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Merchant Guide Payline Data Services, LLC 225 W. Wacker Dr., Suite 550 Chicago, IL 60606 Phone: (800) 617-9342 Email: [email protected]

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Page 1: Merchant Guide - Payzerware

Merchant Guide

Payline Data Services, LLC

225 W. Wacker Dr., Suite 550

Chicago, IL 60606

Phone: (800) 617-9342

Email: [email protected]

Page 2: Merchant Guide - Payzerware

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Table of Contents 1. GENERAL INFORMATION ............................................................................................................................ 4

1.1 Introduction .................................................................................................................................................. 4 1.2 Definitions .................................................................................................................................................... 4 1.3 Laws ............................................................................................................................................................. 5 1.4 Rules ............................................................................................................................................................ 5 1.5 Merchant Responsibilities ............................................................................................................................ 6 1.6 Payline and Bank Responsibilities ............................................................................................................... 6 1.7 Updates to this Guide ................................................................................................................................... 6 1.8 Customer Service ......................................................................................................................................... 6

2. GENERAL CARD ACCEPTANCE PROCEDURES ..................................................................................... 7 2.1 Card Acceptance .......................................................................................................................................... 7 2.2 Transaction Processing ................................................................................................................................. 7 2.3 Minimum/Maximum Transaction Amounts ................................................................................................. 7 2.4 Collection and Retention of Personal Information ....................................................................................... 7 2.5 Taxes ............................................................................................................................................................ 8 2.6 Merchant Descriptor..................................................................................................................................... 8 2.7 Prohibited Transactions ................................................................................................................................ 8 2.8 No Laundering Transactions ........................................................................................................................ 9 2.9 No Waiver by Cardholders ........................................................................................................................... 9 2.10 Returns ......................................................................................................................................................... 9 2.11 Surcharges, Discounts and Convenience Fees ........................................................................................... 10 2.12 Debit Cards ................................................................................................................................................ 11 2.13 Transaction Types ...................................................................................................................................... 11 2.14 Transaction Proceeds ................................................................................................................................. 11 2.15 Restrictions................................................................................................................................................. 12

3. CARD PRESENT TRANSACTIONS ............................................................................................................. 12 3.1 Card Present Background ........................................................................................................................... 12 3.2 Fraud Prevention ........................................................................................................................................ 12 3.3 Card Validity .............................................................................................................................................. 13 3.4 Cardholder Identification and Verification ................................................................................................ 14 3.5 Authorization ............................................................................................................................................. 14 3.6 Receipt ....................................................................................................................................................... 15 3.7 Fallbacks and Forced Transactions ............................................................................................................ 16 3.8 Card Recovery ............................................................................................................................................ 17

4. CARD NOT PRESENT TRANSACTIONS ................................................................................................... 17 4.1 Card Not Present Background .................................................................................................................... 17 4.2 Fraud Prevention ........................................................................................................................................ 17 4.3 E-commerce Transactions .......................................................................................................................... 18 4.4 Mail and Telephone Orders ........................................................................................................................ 18 4.5 Recurring Payments ................................................................................................................................... 18 4.6 Future Delivery and Installment Transactions ........................................................................................... 19 4.7 Health Care Transactions ........................................................................................................................... 20 4.8 Receipts ...................................................................................................................................................... 20

5. AMERICAN EXPRESS ................................................................................................................................... 20 5.1 Rules .......................................................................................................................................................... 20 5.2 Settlement and Information Sharing .......................................................................................................... 20 5.3 Conversion ................................................................................................................................................. 21

6. DATA SECURITY ........................................................................................................................................... 21 6.1 Merchant Obligations ................................................................................................................................. 21 6.2 Security Measures ...................................................................................................................................... 21 6.3 Truncation .................................................................................................................................................. 22 6.4 Personal Information .................................................................................................................................. 22 6.5 Security Audits ........................................................................................................................................... 23

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6.6 Privacy Policy ............................................................................................................................................ 23 6.7 Passwords ................................................................................................................................................... 23 6.8 Confidential Information Treatment .......................................................................................................... 23 6.9 Trade Secrets .............................................................................................................................................. 24

7. AUDITS AND MONITORING ....................................................................................................................... 24 7.1 Finances ..................................................................................................................................................... 24 7.2 Inquiries and Inspections ............................................................................................................................ 24 7.3 Audits ......................................................................................................................................................... 24 7.4 Cooperation with Audits ............................................................................................................................ 25 7.5 Information................................................................................................................................................. 25 7.6 Monitoring ................................................................................................................................................. 25

8. ADDITIONAL POLICIES AND PROCEDURES......................................................................................... 25 8.1 Third-Party Service Providers .................................................................................................................... 25 8.2 Hold Period ................................................................................................................................................ 26 8.3 Payments .................................................................................................................................................... 26 8.4 Chargebacks ............................................................................................................................................... 26 8.5 Trademarks................................................................................................................................................. 27 8.6 Signage ....................................................................................................................................................... 27 8.7 Liability ...................................................................................................................................................... 27 8.8 Card Brand Rights ...................................................................................................................................... 28 8.9 Insurance .................................................................................................................................................... 28 8.10 IRS Withholding Regulations .................................................................................................................... 28 8.11 BIN Information ......................................................................................................................................... 28 8.12 Lodging and Vehicle Rental Transactions ................................................................................................. 28

9. EQUIPMENT AND SOFTWARE .................................................................................................................. 29 9.1 Use of Equipment ....................................................................................................................................... 29 9.2 Purchase of Equipment .............................................................................................................................. 29 9.3 Lease of Equipment.................................................................................................................................... 29 9.4 Installation of Equipment ........................................................................................................................... 29

10. DEBIT CARDS ................................................................................................................................................. 29 10.1 Sponsorship ................................................................................................................................................ 29 10.2 Participation ............................................................................................................................................... 30 10.3 Compliance ................................................................................................................................................ 30 10.4 Payline and Debit Sponsor Rights .............................................................................................................. 30

11. EBT TRANSACTIONS .................................................................................................................................... 30 11.1 Definitions .................................................................................................................................................. 30 11.2 Issuance ...................................................................................................................................................... 30 11.3 EBT Procedures ......................................................................................................................................... 30 11.4 Additional Indemnification ........................................................................................................................ 30 11.5 Legal Process ............................................................................................................................................. 31

12. GUARANTY ..................................................................................................................................................... 31 12.1 Personal Guaranty ...................................................................................................................................... 31 12.2 Recourse ..................................................................................................................................................... 31 12.3 Status .......................................................................................................................................................... 31 12.4 Liability ...................................................................................................................................................... 31 12.5 Reinstatement ............................................................................................................................................. 32 12.6 Status .......................................................................................................................................................... 32 12.7 Representations and Warranties ................................................................................................................. 32 12.8 Additional Terms ....................................................................................................................................... 32

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1. GENERAL INFORMATION

1.1 Introduction

Payline Data Services, LLC (“Payline”) has prepared this Merchant Guide (this “Guide”) for use by the

merchant (“Merchant”) who has entered or is entering into an agreement with Payline (“Merchant

Agreement”) for Payline’s payment processing services (“Services”). This Guide is designed to facilitate

compliance with the rules and requirements, safety and security, and effectiveness of the payment card

system provided as part of the Services. This Guide is incorporated into and made part of the Merchant

Agreement, and any failure to adhere to the requirements in this Guide shall constitute a breach of the

Merchant Agreement.

1.2 Definitions

Capitalized terms that are used but not defined in this Guide will have the meanings for such terms set

forth in the Merchant Agreement. Capitalized terms that are used in this Guide and not defined elsewhere

will have the following meanings:

(a) “Account” means Merchant’s depository account designated on the Merchant Application, or

such other account submitted by Merchant and approved by Payline and Bank.

(b) “Authorization” means a request submitted by Merchant in accordance with guidelines and Rules

issued by Payline, Bank, the Issuer, and the applicable Card Brands to verify that the Card has

been issued, is in good standing, and has an available balance or credit limit sufficient for the

requested amount.

(c) “Bank” means the financial institution selected by Payline as a sponsor of certain Services

provided to Merchant. The Bank applicable to the Services is the financial institution identified in

the Merchant Agreement, or such other financial institution as selected by Payline from time to

time in its sole discretion.

(d) “Card” means a valid credit, debit, prepaid, or other type of supported payment card bearing the

symbol of a Card Brand or an account number, token, or other credential validly issued by an

Issuer for the purposes of allowing a Cardholder to purchase goods or services over a Card

Brand’s network.

(e) “Card Brands” means Visa, Inc., MasterCard Incorporated, Discover Financial Services,

American Express Company, Diners Club International, Ltd., JCB International Co., Ltd., each

Debit Network, any other Card-sponsoring organization or association that contracts with Payline

and/or Bank to settle merchant sales transactions, and the subsidiaries, successors, and assigns of

the foregoing.

(f) “Cardholder” means the authorized holder of a Card.

(g) “Confidential Information” means all information regarding a Card, Cardholder, Payline, Bank,

Debit Sponsor, a Card Brand, or the Services, including: Card numbers, expiration dates,

verification codes, or other security codes; Cardholder names or identification numbers; Payline’s

and its vendors operations, application programming interfaces, systems, methodologies,

marketing strategies, customer lists, vendor lists, and guidelines; any usernames, passwords, or

other credentials issued or used in connection with the Merchant Agreement or the Services; the

terminal build file information; the merchant identification number issued to Merchant; all

reports, statements, and other documentation provided to Merchant by Payline or its

representative or otherwise made available to Merchant pursuant to the Merchant Agreement; this

Guide; the fees, expenses, and other pricing information established for Merchant pursuant to the

Merchant Agreement; all personally identifiable information; statements, invoices, and reports

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provided or available to Merchant from Payline or its vendors; records; and all information

accessible or available to Merchant from Payline, including through any online merchant portal

made available to Merchant.

(h) “Debit Network” means each debit network through which transactions may be routed by

Payline, the Bank, and/or the Debit Sponsor. The Debit Networks may include, but are not

limited to Accel, NYCE, Pulse, Star, Shazam, AFFN, Interlink, Maestro, and CU24. The

supported Debit Networks may be changed by Payline and/or Debit Sponsor from time-to-time in

their sole discretion and without notice to Merchant.

(i) “Debit Sponsor” means Bay Bank FSB, a Maryland banking corporation or such other financial

institution selected by Payline from time-to-time, as a sponsor of debit Services provided to

Merchant.

(j) “EBT Rules” means Quest Operating Rules, as amended from time to time, issued by the

National Automated Clearing House Association as approved by the Financial Management

Service of the U.S. Treasury Department.

(k) “Include” or “Including” whether or not capitalized, mean including but not limited to.

(l) “Issuer” means the financial institution that issues a Card to a Cardholder.

(m) “Law” or “Laws” means all foreign, federal, state, and local laws, rules, and requirements,

including the requirements of any governmental agency or regulatory body and all judgments and

orders issued by a court.

(n) “Merchant Application” means the merchant application for payment processing services that

was submitted by or on behalf of Merchant for use of the Services, electronically or in writing,

including all information and/or documentation received in connection therewith.

(o) “PCI Requirements” means the then-current standards, requirements, guidelines, and practices

promulgated by the PCI Security Standards Council, LLC, including the Payment Card Industry

Data Security Standards and the Payment Application Data Security Standards.

(p) “Personal Information” means all information relating to a Cardholder or other person, including

their name, address, phone number, email, bank account, Card number, driver’s license, social

security number, transaction history, and all other personal or personally identifiable information

related to such person or their payment method.

(q) “Rules” means the then-current rules, requirements, standards, procedures, guidelines, and

procedures of each Card Brand and the PCI Requirements.

(r) “Voice Authorization Center” means the center hosted by Payline or its vendors which can be

contacted at (800) 291-4840.

1.3 Laws

Merchant is solely responsible for complying with all applicable Laws. In certain jurisdictions, the Laws

regarding Merchant’s business and/or payment acceptance may conflict with this Guide. If such conflict

occurs, the Law shall control with respect to the conflicting provision. Merchant must continue to comply

with all provisions in this Guide which do not conflict with the Law. Merchant will not take any action or

fail to take any action which would cause Payline, Bank, Debit Sponsor, or their vendors to violate any

Law.

1.4 Rules

Merchant is solely responsible for complying with all applicable Rules. If a conflict occurs between any

provision in this Guide and a Rule, the Rule shall control with respect to the conflicting provision.

Merchant must continue to comply with all provisions in this Guide which do not conflict with the Rules.

