• Use a terminal or third party terminal provider service that truncates the card expiration date and all but the last 4 digits of the card number on the cardholder copy of the receipt. Note: The merchant copy of receipt bearing signature may display full account number and expiration date.
• Store all materials containing cardholder account information in a restricted/secure area
• Limit access to sales drafts, reports, or other sources of cardholder data to your employees on a "need to know" basis
• Render materials containing cardholder account information unreadable prior to discarding
• Retain legal control over cardholder transaction data and personal cardholder information if you use a third-party
• Limit access to The Payment Exchange systems requiring unique operator log-in and notify The Payment Exchange immediately of staff terminations or changes
• Immediately notify The Payment Exchange Risk Management of any suspected or confirmed loss or theft of materials or records that contain account information retained by merchant or its third party
• Immediately notify The Payment Exchange of the use of an agent or third party provider not identified on the Merchant Application
• Communicate these requirements to your third party provider and/or third party terminal provider, and direct them to card association information, publications, and/or Web sites regarding safeguarding cardholder transaction data
• Require your third party provider to adhere to all CISP, AIS, and MasterCard data security requirements
• Retain sales drafts for 18 months
• Display proper signage.

• Process cash advance transactions unless you are a financial institution approved to do so through your merchant account
• Assign a minimum or maximum purchase amount
• Add a surcharge or fee
• Restrict bankcard use (for a sale or discounted item)
• Use a bankcard to guarantee a check
• List a cardholder's personal information on a bankcard sales slip (unless the authorization operator requests it)
• Record CVV2/CVC2/CID on sales draft (only the one-digit result code can be recorded or retained)
• Retain sensitive cardholder data if expressly prohibited, including complete contents of a card's magnetic stripe (subsequent to the authorization)
• Sell, transfer, or otherwise disclose cardholder account information or personal information. (This information should be released only to The Payment Exchange or Member, or as specifically required by law. If you want to participate in a loyalty program, the loyalty vendor must be CISP certified by Visa and implemented in accordance with processes and procedures.)
• Deny a transaction because the cardholder refuses to provide you additional identification such as telephone number, address, social security number, or driver's license
• Use any other telephone number other than the official number provided for authorization of a transaction.

Although credit and debit cards offer one of the simplest, most risk-free forms of payment in existence today, there are some guidelines and precautions that you should consider to help prevent inaccurate or fraudulent transactions.

Month-End Settlement Adjustments

The Payment Exchange normally debits month-end fees from your deposit account during the first week of every month. One way to ensure that sufficient funds exist in your bank account to cover chargeback's or reversals and discount fees is by keeping an amount equal to your average monthly discount range on deposit in your account. When planning for the possibility of chargeback's, a good rule of thumb is to keep at least twice your average ticket amount in your account.

Draft Laundering or Factoring

Depositing drafts belonging to another business is in violation of your The Payment Exchange Merchant Agreement and is against the law in many states. "Helping out" another merchant who offers to pay you a fee or commission by depositing his/her MasterCard or Visa drafts in your account can be very dangerous and is strictly prohibited. The transactions are often questionable or even fraudulent. Schemes such as this are often referred to as "draft laundering" or "factoring" and typically result in a flood of chargeback's. It could cause automatic funds reversal from your bank account. Remember, the merchant who deposits another merchant's drafts is ultimately legally responsible for any problems resulting from the deposit.

We want to help protect you from this dangerous fraud scheme and the potential devastating losses. Draft laundering will likely result in the termination of your card acceptance privileges. We urge you to educate your staff about this serious problem and report third party draft laundering propositions to The Payment Exchange and to the U.S. Secret Service immediately.

Charge Restrictions

Please realize that MasterCard and Visa regulations prohibit assigning a minimum or a maximum purchase amount or adding a surcharge to credit card transactions. Regulations also prohibit the use of credit cards for cash advances, collection of bad debt (e.g., returned checks), or damages, theft, etc.

Charge customers typically spend more than cash customers because of the available line of credit and the purchasing freedom credit cards represent. Encouraging patronage and not penalizing customers for paying with a credit card makes good business sense. If you feel strongly about compensating your cash customers for the discount fee you pay on charge purchases, you may want to consider offering a cash discount. Adding a surcharge to credit transactions is against the law in many states and violates Visa and MasterCard rules.

Protecting Cardholder Privacy

Both customers and merchants often overlook the fact that the addition of personal or confidential cardholder information on the credit card draft can open the door to fraud or other criminal activity. New MasterCard and Visa regulations prohibit listing the cardholder's personal information on the credit card draft, and require that the card expiration date be suppressed and the account number be truncated on the cardholder copy of electronically printed receipts.

Keep cardholder numbers and personal information confidential. This information should be released only to your merchant bank or processor, as specifically required by law, or in response to a government request. Safeguard your customers by ensuring that you provide confidential cardholder information only to authorized sources. You must have written agreements with a provider supported by The Payment Exchange for loyalty program or fraud control services.

You must not request or use account number information for any purpose the cardholder did not authorize or that may be fraudulent. If you accept other card types (American Express, Diners, Discover, JCB, etc.) you may release transaction information to them as required.

You must not sell, transfer, purchase, provide, exchange or in any manner disclose account number information, a cardholder's name, or other personal information, even in the event of failure or other suspension of business operations. This prohibition applies to card imprints, transaction receipts, carbon copies, mailing lists, tapes, or other media obtained as a result of a card transaction. The card association penalty for noncompliance is up to US $50,000.

If you use a third party terminal provider and they have access to cardholder account information, then your agreement with them must indicate that you retain legal control of the data. If information can be accessed over the Internet, then adequate controls must be adhered to and a third party security audit may be necessary. If cardholder transaction data or personal cardholder information is compromised, card association penalties for noncompliance will be assessed.

Never retain or store the:

• Complete contents of a card's magnetic stripe (subsequent to the authorization)
• CVV2, CVC2, or CID (American Express and Discover) card validation code numbers
• Listing cardholder information, such as a phone number, driver's license or social security number, on the charge draft is unnecessary and discouraged. If you are suspicious that the transaction is not valid, do not hesitate to ask for additional identification -- preferably a photo ID. If you must list the identifying data, write it elsewhere (such as your copy of the sales receipt) rather than on the charge draft where vulnerable account number information is printed.

Thousands of dollars worth of damage can be done with only a few pieces of personal information. Keeping a cardholder's information confidential is a service that your customers will appreciate.

Proper Display of Signage

When you agree to accept Visa or MasterCard at your place of business or Web site, you should display the proper signage to indicate that service is available. Visa and MasterCard require that you clearly display signs at the point of sale. Use the sign and decals included in your merchant welcome kit. (See "Supplies" section for information on ordering additional signs and window decals.)

In order to properly address chargeback issues, merchants must retain signed copies of sales drafts bearing cardholder signature to address cardholder inquiries and requests for copies. The Payment Exchange requires retention for 18 months of your MasterCard and Visa transactions. The original draft or a legible copy should be stored for 18 months from the date you were paid for the transaction.

Stored sales drafts and other transaction data should be safeguarded, with limited access. Merchants must keep all systems and media containing cardholder, account or transaction information (whether physical or electronic) in a restricted, secure manner so as to prevent access by or disclosure to any unauthorized party. At the end of the 18-month retention period, transaction data such as sales drafts, reports, and other media with cardholder account data must be rendered unreadable prior to being discarded. If you have PC access to transaction information, then you must not dispose of the PC until information has been rendered unreadable or has been shredded.

You should always keep complete records for all credit card transactions for chargeback requests. Do not store sales drafts in alphabetical order by customer, as the cardholder name is not part of the retrieval request record. We recommend using a storage system that is sorted chronologically by date, and then by cardholder account number.

• Store policy is to request it for all payment methods including checks and cash. You cannot make providing information a condition of the sale, unless local laws allow it
• You need this information to deliver an order
• The authorization operator specifically requests you obtain it
• The card is not signed and you must have the cardholder sign it and check the signature against another piece of identification.

• The customer does not have the actual bankcard
• The card appears to have been altered or tampered with
• Authorization is declined, or you're told to pickup the card
• The signatures do not match

Electronic Data Capture (EDC) merchants use a terminal or other electronic device (e.g., cash register or PC) to authorize and settle their transactions. Using EDC is preferable to using paper drafts since an electronic record of your credit and debit card transactions is maintained throughout the business day.

The terminal can be used to validate your totals before settling at the end of the day. If you currently do not use Electronic Data Capture, contact The Payment Exchange for information on how you can improve your business with newer, more effective technology.

Completing an Electronic Transaction

It is very important to complete a transaction accurately and fully. The quality of the transaction is critical to your business's financial success and your customer's satisfaction.

