Last updated: March 1, 2026 · Effective: April 1, 2026
By creating an account or using PayClaw (“the Service”), you agree to these Terms of Service. If you do not agree, do not use the Service. The Service is operated by PayClaw LLC (“PayClaw,” “we,” “us”).
By creating an account, you consent to receive all disclosures, notices, and communications from PayClaw electronically, including via email and your account dashboard. You may withdraw this consent at any time by contacting us, but doing so may limit your ability to use the Service. This consent applies to all communications that we are required or permitted to provide in writing under applicable law, including the Electronic Fund Transfer Act (for Spend users).
PayClaw is a technology platform for AI agent identity and payment. The Service includes two products:
Badge — Agent Identity Verification
Badge verifies your AI agent's identity to merchants before it shops. When your agent presents itself to a merchant, Badge provides a cryptographic verification token that confirms the agent is acting on behalf of an authorized user, without revealing your personal identity. Badge is free and involves no financial transactions. Badge includes:
Spend — Agent Payment Cards
Spend issues single-use virtual Visa cards for agent purchases. Virtual cards are issued by our sponsor bank through Lithic, Inc., pursuant to a license from Visa. PayClaw is a technology partner and program manager — not the card issuer, a bank, or a money transmitter. Spend is currently available in sandbox mode (test transactions only). Spend includes:
Both products are accessible via the PayClaw dashboard, API, and MCP server (Model Context Protocol) for agent integration.
When you generate a Badge API key, you authorize your AI agent to present a verified identity disclosure to merchants on your behalf. This section describes how Badge works and what you are consenting to.
At the time of API key generation, you are shown a disclosure describing exactly what your agent will present to merchants and what data will be recorded. Generating the key after reviewing this disclosure constitutes your consent for the declared scope (currently: [BROWSE] — agent identity declarations and their outcomes).
Future scopes (such as search, cart, and checkout activity) may be offered in later versions. Each additional scope will require separate, explicit opt-in consent. You will never be enrolled in a new scope without your affirmative action.
Each time your agent requests identity verification, PayClaw generates a cryptographic verification token. This token is presented to the merchant along with the agent type, authorized scope, and a contact email. The token cannot be reversed to reveal your personal identity without PayClaw's server-side secret. Tokens expire after 24 hours.
Merchants receive only: the verification token, the agent type, the authorized scope, and a contact email (agent_identity@payclaw.io). Merchants cannot derive your identity from the token alone. If a merchant contacts PayClaw to verify a token, we will confirm only whether the token is valid, expired, or revoked. We will not disclose your identity without your explicit consent.
You may revoke any API key at any time via the dashboard. Revoking a key immediately stops all future token generation and event recording for that key. Events already recorded under a valid token are retained per our data retention policy (see our Privacy Policy, Section 10).
Badge does not track your agent's browsing history, cart contents, price data, screenshots, page content, or any data outside the scope you consented to. No data is recorded without a valid verification token.
Important: Please read carefully.
When you add funds to your PayClaw account, two separate financial transactions occur:
PayClaw does not hold or custody your funds. Deposited funds are held by our sponsor bank through our card issuing partner Lithic, Inc. PayClaw is a technology platform that facilitates the funding process on behalf of the card issuer.
You are responsible for:
When you provide a Spend-enabled API key to an AI agent (directly or via MCP configuration), you authorize that agent to:
Shared Security Responsibility. PayClaw and our users share responsibility for transaction security. PayClaw is responsible for providing secure infrastructure, intent-based authorization, and audit capabilities. You are responsible for configuring appropriate spending controls, safeguarding your API keys, and promptly reporting suspicious activity. Neither party bears sole responsibility for losses resulting from AI agent errors or compromises, and both parties will cooperate in good faith to investigate and resolve disputes.
Risk of AI Agent Errors
AI agents, including those powered by large language models, may be susceptible to adversarial manipulation (such as prompt injection) that could cause them to take unintended actions, including unauthorized purchases. While PayClaw provides intent-based authorization, merchant whitelists, and spending limits as risk-reduction tools, no safeguard is absolute. We strongly recommend:
Your Rights Under Federal Law
If you believe a transaction on your account is unauthorized or incorrect — including transactions resulting from AI agent compromise — contact us at support@payclaw.io as soon as possible.
When you report an unauthorized transaction, we will investigate within 10 business days (20 business days for new accounts open less than 30 days). If we need more time, we may take up to 45 calendar days to complete our investigation, but we will provisionally credit your account within 10 business days while we investigate.
Payment processing fees charged by Stripe are separate from PayClaw's service fee and are borne by PayClaw, not the user.
Unauthorized or incorrect transactions: If you believe a transaction is unauthorized or incorrect, report it under Section 9 above.