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Merchant will not take any action or fail to take any action which would cause Payline, Bank, Debit

Sponsor, or their vendors to violate any Rule. Upon Merchant’s reasonable written request to Payline, a

copy of the Rules or a portion thereof may be provided to Merchant. The most common Rules are

accessible on the Card Brand’s and standards organizations’ respective websites:

American Express: https://www.americanexpress.com/

Discover: https://www.discovernetwork.com/en-us/

MasterCard: https://www.masterCard.us/en-us.html

PCI Security Standards Council: https://www.pcisecuritystandards.org/

Visa: https://usa.visa.com/

1.5 Merchant Responsibilities

Merchant is solely responsible for: (a) reading, understanding, and abiding by the terms of the Merchant

Agreement and this Guide; (b) remaining up-to-date on and compliant with all Rules and Laws; (c)

properly implementing and using the payment platform and all associated hardware and software; (d)

following industry best practices regarding payment acceptance; (e) immediately notifying Payline of any

modification to Merchant’s business or payment acceptance process, including any changes in its direct or

beneficial ownership, name, doing-business-as name, entity type, practices, sales methods, products,

services, tax identification numbers, card acceptance methods, or projected volume; and (f) cooperating

with Payline and Bank by promptly providing all information requested by Payline or Bank. The

information which may be requested by Payline includes, but is not limited to, the official and doing-

business-as names of Merchant, Merchant’s tax identification number, the names of each actual and

beneficial owner of Merchant, Merchant’s sales methods, Card acceptance methods, business hours,

projected volume, and any modifications to the foregoing, and any other information reasonably required

by Payline to verify Merchant’s Application or to verify compliance with the Merchant Agreement or any

applicable Laws or Rules.

1.6 Payline and Bank Responsibilities

Bank is primarily responsible for: the Merchant relationship; the establishment of all management and

operating policies relating to debit and credit card processing; the transfer of funds, including the

settlement of transactions; holding and managing the reserve accounts (as provided in the Merchant

Agreement); and maintaining sponsorship into the Card Brands. Payline is an agent of Bank for purposes

of the Merchant Agreement and the Services, and does not have access to any account for funds due to

Merchant or withheld from Merchant pursuant to the Merchant Agreement. Any services provided in

addition to the foregoing, or supplemental to the foregoing, will be provided by Payline or its vendors

(but not Bank) unless otherwise indicated. Additional terms and conditions may apply with respect to

such other services.

1.7 Updates to this Guide

This Guide may be updated by Payline at any time in its sole discretion, with or without notice to

Merchant. Merchant is responsible for monitoring this Guide for revisions and implementing any

modifications or changes needed to comply with this Guide prior to using any Services. The most recent

version of this Guide will be available through Payline’s online web-portal. An updated version of this

Guide may be provided to Merchant in hard copy upon Merchant’s reasonable written request to Payline.

1.8 Customer Service

Payline’s contact information is listed on the cover page to this Guide. Payline welcomes any questions or

concerns regarding the Services or this Guide. When contacting Payline’s customer support team, please

have the applicable Merchant identification number available so representatives can provide faster

assistance.

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2. GENERAL CARD ACCEPTANCE PROCEDURES

2.1 Card Acceptance

Merchant must carefully design, implement, and maintain its process for accepting Cards. The method

and approach to accepting Cards has a substantial influence on the likelihood of fraud or chargebacks.

Merchant may elect to accept or not to accept certain Card Brand Cards (for example, those Cards

branded with the marks of Visa, Inc., MasterCard Incorporated, Discover Financial Services, or other

Card Brands) as set forth in the Rules applicable to each such Card Brand. In particular, Merchant may

elect to accept or not accept credit cards, debit/prepaid cards, or both of each such Card Brand by making

such election on the Merchant Application. Merchant may subsequently modify an election regarding

limited acceptance by providing written notice to Payline. Note, however, that any such election will not

be effective until Payline receives such written notice and has a reasonable time to act on it.

Merchant is solely responsible for monitoring the Cards it accepts at its location, and Payline may, but

will not be obligated to, process any transaction submitted, even if such transaction is using a payment

method which Merchant has elected not to accept. All relevant provisions in this Guide and the Merchant

Agreement will apply to each transaction submitted by Merchant and processed by Payline, even if such

transaction falls outside of Merchant’s acceptance scope, and Merchant will be charged the fees

corresponding to such transaction. Payline may also, at its sole discretion, decline or refuse to process any

transaction falling outside of Merchant’s acceptance scope.

If a Cardholder’s identification or the Card’s (or other financial transaction device’s) validity is uncertain,

Merchant must contact the Issuing Bank for instructions.

Merchant will not bill or collect from a Cardholder for any purchase or payment on a Card unless a

chargeback has been exercised, Merchant has fully paid for such chargeback, and Merchant otherwise has

the right to bill or collect from such Cardholder.

Merchant will ensure the Cardholder understands that Merchant is responsible for the transaction,

delivery of goods or provision of services, and for customer service and dispute resolution.

2.2 Transaction Processing

Merchant will submit all transactions for processing promptly, within twenty-four (24) hours or such

other timeframe specified by Payline policies, and in all cases within the timeframes set forth in the

Rules. Merchant will not submit any transaction which may damage the goodwill of a Card Brand or

negatively affect a Card Brands name, logo, or other trademarks. Merchant will only submit transactions

in the US, unless otherwise authorized in writing. Merchant will not submit any transaction that arises

from the acceptance of a Card at a scrip-dispensing terminal, unless expressly authorized by Payline in

writing.

2.3 Minimum/Maximum Transaction Amounts

Merchant may only set minimum and/or maximum transaction amounts for the use of a credit card if

permitted by the Rules and applicable Law, such amounts not to exceed those limitations set by the Rules

or Law. Minimum and maximum transaction sizes cannot be set for debit cards.

2.4 Collection and Retention of Personal Information

All Personal Information should only be collected and stored if permitted by Law and if such information

is required to fulfill a Cardholder’s transaction, such information is requested without regard to payment

method, or Payline or a Card Brand specifically request or require such information. Except as permitted

by Law, a Merchant may not require any Cardholder to provide any Personal Information as a

prerequisite or condition to any sale.

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All Personal Information must be secured and protected in accordance with the data security requirements

set forth in this Guide and in the Merchant Agreement. To the extent Personal Information is received by

Merchant, Merchant should not store or otherwise record such Personal Information unless strictly

necessary for the transaction or as otherwise set forth in the Merchant Agreement, this Guide, or the

Rules.

2.5 Taxes

Any taxes that Merchant is required to collect must be included in the total transaction amount. Merchant

should never collect taxes separately in cash.

2.6 Merchant Descriptor

When Cardholders receive their monthly statement from their respective Issuers, each transaction entry

will state the merchant name, in addition to other relevant information. Accordingly, to ensure that

Cardholders recognize authorized transactions, it is critical that Merchant’s name is clearly identifiable to

the Cardholder.

Therefore, on its Application, Merchant must list its preferred “doing business as” (DBA) name, in

addition to the legal name of the Merchant entity. The Merchant DBA name may differ from the legal

name (which can represent the corporate owner or parent company), and may differ from the owner’s

name which, for sole proprietorships, may reflect the business owner. To verify that Merchant is using the

DBA name that is most recognizable to Cardholders, Merchant should ensure that the chosen DBA name

is displayed on Merchant’s signage, telephone directory listings, and marketing material.

Payline will determine how the merchant descriptor will be identified to the Cardholder and will consider

Merchant’s requested input into such decision. To minimize chargebacks, Payline recommends including

Merchant’s phone number in the descriptor field. The merchant descriptor will likely be formatted as

follows:

[Merchant DBA Name] [Merchant Phone Number]

2.7 Prohibited Transactions

Certain transactions are prohibited by the Card Brands. The processing of prohibited transactions may

result in termination of the Merchant Agreement, a chargeback, fines and assessments from the Card

Brands, and/or legal action against Merchant, among other potential consequences. Merchant must

identify and prevent prohibited or unlawful transactions from occurring. This obligation includes training

employees to accurately identify and prevent prohibited transactions.

Prohibited transactions include, but are not limited to:

• accepting a Card to collect or refinance an existing debt, previous Card charges, or for the

collection of a dishonored check or other prior payment method;

• accepting a Card for the payment of cash or a cash equivalent;

• accepting a Card for the purchase of scrip or any paper currency or a token issued for temporary

use;

• splitting a transaction, including to avoid Authorization requirements;

• submitting the same transaction more than once;

• submitting the same transaction to Payline and any other payment processor;

• any transaction for which the Cardholder’s authorization has been cancelled or revoked;

• transactions for goods or services not provided by Merchant or not set forth on the Merchant

Application;

• transactions for which an approved Authorization code has not been received;

• personal transactions by Merchant or its owners or executives, including use of a personal Card to

withdraw cash;

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• transactions declined by the Voice Authorization Center; and

• resubmitted transactions previously charged back.

Certain classes of products and services are also prohibited under the Rules or applicable Law, or are

otherwise precluded by Payline. Merchant may not, in any circumstances, sell any prohibited or unlawful

product or service. Such prohibited products and services include, but are not limited to:

• Any products which would cause

Merchant to fall under merchant

category codes 5962 (direct marketing

travel related), 5966 (outbound

telemarketing merchant), 5967 (inbound

teleservices merchant), 7995 (betting-

lottery/casino chips/OTB), or 4813 (key-

entry telecom merchant).

• Any products that would require

Merchant to register with the Card

Brands as a high risk merchant.

• Any prohibited products and/or services

per Bank Underwriting Guidelines

(which may be updated by Bank at any

time).

2.8 No Laundering Transactions

Merchant will only submit to Payline transactions which result from the bona fide sale of goods and services

from Merchant to a Cardholder from its place of business set forth on the Merchant Application. Submitting

transactions or processing activity for a different business is strictly prohibited, and in many states such activity

constitutes a violation of the Law. Laundering schemes, in which a Merchant is paid or otherwise used to submit

or process transactions for a different person or company often result in substantial chargebacks and liability for

Merchant and are strictly prohibited.

2.9 No Waiver by Cardholders

Merchant must not transfer financial liability to any Cardholder or ask or require any Cardholder to waive the

right to dispute a transaction.

2.10 Returns

Merchant may not submit any return, refund, or other credit to Payline for processing which does not correspond

to the return of one or more items from a bona fide sales transaction between Merchant and a Cardholder. All

returns, refunds and credits issued by Merchant shall be in the same form as the payment received for the

underlying sale. For example, if a purchase was made using a particular Card, the return must be made by

crediting the same Card. Except to the extent the Rules provide otherwise, Merchant will not issue cash refunds

for purchases made with a Card or issue cash in exchange for Card transactions. Merchant will not submit a

credit transaction in exchange for cash, a check, or any other payment instrument. Merchant will not submit any

transaction for the purposes of obtaining or providing a cash advance or deposit of funds into its Account.

Any conditions or requirements associated with the return of merchandise to Merchant or the issuance of

refunds by Merchant must be clearly disclosed at the time of purchase and set forth on the order form or

transaction receipt using the required disclosure language set forth in the Rules. Merchant may not adopt return

or refund policies which discriminate against any Card Brand or payment type.

If a Cardholder seeks to exchange one or more goods purchased from Merchant, unless the values of the original

purchase and the item for which the original purchase is being exchanged are identical, it is a best practice to

issue a refund for the original purchase and process a sale for the new item, each of which shall be subject to and

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in accordance with all requirements for refunds and for sales, respectively. Merchant must honor the return and

refund policy presented to the Cardholder in accordance with the Rules.

To process a return, Merchant should request the Card used in the original transaction and verify that the

number on the Card presented is identical to the account number on the transaction record. If the Cardholder

does not have the Card used in the original transaction, Merchant should use the name, Card number, and Card

expiration date on the transaction record for the refund. Credits should be entered and submitted in accordance

with the operating manual for Merchant’s point of sale device. Payline will have no obligation to process any

credits not properly received. If Merchant does not have a printer connected to its point of sale device, Merchant

must use an imprinter to capture Merchant’s Card and identification information and shall verify and ensure that

all such information is legible on all copies.

Merchant should track inventory and its customers and employees to prevent the “return” of items not

purchased.

2.11 Surcharges, Discounts and Convenience Fees

Unless prohibited by Law, Merchant may surcharge credit card transactions in accordance with the Rules.

Merchant must notify Payline and Bank (and if required by the Rules, each applicable Card Brand) at least thirty

(30) days prior to implementing any surcharge. Notice must be provided to Payline and the Bank in writing, and

may be provided to each Card Brand in accordance with the surcharge notification procedures established under

the Rules. Certain states may prohibit surcharges. Merchant is responsible for not imposing surcharges where

prohibited by Law.