There are six steps to complete an electronic transaction:

1. Make sure the card is valid
2. Swipe the card
3. Compare account numbers
4. Request authorization
5. Print the sales draft
6. Obtain and compare signatures

Step 1 - Determining Card Validity

Follow these steps to make sure the card is valid:

Visa Cards

Embossed account number begins with 4. All digits must be clear, even, and the same size/shape. A three-dimensional dove hologram appears to move on the label as you rotate or tilt the card. The last raised card numbers appear on top of the hologram. Four-digit number must be printed directly below the embossed account number. This printed number should match exactly with the first four digits of the account number.

The flying "V" is an embossed security character beside the "Good Through" date. If the V is not italicized or is missing, the card is counterfeit.

The signature panel should be white with the word "Visa" repeated in a diagonal pattern in blue and gold print. The words "Authorized Signature" and "Not Valid Unless Signed" must appear above, below, or beside the signature panel.

CVV2, the three-digit value code printed on the signature panel after the full or truncated account number helps mail order, telephone, and Internet order merchants validate that the customer has a Visa card and that the card account is legitimate.

MasterCard Cards

All MasterCard account numbers begin with a 5. The embossing should be clear and uniform in size and spacing. The MasterCard logo may appear on the front or the back of the card along with a hologram. Whether on the front or back of the card, a hologram with interlocking globes showing the continents should appear three-dimensional and move when the card is tilted. The word "MasterCard" will appear in the background of the hologram. The letters "MC" are micro-engraved around the two rings.

A four-digit number may be pre-printed on the card. It must match the first four digits of the embossed account number.

MasterCard cards have a stylized "MC" embossed on the line next to the valid dates. The word "MasterCard" is printed in multi-colors at a 45-degree angle on a tamper-evident signature panel on the back of the card. All or a portion of the 16-digit account number is indent printed in reverse italics on the signature panel and is followed by a 3-digit card validation code (CVC2).

The card must not be physically altered in any way. The transaction must fall between the effective date and the card's expiration date. If the current date is not within the specified range, do not accept the card. Follow the terminal authorization procedures as described in your The Payment Exchange Quick Reference Guide.

American Express Cards

See the American Express Fraud Prevention Handbook online at: www.AmericanExpress.com

Discover Cards

Please refer to your Discover Business Services "Merchant Operating Regulations."

Step 2 - Swiping the Card

• Swipe the card to request the transaction authorization
• Hold the card through the entire transaction
• Avoid sliding the card back and forth
• Slide the card only once unless prompted to do otherwise by the device
• Press clear before sliding another card
• Use the manual or call the help desk if the system develops problems.

Step 3 - Compare Account Numbers

While the transaction is being processed, check the card's features and security elements to make sure the card is valid and has not been altered. Compare account numbers displayed on the terminal or printed on the sales draft to the embossed number on the customer's card. If the numbers match, enter the amount of the transaction into the terminal and request authorization. If the numbers do not match, call the authorization center and say, "Code l0." Follow the instructions the operator gives over the telephone.

Most point of sale devices have the ability to perform fraud controls. This functionality will help in identifying potentially counterfeit credit cards, and assist in avoiding potential chargeback losses to your merchant account. If the controls are 'on,' you will be prompted to input the last four digits of the card number after initially swiping the card. If there are no issues identified, the transaction will proceed as normal. If there is a possible problem, the point of sale device will display a 'mismatch' message (see "Request Authorization" below). If you would like to know more about these controls, please contact your point of sale help desk.

Step 4 - Request Authorization

In the authorization process, the issuer approves or declines a transaction. In most cases, transactions are quickly processed electronically. However, to protect against fraud, the issuer may request information about the transaction. Typically, the authorization process is quick and easy, taking just a few seconds. Ninety-five percent of all authorization requests are approved. When requesting authorization, you may receive one of the following or similarly worded responses:

• Approved: This response means the issuer approves the transaction. If you have a terminal printer, the approval is noted automatically. If you do not have a terminal printer, write the authorization code clearly on the sales receipt.
• Declined or Card Not Accepted: Issuer does not approve the transaction. Do not process this transaction. Quietly inform the cardholder that the card has been declined. Ask if the cardholder would prefer to use an alternative form of payment. Do not attempt to authorize for lower amounts.
• Call or Call Center, or Referral: This means that the issuer wants the associate to call. Call the Voice Authorization Center and follow the operator's instructions. Most of these transactions are authorized, and you may want to inform the cardholder this is to protect against fraud.
• Pickup: Means that the issuer wants the sales associate to keep the card. If you can, try to retain the card; however, never put yourself in any danger.
• Mismatch: When using the available fraud control features (see "Available Fraud Controls" above), if the 4 digits that were entered do not match the information imbedded on the magnetic stripe, this message appears. Start the transaction again, reentering the 4 digits as requested. If the message appears again, the card is potentially counterfeit or fraud. In this case, follow Code 10 procedures, and do not accept the card as a form of payment. Note: Obtaining an authorization does not guarantee against chargeback's.

Step 5 - Print the Sales Draft

Follow these steps if you are using a printer:

• Have the cardholder sign the printer-generated sales draft.
• Compare the signature on the sales draft with the signature on the back of the card. Make sure that the signatures match.
• If the signatures match, hand the cardholder the customer copy of the sales draft and return the card. Your sale is now complete.
• If the signature looks suspicious, or if you are suspicious about the card, call your voice authorization center and request a Code 10 authorization. You must also take a manual imprint of the sale.
• If the display on the terminal is CALL, call the voice authorization center. When the authorization operator answers, give the following information: -    Bank Identification Number
  -    Your Merchant Identification Number
  -    Cardholder Account Number
  -    Amount of Sale (dollars and cents)
  -    Expiration date on the card
  • Write the authorization code on the provided space on the sales draft.

Note: All transactions authorized by phone need to be re-entered into your terminal in order to be electronically deposited. Follow the terminal procedures for Force Transactions (sometimes also referred to as "Post Authorization"), located in your The Payment Exchange Quick Reference Processing Guide. Remember to imprint and fully complete a sales slip for all sales that are forced into the terminal. If the terminal is out of order, please contact the Terminal Help Desk. To reduce your risk of incurring a chargeback on a fraudulent card, when receiving a referral response, the issuing bank requests an authorization through a voice operator. Contact the voice authorization center and speak directly to an operator.

Do not use the Automated Response Unit (ARU) on these voice referral transactions.

If a terminal swipe is unsuccessful, you must obtain an imprint of the card on a standard sales draft. Complete the sales draft (including a cardholder signature) and attach a copy to the printer-generated draft for your records.

Follow these steps if your terminal is not connected to a printer:

• Place the card on the imprinter face up. Make sure the card is properly positioned so that all information embossed on the card and your merchant identification plate will be legible on the sales draft.
• Place the sales draft face up over the card in the imprinter, making sure that the imprinter's guides hold the draft properly.
• Move the imprinter handle completely across the draft with a quick, firm motion, and return the handle to its original position.
• Be sure that the imprinted information is legible on ALL copies of the draft. If not, print the complete information above (not over) the imprinted information. Note: Truncation mandates do not apply to manual card imprints, only to electronically printed cardholder receipts.
• Use a ball point pen (not a soft felt tip), to enter the date, description of merchandise or services, sales amount, approval code, tax, total and clerk's initials on the draft.
• Have the cardholder sign the sales draft.
• Compare the signature on the sales draft with the signature on the back of the card. The signatures must match.
• Hand the cardholder the customer copy of the sales draft and return the card to them. Your sale is now complete.

All transactions authorized by phone need to be re-entered into your terminal in order to be electronically deposited. Follow the instructions in your terminal procedures for Force Transactions, located in your The Payment Exchange Quick Reference Processing Guide. Remember to imprint and fully complete a sales slip for all sales that are forced into the terminal. If the terminal is out of order, contact the Terminal Help Desk.

Step 6 - Obtain and Compare Signature

Have the cardholder sign the draft. Compare the signatures on the card and the draft. If the two match, return the card with the copy of the draft. If they don't match ask for additional information, such as a driver's license or another credit card and call voice authorization center for instructions.

If there is no signature, ask for additional information. Have the cardholder sign the card, and then compare the signature to a signature on the government-issued ID (such as a driver's license). Retain a copy of the sales draft for your records and for protection against possible disputes.

The Payment Exchange supports Electronic Benefits Transfer (EBT) processing because we recognize the value to merchants and their customers. Accepting an EBT card at the Point of Sale is similar to accepting other electronic payment card types. EBT transactions are PIN-based, just like debit cards.

