the National Instant Criminal Background Check System (NICS) or a state equivalent at the destination FFL. Failure of the background check voids the transfer of the firearm but does not automatically cancel your obligations under your Loan Agreement or Layaway Agreement. See Customer Loan Agreement §6.2 for the full procedure.

16.3 No Direct Shipment

Firearms purchased through ShotPay ship only to a verified FFL — never to your home address. ShotPay enforces this requirement through our merchant integration. You may not request, and ShotPay will not accommodate, direct shipment of firearms.

16.4 State Restrictions on Specific Items

Some states prohibit certain firearm types, features, or accessories (for example, certain features under California’s assault-weapon law, magazine-capacity limits in New Jersey and Massachusetts, suppressor bans in several states). ShotPay’s state-rules system limits transaction availability based on the destination state, but you remain responsible for verifying that any firearm you select is legal in your state of residence and destination state.

16.5 ATF Compliance

ShotPay is a payment-services provider, not a firearms dealer. ShotPay does not engage in firearm transfer activities and does not hold an FFL. Merchant FFLs are solely responsible for completing ATF Form 4473, conducting background checks, and complying with all state-specific firearm-transfer forms and procedures. ShotPay relies on merchant compliance with all ATF requirements.

16.6 No Forfeiture Recovery

If a firearm purchase is voided by background-check failure, ATF intervention, or other lawful cause, ShotPay will not pursue forfeiture or recovery of the merchandise from any law enforcement agency. ShotPay’s refund logic applies as described in your Loan Agreement or Layaway Agreement.