Surcharges may be fixed or variable, but the same surcharge must apply to all credit card transactions or to all

transactions of the same credit product type. Merchant will prominently disclose all surcharges at its location

and during the checkout or payment process. Merchant must allow any Cardholder to cancel the transaction

during the checkout process after the surcharge has been disclosed.

Merchant may not exceed the maximum surcharge amounts allowed under the Rules (for example, the current

maximum surcharge for Visa and MasterCard is 4%). Merchant may also not levy a surcharge on any debit

transaction. The Rules may require Merchant to publicly disclose its surcharge practices to customers at the

store entry point and/or at the point of sale. All surcharge practices must be in compliance with applicable Laws

and Rules, and no surcharging activity may violate or circumvent any applicable Law or Rule. For information

on, and further links to, surcharge considerations, requirements, limitations and Card Brand surcharge

registration pages, please visit each Card Brand’s website.

Merchant may offer a discount or in-kind incentive as an inducement for a Cardholder to use a means of

payment that the Merchant prefers, provided that the discount: (a) is clearly disclosed as a discount from the

standard price; (b) is non-discriminatory, by providing the same discount for all Cards accepted; (c) does not

differentiate on the basis of the Issuer or the Card Brand; and (d) is in accordance with applicable Laws and

Rules.

If the Merchant Agreement permits Merchant to accept payments through an alternative payment channel,

Merchant may be eligible to charge a convenience fee, provided that the fee is:

• charged for a bona fide convenience in the form of an alternative payment channel outside Merchant’s

customary payment channels;

• disclosed as a charge for the alternative payment channel convenience;

• added only to a non-face-to-face transaction (note that if a mail order or electronic commerce

Merchant’s payment channels are exclusively non-face-to-face, such Merchant may not impose a

convenience fee);

• a fixed amount, regardless of the value of the payment due;

• applicable to all forms of payment accepted in the alternative payment channel;

• disclosed before the completion of the transaction (with the Cardholder having an opportunity to cancel

the transaction after such disclosure but before transaction completion);

• included as part of the total amount of the transaction;

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• charged only to non-recurring transactions (convenience fees may not be added to recurring

transactions);

• not charged if a surcharge is already charged (a transaction may not include both a surcharge and a

convenience fee); and

• charged only by Merchant and not by any third party.

Not all transaction types are eligible to be surcharged or allow the charging of convenience fees. Similarly, not

all Merchants may surcharge or charge convenience fees. Prior to implementation, and on an ongoing basis,

Merchant must ensure its use of a surcharge or convenience fee complies with all Rules and Laws. If Merchant

has any questions regarding surcharges or convenience fees, Merchant should contact Payline for further

clarification.

2.12 Debit Cards

If Merchant elects to accept debit cards as part of its limited acceptance option, Merchant will display each

Debit Network logo at Merchant’s location in accordance with the applicable Rules for such Debit Network.

Merchants with a PIN pad should promote use of a PIN for debit transactions.

For each debit transaction, Merchant’s point of sale device must:

• provide a receipt to the Cardholder at the time of the transaction;

• be capable of reading the EMV chip, if the debit card contains an EMV chip, or otherwise all tracks on

the debit card’s magnetic stripe; and

• include an attached keypad to allow Cardholder’s entry of a PIN.

With respect to debit transaction, Merchant may not:

• ask any Cardholders to disclose their PIN number;

• require a Cardholder signature for an online PIN-debit transaction;

• impose a fee as a condition for accepting a debit card;

• provide cash back during an offline debit transaction; or

• set any minimum or maximum transaction amount for any debit transaction.

Merchant will honor all valid debit cards with terms at least as favorable as those under which Merchant accepts

any other Card. Copies of the records associated with each debit card transaction should be maintained for at

least seven (7) years after the debit transaction (or such longer period required by the Rules, Law, or Payline).

Additional requirements and guidelines for processing debit transactions are set forth below in this Guide.

2.13 Transaction Types

Each transaction processed has an associated transaction type recognized by the Card Brands. Merchant may

only process those transaction types designated by Merchant on the Application and for which Merchant has

been approved to use by Payline. For example, if Merchant has designated that it only accepts Card present

transactions on the Merchant Application, Merchant will obtain written approval from Payline prior to

submitting any Card not present transactions. All Card present transactions and Card not present transactions

must adhere to and comply with the respective sections for such transactions set forth in this Guide.

Each submitted transaction must have all required transaction information, including the Merchant’s name,

account number, location, Card account number (or a token generated through Payline’s Services), transaction

date, the Authorization number, the total amount of the sale (including taxes), and any other information

required based on the transaction method and type. Merchant’s failure to comply with this obligation may result

in Payline’s inability to process the transaction, chargebacks, higher interchange rates, or other fees and

expenses, all of which shall be the responsibility of Merchant.

2.14 Transaction Proceeds

Merchant will not, without Payline’s prior written consent, assign to any third party any payments due to it

under the Merchant Agreement or provide any third party with any interest in amounts receivable under the

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Merchant Agreement. All transactions Merchant submits must be free of all liens, claims, and encumbrances,

other than ordinary sales taxes.

2.15 Restrictions

Payline and/or Bank may impose a limit on the periodic gross volume amount and/or per transaction volume

amount that Merchant may submit. Payline or Bank may modify any such limit at any time in their sole

discretion and Merchant will not submit any transaction which would cause Merchant to exceed such volume

limits. Processing limits will be communicated to Merchant in connection with the Merchant Agreement or

Merchant Application. If Merchant submits a transaction in excess of the volume limits established by Payline

and/or Bank, Payline and/or Bank may, at their sole discretion: (a) decline to process the transaction; (b) process

the transaction normally; (c) process the transaction but hold or place the proceeds of such transaction in a

Reserve Account held by Bank as security for Merchant’s obligations and liabilities under the Merchant

Agreement until all risk associated with the transaction, including risk of chargebacks or disputes, fully expires;

(d) return all transactions without processing them; and/or (e) assess over limit fees.

3. CARD PRESENT TRANSACTIONS

3.1 Card Present Background

Card present transactions consist of transactions in which the Cardholder and their Card or other payment

credential are physically present at the point of and time of sale. Merchant shall take the following steps with

regard to each Card present transaction:

• ensure the Card is valid;

• swipe the Card for magnetic stripe, insert the Card to read the EMV chip, or access the contactless

credential using near field communication, to request transaction Authorization; and

• use the point of sale equipment in accordance with its specifications or user manual (contact Payline if

any issues arise regarding the equipment).

Cards may not be used by any third party. Purported “authorization forms” or “letters of authorization” are not

sufficient to allow a third party’s use of a Card as sharing Cards is not permitted. Merchant should only process

Cards for the individual whose name is on the Card.

3.2 Fraud Prevention

Merchant should regularly inspect the equipment used by Merchant and use software security evaluation

methods to prevent devices such as skimmers from being used or phone or internet connections from being

tapped.

Merchant should use the fraud controls set forth in its point of sale device, which may include but are not

limited to requiring the Merchant to enter the last four digits of the account number and using EMV rather than

the magnetic stripe to read the Card. If Merchant’s point of sale equipment is unable to read an embossed Card,

Merchant may accept such Card as payment by using an imprinter in accordance with the Rules and this Guide.

If a non-embossed Card cannot be read by Merchant’s point of sale equipment, Merchant must request a

different form of payment.

Merchant should pay special attention to orders that leave out important information, orders in which the billing

and shipping addresses do not match, unusually large and international orders, and other orders which appear

unusual or suspicious.

Merchants should also pay special attention to Cardholders which attempt to distract the cashier, whether

through attempts to rush the checkout process or through complaints about the cashier or circumstances at the

store.

IMPORTANT: Merchant’s adherence to processes and procedures set forth in this Guide will not relieve

Merchant of any liability associated with any transaction, including but not limited to liability for any

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chargeback. Merchant’s adherence to this Guide will neither guarantee that any transaction is valid or

authorized, nor guarantee that any transaction will not result in a chargeback.

3.3 Card Validity

Merchant will ensure each Card or other payment credential is valid. Merchant may use any means allowed by

the Rules and Law to verify the validity of each Card or other payment credential. This should minimally

include inspecting the security features and elements of each Card presented to Merchant, some of which are

described below.

Each Card should be smooth, even, and not discolored. If any Card is physically altered in any way it should not

be accepted and Merchant should request an alternative payment method. If any portion of a Card shows

evidence of tampering, including but not limited to the printed or embossed numbers, the magnetic stripe, the

EMV chip, or the signature panel, Merchant should request a different payment method. If any Card is too

damaged to be read, Merchant may ask for a different form of payment.

The following is a reference for Card attributes associated with various Card Brands:

• Visa. Visa Card account numbers begin with the number four (4) and the card number can be up to

nineteen (19) digits. A three-dimensional dove hologram should appear to move on the label as a Visa

Card is tilted. All digits should be clearly embossed and the same size and shape, however certain gift,

prepaid, and reloadable Cards may have the Card number printed but not embossed. The last four digits

of the account number should also be printed below the embossed Card number. The word “Visa”

should be written in blue and gold print and repeated in a diagonal pattern in the signature block on the

Card. The CVV2 (a three (3) digit code) should be printed on or next to the signature block of the Card.

An italicized “V” should appear by the Card expiration date.

• MasterCard. MasterCard Card account numbers begin with the number two (2), followed by a number

in the range two (2) to seven (7) inclusive; or the number five (5), followed by a number equal to or less

than five (5) inclusive. The name and account information may be embossed or printed, but should be

clear and uniform in size and spacing. The MasterCard logo showing overlapping globes and the

continents will appear as a hologram on the front or back of the Card and should appear three-

dimensional when the Card is tilted. The word MasterCard will appear in the background of this

hologram. If a four (4) digit number is printed on the Card, it should match the first four digits of the

account number. The word “MasterCard” will be printed at a forty-five (45) degree angle in the

signature block.

• Discover. Discover Card account numbers begin with the number six (6) and should be clear and

uniform in size and spacing. When placed under an ultraviolet light, the word “DISCOVER” should

appear on the front of the Card. The signature panel will read “VOID” if someone has attempted to

erase the signature. On the back of a Discover Card, the Card number should be followed by the

Cardholder identification data.

• JCB. JCB Cards may be processed through the Discover network. JCB Card account numbers begin

with the number thirty-five (35). All digits on the Card should be evenly spaced and uniform. The word

JCB will appear in ultraviolet ink on the bottom left corner of the Card under ultraviolet light. The first

four digits of each JCB Card should match the pre-printed number on the Card, and the signature panel

will have the text “JCB” in blue and green.

Please refer to Card Brand websites for the most specific and current Card attributes.

American Express: https://www.americanexpress.com/

Discover: https://www.discovernetwork.com/en-us/

MasterCard: https://www.masterCard.us/en-us.html

Visa: https://usa.visa.com/

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For each Card presented to Merchant, Merchant should compare the last four digits of the account number

printed or embossed on each Card to the number set forth on the transaction receipt or other transaction

documentation generated by Merchant’s point of sale system after reading the EMV chip or magnetic stripe on

such Card. If the numbers match, Merchant may request Authorization. If the numbers do not match, Merchant

should call the Voice Authorization Center, tell the operator “code 10,” and follow the instructions provided by

the Voice Authorization Center operator. Merchant should also verify that the transaction date falls within the

dates during which the Card is valid.

3.4 Cardholder Identification and Verification

Merchant should identify the Cardholder and check the expiration date and signature on each Card. Merchant

must not honor any Card if: (a) the Card has expired; (b) the signature on the sales draft does not correspond

with the signature on the Card; (c) the account number embossed on the Card does not match the account

number on the Card’s magnetic stripe (as printed in electronic form); or (d) the Card was declined as a result of

an Authorization attempt. Merchant may not require a Cardholder to provide personal information, such as a

home or business telephone number, a home or business address; or a driver license number as a condition for

honoring a Card unless permitted by Law and/or the Rules.

3.5 Authorization

Merchant will request an Authorization response for each transaction. Certain transaction and Card information

is sent through Payline and the applicable Card Brand to the Issuer. The transaction may be approved or

declined by the Issuer. Payline has no control over whether the Issuer approves or declines a Card for any

transaction.

Merchant will obtain an Authorization for total amount of each transaction prior to the submission of such

transaction to Payline for processing. Merchant will not submit for processing any transaction for which

Merchant has not received an approved Authorization response, and all transactions with approved

Authorization responses must be submitted by Merchant to Payline within twenty-four (24) hours of such

Authorization, or such other time period as allowed by the applicable Card Brand for that transaction type.