An EBT card is a magnetic striped plastic card that electronically delivers Federal/ State funded Food Stamps and Cash Benefits to qualified EBT recipients. An EBT card electronically replaces paper food stamps and unemployment insurance checks, as well as other cash benefits. It eliminates paper processing of food stamps, making it more efficient. It is of similar size and appearance as other types of payment cards, so that the user does not feel awkward.

The EBT card has dual capabilities in a retail environment. An EBT Food Stamp customer is able to purchase eligible food items from grocery and convenience stores. The EBT card can also be used like a debit card for cash benefits. The user can pay for goods and services, as well as receive cash back from participating merchants.

Merchants are prohibited by card association rules from billing consumers a fee for using a credit card. This is considered surcharging. The prohibition on surcharging ensures that credit cardholders are not discriminated against at the point-of-sale. However, discounts on cash purchases are permitted. Also, surcharging is different from a situation in which particular business cases (i.e. government or schools) may warrant imposition of a convenience fee for utilization of specific alternative payment modes, such as Internet and telephone.

The card associations have found that convenience fees are a barrier to card acceptance and various requirements have been established by the card associations. The requirements vary by card association and these guidelines and best practices are based on acceptance of all card brands.

A merchant that charges a convenience fee must ensure that the fee is:

• Charged for a bona fide convenience in the form of an alternative payment channel (i.e. Internet payments, IVR payments) outside the merchant's customary payment channels
• Disclosed to the Cardholder as a charge for the alternative payment channel convenience.
• Added only to a non face-to-face transaction
• A flat or fixed amount, regardless of the value of the payment due
• Applicable to all forms of payment accepted in the alternative payment channel
• Disclosed prior to the completion of the transaction and the cardholder is given the opportunity to cancel
• Included as a part of the total amount of the transaction.

Imposing a convenience fee has been found by the card associations to impede consumer credit card payments, so be aware of the potential for changes to current policy and procedures.

Effective April 2005, a special Visa program is being launched for registered Utility MCC 4900 merchants who affirm they will abstain from charging convenience fees associated with bill payments.

A percentage-based fee is permitted ONLY for consumer tax payments. This is a pilot program available at this time for registered merchants only if the merchant or their third party servicer has demonstrated compliance with Payment Card Industry Data Security Standards (PCI DSS).

In the normal course of business, the card associations do not monitor other merchant fees that are uniformly applied to all payment types, such as shipping and handling fees or student registration fees, since they do not discriminate or limit card acceptance.

Some merchants, such as ticket sellers and travel agents, may charge consumers for costs associated with the value-added services they provide and the merchant name and other transaction data must indicate the merchant of record. Businesses that facilitate credit card payments for other merchants are subject to additional requirements and require registration and interaction between The Payment Exchange and the Card Association.

Note:

The requirement for an alternate payment channel means that MOTO and electronic commerce merchants whose payment channels are exclusively non face-to-face may NOT impose a Convenience Fee. A merchant who accepts face-to-face payments is not required to accept cards through this payment channel to meet the above requirement.

A chargeback is a previous transaction that is being disputed by the cardholder or their issuing institution. A chargeback occurs when a cardholder disputes a charge or when proper bankcard acceptance and authorization procedures were not followed. If you receive a chargeback, your deposit account is debited for the indicated amount. In addition to the chargeback, you may incur a $50.00 fee if you failed to follow card acceptance and authorization procedures. Reasons for chargeback's include a cardholder dispute or an error in handling on the part of a merchant's staff. Chargeback's are rare if proper authorizations and processing procedures are followed.

Some Do's and Don'ts of Chargebacks

You can significantly reduce the chance of receiving a chargeback notification by taking the following precautions:

• Do not charge a cardholder before shipping the merchandise
• Do not accept sales that are not authorized for the exact amount
• Do not accept sales that are declined, and if a sale is declined, do not attempt authorization a second time on a declined sale. The cardholder bank may collect a $50.00 fee if you fail to follow card acceptance and authorization procedures.
• Do not accept an expired card
• Do not accept a card before the effective date on a dual dated card
• Do not process a credit as a sale
• Do not deposit the sales draft more than once
• Do not deposit an incomplete sales draft
• Do not accept a sales draft without a cardholder signature
• Do not participate in a suspicious transaction
• Do not obtain an authorization by using multiple transaction/split sales drafts
• Do not accept a card where the account number obtained off the magnetic stripe does not match the account number on the draft
• Do understand that you assume all responsibility for the identity of the cardholder for all fax, Internet, mail order and telephone order sales
• Do prepare and submit a written rebuttal within the time specified on the chargeback notification
• Do accept cards where the cardholder account number is valid
• Do authorize all sales
• Do verify arithmetic on sales drafts
• Do charge the cardholder for the correct amount
• Do deposit the sales draft before the contractual time limit
• Do credit the cardholder for the returned merchandise
• Do credit the cardholder for a canceled order
• Do verify that the signature on the sales draft matches the signature on the card
• Do verify the authorization code
• Do obtain a manual imprint, if unable to capture from magnetic stripe.

Note: Association Chargeback Fees: The card associations permit the cardholder bank to collect additional fees for items that result in a chargeback. You may be subject to these Association Chargeback Fees if you failed to follow card acceptance and authorization procedures and the card issuer has a valid chargeback.

Take Charge of Chargeback's

Chargeback's are one of the most common - and costly - ways that fraudsters take advantage of merchants. For example, some fraudsters, appearing to be legitimate customers, will take both the "merchant copy" and "customer copy" of the sales slip after they have signed it. When they receive their credit card statement, they dispute the charge. And, since your company has no record of the transaction, the full amount is credited back to the consumer, and you face a loss.

There are steps you can take to prevent chargeback's based on fraud from occurring. Here are some examples based on the card processing method used:

Processing Transactions Manually with an Imprinter

• If you process transactions manually, be sure to take an imprint of the card every time a purchase is made with a credit card
• Use the appropriate draft for the appropriate card (i.e. only use a Visa sales draft for a Visa card)
• Be sure to call in for authorization for every credit card transaction
• Make sure you neatly print the sales draft so that it is clear and easy to read
• Don't forget to write your merchant number on the draft
• Have the customer sign the receipt while you watch and verify that this signature matches the one on the back of the card
• Don't divide one purchase on to more than one sales draft
• Do not change or alter the sales draft after the customer has signed it - if there is a dispute, the customer's copy is treated as correct
• If a transaction has been cancelled by the customer, take the required steps to stop, reverse, or stop the billing immediately
• Be sure to display your return policy at the point of sale - remember, it is your responsibility to inform customers of this policy
• Maintain a well-trained staff and ensure that they follow check-out procedures correctly
• Save all copies of your sales draft in case of future disputes.

Processing Through Electronic Point-of-Sale Terminal

• Be sure to always swipe the card through an electronic point-of-sale device whenever possible - keying in transactions increases your exposure to chargeback's
• Be certain your return policy is stated clearly on all of your materials or receipts
• Keep your point-of-sale equipment clean and operating efficiently. Mail and Telephone Orders:
• If possible, establish the customer's identity by writing their name, address, credit card number, and expiration date on the sales draft (also include name of issuing institution)
• Be sure to call in for authorization for every credit card transaction
• If you are taking an order over the phone, fax, Internet, or by mail, only ship items to permanent addresses - steer clear of post office boxes or hotel lobbies or freight forwarders
• Always send a copy of the sales draft and order form to the customer either when the product is ordered or when it is shipped.

Protecting your e-Business

Internet merchants should be just as aware of the risks of fraud as traditional merchants, and should consider ways to prevent fraud. If you are creating or operating an online store, be sure to learn about security risks by assessing your shopping cart procedures, securing your online transactions, and letting your customers know that your Web site transactions are safe.

In addition, here are some key ways you can prevent Internet fraud:

• Post your purchase policies on your Web site where your customers can see them clearly
• Start by taking a few extra steps to confirm each order, and reject orders that leave out important information
• Be careful when dealing with orders that have different "ship to" and "bill to" addresses
• Avoid shipping to post office boxes, hotel lobbies or other addresses that are not permanent, as these addresses can be harder to trace later
• Pay extra attention to orders that are larger than your usual orders, as well as international orders, especially if express shipping is requested
• Note the customer's e-mail address and make sure it is valid and matches the cardholder's name
• Be sure that each transaction is authorized correctly and that proper procedures are followed
• Do not accept other merchants' requests to deposit their receipts through your account - if any items are charged back, you will be responsible for them
• If you are skeptical of an order, call the customer to confirm.