Merchant disputes: For disputes regarding the quality, delivery, or description of goods or services purchased by your agent, you may work directly with the merchant or contact us for assistance. PayClaw will cooperate with card network dispute processes as required by our sponsor bank and the applicable card network.
Abuse of the dispute process — including filing disputes for transactions you authorized or repeatedly filing frivolous disputes — may result in account suspension or termination.
You may not use the Service to:
The Service, including its software, design, documentation, APIs, and MCP server, is owned by PayClaw LLC and protected by intellectual property laws. “PayClaw,” “Badge,” “Spend,” “KYA,” and “Know Your Agent” are trademarks or service marks of PayClaw LLC.
You are granted a limited, non-exclusive, non-transferable license to use the Service in accordance with these Terms. You may not copy, modify, distribute, sell, or lease any part of the Service or its content, nor may you reverse-engineer or attempt to extract the source code, except where such restrictions are prohibited by law.
Your use of Badge verification tokens and the PayClaw API does not grant you any rights to PayClaw's trademarks, logos, or branding. Merchants and third parties may not use PayClaw's marks without written authorization.
The Service is currently offered as an early access release. Features, pricing, and availability may change. Spend account balances are limited to $500 during the early access period. Early access status does not modify PayClaw's obligations under applicable law, including consumer financial protection statutes.
We strive for high availability but do not guarantee uninterrupted service. The Service is provided “as is” and “as available.” We may suspend or modify the Service with reasonable notice, except in emergencies (security incidents, compliance requirements).
Force Majeure. PayClaw is not liable for delays or failures in performance resulting from circumstances beyond our reasonable control, including but not limited to: outages of third-party service providers (including Lithic, Inc., Stripe, or hosting providers), natural disasters, government actions, or network or infrastructure failures.
To the maximum extent permitted by applicable law, PayClaw's total aggregate liability for any claims arising from your use of the Service shall not exceed the greater of (a) the amount of funds in your PayClaw account at the time of the incident, or (b) the total service fees paid by you to PayClaw in the twelve (12) months preceding the incident, or (c) $100 (for Badge-only users who have not paid any fees).
This limitation does not apply to: (i) PayClaw's obligations under applicable consumer protection laws, including the Electronic Fund Transfer Act; (ii) claims arising from PayClaw's gross negligence or willful misconduct; or (iii) PayClaw's indemnification obligations, if any.
PayClaw is not liable for indirect, incidental, consequential, or punitive damages, except where prohibited by law.
You may close your account at any time. If you have a Spend balance, any remaining card balance will be returned to your original payment method, minus any pending transactions. All API keys will be revoked and all verification tokens will be invalidated upon account closure. We may suspend or terminate your account for violation of these Terms, with notice where practicable.
Binding Arbitration. Any dispute arising from these Terms or your use of the Service shall be resolved by binding arbitration administered by JAMS under its Streamlined Arbitration Rules. Arbitration shall be conducted in English, by a single arbitrator, remotely (by videoconference) unless both parties agree to in-person proceedings. The arbitrator's award is final and enforceable in any court of competent jurisdiction.
Class Action Waiver. You agree to resolve disputes with PayClaw on an individual basis only. You waive any right to participate in a class action, class arbitration, or representative proceeding.
Small Claims Exception. Either party may bring an individual action in small claims court in Travis County, Texas (or your county of residence) if the claim qualifies.
30-Day Opt-Out. You may opt out of this arbitration agreement by sending written notice to legal@payclaw.io within 30 days of creating your account. If you opt out, disputes will be resolved under Section 20 (Governing Law).
We may update these Terms from time to time. Material changes will be communicated via email or dashboard notice at least 30 days before taking effect. For changes affecting fees, liability, or your rights under applicable consumer protection laws, we will provide at least 45 days' advance notice. Continued use after changes take effect constitutes acceptance.
These Terms are governed by the laws of the State of Texas, without regard to conflict of law principles. Where arbitration does not apply (see Section 18), any disputes will be resolved in the courts located in Travis County, Texas.
Severability. If any provision of these Terms is held unenforceable, the remaining provisions remain in full force and effect.
Entire Agreement. These Terms, together with our Privacy Policy and any applicable cardholder agreement provided by our sponsor bank (for Spend users), constitute the entire agreement between you and PayClaw regarding the Service.
Assignment. You may not assign or transfer your rights under these Terms. PayClaw may assign these Terms in connection with a merger, acquisition, reorganization, or sale of all or substantially all of its assets, provided the assignee agrees to be bound by these Terms.
No Waiver. Our failure to enforce any provision of these Terms is not a waiver of our right to enforce it later.
Questions about these Terms: legal@payclaw.io
Report unauthorized transactions or errors: support@payclaw.io
Agent identity verification inquiries (merchants): agent_identity@payclaw.io