Merchant acknowledges that a positive Authorization response does not relieve Merchant of its obligation to

verify the validity and authorization of the Card and Cardholder, nor does it constitute a representation,

warranty, or guaranty that: (a) the Card is valid or unexpired; (b) the person presenting the Card is an authorized

Cardholder; (c) the transaction will be accepted; (d) the transaction is not fraudulent; or (e) that the transaction

will not be charged back. Merchant will follow all instructions received during the Authorization process. Upon

receipt of an Authorization approval Merchant may consummate only the transaction authorized and must note

on the sales draft the Authorization number. Where Authorization is obtained and a transaction is submitted for

processing, Merchant will be deemed to warrant to Payline and Bank that it has verified the identity of the

person presenting the Card as the Cardholder and matched the Card to such Cardholder.

The most common Authorization responses are:

• Approved: This response means the Issuer has approved the transaction. The approval should be

automatically noted on the printed receipt; however, if an electronic printer is not used, the

Authorization code should be hand written onto the receipt.

• Declined or Card Not Accepted: This response means the Issuer did not approve the transaction.

Merchant should not process or submit any transaction which falls in this category. Merchant should

quietly inform the Cardholder that the Card has been declined and request a different payment method.

Merchant should not attempt to reauthorize the Card or authorize the Card for a smaller amount.

Merchant may, however, suggest that the Cardholder contact the Issuer for more information.

• Call: This response means the sales associate must call the Voice Authorization Center and follow the

operator’s instructions. If the Cardholder inquires about the process, Merchant may inform the

Cardholder that a voice Authorization is necessary to protect against fraud. In connection with each call

to the Voice Authorization Center, Merchant should be prepared to provide the operator with the

Merchant identification number, Cardholder account number, amount of the sale, and the expiration date

on the Card.

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• Pickup: This response means the Issuer is requesting that the Merchant attempt to keep the Card rather

than return the Card to the Cardholder. Merchant should not, however, in any instance put themselves,

employees, customers, or any other person in danger; disturb the peace; or otherwise allow the situation

to escalate or turn violent.

If a response code is received which is not set forth above, Merchant should contact Payline or the Voice

Authorization Center for instructions on how to proceed. If an Authorization number is required, only use Voice

Authorization Center phone numbers provided directly to Merchant by Payline. Merchant should never use a

phone number provided by a Cardholder. If Merchant is ever unsure about the validity of a transaction or a

Card, Merchant should contact the Voice Authorization Center and state “code 10” to the operator. The operator

will assist Merchant with the transaction.

For debit transactions, a PIN may be required. Merchant should have the Cardholder enter the PIN on a PIN pad

that is compliant with all PCI Requirements and security requirements, including encryption requirements,

discussed in the security section of this Guide and in the Merchant Agreement. Signatures are not generally

required for PIN-debit transactions.

IMPORTANT: An “approved” Authorization does not guarantee that the Card is valid, that the transaction has

been authorized by the Cardholder, or that the transaction will not later be charged back. Merchant shall retain

all responsibility and liability associated with each transaction, even if such transaction has received an

“approved” Authorization response. Unless authorized by Payline in writing, Merchant shall only obtain an

Authorization for the full amount of the actual transaction (only select merchant types, such as hotels or car

rental businesses, are permitted to obtain Authorizations based on estimated amounts). Merchant shall not

request Authorizations for a small amount to check the status of a Card, and will be subject to misuse fees or

termination if Merchant does perform such status checks on Cards.

3.6 Receipt

Merchant should use an electronic printer to print the sales receipt and obtain the Cardholder’s signature on the

receipt. Merchant should retain a copy of each receipt and the related transaction documentation (but not

Personal Information) as protection against, and for use in, any dispute related to the transaction which may later

arise. Merchant should not modify a receipt or other transaction document after the transaction has been

completed.

Each receipt should be legibly imprinted with: (a) Merchant’s name, location and account number; (b) the

information embossed on the Card presented by the Cardholder (either electronically or manually, and truncated

if electronic); (c) the date of the transaction; (d) a brief description of the goods or services involved; (e) the

transaction Authorization number; (f) the total amount of the sale including any applicable taxes, or credit

transaction; and (g) adjacent to the signature line, a notation that all sales are final, if applicable.

Signatures. The signature on the receipt should be compared to the Cardholder’s signature on the Card. If the

signatures match, Merchant should return the Card and the Cardholder’s copy of the receipt. If the Cardholder’s

signature does not match the Cardholder’s signature on the Card and Merchant requests additional identification

information, such as a state issued driver’s license, Merchant should compare the name and signature on the

additional identification to those on the Card and receipt to evaluate if such signature matches. Also, if the

signatures do not match, or otherwise look suspicious, Merchant should ask for additional identification and call

the Voice Authorization Center to obtain further instruction before proceeding. If voice Authorization is used,

Merchant should handwrite the voice Authorization code provided onto both Merchant’s copy and Cardholder’s

copy of the transaction receipt. Note that signatures on receipts may not be required if the transaction receipt is

for less than certain dollar amounts, as permitted under the Rules.

Imprinting. If Merchant does not have a printer, Merchant may use an imprinter to create a transaction receipt

for an embossed Card. Merchant should place the Card face up on the imprinter and align the Card so that the

Card information and Merchant identification information will appear legibly on the sales draft. Move the

imprinter handle firmly across the transaction document and back. Verify that all imprinted information is

legible on all copies of the document. If any portion of the information is not visible or legible, destroy the

transaction document and use the imprinter to create a new one on which all information is visible and legible.

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Use a ball point pen to enter the date, description of the merchandise or services, sales amount, approval code,

tax, total, and the sales associate’s initials or identification number. Have the Cardholder sign the receipt and

verify that the signature on the receipt matches the signature on the Card.

Truncation. All account numbers and certain identification information displayed on a printed receipt may be

subject to truncation requirements. The Card Brands require the truncation of the majority of the Card number

and expiration date, and Laws requiring the truncation of information vary based on jurisdiction. Merchant will

truncate all information requiring truncation under the Rules and applicable Law.

Retention. Merchant will provide a copy of each receipt and all related transaction documentation to Payline

upon Payline’s request. Requests related to a transaction are typically referenced by the transaction date,

Cardholder account number, and/or the transaction reference number. Therefore, Payline recommends Merchant

sort and store the receipts and other transaction documentation using these metrics. Merchant will retain all

copies of such documentation for at least seven (7) years, or such longer period of time required by Bank,

Payline, a Card Brand, or Law. The Card Brand required retention timeframes vary by Card Brand and are set

forth in the Rules for each.

No Multiple Receipts. Merchant shall not prepare more than one sales draft for a single sale or for a single item

and shall include all items or goods and services purchased in a single Transaction in the total amount on a

single sales draft except: (a) for purchases in separate departments of a multiple department store; (b) for

installment payments; or (c) for delayed or amended charges governed by the Rules for travel and entertainment

merchants and transactions.

3.7 Fallbacks and Forced Transactions

If a Card is equipped with an EMV chip, the transaction should be processed using the EMV chip rather than

through the magnetic stripe or keying in the transaction information. In most situations, the Cardholder inserts

the Card into the chip reader, not Merchant.

If the chip reader on Merchant’s point of sale device cannot read the Card’s EMV chip, the terminal should first

fall back to reading the Card’s magnetic stripe. Only if the magnetic stripe cannot be read should Merchant fall

back to key entry.

If an Authorization for an EMV-enabled Card is declined by the Issuer, the transaction must not be processed by

any other means, including but not limited to processing the transaction using the Card’s magnetic stripe.

Merchant will not allow any secondary Card reads (swiping of a Card) after an EMV chip is used to authorize a

transaction.

Note that while damage to the Card’s chip or magnetic stripe can happen accidentally, unreadable Cards may

also be a sign that the Card is counterfeit or has been altered. Therefore, be wary of Cards which cannot be read

by a point of sale device or for which the Cardholder requests the Merchant to key in the Card information. Such

transactions are more likely to be fraudulent or unauthorized, and thus have a greater likelihood of being

charged back. Merchants are more likely to see declines for fallback transactions than for valid EMV chip

transactions.

Any transaction authorized by phone must be subsequently entered into the point of sale system for processing.

Merchant shall follow the process for submitting a forced transaction set forth in the operating manual for

Merchant’s point of sale system. Merchant should ensure its staff is trained to follow the prompts on the

terminal to avoid higher levels of key-entered transactions. Merchant should contact Payline if Merchant is

having trouble entering this information or if Merchant’s point of sale system is not operating properly.

If Merchant’s terminal is unable to read either the EMV chip or magnetic stripe on the Card, Merchant must

obtain a phone Authorization (either via voice or automated response service, both of which may carry

additional fees) and Merchant must obtain an imprint of the Card and also obtain the Cardholder’s signature on

the imprinted sales draft before presenting the sales draft for processing. Failure to perform these additional

actions may result in the assessment of transaction surcharges or a rejected transaction. The pricing for each

voice Authorization is set forth in the Merchant Application.

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3.8 Card Recovery

Merchant should use reasonable, best efforts and peaceful means to recover any Card if Merchant is advised by

Payline, Bank, the Issuer of the Card or the designated Voice Authorization Center to retain it, or if Merchant

has reasonable grounds to believe the Card is counterfeit, fraudulent or stolen, or not authorized by the

Cardholder.

IMPORTANT: The obligation or authority of Merchant to retain or recover a Card does not authorize a breach

of the peace or any injury to persons or property and Merchant will indemnify and hold Payline and Bank

harmless from any claim arising from any injury to a person or property, or other breach of the peace, in

connection with the retention or recovery of a Card.

4. CARD NOT PRESENT TRANSACTIONS

4.1 Card Not Present Background

All transactions which do not qualify as Card present transactions will be considered Card not present

transactions. Card not present transactions include mail order, telephone order, keyed, and e-commerce

transactions. Merchant will only accept and submit to Payline those Card not present transaction types which

Merchant has been approved by Payline to accept. Approval for all or certain types of Card not present

transactions is set forth on the Application, or will otherwise be conveyed to Merchant in writing by Payline.

If Merchant accepts both Card present and Card not present transactions, or if Merchant accepts more than one

type of Card not present transactions, Merchant will request from Payline one or more separate Merchant

identification numbers for use exclusively with each type of Card not present transaction. Merchant must clearly

identify each transaction by type, including identifying transactions which are e-commerce transactions.

4.2 Fraud Prevention

Merchant may, but is not required to (unless otherwise specified by Payline or required as part of a chargeback

reduction program) use verification of the Cardholder billing address or Card identification security features

(“CVV2” or “CVC2” or “CID”) to increase the likelihood that the Card is in the possession of the purchaser.

Certain Card Brands have additional online security tools to authenticate the Cardholder with their Issuer prior

to requesting an Authorization.

Merchant should pay special attention to orders that leave out important information, orders in which the billing

and shipping addresses do not match, unusually large and international orders, and other orders which appear

unusual or suspicious.

A substantial amount of fraud occurs in over-the-phone transactions. Merchant may want to avoid taking Card

numbers over the phone, if possible. For transactions involving the delivery of goods, Merchants should only

ship items to permanent addresses and avoid post office boxes, reception areas, or other areas in which tracking

becomes difficult if not impossible. For each transaction, Merchant should send to each Cardholder a copy of

the transaction receipt which is properly truncated.

IMPORTANT: Merchant understands that Card not present transactions tend to be higher risk transactions as

they are more likely to constitute fraud or be charged back. Merchant must follow the processes and procedures

related to each Card not present transaction set forth in this guide. Note that Merchant’s adherence to processes

and procedures set forth in this Guide will not relieve Merchant of any liability associated with any transaction,

including liability for any chargeback. Merchant’s adherence to this Guide will neither guarantee that any

transaction is valid or authorized, nor guarantee that any transaction will not result in a chargeback. Similarly,

any “approved” Authorization obtained in connection with a Card not present transaction does not guarantee

that the Card is valid, that the transaction has been authorized by the Cardholder, or that the transaction will not

later be charged back. Merchant shall retain all responsibility and liability associated with each transaction, even

if such transaction has received an “approved” Authorization response.

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4.3 E-commerce Transactions

In connection with any transaction processed through Merchant’s website, Merchant’s website must contain the

following information in a manner that is readily apparent and available to the Cardholder, along with any other

information required by Payline or by the Rules or applicable Law:

• Merchant’s address (including but not limited to country of domicile);

• a complete and accurate description of the goods and services offered;

• return and refund policy (which must also be displayed on the checkout screen, not on a separate

screen);

• Merchant’s privacy policy;

• the type and method of security used during the transaction process;

• contact information for Merchant’s customer service;

• applicable transaction currency;

• Merchant’s delivery policy; and

• the Card Brand marks, displayed in accordance with the Rules.