Your Right to a Rebuttal

If you receive notification of a chargeback, you have the right to request a rebuttal. A rebuttal is a merchant's written reply to a chargeback that provides documentation proving that the sale was valid and that proper merchant procedures were followed. Rebuttals must be completed within the number of days indicated on the chargeback notification. Contact Customer Service for more information on rebuttal procedures.

The Payment Exchange provides all of the supplies you will need for completing MasterCard and Visa credit transactions. You will be provided with a supply order form, which can be mailed in, or you may call to order supplies. A blank supply order form is included with each supply order you receive.

The following additional supplies can be ordered:

• Imprinters
• Terminals and PIN pads
• Check readers and imagers
• Printers
• Merchant plate and plastic
• Authorization stickers
• Ribbons
• Visa/MasterCard window decals and cash register signs.

To order supplies, please call us at 916-635-8800.

For all of your paper needs please go to www.terminalpaper.com or call 1-877-400-5990

At The Payment Exchange, we take your business seriously. The Payment Exchange utilizes a sophisticated fraud detection system that monitors all card transactions in real time, 24 hours a day, seven days a week. This fraud detection system is one way The Payment Exchange protects your business.

Reading and complying with the standards and the policies in this guide will be your best defense against fraud and help you remain in compliance with your merchant agreement.

While it is not always possible to prevent fraud from happening, education and awareness are the best ways to avoid it. This information is provided to make you aware of the many ways that fraudulent activity occurs, what to watch for, and the things you and your employees can do to protect your business.

Our commitment to providing security for credit transactions helps both you and your customers feel safe about using payment cards; however, there are precautions that can significantly decrease the probability of fraud or another credit-related crime from occurring.

Card Not Present Scams

The risk of fraud increases greatly if your customer and their credit card are not present at the time a purchase is made because you don't have the opportunity to inspect the card. "Card not present" transactions typically occur over the telephone or fax, through the mail or over the Internet. Without the card in hand, you are unable to inspect the card, check for suspicious markings or verify the customer's signature. As a merchant, you put yourself and your company at greater risk by accepting card not present transactions without the proper Merchant Agreement in place to protect you in a fraudulent situation.

If you are processing card transactions by telephone, mail, fax or Internet, make sure that you have signed the specific Merchant Agreement required to perform these transactions where the card is not present. Even after you have the proper agreement in place; it is crucial that you take the precautionary steps to prevent potential chargeback's.

Skimming

In many instances, thieves are reaping the benefits of our rapidly growing world of technology. One example of skimming is when the fraudster uses a device to read the data on the magnetic strip of a credit card - a process known as "skimming." Other times the information is received by tapping into phone lines. Regardless of the method used, skimming is responsible for millions of dollars of losses.

Watch for devices used to swipe credit cards. They are usually box-shaped cordless devices that will fit in the palm of the hand, although laptop computers have been used to accomplish the same thing.

Don't Be Bullied

Here, the customer attempts to intimidate the cashier by causing a fuss at the register so that the purchase is rushed, which may lead to improper check out. They may tell you that the card won't read and not to bother running it through - that you'll have to key it in manually. In such instances, customers have also been known to complain about the service or length of the line. They may even demand to see a manager - anything to keep the cashier's attention off the authorization of the credit card. By creating a tense atmosphere, the cashier is often prone to rush the person through the process just to get the customer out of the store. This is when criminal activity takes place. The result is usually a costly chargeback for the merchant.

Use only the authorization numbers provided by The Payment Exchange. Never call a telephone number given by the cardholder for authorization. Don't be intimidated by these bullies; always take your time and make sure the correct procedure is followed when authorizing the card. You may not be losing a sale by making the impatient customer wait - you may be saving your company the cost of a chargeback later.

Deceptive Deliveries

An easy way to spot a situation that may be fraudulent is to look at the delivery address. Often thieves will have a package delivered to an address that is not permanent or requires the package to be left at a front desk. Look carefully at orders that require deliveries to office complexes, hotel lobbies or post office boxes, as they are almost impossible to trace if the transaction is questioned. In this situation, it is best to call the customer and ask for a permanent address.

The Manual Key-In

Often fraud occurs when the thief damages the card on purpose so that you are forced to manually enter the number in the electronic point-of-sale terminal. Fraudulent cards are often damaged in order to bypass the antifraud features that are placed on them - the magnetic strip cannot be swiped and transmitted to the verification center for authorization in the case of a manual key-in.

If you have an electronic point-of-sales terminal, swipe every card that you come across - no matter how damaged or worn. And be wary of customers who let you know right away that their card won't read. If the card doesn't work and you end up keying in the number, make sure you take an imprint of the card. If the card is severely damaged, simply ask for another form of payment.

Borrowed Cards

Beware of people waving letters of authorization for use of a credit card. Under no circumstances are these letters an acceptable form of verification or authorization. Don't fall for children borrowing their parent's card either. Friends, coworkers, and spouses are not permitted to borrow each other's cards. The only person who should be presenting the card to you is the person whose name is on the front of the card and signature on the back of the card. Most often, the rightful owner gets the statement and a chargeback occurs.

One Person's Trash Is Another's Gold Mine

The garbage may be the last place you would think to protect. Thieves look in your trash for credit card slips, banking information, warranty information, credit applications or returned slips - anything that has personal information such as a name, address or phone number. Your "trash" could be a thief's treasure, with all of the information a criminal needs to make a false card, as well as information about your company that could hurt you later if it fell into the wrong hands. Recognize materials that may contain private information and dispose of them properly. Destroy any documents that have any personal information on them with a paper shredder before declaring them trash. Protecting your customers and your business is worth a few extra seconds.

The Terminal Repair Scam

This is the oldest scam in the book, but also one of the most popular and most effective ways for thieves to lift confidential information. We're all familiar with the "bait and switch" technique. They come into your business and tell you that your POS terminal needs to be repaired - offsite. But don't worry; they'll replace your broken one with a loaner. Once the loaner is in place, all of the information you scan through is recorded, and now the information is theirs.

You may not even see it coming, as these criminals often pretend to work for POS companies or say that they are attending to other official business. Any unsolicited attempts to repair your terminal should be reported to the police, and no replacement terminals should be accepted. The safest thing you can do is to be cautious and report any suspicious happenings immediately by calling into The Payment Exchange Help Desk. They will check to see if there is a replacement request noted for your location.

Fraudulent Returns

Fraudulent returns are a major problem associated with fraud and theft. Staff members have been caught returning items that were never purchased and pocketing the money. In some cases, merchants don't even realize they have been victimized until it is too late. Make sure your employees take the necessary steps to ensure this doesn't happen in your business. Some terminals can also limit access to returns by requiring the use of passwords (see the terminal documentation.)

Keep your point-of-sale terminal passwords confidential and stored in a safe place. Change your password often to protect yourself in case someone does get into your system. Don't share your terminal, AND Make sure to follow the proper procedures when it is time to shut down. Keep a record of your balances each day so you can identify a problem as soon as it occurs.

International Credit Cards

Take extra care when accepting international credit cards. Thieves use foreign cards because cashiers are not as familiar with them. The criminal searches for a busy merchant who may overlook irregularities in a card issued by a foreign bank rather than become suspicious.

Inspect the card thoroughly, checking to make sure the card is valid, and always swipe it. The main elements of the card - logo, hologram, clear embossing and so on - should be the same despite where the card originated. Check to make sure the signature matches the name on the card, and that once swiped, the number on the terminal matches the number on the card. Also, watch out for customers who check out the cashiers first before getting in line - criminals often look for an inexperienced clerk or someone who may be easily intimidated. If anything seems suspicious during the transaction, call in a Code 10.

Office Products Scams

Watch out for companies trying to sell office products such as copy paper, ink cartridges, stationery and other supplies to your business. They may try to appear as if they are working for a reputable company. In reality, they will overcharge you for inferior merchandise. Deceptive telemarketing is a violation of the law - report any suspicious persons immediately.

Phone Fraud

Like the paper scammers, you may not see the phone fraud coming until it is too late. Of course, there are telemarketers who use the phone to further their illegitimate businesses and scam money.

What about the criminals that aren't selling anything at all? These crooks still use the phone to swindle merchandise from the retailer. Most of the time the criminal will phone a store, telling the clerk he has picked out the items he wants but cannot come to pick them up for some reason or another. He will ask the clerk to run his credit card through and assure the clerk that a courier will be by to pick up the merchandise.

Once the merchandise has left the store, there is no way of knowing to whom it actually went or where it was going. Often these phone fraudsters pose as respected individuals with high profile jobs and qualifications. It is not uncommon; however, to find out the person has stolen a credit card and is using someone else's identity to receive the desired merchandise. There is no real way of knowing if the card is legitimate in a situation where the cardholder is not able to show up. It is safest to stick to the rules in these situations - don't take credit card numbers over the phone, and reject a credit card that is not being handed to you by its lawful owner.

