Koalafi allows incidental services in states where it is permitted.

In some states, service is strictly prohibited by statutes or state regulators. To comply with this, Koalafi enforces a Service Cap policy, with rules that depend on the state.

Merchants in the following states must comply with a 0% Service Cap due to state regulations:

In these states, leases can only include tangible, physical property. No service, including what is listed below, can be leased with Koalafi.

In all other states, service is allowed but capped at 30% of the total cost of items. Every lease must be at least 70% merchandise and no more than 30% service.

This keeps merchandise as the primary subject of the agreement while still accounting for the service costs a customer needs in order to purchase the merchandise

These are defined as items that are incidental to, and necessary for, the consumer's effective use of the leased property. This includes:

If you have any questions or doubts on whether an item is considered service or the service cap for your state, feel free to contact Merchant Support at 844-238-6500