Merchant is advised to implement security measures associated with the acceptance of transactions through its

website, including but not limited to velocity limiters (to prevent any one person or IP address from attempting

more than a set number of transactions within a fixed time period), captchas (to verify that a person is engaging

in the transaction), Cardholder validation tools, transaction filtering metrics, transaction size limitations, and

security solutions offered by the Card Brands such as Verified by Visa, MasterCard SecureCode, 3-D Secure

software, or others.

4.4 Mail and Telephone Orders

With respect to each transaction conducted by mail or telephone, Merchant shall obtain the Cardholder’s name,

Card account number, and expiration date. Each of these shall be recorded on the transaction documentation.

Merchant shall also obtain the Cardholder’s billing address, zip code, and CVV2, CVC2, or CID. Merchant may

under no circumstances record or retain the CVV2, CVC2, or CID, and shall only use such information to obtain

an Authorization.

On the receipt or other transaction documentation, Merchant will identify the goods or services sold, the total

price for such goods or services, and whether the order is a mail order or telephone order. Merchant will not

submit any transaction until the goods or services are shipped or performed.

Merchant will not submit any transaction to Payline for processing which has not been authorized in writing (for

mail order) or verbally (for telephone orders) by the Cardholder. Merchant will not submit any transaction to

Payline if the Cardholder’s authorization for such transaction has been revoked.

Merchant will enter all such transaction information into Merchant’s point of sale equipment in accordance with

the operating manual for such point of sale equipment. Merchant will provide a copy of the transaction receipt to

the Cardholder. Each transaction receipt will contain the Cardholder’s name, Card number, Card expiration date,

total cash price, description of the goods and services; and indicate the type of transaction (such fields to be

truncated as appropriate under the Rules and applicable law). Merchant will keep a copy of the transaction

documentation for seven (7) years after the transaction date, or such longer period of time required by the Rules

or Payline’s policies.

4.5 Recurring Payments

A recurring payment is an arrangement under which the Cardholder authorizes Merchant to charge the

Cardholder’s Card for pre-authorized amounts and/or at pre-authorized times. Recurring payments may be set

up or authorized in person or in a Card not present environment, but all transactions associated with a recurring

payment will be considered Card not present. To the extent the amounts and/or times for a recurring payment

are not pre-authorized, Merchant will send the Cardholder a written statement or receipt setting forth the amount

of and due date of each payment at least thirty (30) days prior to the transaction date, or such longer period of

time required by the Rules or applicable Law.

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All requirements for a mail order/telephone order in this Guide must be met for each recurring payment.

Merchant must obtain from the Cardholder an order from with a written request for the goods or services to be

charged, which bears the Cardholders signature and the Cardholder’s authorization to charge the Card. The

phrase “recurring payment” must be displayed on the signature line of each recurring transaction receipt.

Merchant must retain the order form for at least the time during which the recurring services are provided and

for seven (7) years thereafter. The order forms used for recurring payments should specify:

• the transaction amount (unless the amount is variable and cannot be determined when the order form is

completed, in which case they will specify how the transaction amount is calculated);

• the frequency of the recurring charges; and

• the duration of time for which the Cardholder’s permission is granted.

With respect to each recurring transaction:

• a separate Authorization must be obtained;

• only authorized payment transactions resulting in “approval” Authorizations may be submitted (and no

transaction may be submitted after Cardholder authorization has been revoked);

• Merchant may not use the Card number except to submit the recurring payments;

• each recurring payment must be identified as such;

• each statement and transaction submission data must contain Merchant’s contact information in the

name or city field;

• the transaction receipt must contain the frequency and duration of the recurring payments; and

• if applicable, the payment must be identified as a bill payment in the transaction submission and

clearing process using the bill payment indicator.

Merchant may not do any of the following respect to recurring transactions:

• submit the transaction after the Cardholder has revoked authorization for such recurring payment;

• structure the recurring payment in a way which is confusing, or which, when at the time authorized, is

unclear to the Cardholder that a recurring payment is being authorized;

• charge a convenience fee;

• receive partial payment for goods or services purchased in a single transaction; or

• be submitted unless an “approved” Authorization code is received.

4.6 Future Delivery and Installment Transactions

Merchant may not present for processing any transaction representing a payment, partial payment or deposit for

goods or services to be delivered in the future, except with the prior written consent of Payline or as allowed

under the Rules and applicable Law. Unauthorized transactions for payment or partial payment of goods or

services to be delivered in the future may subject Merchant to penalties and/or assessments, and will be deemed

a breach of the Merchant Agreement.

If transactions for future delivery are authorized by Payline, Merchant must maintain sufficient working capital

to provide for the delivery of goods or services at the agreed-upon future date, independent of any credit or

proceeds resulting from the transaction, and Merchant may not rely on any proceeds or credit resulting from

such transactions to purchase or furnish goods or services. Merchant will complete and submit such transactions

only in accordance with the terms set forth in the Merchant Agreement, the Rules, and applicable Law.

Cardholders must obtain an Authorization for each payment, including a first transaction for paying a deposit

and a second transaction paying the balance of the amount due to Merchant. Merchant will indicate on the

transaction receipt the words “deposit” or “balance” as appropriate. Merchant may not submit a transaction or

receipt labeled “balance” until the goods have been delivered to Cardholder or Merchant has fully performed the

services.

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4.7 Health Care Transactions

Merchant will not submit preauthorized healthcare transactions or transactions involving any health savings plan

unless such transactions are submitted in accordance with the Rules and Merchant has provided Payline with at

least fifteen (15) days prior written notice that it will be submitting such transactions.

4.8 Receipts

Merchant must generate, retain a copy of, and provide to the Cardholder a copy of a transaction receipt for each

Card not present transaction. Each transaction receipt must include:

• Merchant’s name (including any DBA or other name for Merchant which is recognizable to the

Cardholder);

• the purchaser’s name;

• Merchant’s customer service contact information, including but not limited to a locally accessible phone

number;

• a description of the goods and services;

• the transaction amount;

• the transaction date;

• the transaction type;

• a transaction number;

• an Authorization code;

• Merchant’s return/refund policy;

• Merchant’s website address;

• if applicable, the date any free trial period ends;

• any terms and conditions associated with the transaction; and

• any applicable cancellation policies.

Merchant will truncate all information on the receipt which requires truncation in accordance with the Rules and

applicable Law. Merchant may not modify any receipt or other transaction document after the transaction has

been completed. Merchant should supply the Cardholder with a copy of the transaction receipt for each

transaction at the time the purchased goods are delivered or the services are performed.

5. AMERICAN EXPRESS

5.1 Rules

In addition to the other American Express Rules, Merchant must comply with the then-current American

Express Merchant Operating Guide, which sets forth certain American Express card acceptance criteria,

Merchant responsibilities, and other information relevant to the processing of American Express cards. The

American Express Merchant Operating Guide may be accessed through the American Express website or by

visiting: www.americanexpress.com/merchantopguide.

Merchant agrees that American Express is a third party beneficiary to the Agreement and this Guide, which

means American Express has no obligations under the Agreement or this Guide, but may enforce the terms of

the Agreement and this Guide against Merchant.

Merchant may opt out of accepting American Express cards at any time without directly or indirectly affecting

its rights to accept any other cards or payment methods. If requested by American Express or Payline’s third-

party providers, or if fraudulent or other harmful activity occurs, Payline may terminate a Merchant’s ability to

accept American Express cards without prior written notice to Merchant.

5.2 Settlement and Information Sharing

By accepting American Express cards, Merchant consents to the settlement of funds from such cards from

Payline or its vendors, and/or directly from American Express. Merchant also consents to Payline’s disclosure

of Merchant, Merchant’s transaction information and data, and all other information regarding Merchant to

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American Express. American Express may use such information to perform its obligations and services,

promote the American Express Network (as defined in the Rules), perform analytics, create reports, and any

other lawful business purpose, including without limitation commercial marketing purposes and transactional or

relationship communications. American Express may also use such information to screen and/or monitor

Merchant in connection with its marketing and administrative purposes.

Merchant may elect to opt out of receiving certain marketing messages from American Express by providing

written notice of such election to Payline. Merchant may continue to receive marketing communications while

American Express updates its records to reflect its choice. Opting out of commercial marketing

communications from American Express will not preclude Merchant from receiving important transactional or

relationship messages from American Express.

5.3 Conversion

If Merchant has estimated American Express charge volume greater than one million dollars ($1,000,000),

whether upon submission of the Merchant Application or anytime thereafter due to growth, with respect to

American Express transactions Merchant may be converted from the Agreement to a direct American Express

card acceptance relationship with American Express. Upon such conversion, Merchant will be bound by

American Express’ then-current card acceptance agreement and American Express will set the pricing and other

fees payable by Merchant for acceptance of American Express cards.

6. DATA SECURITY

6.1 Merchant Obligations

Merchant is solely responsible for adopting policies, procedures, tools, software, and practices necessary to

prevent the unauthorized access or use of Personal Information and other confidential information, including but

not limited to each Cardholder’s name, address, phone number, email address, Card number, and Card

expiration date.

Merchant agrees to adhere to the data security requirements of the Card Brands, including but not limited to

Visa’s Cardholder Information Security Program (detailed in the Visa Rules), MasterCard’s Site Data Protection

Program (detailed in the MasterCard Rules), and American Express’s Data Security Operating Policy, Data

Security Requirements, and Information Protection Contract Requirements (each as detailed in the American

Express Rules). Merchant shall fully comply with all PCI Requirements. Merchant shall ensure that all third-

party suppliers and vendors used by Merchant, and all software and equipment used by Merchant, fully comply

with PCI Requirements. Merchant will be liable for, and will fully indemnify, defend, and hold Payline and

Bank harmless against, any failure of Merchant or any third-party suppliers or vendors used by Merchant to

comply with the PCI Requirements (including without limitation against any fees, fines, penalties, or

assessments levied by any Card Brand).

6.2 Security Measures

Merchant shall design its systems with multiple security measures, such that if any one security measure fails all

data will remain protected under additional security measures and that such data will not be subject to

unauthorized access or use.

Merchant’s security measures must include, but are not limited to:

• using tools preventing internet sessions from being redirected to unauthorized websites;

• using strong encryption and cryptography methods;

• securing all communications between Merchant and the Cardholder;

• storing material containing Card information and account numbers, whether on paper or electronically,

in a secure area only accessible by selected personnel;

• ensuring databases containing Personal information are only accessible by authorized persons (note that

static passwords are not sufficient for this purpose);

• using multi-factor authentication techniques for the access of data;

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• not storing Card (or other financial transaction device) verification data subsequent to the authorization

of a transaction;

• not retaining full-track magnetic strip data subsequent to authorization;

• preventing users from entering or executing unrestricted database or system commands; and

• only originating customer support functions from secured computers on secured networks.

Merchant must, prior to accepting any transactions through electronic means or submitting any transaction to

Payline, and continuing as long as Merchant is using the Services:

• implement network access controls that prevent the systems holding Personal Information (or which

otherwise have access to Personal information) from being directly accessible from the internet;

• implement security measures to prevent the opening or running of emails or attachments from unknown

sources;

• test any software or equipment modifications prior to the implementation of such modification to ensure

the modification does not adversely affect any security measures in place;

• evaluate and test its hardware and software on a routine basis to evaluate the sufficiency of its data

security processes and procedures;

• install and maintain a working network firewall;

• keep all software and hardware current with security patches and firmware upgrades;

• encrypt stored data;

• encrypt transmission of Cardholder data;

• use up-to-date antivirus software;

• restrict access to data to those employees with a need to know such data;

• assign unique identification numbers to each user and track data access be each such user;

• update passwords to non-default and difficult to guess combinations of letters, numbers, and symbols;

• maintain and enforce a security policy; and

• restrict physical access to Cardholder information.

IMPORTANT: Adherence to the above security measures does may not constitute Merchant’s adherence to the

PCI Requirements, and such data security obligations, processes, and procedures are in addition to and not in

lieu of Merchant’s obligation to comply with all PCI Requirements. Merchant understands that Merchant’s

compliance with the security measures above and the PCI Requirements does not constitute a representation,

warranty, or guaranty with regard to the security or accessibility of Merchant’s systems, and that a data breach,

the unauthorized access or use of data, or the unauthorized access or use of the Services may still occur.

Merchant will be solely responsible and liable for any such data breach or the unauthorized access or use of data

or the Services.

Merchant must immediately report to Payline any actual or suspected data breach or other unauthorized access

or use of confidential information, transaction information, Card information, or other personally identifiable

information.