The Last Minute Shopper

Be on the lookout for the shopper who is purchasing expensive items just before closing time, or someone who is hurriedly filling a shopping cart with this type of item, without paying much attention to price, size or quality. These are the shoppers whose transactions need to be handled with your utmost attention.

Point of Sale Protection

Research shows that some businesses repeatedly expose their customers to fraud by asking them to provide a phone number with a credit card transaction or a credit card number as a voucher for a personal check. Shield your customers from card thieves by not recording private information. If you must list the identifying information, write it elsewhere (such as your copy of the sales receipt or on a store invoice. Keep these pieces of information somewhere that is not accessible to just anyone. Your customers will appreciate the fact that you are looking after their best interests. Thermal printers can further safeguard your customers since only the merchant copy of the sales draft will have the cardholder signature.

STOLEN / COUNTERFEIT CARDS

Stolen and counterfeit cards are a huge problem for merchants and credit card issuers alike. Because of the technology available to them, counterfeiters are able to reproduce false cards that are high quality, even without the benefit of the original. All they really need is personal information and technology to produce credit cards, debit cards and smart cards. The result is a huge financial loss to businesses around the globe. The card association rules prohibit retention of magnetic-stripe or card authentication numbers (CVV2/CVC2/CID) by merchants or their third-party terminal providers since this information could be used to counterfeit cards.

Protect your business by teaching your staff to recognize the signs of a false card. Call in a Code 10:

• If the embossing on the card is illegible
• If the last few numbers are not embossed on the hologram, or if these numbers do not match the account number on the sales draft or at the terminal
• If there is no Bank Identification Number (BIN) above or below the first four digits
• If the name on the card does not match the signature or there is a misspelling
• If the hologram is not clear or the picture in the hologram does not move
• If the card does not have an expiration date
• If the card does not start with the correct numeric digit - all Visa cards should start with a 4, all MasterCard's with a 5
• Be aware of cards that don't swipe - check these cards for other security features
• If a card does swipe, make sure the card number and the number that appears on the terminal match
• If you receive any message other than "approved" or "declined."

Spotting Counterfeit/Altered Cards

Knowing the distinctive qualities of both Visa and MasterCard credit cards can help you detect counterfeit or altered cards.

Color:

Check the card for discoloration or an uneven feel. Edges should be smooth.

Embossing:

Check to see that the account number and name embossing is even in size and spacing, and that the card has not been ironed and re-embossed. Check the valid dates to see that they have not been altered to extend the term of an expired card. MasterCard embossing starts with a 5. Visa card embossing starts with a 4. The first four digits of the card number correspond to a small number printed on the card face just above the account number.

Signature Panel:

The signature panel is printed with a color MasterCard or Visa background pattern. It should be smooth to the touch and should not show evidence of tampering. The panel should be signed, and the signature should correspond to the signature on your sales draft. All or a portion (last four digits) of the account number and card authentication (CVC2 or CVV2) are printed.

Hologram:

The hologram is a three dimensional foil image on the card that helps deter counterfeiting. The foil material can be gold or silver and the image should reflect light and change as you rotate the card. The Visa hologram appears to be a dove in flight. MasterCard's newest hologram is called the MC Micro Globes. It shows two-dimensional rings made up of repeated MC. The three-dimensional globes consist of high-resolution texture mapping of continents onto black spheres. The word MasterCard is distinguishably micro-printed in the background of the hologram in two alternating colors. A hidden image is placed at a specific angle in the hologram during the manufacturing process.

MasterCard Formats

The same basic design is used for all MasterCard cards. Until all cards are replaced by the new format, you may see the two previous MasterCard card formats at your place of business. Cards may be any color or even feature a background pattern or a photograph. Regardless of the card design presented, check the signature and other card features for validity and don't hesitate to call for a Code 10 authorization if you are suspicious.

Security Features

The following features appear on MasterCard cards:

• The unique security character, embossed on the lower right portion of the card front, is your signal that the following two security features should be present on the card.
• A small account number (last four digits or all 16 digits) with a three-digit card authentication code (CVC2) printed on the signature panel in reverse italic, slightly indented characters.
• An encoded account verification number (CVC1) programmed into the magnetic stripe which will correspond to and verify the number which is indent printed on the signature panel.

Visa Card Formats

Every Visa card is designed with special security elements to deter counterfeiting or alteration. When presented with a Visa Classic, Visa Gold (Premier), or Visa Business Card, look for these security elements.

Security Features

The following features are required for all VISA cards and must appear on all cards:

• An embossed, stylized V beside the "good thru" date
• Micro-printing around the Visa logo
• The issuing bank identification number embossed in the first four card numbers. This bank ID number is also printed directly below the first four card numbers.

Don't Hesitate! Call In a Code 10

Any time you have doubts about something - a fraudulent card, a signature or even a customer's behavior - call in a Code 10. A Code 10 allows you to call for an authorization without the customer becoming suspicious. After dialing the authorization center, inform the operator that you have a Code 10. The operator will put you through to the correct person, who will ask you a series of "yes" or "no" questions. Hold on to the card if possible while making the call. If the operator decides something is amiss, he or she will deny authorization. The operator may even request to speak with the cardholder to ask account information questions that only the true owner of the card would know.

A Code 10 can be used any time you feel a transaction may not be legitimate, even if you have already gotten approval on a transaction or if the customer had already left the premises.

Defeating Fraud Helps You and Your Customers

Whether it's a different twist on an old scam or a new scam altogether, there will always be someone who tries to pull the wool over your eyes. If you and your staff are well prepared with the skills to recognize suspicious transactions, and know how to correct the situation, then, you're beating fraudsters at their own game.

Take the extra steps to stop fraud before it starts. After all, it is the merchant - not the consumer - that stands to lose the most from credit card fraud. The most important thing you can do is stay educated on the ways fraud occurs and follow your instincts when you find yourself in a suspicious situation. The majority of the time, plain old common sense can prevent losses. By following the information in this guide and working together, we increase the chances of successfully protecting your business against fraud!

Merchants who accept credit cards must be aware of prohibited transactions and the penalties that can be imposed if a prohibited transaction is completed. A prohibited transaction is one that does not comply with the operating regulations of the Visa or MasterCard associations, and/or policies and procedures as defined in The Payment Exchange Merchant Agreement. If deposited, sale drafts involving prohibited transactions will be subject to chargeback and may lead to termination of The Payment Exchange Merchant Agreement, perhaps immediately!

The following are examples of prohibited transactions:

• Processing transactions to cover previously incurred debts (Visa allows if existing debt transactions are identified properly and account is not in collection), or bad debt such as bounced checks, or payment for returned merchandise
• Processing a sale on a previously charged back transaction
• Accepting transactions that are declined by the Authorization Center
• Attempting multiple authorization requests following a decline
• Accepting cards with an invalid effective date
• Accepting expired cards
• Using a split sale to avoid authorization requirements
• Giving cash to the cardholder
• Delivering goods or performing services after notice of a cancellation by the cardholder of a preauthorized order
• Billing card after notice of cancellation of recurring payment
• Accepting transactions where the signature on the Visa or MasterCard card and the one on the sales draft are not the same
• Engaging in factoring (draft laundering) or accepting or depositing drafts from other banks, merchants or businesses which you may own or purchase, but are not explicitly listed in your current application (or supplements to it) currently on file with us.
• Laundering of deposit drafts will likely result in the immediate termination of your merchant bankcard privileges
• Depositing a sales draft twice
• Depositing a sales draft in one or more financial institutions for payment before or after you deposit it with The Payment Exchange.

Educate your staff about prohibited transactions to reduce the risk of accepting counterfeit or fraudulent card transactions. A fraudulent transaction could involve an invalid account number, or a valid number with unauthorized use. Unauthorized use of a lost or stolen card is one of the greatest contributors to fraud losses.

In the case of stolen cards, fraud normally occurs within hours of the loss or theft - before most victims have called to report the loss. Checking the signature becomes very important in these first few hours of loss. Also, keep in mind that the thief may have altered the signature panel, or re-embossed the card, to change the account number slightly.

1. GENERAL.

   The "Card Services Agreement" consists of these Card Services Terms & Conditions and the Merchant Application and is made by and among Merchant (or "you"), Global Payments Direct, Inc. ("Global Direct"), and Member (as defined below). The provisions in the Card Services Agreement are applicable to Merchant if Merchant has signed the appropriate space in the Acceptance of Terms & Conditions/Merchant Authorization section of the Merchant Application. The member bank identified in the Merchant Application ("Member") is a member of Visa USA, Inc. ("Visa") and MasterCard International, Inc. ("MasterCard"). Global Direct is a registered independent sales organization of Visa, a member service provider of MasterCard and a registered acquirer for Discover Financial Services LLC ("Discover"). Any references to the Debit Sponsor shall refer to the debit sponsor identified below.

