The Cherry seller agreement, explained

Cherry purchases each financed receivable at a discount. The transaction fee for the plan tier the patient selected is deducted from the purchase price, and a Risk Adjustment applies to transactions where Cherry was offered as a second-look option.

• Your funding = sale amount − fee; reconcile deposits against the portal, not the invoice total.
• Fees vary by plan tier: longer 0% terms cost more, because the fee replaces the patient's interest.
• If staff offer Cherry only after another lender declines, those sales carry the extra adjustment.

The agreement is non-exclusive, but the practice must present Cherry as its preferred financing option and list it first in patient-facing materials. Failure to do so permits Cherry to apply the Risk Adjustment.

• You can keep CareCredit, Sunbit or in-house plans — but Cherry goes first on the website, estimates and scripts.
• 'Preferred' is a positioning obligation, not a volume quota.
• Marketing kit materials are designed to satisfy this; using them is the easy compliance path.

Amounts refunded or charged back for services not rendered, cancelled or disputed are the practice's responsibility and may be recovered from the practice. If a chargeback occurs within 30 days and is not caused by the practice, the transaction fee is returned.

• The lender carries patient repayment risk; you carry service-delivery risk.
• A written cancellation policy that patients sign limits disputes you can't win.
• The 30-day fee refund is the only clawback relief — document delivery of care carefully.

The practice authorises Cherry to initiate ACH debits to its bank account for any amounts owed, including refunds, chargebacks and adjustments. The practice agrees not to reverse such debits. If a debit is returned for insufficient funds, Cherry may suspend the account immediately.

• Keep a buffer in the funding account — a returned debit pauses all new checkouts.
• Refunds you issue from the portal are debited, not netted against future sales only.
• You cannot dispute a debit with your bank; disputes go through Cherry.

Cherry may establish and hold a reserve from funding, in an amount it determines, if in its sole discretion the practice's financial condition, dispute rate or chargeback exposure warrants it. Reserve funds are released at Cherry's discretion after obligations are satisfied.

• Funding can be partially withheld with little notice if chargebacks spike.
• 'Sole discretion' means there is no fixed trigger or release schedule in the text.
• Practices with high-ticket, long-lead treatments (surgery, implants) are the usual candidates.

The practice indemnifies Cherry and its lending partners against claims arising from the practice's services, representations and compliance. Cherry's liability to the practice is limited to its own gross negligence or wilful misconduct, and excludes consequential damages.

• A patient suing over treatment outcome can't be redirected to Cherry; the practice covers it.
• Marketing claims your staff make about financing ('guaranteed approval') are your exposure.
• Cherry's downside to you is capped; yours to Cherry is not.

The agreement is governed by California law. Disputes are brought in San Francisco Superior Court or the U.S. District Court for the Northern District of California.

• Out-of-state practices litigate in California, at their own cost.
• Most practice-level disputes (fees, reserves) are resolved through account management long before this applies.