6.3 Truncation

Merchant will truncate all information produced, transmitted, held, or stored in accordance with the Rules and

applicable Laws, including but not limited to the truncation of the account number and the Card expiration date

on the Cardholder’s copy of each transaction receipt. Certain jurisdictions may require the truncation of the

account number and Card expiration date on the documentation and receipt copy retained by the Merchant. If

Merchant does business in such an area it must fully comply with such truncation Law.

6.4 Personal Information

Merchant will not access or use, nor allow any third party to access or use, any Cardholder’s account number,

other than Payline, Bank, and the Card Brands. Merchant shall only use those third-party service providers for

loyalty programs, fraud control programs, and other programs, products, and services which interface with, use,

or can access data from Merchant’s payment systems if such third-party service providers have been approved

by Payline in writing. To the extent any such third party is used, Merchant must ensure that Merchant

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contractually retains legal control of all Personal Information and all other confidential and payment information

and that such third party complies with all PCI Requirements (including registration with the Card Brands and

the installation and maintenance of such third party’s software or hardware by an appropriately registered and

licensed personnel).

Merchant may not for any reason, including but not limited to bankruptcy, insolvency, or other suspension of

business operations, sell, transfer, purchase, or otherwise exchange or disclose materials that contain Personal

Information, Card information, or other confidential payment information of any Cardholder. Notwithstanding

the foregoing, Merchant may disclose such information to Payline and Bank as necessary to complete a

transaction or comply with applicable Law.

Merchant should not list a Cardholder’s phone number, driver’s license number, or any other confidential

information on the transaction receipt (except to the extent required by the Agreement, this Guide, or the Rules)

and, to the extent Merchant’s collection of such Personal Information is permitted under the Merchant

Agreement, this Guide, and the Rules, it must be protected by Merchant from unauthorized access or use. All

documents containing Personal Information or other sensitive or confidential information must be securely

disposed of. This includes, but is not limited to, industrial grade shredding of all tangible documents containing

such Personal Information or confidential information and such other methods to ensure the information is

unreadable prior to discarding such information. Merchant will ensure that the account number or other Personal

Information or confidential information is not transmitted to the Cardholder over the internet or on the

transaction receipt, except to the extent required by the Agreement, this Guide, or the Rules.

6.5 Security Audits

Merchant must, within sixty days of the effective date of the Merchant Agreement, and annually thereafter, use

Payline’s security program or a Payline-approved third-party qualified security assessor to evaluate Merchant’s

compliance with security protocols and PCI Requirements. Merchant must promptly submit a copy of the

assessment results and certification of compliance to Payline. Merchant understands that such assessments and

compliance certificates are based largely on self-reported information and do not guarantee Merchant’s

compliance with the PCI Requirements. Merchant’s completion of such assessments or receipt of compliance

certificates do not constitute Merchant’s fulfillment of all of Merchant’s security obligations under this Guide.

Failing to complete such assessment or submit such certification will result in Merchant being assessed PCI

Non-Compliance fees as set forth in the Merchant Application.

6.6 Privacy Policy

If Merchant sells goods or services on the Internet, Merchant’s web site must contain Merchant’s consumer

privacy policy and a description of Merchant’s method of safeguarding consumer transaction data. Merchant

will ensure that its privacy policy enables Merchant to share payment information and other information with

Payline, Bank, Debit Sponsor, and the Card Brands as required under the Agreement, this Guide, and the Rules.

6.7 Passwords

If Merchant receives a password from Payline or Bank to access a transaction system or gateway, Merchant

shall: (a) keep the password confidential; (b) not allow any other entity or individual to use the password or gain

access to such systems; (c) be liable for all action taken by any user of the password; and (d) promptly notify

Payline and Bank if Merchant believes the confidentiality of Payline’s or Bank’s systems or Merchant’s

information (including the credential) has been compromised.

6.8 Confidential Information Treatment

Merchant is solely responsible for preventing the unauthorized access or use of all Confidential Information

which Merchant receives, processes, stores, transmits, or to which Merchant otherwise has access. Upon

termination of the Agreement, all information not required to be retained by Merchant under the Merchant

Agreement, this Guide, the Rules, or Law, must be returned to Payline or securely destroyed, and Merchant will

not retain any copies, reproductions, excerpts, or derivative works thereof. With respect to all Confidential

Information which merchant is required to maintain under the Merchant Agreement, this Guide, the Rules, or

the Law, Merchant’s confidentiality obligations set forth in the Merchant Agreement and this Guide shall

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survive termination of the Agreement and upon the expiration of Merchant’s obligation to maintain such

Confidential Information, Merchant will return or securely destroy such Confidential Information and will not

retain any copies, reproductions, excerpts, or derivative works thereof.

6.9 Trade Secrets

Payline and Bank, through the expenditure of a significant amount of time, effort, cost, and research, developed

and secured the right to use various computer programs, forms, logos, manuals, and related materials, which

constitute property of great value and trade secrets, and that disclosure to others of such materials may result in

loss and/or irreparable damage. Merchant further acknowledges that the system in its entirety constitutes a trade

secret which is revealed to Merchant in confidence. Accordingly, Merchant agrees to hold and use any and all

such property or information regarding the system in confidence, and not to disclose, reveal, copy, sell, transfer,

sub-license, assign, or distribute any part of it, in any form, to any individual, firm, corporation, or other entity,

nor permit any of its employees, agents, or representatives to do so, except as required to fulfill its obligations

under the Merchant Agreement or otherwise expressly permitted in writing by Payline or Bank. The Merchant

further agrees that upon termination of the Merchant Agreement for any reason, it will immediately return all

such property to Payline and/or Bank, as applicable. Pursuant to the Defend Trade Secrets Act of 2016, the

parties understand that an individual may not be held criminally or civilly liable under any federal or state trade

secret law for the disclosure of a trade secret that: (a) is made in confidence to a federal, state or local

government official, either directly or indirectly, or to an attorney; and solely for the purpose of reporting or

investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under

seal in a lawsuit or other proceeding.

7. AUDITS AND MONITORING

7.1 Finances

Merchant will, on an annual basis or more often upon Payline’s request, provide Payline with a copy of

Merchant’s most-recent financial statements (including accompanying notes and disclosures), tax returns, and

bank statements. If available, Merchant shall submit audited versions of its financial statements, provided that if

audited statements are not available Merchant will have its CEO and CFO (or equivalent) certify that such

statements are accurate, complete, prepared in accordance with U.S. Generally Accepted Accounting Principles,

and not misleading. Merchant will provide prior written notice to Payline of any event which will or could have

a material adverse effect on Merchant’s financial condition or ability to operate as far in advance as reasonably

possible under the circumstances. In all cases, Merchant will provide written notice to Payline upon such events

or circumstances, including any bankruptcy, receivership, insolvency, lawsuit, or any similar condition or action

by or against Merchant or its principals. Merchant will include Payline and Bank as creditors in the event of any

bankruptcy. The Merchant Agreement constitutes an executory contract to extend credit or financial

accommodations and cannot be assumed or assigned in the event of bankruptcy. In the event of Merchant’s

bankruptcy, Payline and Bank shall be entitled to suspend further performance under the Merchant Agreement.

7.2 Inquiries and Inspections

Merchant authorizes Payline, Bank, and their agents to perform background investigations and credit checks on

Merchant and its principals upon submission of the Merchant Application, any time during the term of the

Merchant Agreement, and after termination of the Merchant Agreement for as long as any amount is owed to

Payline or Bank. Merchant represents and warrants that it has obtained all authorizations, consents, and

approvals necessary to provide such authorization to Payline. Payline, Bank or their agents may, at any time and

without prior notice, inspect Merchant’s locations, business operations, systems, processes, procedures,

inventory, equipment, books, records, licenses, and security (“Records”) to ensure that Merchant is complying

with the Merchant Agreement, this Guide, and the Rules.

7.3 Audits

Merchant authorizes Payline, Bank and each Card Brand to, at any time, directly or through a third party, audit

Merchant’s Records to confirm Merchant’s compliance with the Merchant Agreement, the Rules, and applicable

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Laws. Merchant will allow Payline, Bank, and each Card Brand, or their designated representatives to access,

evaluate, inspect all Records and to make any copies of reproductions thereof as deemed appropriate by the

auditor.

7.4 Cooperation with Audits

Merchant will fully cooperate with Payline, Bank and each Card Brand, including in connection with any fraud

risk, illegal activity, or risk of loss identified by Payline, Bank or a Card Brand. Merchant shall fully cooperate

with all security investigations and audits conducted by Payline, Bank, the Card Brands, or other applicable

authorities (including without limitation governmental agencies) until completed. Merchant will take those

actions Payline, Bank or a Card Brand deem necessary to protect themselves, their members, and Cardholders.

Payline, Bank and the Card Brands will have no liability to Merchant for any action taken in good faith.

7.5 Information

Merchant shall keep a complete, well-documented file containing Merchant Records and copies of all

transaction receipts and other information required to be maintained by Merchant, including any information

connected to any investigation, for the term of the Merchant Agreement and at least seven (7) years thereafter,

unless required to previously destroy such information by Law or the Rules, in which case Merchant shall

securely retain such information for the maximum period of time allowed by Law and the Rules. Merchant

agrees to supply any Records, information, or other documents requested by Payline, Bank or a Card Brand to

such entity upon request, including but not limited to any transaction documentation, operational procedures,

financial statements, product details, and sales methods.

7.6 Monitoring

At sole discretion of Payline and Bank, if Merchant’s type of business is deemed a compliance risk, Bank or

Payline may enroll Merchant in a third-party risk monitoring service (“Monitoring Service”) at the sole expense

of Merchant. Merchant will either be notified in advance of underwriting approval of enrollment in Monitoring

Service and related expenses, or notified no less than 30 days in advance if Merchant has an open merchant

account with Payline and Bank. Refusal of Merchant to enroll in a Monitoring Service when mandated by

Payline or Bank may be cause for declining the Merchant Application or termination of the Merchant

Agreement.

8. ADDITIONAL POLICIES AND PROCEDURES

8.1 Third-Party Service Providers

Any third party used by Merchant in connection with any of the Services, or which otherwise has access to any

Personal Information or other Cardholder data must be registered with the Card Brands and comply with the

Rules. Merchant will use qualified integrators and resellers where required by the Rules. Merchant will not use

any third party which is not properly registered with the Card Brands. Further, Merchant assumes full

responsibility for, and all liability associated with or resulting from, the use of and the actions and omissions of

any third party used by Merchant, including liability for the actions, omissions, and data security of such third

party.

Merchant will ensure each third-party service provider it uses does not have access to any Card information,

Cardholder information, or Confidential Information unless: (a) such third party is properly registered with the

Card Brands; (b) such third party is compliant with all PCI Requirements; (c) Merchant has informed Payline of

its use of such third-party service provider; and (d) Payline has approved Merchant’s use of such third party.

Payline will not be obligated to accept or process transactions delivered by an unauthorized third-party service

provider. Payline’s approval of a third party for Merchant’s use will not: constitute a representation, warranty,

or guaranty with respect to such third party, including its suitability, services, performance, or compliance with

the Rules, PCI Requirements, or Law; or relieve Merchant of any responsibility or liability related to or arising

from such third party or the acts, omissions, or data security of such third party.

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8.2 Hold Period

Payline may at any time set or adjust the settlement holding period, which is the period of time Payline retains

the proceeds of Merchant’s submitted transactions prior to provisionally crediting the portions of amounts due to

Merchant into Merchant’s bank account. The hold period may be up to the full period of time during which any

transactional activity by Merchant: may be charged back by the Cardholder or Issuer; is subject to investigation;

or is subject to risk which may result in the proceeds being seized, contested, or otherwise not settled.

8.3 Payments

Merchant will ensure that its Account is at a financial institution which accepts ACH transactions, and that the

Account at all times has adequate funds to cover all amounts due to Payline and Bank, under the Merchant

Agreement or otherwise, including the amounts necessary to cover all fees, fines, assessments, and chargebacks.

Merchant will not modify or change the Account without providing at least thirty (30) days prior written notice

to Payline.

Payline may, at its sole discretion, deduct all amounts due from Merchant to Payline from the proceeds of

transactions submitted by Merchant, whether such amounts are due under the Merchant Agreement or any other

agreement, prior to the final settlement of such transaction proceeds. Alternatively, Payline may, at its sole

discretion, deposit all proceeds from transactions processed by Payline on behalf of Merchant into the Account

and withdraw from the Account those fees and other amounts due to Payline, whether such amounts are due

under the Merchant Agreement or any other agreement.