   Merchant and Global Direct agree that the rights and obligations contained in these Card Services Terms and Conditions do not apply to the Member with respect to Discover transactions and Switched Transactions (as defined below). To the extent Merchant accepts Discover cards, the provisions in this Agreement with respect to Discover apply if Merchant does not have a separate agreement with Discover. In such case, Merchant will also be enabled to accept JCB and Diner's Club cards under the Discover network and such transactions will be processed at the same fee rate as Merchant's Discover transactions are processed. To the extent Merchant accepts Discover cards and has a separate agreement with Discover, Discover card transactions shall be processed as Switched Transactions (as defined below).

   Under the terms of the Card Services Agreement, Merchant will be furnished with the services and products described herein and in the Merchant Application and selected by Merchant therein (collectively and individually, as applicable, the "Services"). During the term of the Card Services Agreement, Global Direct will be the sole and exclusive provider of all card Services to Merchant. Any Merchant accepted by Global Direct for card processing services agrees to be bound by the Card Services Agreement, including the terms of the Merchant Application and these Card Services Terms & Conditions as may be modified or amended in the future. A MERCHANT'S SUBMISSION OF A TRANSACTION TO GLOBAL DIRECT SHALL BE DEEMED TO SIGNIFY MERCHANT'S ACCEPTANCE OF THE CARD SERVICES AGREEMENT, INCLUDING THE TERMS AND CONDITIONS HEREIN.

   Except as expressly stated in the first three paragraphs of Section 13, all terms and conditions of this Card Services Agreement shall survive termination to the extent necessary to protect Global Direct and Member's rights herein.

2. SERVICE DESCRIPTIONS.

   Credit Card Processing Services: Global Direct's credit card processing services consist of authorization and electronic draft capture of credit card transactions; outclearing of such transactions to the appropriate card associations and/or issuers (e.g., Visa, MasterCard, Diners, Discover); settlement; dispute resolution with cardholders' banks; and transaction-related reporting, statements and products. From time to time under this Card Services Agreement, upon Merchant's request, Global Direct may facilitate the transmission of certain payment card transactions ("Switched Transactions") to the respective card issuers, including but not limited to American Express®, Diners Club® and various fleet, private label and commercial cards. Switched Transactions require Global Direct's prior written approval and are subject to applicable pricing; Global Direct does not purchase the indebtedness associated with Switched Transactions.

   EBT Transaction Processing Services: Global Direct offers electronic interfaces to Electronic Benefits Transfer ("EBT") networks for the processing of cash payments or credits to or for the benefit of benefit recipients ("Recipients"). Global Direct will provide settlement and switching services for various Point of Sale transactions initiated through Merchant for the authorization of the issuance of the United States Department of Agriculture, Food and Nutrition Services ("FNS") food stamp benefits ("FS Benefits") and/or government delivered cash assistance benefits ("Cash Benefits," with FS Benefits, "Benefits") to Recipients through the use of a state-issued card ("EBT Card").

   Provisions regarding debit card services are set forth in Section 27 below.

   With respect to Visa and MasterCard products, Merchant may elect to accept credit cards or debit/prepaid cards or both. Merchant shall so elect on the Merchant Application being completed contemporaneously herewith. Merchant agrees to pay and Merchant's account(s) will be charged pursuant to Section 5 of this Card Services Agreement for any additional fees incurred as a result of Merchant's subsequent acceptance of transactions with any Visa or MasterCard product that it has elected not to accept.

3. PROCEDURES.

   Merchant will permit holders of valid cards bearing the symbols of the cards authorized to be accepted by Merchant hereunder to charge purchases or leases of goods and services and the debt resulting therefrom shall be purchased hereunder, provided that the transaction complies with the terms of this Card Services Agreement. All indebtedness submitted by Merchant for purchase will be evidenced by an approved sales slip. Merchant will not present for purchase any indebtedness that does not arise out of a transaction between a cardholder and Merchant. Merchant agrees to follow the Card Acceptance Guide which is incorporated into and made part of this Card Services Agreement, and to be bound by the operating regulations and rules of Visa, MasterCard, Discover and any other card association or network organization covered by this Card Services Agreement, as any of the above referenced documents may be modified and amended from time to time. Merchant acknowledges that the Card Acceptance Guide is located on Global Direct's website at www.globalpaymentsinc.com. Without limiting the generality of the foregoing, Merchant agrees to comply with and be bound by, and to cause any third party who provides Merchant with services related to payment processing or facilitates Merchant's ability to accept credit and debit cards and who is not a party to this Card Services Agreement to comply with and be bound by, the rules and regulations of Visa, MasterCard, Discover and any other card association or network organization related to cardholder and transaction information security, including without limitation, all rules and regulations imposed by the Payment Card Industry (PCI) Security Standards Council (including without limitation the PCI Data Security Standard),Visa's Cardholder Information Security Program, MasterCard's Site Data Protection Program, and Payment Application Best Practices. Merchant also agrees to cooperate at its sole expense with any request for an audit or investigation by Global Direct, Member, a card association or network organization in connection with cardholder and transaction information security. Without limiting the generality of the foregoing, Merchant agrees that it will use information obtained from a cardholder in connection with a card transaction solely for the purpose of processing a transaction with that cardholder or attempting to re-present a chargeback with respect to such transaction. Merchant will indemnify and hold Global Direct and Member harmless from any fines and penalties issued by Visa, MasterCard, Discover or any card association or network organization and any other fees and costs arising out of or relating to the processing of transactions by Global Direct and Member at Merchant's location(s) and will reimburse Global Direct for any losses incurred by Global Direct with respect to any such fines, penalties, fees and costs.

   Merchant also agrees that it will comply with all applicable laws, rules and regulations related to the truncation or masking of cardholder numbers and expiration dates on transaction receipts from transactions processed at Merchant's location(s), including without limitation the Fair and Accurate Credit Transactions Act and applicable state laws ("Truncation Laws"). As between Merchant, on the one hand, and Global Direct and Member, on the other hand, Merchant shall be solely responsible for complying with all Truncation Laws and will indemnify and hold Global Direct and Member harmless from any claim, loss or damage resulting from a violation of Truncation Laws as a result of transactions processed at Merchant's location(s).

   Global Direct may, from time to time, issue written directions (via mail or Internet) regarding procedures to follow and forms to use to carry out this Card Services Agreement. These directions and the terms of the forms are binding as soon as they are issued and shall form part of these Card Services Terms & Conditions. Such operating regulations and rules may be reviewed upon appointment at Global Direct's designated premises and Merchant acknowledges that it has had the opportunity to request a review and/or review such operating regulations and rules in connection with its execution of this Card Services Agreement.

4. MARKETING.

   Merchant shall adequately display the card issuer service marks and promotional materials supplied by Global Direct. Merchant shall cease to use or display such service marks immediately upon notice from Global Direct or upon termination of this Card Services Agreement.

5. PAYMENT, CHARGES AND FEES.

   Fees and charges payable by Merchant shall be as set forth in the Merchant Application. Merchant will be paid for indebtedness purchased under this Card Services Agreement by credit to Merchant's account(s). Merchant's account(s) will be credited for the gross amount of the indebtedness deposited less the amount of any credit vouchers deposited. Merchant shall not be entitled to credit for any indebtedness that arises out of a transaction not processed in accordance with the terms of this Card Services Agreement or the rules and regulations of a card association or network organization. Availability of any such funds shall be subject to the procedures of the applicable financial institution. Chargebacks and adjustments will be charged to Merchant's account(s) on a daily basis. Merchant agrees to pay and Merchant's account(s) will be charged for the discount, fees, chargebacks, and other fees and charges described in this Card Services Agreement. Merchant also agrees to pay and Merchant's account(s) will be debited for all fees, arbitration fees, fines, penalties, etc. charged or assessed by the card associations or network organizations on account of or related to Merchant's processing hereunder, including without limitation with regards to any third party who provides Merchant with services related to payment processing or facilitates Merchant's ability to accept credit and debit cards and who is not a party to this Card Services Agreement. If any type of overpayment to Merchant or other error occurs, Merchant's account(s) may be debited or credited, without notice, and if Merchant's account(s) do not contain sufficient funds, Merchant agrees to remit the amount owed directly to Global Direct. Merchant agrees not to, directly or indirectly, prevent, block or otherwise preclude any debit by Global Direct or Member to Merchant's account which is permitted hereunder. Merchant represents and warrants that no one other than Merchant has any claim against such indebtedness except as authorized in writing by Member and Global Direct. Merchant hereby assigns to Member and Global Direct all of its right, title, and interest in and to all indebtedness submitted hereunder and agrees that Member and Global Direct have the sole right to receive payment on any indebtedness purchased hereunder.