Payline and/or Bank may withhold settlement of the proceeds of any transaction from Merchant until all risk of

the transaction being charged back, contested, or reversed has expired, including instances where Payline or

Bank believes the transaction: (a) violates or may violate any Rule or Law; (b) is in violation of the Merchant

Agreement or this Guide; (c) is not a valid transaction; (d) is not submitted in accordance with Payline’s or

Bank’s protocols, specifications, and guidelines; (e) is likely to result in a chargeback, loss, penalty, fee, or fine;

(f) does not fall within the parameters set forth on the Merchant Application and for which Merchant has been

approved; (g) would cause Merchant to exceed the transaction count, gross volume amount, or transaction

volume amount limits established by Payline or Bank for Merchant; (h) is fraudulent or materially varies from

the transaction activity expected from Merchant; (i) does not result from an act between the Cardholder and the

Merchant; or (j) would exceed any other limitations or restrictions established for Merchant. All deposits of

transaction proceeds to the Account are provisional and may be revoked at any time by Payline and/or Bank

without notice to Merchant, including if Payline and/or Bank do not receive payment for such transaction or

such transaction is credited, charged back, disputed, or otherwise reversed by the Cardholder, Bank, the Issuer,

any Card Brand, or any other person or entity.

8.4 Chargebacks

Chargebacks are processed transactions disputed by the Cardholder or Issuer or otherwise reversed in

accordance with the Rules. Merchant is responsible for the amount of each chargeback and the chargeback fee

set forth in the Merchant Application, including any chargebacks resulting from transactions not being

performed in accordance with the Merchant Agreement or this Guide or in connection with goods or services

purchased with an altered terminal or other transaction device. This amount may, at Payline’s sole discretion,

be: withdrawn from the Account immediately or at the time of any future settlement; offset against transaction

proceeds or other amounts owed to Merchant; or deducted from any funds or collateral held by Payline or Bank

(including any reserve account). Merchant is solely responsible for resolving all disputes with a Cardholder, but

will comply with the Rules regarding contesting chargebacks and will not bring action against a Cardholder until

the chargeback dispute processes has concluded.

Merchants may rebut the chargeback through the Card Brand chargeback dispute procedures. To rebut a

chargeback, Merchant must provide sufficient documentation evidencing that the transaction was valid and

authorized. Any such rebuttal must be completed within the number of days set forth on the chargeback

notification. Payline will be unable to assist Merchant with the rebuttal of a chargeback if Merchant is unable to

provide the documentation or support requested or required in the rebuttal process to Payline within the

appropriate timeframes. Payline has no control over the outcome or decision determined through the chargeback

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dispute procedures and will have no liability or responsibility with regard to outcomes or decisions which are

unfavorable.

Merchants can decrease chargebacks by not: charging a Cardholder before fulfillment of the transaction;

accepting sales for a Card that has been declined; processing the same transaction more than once; accepting a

receipt without a signature; or splitting one transaction into smaller amounts to obtain Authorizations.

Merchant agrees to take all steps reasonably appropriate to minimize Cardholder disputes and chargebacks, and

Merchant will resolve all such Cardholder disputes and chargebacks directly with the Cardholder and/or through

the chargeback dispute resolution process set forth in the Rules. Merchant may be subject to fees, fines, or

penalties, placed on the MATCH list, or terminated if Merchant’s chargeback rates exceed thresholds set by the

Card Brands, Payline, or Bank from time-to-time.

8.5 Trademarks

The Rules require Merchant to properly display the Card Brand marks at its physical address or on its website,

as appropriate, to indicate that the Cards may be used for the purchase of services or goods from Merchant.

Merchant will use any signs or decals provided to Merchant by Payline. Payline may, but is not obligated to,

provide additional signs and decals upon Merchant’s request. Merchant will not use Payline’s trademarks or

other intellectual property rights without Payline’s prior written consent, to be granted or withheld by Payline in

its sole discretion on a case-by-case basis.

Merchant’s use of the Card Brand logos and trademarks must comply with the Rules and any current usage

standards, guidelines and policies issued by the Card Brands from time to time. Merchant will not use Card

Brand logos or trademarks in any way which appears to present the endorsement of Merchant or Merchant’s

goods or services by the Card Brands. Merchant may not refer to a Card Brand when stating eligibility

requirements for purchasing its products or services. Merchant must immediately cease all use of Payline’s and

the Card Brand’s logos and trademarks upon the earlier of termination of the Merchant Agreement or notice

from Payline, Bank, or the Card Brands revoking the right to use such logos and trademarks.

The rights to use Payline’s and the Card Brand’s logos and trademarks pursuant to the Merchant Agreement and

this Guide are provided pursuant to a limited, revocable license. No ownership interest or other rights in or to

any Payline or Card Brand logos and trademarks are transferred, granted, or otherwise provided to Merchant.

8.6 Signage

If required by Payline or the Rules, Merchants will prominently display signage provided by Payline in its

place(s) of business.

All promotional materials, advertising displays, signage, emblems, sales draft forms, credit memoranda and

other forms supplied to Merchant and not purchased by Merchant or consumed in use will remain the property

of Payline and will be immediately returned to Payline upon termination of the Merchant Agreement. Merchant

is fully liable for all loss, cost, and expense suffered or incurred by Payline arising out of the failure to return or

destroy such materials following termination.

8.7 Liability

Merchant is solely responsible and liable for each transaction submitted using Merchant’s equipment,

credentials, or merchant identification number, including any disputes, chargebacks, refunds, or other credits.

Merchant is also solely responsible and liable for all fees, fines, penalties, costs, assessments, investigations, and

other expenses associated with Merchant’s use of the Services, breach of the Merchant Agreement, or failure to

comply with any Rule, including but not limited to any attorney’s fees, court costs, administrative fees, Card

Brand assessments, governmental fines, and penalties, whether incurred by Merchant, Payline, or Bank.

Merchant will reimburse Payline for the time and internal costs incurred by Payline in handling or facilitating

any investigation, regulatory action, administrative proceeding, or other proceeding which results from or is

initiated in connection with Merchant or any transaction submitted by or on behalf of Merchant to Payline, at

Payline’s then-current hourly rate.

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In addition to the limitations on liability and disclaimers set forth in the Merchant Agreement, Payline and Bank

shall have no liability for, and Merchant waives any claims related to, any Service deficiency, delay,

interruption, or cessation which is caused by Merchant, any third party, an act of God, or is otherwise beyond

Payline’s or Bank’s reasonable control.

8.8 Card Brand Rights

In addition to the other Card Brand rights set forth in the Rules, Merchant understands and agrees that at any

time a Card Brand may temporarily or permanently prohibit Merchant or its owners, officers, partners,

proprietors, or employees from participating in the Card Brand networks. Card Brands may make any such

decision at their sole discretion, but such decisions typically result from: fraudulent activity; money or payment

laundering; repeated breach of the Rules; material breach of the Rules; or activity which is destructive or

harmful to a Card Brand network.

The Card Brands are third party beneficiaries of the Merchant Agreement and may: enforce the Merchant

Agreement and any of the Rules directly against Merchant; require Payline or Bank to terminate the Merchant

Agreement immediately and without cause, and Payline and Bank must comply with such requirement; or

revoke Merchants right to use or display such Card Brand’s name, logo, or other marks.

8.9 Insurance

Merchant will maintain reasonable insurance coverage based on its operations, size, and industry, including a

general liability policy, an errors and omissions policy, and a cyberinsurance policy. Merchant will provide a

copy of such insurance policies to Payline upon request. Payline or Bank may condition provision of the

Services, or continued provision of the Services, on Merchant’s obtaining and maintaining insurance policies

with those levels of coverage determined by Payline or Bank from time-to-time. Merchant will cause Payline

and Bank to be included as additional insureds in such policies.

8.10 IRS Withholding Regulations

Pursuant to Section 6050W of the Internal Revenue Code, merchant acquiring entities and third-party settlement

organizations are required to file an information return for each calendar year reporting all Card transactions and

third-party network transactions with payees occurring in that calendar year. Accordingly, Merchant will receive

a Form 1099-K reporting its gross transaction amounts for each calendar year. The Merchant’s gross transaction

amount refers to the gross dollar amount of the Card transactions processed through its merchant account with

Payline. In addition, amounts reportable under Section 6050W are subject to backup withholding requirements.

Payline will be required to perform backup withholding by deducting and withholding income tax from

reportable transactions if (a) Merchant fails to provide Merchant’s taxpayer identification number (TIN) to

Payline, or (b) if the IRS notifies Payline that the TIN (when matched with the name) provided by Merchant is

incorrect. Accordingly, to avoid backup withholding, it is very important that Merchant provide Payline with the

correct name and TIN that it uses when filing tax return that includes the transactions for its business. Payline

and Bank will not be liable for any amount withheld from Merchant in accordance with IRS regulations and

Merchant waives all claims against Payline and Bank in connection therewith. Merchant sole recourse with

regard to tax withholdings shall be against the IRS.

8.11 BIN Information

To the extent Payline provides Merchant with any BIN information or other product-identifying data of any

Card Brand, such information is solely for purposes of identifying Card product types at the point of sale.

Merchant may not use such information for any reason other than to identify Card product types at the point of

sale and for purposes of implementing acceptance practices permitted by the Rules. Merchant agrees that it will

not disclose any such information to any third party. Merchant shall treat BIN information as Confidential

Information.

8.12 Lodging and Vehicle Rental Transactions

For lodging and vehicle rental transactions, Merchant must estimate and obtain Authorization for the amount of

the transaction based upon the Cardholder’s intended length of stay or rental, and the Cardholder must be

informed of the dollar amount Merchant intends to pre-authorize. Additional Authorization(s) must be obtained

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and recorded for charges actually incurred in excess of the estimated amount. Regardless of the terms and

conditions of any written preauthorization form, the sales draft amount for any lodging or vehicle rental

transaction shall include only that portion of the sale, including any applicable taxes, evidencing a bona fide

rental of personal property by Merchant to the Cardholder and shall not include any consequential charges.

Nothing contained herein is intended to restrict Merchant from enforcing the terms and conditions of its

preauthorization form through means other than a Card transaction. It is the responsibility of the Merchant to

comply with the Rules inherent to the Lodging and Vehicle Rental MCCs.

9. EQUIPMENT AND SOFTWARE

9.1 Use of Equipment

Merchant will only accept Cards, submit transactions, and run its business using equipment or software which

is: (a) compatible with Payline’s systems; (b) acceptable to Payline and Bank; (c) compliant with all PCI

Requirements; and (d) meets all standards and requirements in the Rules and Laws. If Merchant elects to accept

debit transactions, Merchant will ensure that a point-of-sale terminal and pin-pad shall be available for use by

Cardholders which meet all technical specifications and requirements of Payline and Bank. Approval of any

equipment or software or Payline’s recommendation, referral, or provision of any equipment or software shall

not constitute a representation, warranty, or guaranty with respect to such equipment or software, including the

compliance, security, functionality, or fitness for a particular purpose of such equipment or software, and

Merchant’s use of such equipment or software is at Merchant’s sole risk.

9.2 Purchase of Equipment

If Merchant elects to purchase any point of sale device, terminal, or other equipment from Payline, Merchant

will enter into a separate purchase agreement with Payline setting for the terms of the purchase. All sales of

point of sale devices, terminals, and equipment from to Merchant by Payline shall be on an “as is” and “as

available” basis, and Payline disclaims all representations and warranties, express or implied, with regard to any

such equipment, including any implied warranty of merchantability, fitness for a particular purpose, error free

operation, security, or that the equipment will be compatible with Payline’s Services. Unless otherwise

designated in the purchase agreement, all sales will be deemed final and may not be returned by Merchant.

9.3 Lease of Equipment

If Merchant elects to lease or license any point of sale device, terminal, software, or other equipment from a

Payline, Merchant will enter into a separate agreement with Payline governing such lease or license.

9.4 Installation of Equipment

Merchant shall ensure all software and equipment is installed, set up, and configured only by authorized

personnel which are properly registered and certified with the Card Brands. Merchant will not allow any third

party to modify, repair, or otherwise access, physically or electronically, any software or equipment used by

Merchant in connection with the Services or the Merchant Agreement, or which would otherwise provide such

third party with access to Confidential Information, without Payline’s prior written consent.

10. DEBIT CARDS

10.1 Sponsorship

Debit Sponsor shall act as Merchant’s sponsor with respect to the participation of point-of-sale terminals owned,

controlled, and/or operated by Merchant in those Debit Networks supported by Payline, which may be changed

by Payline or Debit Sponsor from time to time in their sole discretion and without notice to Merchant. Merchant

may also have access to other Debit Networks that do not require a sponsor. Payline will provide Merchant with

the ability to access the Debit Networks using the appropriate terminals and equipment for the purpose of

authorizing debit card transactions from Cards issued by the respective Debit Networks. Payline will provide

connection to such Debit Networks, terminal applications, settlement, and reporting activities in accordance with

the terms of the Merchant Agreement.