6. EQUIPMENT AND SUPPLIES/THIRD PARTY SERVICES.

   Merchant agrees that it will not acquire any title, copyrights, or any other proprietary right to any advertising material; leased equipment including imprinters, authorization terminals, or printers; software; credit card authenticators; unused forms; and Merchant deposit plastic cards provided by Global Direct in connection with this Card Services Agreement. Merchant will protect all such items from loss, theft, damage or any legal encumbrance and will allow Global Direct and its designated representatives reasonable access to Merchant's premises for their repair, removal, modification, installation and relocation. Merchant acknowledges that any equipment or software provided under this Card Services Agreement is embedded with proprietary technology ("Software"). Merchant shall not obtain title, copyrights or any other proprietary right to any Software. At all time, Global Direct or its suppliers retain all rights to such Software, including but not limited to updates, enhancements and additions. Merchant shall not disclose such Software to any party, convey, copy, license, sublicense, modify, translate, reverse engineer, decompile, disassemble, tamper with, or create any derivative work based on such Software. Merchant's use of such Software shall be limited to that expressly authorized by Global Direct. Global Direct's suppliers are intended third party beneficiaries of this Card Services Agreement to the extent of any terms herein pertaining to such suppliers' ownership rights; such suppliers have the right to rely on and directly enforce such terms against Merchant. The operating instructions will instruct Merchant in the proper use of the terminals, and Merchant shall use and operate the terminals only in such manner. If Merchant has purchased the maintenance/help desk service hereunder for its terminals, Merchant will promptly notify Global Direct of any equipment malfunction, failure or other incident resulting in the loss of use of the equipment or need for repair or maintenance, whereupon Global Direct will make the necessary arrangements to obtain required maintenance. Merchant is responsible for shipping costs. Merchant shall cooperate with Global Direct in its attempt to diagnose any problem with the terminal. In the event the Merchant's terminal requires additional Software, Merchant is obligated to cooperate and participate in a dial in down line load procedure. With respect to any item of equipment leased to Merchant by Global Direct, Merchant will not be liable for normal wear and tear, provided, however, that Merchant will be liable to Global Direct in the event that any leased item of equipment is lost, destroyed, stolen or rendered inoperative. Merchant will indemnify Global Direct against any loss arising out of damage to or destruction of any item of equipment provided hereunder for any cause whatsoever. Merchant also agrees to hold harmless and indemnify Global Direct for any costs, expenses, and judgments Global Direct may suffer, including reasonable attorney's fees, as a result of Merchant's use of the equipment provided hereunder. Any unused equipment in its original packaging purchased from Global Direct hereunder may be returned to Global Direct at Merchant's expense within sixty (60) days of receipt. Merchant shall receive a refund of any money paid in connection therewith subject to a re-stocking fee of an amount equal to 20 percent of the total purchase price for the returned equipment. No refunds shall be issued for any equipment returned after sixty (60) days. Merchant acknowledges that some of the services to be provided by Global Direct and Member hereunder may be provided by third parties. Merchant agrees that except for its right to utilize such services in connection with this Card Services Agreement, it acquires no right, title or interest in any such services. Merchant further agrees that it has no contractual relationship with any third party providing services under this Card Services Agreement and that Merchant is not a third party beneficiary of any agreement between Global Direct or Member, as applicable, and such third party. Merchant may not resell the services of any third party providing services under this Card Services Agreement to any other party.

7. FINANCIAL INFORMATION.

   Merchant agrees to furnish Global Direct and Member such financial statements and information concerning Merchant, its owners, principals, partners, proprietors or its affiliates as Global Direct may from time to time request. Global Direct, or its duly authorized representatives, may examine the books and records of Merchant, including records of all indebtedness previously purchased or presented for purchase. Merchant agrees to retain copies of all paper and electronic sales slips and credit slips submitted to Global Direct for a period of two years from submission, or such longer period of time as may be required by the operating rules or regulations of the card associations or network organizations, by law, or by Global Direct as specifically requested in writing in individual cases.

8. CHANGE IN BUSINESS.

   Merchant agrees to provide Global Direct and Member sixty (60) days prior written notice of its (a) transfer or sale of any substantial part (ten percent (10%) or more) of its total stock, assets and/or to liquidate; or (b) change to the basic nature of its business, or (c) provided that Merchant has not indicated on the Merchant Application that it accepts mail order, telephone order, or internet-based transactions, conversion of all or part of the business to mail order sales, telephone order sales, Internet-based sales or to other sales where the card is not present and swiped through Merchant's terminal. Upon the occurrence of any such event, the terms of this Card Services Agreement may be modified to address issues arising therefrom, including but not limited to requirements of applicable card associations or network organizations.

9. TRANSFERABILITY.

   This Card Services Agreement is not transferable by Merchant without the written consent of Global Direct and Member. Any attempt by Merchant to assign its rights or to delegate its obligations in violation of this paragraph shall be void. Merchant agrees that the rights and obligations of Global Direct hereunder may be transferred by Global Direct without notice to Merchant. Merchant agrees that the rights and obligations of Member hereunder may be transferred to any other member without notice to Merchant. Merchant acknowledges that the transferable rights of Global Direct and Member hereunder shall include, but shall not be limited to, the authority and right to debit the Merchant's account(s) as described herein.

10. WARRANTIES AND REPRESENTATIONS.

    Merchant warrants and represents to Global Direct and Member: (a) that each sales transaction delivered hereunder will represent a bona fide sale to a cardholder by Merchant for the amount shown on the sales slip as the total sale and constitutes the binding obligation of the cardholder, free from any claim, demand, defense, setoff or other adverse claim whatsoever; (b) that each sales slip or other evidence of indebtedness will accurately describe the goods and services which have been sold and delivered to the cardholder or in accordance with his instructions; (c) that Merchant will comply fully with all federal, state and local laws, rules and regulations applicable to its business; (d) that Merchant will fulfill completely all of its obligations to the cardholder and will resolve any customer dispute or complaint directly with the cardholder; (e) that the signature on the sales slip will be genuine and authorized by cardholder and not forged or unauthorized; (f) that the sales transaction shall have been consummated and the sales slip prepared in full compliance with the provisions of the Card Acceptance Guide and the operating regulations and rules of the applicable card association or network organization, as amended from time to time; (g) provided that Merchant has not indicated on the Merchant Application that it accepts mail order, telephone order, or internet-based transactions, that none of the sales transactions submitted hereunder represent sales by telephone, or mail, or Internet, or where the card is not physically present at the Merchant's location and swiped through Merchant's terminal, unless Merchant is specifically authorized in writing by Global Direct to submit such sales slips for purchase, (h) to the extent Merchant has indicated on the Merchant Application that it accepts mail order, telephone order, or internet-based transactions, Merchant shall not submit such a transaction to Global Direct and Member for processing until the goods and/or services are shipped or performed, as applicable, unless otherwise permitted by the card associations or network organizations, (i) that none of the sales transactions submitted hereunder for purchase represent sales to any principal, partner, proprietor, or owner of Merchant, (j) that, without limiting the generality of the foregoing, each sales transaction submitted hereunder and the handling, retention, and storage of information related thereto, will comply with the rules and regulations of Visa, MasterCard, Discover and any other card association or network organization related to cardholder and transaction information security, including without limitation Payment Card Industry (PCI) Data Security Standards, Visa's Cardholder Information Security Program and MasterCard's Site Data Protection Program, and (k) that all of the information contained in this Card Services Agreement (including the Merchant Application) is true and correct. In the event that any of the foregoing warranties or representations is breached, the affected sales slips or other indebtedness may be refused, or prior acceptance revoked and charged back to the Merchant. Furthermore, if Merchant submits for purchase hereunder a sales transaction that is not the result of a sale of Merchant's goods or services offered to the general public or if Merchant submits any sales transactions for purchase hereunder which represents a sale to any principal, partner, proprietor, or owner of Merchant, such sales transaction may be refused or charged back.

    Merchant must notify Global Direct if Merchant elects to use the terminal service of American Express, Novus, or any other third-party provider. If Merchant elects to use a third-party terminal provider, that provider becomes Merchant's agent for the delivery of card transactions to Global Direct via the applicable cardprocessing network. Merchant agrees to assume full responsibility and liability for any failure of such agent to comply with the operating regulations and rules of the applicable card association or network organization, including without limitation any violation, which results in a chargeback to the Merchant. Merchant also agrees that the obligation hereunder to reimburse the Merchant for the value of the card transactions captured by an agent is limited to the value of the transactions (less applicable fees) received by the card-processing network from the agent.