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10.2 Participation

Merchant will execute and deliver any Merchant Application, Agreement, enrollment form, or other document

necessary to enable Debit Sponsor to act as sponsor for Merchant in each Debit Network. Merchant agrees to

utilize the debit card Services in accordance with the Merchant Agreement, its exhibits or attachments, and

Payline’s instructions and specifications, and to provide Payline with the necessary data in the proper format to

enable Payline to properly furnish the Services. The relevant and applicable portions of agreements, operating

regulations, and Rules may be accessed online or otherwise shall be made available to Merchant upon

Merchant’s reasonable request. Merchant shall not in any way indicate that Debit Sponsor endorses Merchant’s

activities, products, or services. Debit Sponsor and Merchant shall remain solely independent contractors of one

another.

10.3 Compliance

Payline and Debit Sponsor shall be excused from failing to transmit or delaying the processing of any

transaction which, in the exclusive opinion of Payline or Debit Sponsor, would result in the violation of any

present or future Law or Rule.

10.4 Payline and Debit Sponsor Rights

Payline and/or Debit Sponsor may, at any time terminate, the sponsorship of Merchant for participation in the

Debit Networks immediately and without notice to Merchant. During the term of the Merchant Agreement,

Payline or Debit Sponsor may assign Debit Sponsor’s rights and obligations hereunder to a third party.

Merchant agrees that Payline and Debit Sponsor’s enforcement rights under the Merchant Agreement and this

Guide with respect to Debit Sponsor’s sponsorship of Merchant under the Merchant Agreement will survive the

termination of Debit Sponsor’s sponsorship of Merchant. Debit Sponsor may assign its rights and obligations to

any parent, subsidiary, affiliate, or successor-in-interest without notice to Merchant. Debit Sponsor is a third

party beneficiary of the Merchant Agreement and this Guide, meaning Debit Sponsor has no obligations under

such documents but may, at its sole discretion, enforce such obligations against Merchant.

11. EBT TRANSACTIONS

11.1 Definitions

Capitalized terms used in this section and not otherwise defined in this Guide or in the Merchant Agreement

shall have the meanings ascribed them in the EBT Rules.

11.2 Issuance

Merchant agrees to issue EBT to Recipients in accordance with this Guide, the EBT Rules, and all

documentation and user guides provided to Merchant by Payline from time to time pursuant to the EBT Rules.

11.3 EBT Procedures

Merchant will provide each recipient a receipt of each Benefit issuance. Merchant will be solely responsible for

Merchant’s issuance of Benefits. Merchant agrees to comply with all Laws pertaining to the delivery of services

to Benefit Recipients and Benefit Recipient confidentiality. If Merchant issues food stamp Benefits under the

Merchant Agreement, Merchant represents and warrants to Payline that Merchant is an authorized “Merchant”

(as such term is defined in the EBT Rules) by the United States Department of Agriculture Food and Nutrition

Service (“FNS”) and is not currently suspended or disqualified by FNS. Merchant agrees to secure and maintain

at its own expense all necessary licenses, permits, franchises, or other authorities required to lawfully effect the

issuance and distribution of Benefits under the Merchant Agreement, including without limitation, any

applicable franchise tax certificate and non-governmental contractor’s certificate, and covenants that Merchant

will not issue Benefits at any time during which Merchant is not in compliance with the requirements of any

Law or EBT Rule.

11.4 Additional Indemnification

In addition to Merchant’s other indemnification obligations in the Merchant Agreement and this Guide,

Merchant agrees to indemnify, defend, and hold harmless Payline and its officers, employees, and agents from

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and against any fees, fines, costs of compliance, or other expenses arising from or in connection with the failure

of Merchant to comply with the EBT Rules, the unauthorized issuance of Benefits, any Benefit transactions

submitted by Merchant, or the actions or omissions of Merchant with respect to any Benefits.

11.5 Legal Process

With respect to any Transaction, action, or omission involving Benefits, if any of the terms of this Guide or the

Merchant Agreement are found to conflict with applicable Law or the EBT Rules, the Law and EBT Rules shall

control. Nothing contained in the Merchant Agreement shall preclude the State from commencing appropriate

administrative or legal action against Merchant or a party from making any referral for any action to any

appropriate federal, State, or local agency.

12. GUARANTY

12.1 Personal Guaranty

By signing as a guarantor on the Merchant Application, such person (“Guarantor”) jointly, severally,

irrevocably, and unconditionally guaranties the full and faithful performance and payment by Merchant of each

of its duties, obligations, and liabilities under the Agreement and this Guide (“Obligations”) as each may be

amended in accordance with its terms. This guaranty is a primary inducement for Service Providers to enter into

the Agreement, and Payline and Bank would not enter into this Agreement but for Guarantor’s guaranty.

12.2 Recourse

Payline and Bank shall have immediate recourse directly against Guarantor for the full and immediate payment

of all losses, fees, fines, penalties, lost profits, consequential damages, and any other expenses including but not

limited to attorney’s fees and court costs (“Losses”) resulting from any failure of Merchant to fulfill any of its

Obligations. No delay or stay in or with regard to any Obligation against Merchant due to the application of

bankruptcy, insolvency, or other law or proceeding will be effective under Guarantor’s guaranty, and Guarantor

agrees to immediately pay all Losses that would be due but for such delay or stay.

12.3 Status

Guarantor’s guaranty is one of payment and not of collection, and Guarantor agrees that Payline and Bank are

not obligated before seeking recourse against or receiving payment from Guarantor to do any of the following

(although Bank or Payline may do so, in whole or in part, at their sole option, the performance of which are

hereby unconditionally waved by Guarantor: (a) take any steps to enforce the Obligations or collect the Losses

from Merchant or to file a claim of any kind against Merchant; (b) take any steps to enforce, accept, perfect

Payline’s and Bank’s interest in, foreclose upon, or realize on any reserve account or other collateral security for

the payment of the Losses or any other guaranty of the Losses; or (c) in any other respect exercise any diligence

in enforcing the Obligations or collecting or attempting to collect the Losses by any means.

12.4 Liability

Guarantor’s liability for payment of the Losses shall be absolute, continuing, unconditional, unlimited, and

irrevocable, and nothing except final and full payment to Payline or Bank of all Losses, whenever occurring,

shall operate to discharge Guarantor’s liability under this guaranty. The obligations and liability of Guarantor

will continue notwithstanding any defect in the genuineness, validity, or enforceability of the Agreement or

Obligations, or any other circumstances which might otherwise constitute a legal or equitable discharge or

defense of the liabilities of a surety or guarantor or which might otherwise limit recourse against Guarantor.

Accordingly, Guarantor unconditionally, absolutely, and irrevocably waives each and every defense which

under principles of guaranty or suretyship law that would otherwise operate to impair or diminish the liability of

Guarantor for the Losses, including without limitation notice of acceptance of this guaranty and presentment,

demand, protest, notice of protest, dishonor, notice of dishonor, notice of default, notice of intent to accelerate or

demand payment of any Losses, diligence in collecting any Losses, and non-performance of the Agreement.

Guarantor acknowledges that Merchant’s execution of a separate agreement with Payline, Bank, or both, or any

other liquidation event does not nullify or otherwise effect or terminate Guarantor’s obligations under this

guaranty.

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12.5 Reinstatement

Guarantor acknowledges and agrees that if Payline or Bank shall at any time be required to return or restore to

Merchant or to any trustee, in bankruptcy or for any other reason, any payments made upon the Losses,

Guarantor’s guaranty shall continue in full force and effect or shall be fully reinstated as the case may be, and

Guarantor’s obligation to Payline and Bank under this guaranty shall be increased by the amount of (a) any such

payments upon the Losses as Payline or Bank shall be obliged to return or restore, (b) Losses applicable to any

such payments, and (c) interest on the amounts set forth in sections 12.5(a) and 12.5(b) at a rate equal to the

lesser of one and a half percent (1.5%) per month or the maximum rate allowed by law, accruing from the dates

the payments upon the Losses were originally made.

12.6 Status

In the event that Guarantor becomes obligated to pay any sums to Merchant or its successors or assigns, or in the

event that Merchant or any of its successors or assigns is now or hereafter becomes indebted to Guarantor

(collectively, "Debt"), the Debt will at all times be subordinate as to lien, payment and all other respects, to the

Losses, and Guarantor will not, among other things, accept any payment from Merchant or its successors or

assigns with respect to the Debt without Payline’s prior written consent. Furthermore, until all Losses are

indefeasibly paid in full and in cash, Guarantor hereby absolutely, irrevocably and unconditionally waives all

rights Guarantor may have, at law or in equity, to seek or claim subrogation. Payline and Bank have no duty to

enforce or protect any rights which Guarantor may have against Merchant or any other person and Guarantor

assumes full responsibility for enforcing and protecting such rights.

12.7 Representations and Warranties

Guarantor represents, warrants, and covenants to Payline and Bank that: (a) Guarantor has completely read and

understands the Merchant Application, Merchant Agreement, and this Guide, and agrees to all those portions

which apply to Guarantor; (b) any financial statements of Guarantor furnished to Payline are true and correct

and include all contingent liabilities of Guarantor; (c) if Guarantor’s financial statements were furnished to

Payline, since the date such financial statements were furnished to Payline no material adverse change has

occurred in the financial condition of Guarantor; (d) there are no pending or threatened legal proceedings or

judgments against Guarantor and no federal or state tax liens have been filed or threatened against Guarantor;

and (e) Guarantor is not in default or claimed default under any agreement.

12.8 Additional Terms

This guaranty by Guarantor shall inure to the benefit of Payline, Bank, and their successors and assigns. This

guaranty shall be binding upon Guarantor and his respective heirs, successors, and personal representatives.

Guarantor may not assign any obligations under this guaranty.

Guarantor agrees to pay all of Payline’s and Bank’s costs incurred in enforcement of or collection under this

guaranty and the Merchant Agreement, including, without limitation, reasonable attorney’s fees and expenses.

All rights, powers, and remedies of Payline and Bank hereunder and under the Merchant Agreement are

cumulative and not alternative and shall be in addition to all rights, powers and remedies given to Payline and

Bank by law and by agreement.

This guaranty by Guarantor is freely and voluntarily given to Payline and Bank by Guarantor, without duress or

coercion, and after Guarantor has either consulted with competent legal counsel or has been given an

opportunity to do so. Guarantor will immediately give Payline notice of any material adverse change in

Guarantor’s financial condition. Guarantor will not, until all Obligations have been fulfilled and all Losses have

been paid in full, make any voluntary transfer of any of Guarantor’s assets which would have the effect of

materially diminishing Guarantor’s present net worth.

This guaranty and any litigation between the parties (whether grounded in contract, tort, statute, law or equity)

with respect to this guaranty shall be governed by, construed in accordance with, and interpreted pursuant to the

laws of the State of Illinois, without giving effect to its choice of laws principles. Guarantor irrevocably submits

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to the exclusive jurisdiction of the state and federal courts sitting in Cook County, Illinois for the purposes of

any suit, action, or other proceeding arising out of or relating to this guaranty or any transactions contemplated

hereby. Guarantor waives any defense of improper venue or inconvenient forum to the maintenance of action or

proceeding brought in such forum. Guarantor hereby waives the right to a jury trial with respect to any action or

claim arising out of any dispute in connection with this guaranty and any rights or obligations hereunder or the

performance of such rights and obligations.

Any notice required from one party to another relating to this guaranty shall be deemed effective if made in

writing and delivered to Payline at the address set forth on the first page of this Guide, or to Guarantor at the

address indicated next to Guarantor’s signature, by any of the following means: hand delivery; registered or

certified mail, postage prepaid; express mail or other overnight courier service; or telecopy, telex or other wire

transmission with request for assurance of receipt in a manner typical with respect to communications of that

type. Notices made in accordance with these provisions shall be deemed delivered on receipt if delivered by

hand or wire transmission during normal business hours or on the next business day if delivered after normal

business hours, on the third business day after mailing if mailed by registered or certified mail, or on the next

business day after mailing or deposit with the postal service or an overnight courier service if delivered by

express mail or overnight courier.

If any provision of this guaranty or any agreement or instrument executed in connection with this guaranty is

determined to be invalid, illegal or unenforceable, such provision shall be enforced to the fullest extent

permitted by applicable law, and the validity, legality and enforceability of the remaining provisions will not in

any way be affected or impaired.