    NEITHER MEMBER, NOR GLOBAL DIRECT, NOR ANY SUPPLIER MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY TERMINAL, ANY EQUIPMENT FURNISHED IN CONNECTION THEREWITH, OR ANY OF THE SERVICES FURNISHED HEREUNDER.

11. INDEMNITY.

    Merchant agrees to satisfy directly with the cardholder any claim or complaint arising in connection with the card sale, regardless of whether such claim or complaint is brought by the cardholder, Global, or another party. Merchant agrees to indemnify and hold Global Direct and Member harmless from and against any and all liabilities, losses, claims, damages, disputes, offsets, claims or counterclaims arising out of or relating to the card sale, including without limitation claims and complaints made by a cardholder or any other person or entity with regard to indebtedness sold by Merchant hereunder or any other Service provided hereunder.

12. LIMITATION OF LIABILITY.

    Neither Member nor Global Direct shall be liable for failure to provide the Services if such failure is due to any cause or condition beyond such party's reasonable control. Such causes or conditions shall include, but shall not be limited to, acts of God or of the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, shortages of labor or materials, freight embargoes, unusually severe weather, breakdowns, operational failures, electrical power failures, communication failures, unavoidable delays, the errors or failures of third party systems, or other similar causes beyond such party's control.

    The liability of Global Direct and Member for any loss arising out of or relating in any way to this Card Services Agreement, including but not limited to damages arising out of any malfunction of the equipment or the failure of the equipment to operate, the unavailability or malfunction of the Services, personal injury, or property damage, shall, in the aggregate, be limited to actual, direct, and general money damages in an amount not to exceed one (1) month's average charge paid by Merchant hereunder (exclusive of interchange fees, assessments, and any other fees or costs that are imposed by a third party in connection with Merchant's payment processing) for Services during the previous twelve (12) months or such lesser number of months as shall have elapsed subsequent to the effective date of this Card Services Agreement. This shall be the extent of Global Direct's and Member's liability arising out of or relating in any way to this Card Services Agreement, including alleged acts of negligence, breach of contract, or otherwise and regardless of the form in which any legal or equitable action may be brought against Global Direct or Member, whether contract, tort, or otherwise, and the foregoing shall constitute Merchant's exclusive remedy. Under no circumstances shall Global Direct or Member be liable for any lost profits, lost interest, or for special, consequential, punitive or exemplary damages arising out of or relating in any way to this Card Services Agreement, including but not limited to, damages arising out of placement of a Merchant's name on any terminated merchant list for any reason, even if Global Direct or Member has been advised of the possibility of such damages. Under no circumstances shall Global Direct or Member be liable for any settlement amounts pertaining to Switched Transactions; Merchant's recourse therefore shall be to the applicable card issuer. It is agreed that in no event will Global Direct or Member be liable for any claim, loss, billing error, damage, or expense arising out of or relating in any way to this Card Services Agreement which is not reported in writing to Global Direct by Merchant within 60 days of such failure to perform or, in the event of a billing error, within 90 days of the date of the invoice or applicable statement. Merchant expressly waives any such claim that is not brought within the time periods stated herein.

13. TERM AND TERMINATION.

    This Card Services Agreement shall remain in full force and effect for an initial term of three (3) years. This Card Services Agreement shall be automatically extended for successive one (1) year periods on the same terms and conditions expressed herein, or as may be amended, unless Merchant gives written notice of termination as to the entire Card Services Agreement or a portion thereof at least 60 days prior to the expiration of the initial term or any extension or renewals thereof, in which case this Card Services Agreement will terminate at the end of the then-current term. Notwithstanding anything to the contrary set forth herein, in the event Merchant terminates this Card Services Agreement in breach of this Section 13, the following amount(s) shall be immediately due and payable to Global Direct: the lesser of (a) the maximum amount permitted by state law, and (b) all monthly fees assessed to Merchant under this Card Services Agreement and due to Global Direct for the remainder of the then existing term of the Card Services Agreement, including all minimum monthly fee commitments. Merchant hereby authorizes Global Direct to accelerate the payment of such applicable amount(s) and to deduct such total amount(s) from Merchant's account referenced in Section 5, or to otherwise withhold the total amount(s) from amounts due to Merchant from Global Direct, immediately on or after the effective date of termination. If the Merchant's account does not contain sufficient funds for the debit or the amount cannot be withheld by Global Direct from amounts due to Merchant, Merchant shall pay Global Direct the amount due within ten (10) days of the date of Global Direct's invoice for same. The payment as described here is not a penalty, but rather is hereby agreed by the parties to be a reasonable amount of liquidated damages to compensate Global Direct for its termination expenses and all other damages under the circumstances in which such amounts would be payable. Such amount(s) shall not be in lieu of but in addition to any payment obligations for Services already provided hereunder (or that Global Direct may continue to provide), which shall be an additional cost, and any and all other damages to which Global Direct may be entitled hereunder. Notwithstanding the foregoing, if Merchant provides Global with written notice within forty-five (45) days of Merchant's execution of this Card Services Agreement that it wishes to terminate this Card Services Agreement immediately, Merchant shall not be responsible for the payment of the above-referenced amount(s), but shall be responsible for compliance with all other terms and conditions set forth in this Card Service Agreement, including but not limited to payment for all fees incurred prior to the termination of this Card Services Agreement.

    Notwithstanding the foregoing, Global Direct may terminate this Card Services Agreement or any portion thereof upon written notice to Merchant. Furthermore, Global Direct may terminate this Card Services Agreement at any time without notice upon Merchant's default in performing under any provision of this Card Services Agreement, upon an unauthorized conversion of all or any part of Merchant's activity to mail order, telephone order, Internet order, or to any activity where the card is not physically present and swiped through the Merchant's terminal, upon any failure to follow the Card Acceptance Guide or any operating the sales transaction shall have been consummated and the sales slip prepared in full compliance with the provisions of the Card Acceptance Guide and the operating regulations and rules of the applicable card association or network organization, as amended from time to time; (g) provided that Merchant has not indicated on the Merchant Application that it accepts mail order, telephone order, or internet-based transactions, that none of the sales transactions submitted hereunder represent sales by telephone, or mail, or Internet, or where the card is not physically present at the Merchant's location and swiped through Merchant's terminal, unless Merchant is specifically authorized in writing by Global Direct to submit such sales slips for purchase, (h) to the extent Merchant has indicated on the Merchant Application that it accepts mail order, telephone order, or internet-based transactions, Merchant shall not submit such a transaction to Global Direct and Member for processing until the goods and/or services are shipped or performed, as applicable, unless otherwise permitted by the card associations or network organizations, (i) that none of the sales transactions submitted hereunder for purchase represent sales to any principal, partner, proprietor, or owner of Merchant, (j) that, without limiting the generality of the foregoing, each sales transaction submitted hereunder and the handling, retention, and storage of information related thereto, will comply with the rules and regulations of Visa, MasterCard, Discover and any other card association or network organization related to cardholder and transaction information security, including without limitation Payment Card Industry (PCI) Data Security Standards, Visa's Cardholder Information Security Program and MasterCard's Site Data Protection Program, and (k) that all of the information contained in this Card Services Agreement (including the Merchant Application) is true and correct. In the event that any of the foregoing warranties or representations is breached, the affected sales slips or other indebtedness may be refused, or prior acceptance revoked and charged back to the Merchant. Furthermore, if Merchant submits for purchase hereunder a sales transaction that is not the result of a sale of Merchant's goods or services offered to the general public or if Merchant submits any sales transactions for purchase hereunder which represents a sale to any principal, partner, proprietor, or owner of Merchant, such sales transaction may be refused or charged back.

    Merchant must notify Global Direct if Merchant elects to use the terminal service of American Express, Novus, or any other third-party provider. If Merchant elects to use a third-party terminal provider, that provider becomes Merchant's agent for the delivery of card transactions to Global Direct via the applicable cardprocessing network. Merchant agrees to assume full responsibility and liability for any failure of such agent to comply with the operating regulations and rules of the applicable card association or network organization, including without limitation any violation, which results in a chargeback to the Merchant. Merchant also agrees that the obligation hereunder to reimburse the Merchant for the value of the card transactions captured by an agent is limited to the value of the transactions (less applicable fees) received by the card-processing network from the agent.

    NEITHER MEMBER, NOR GLOBAL DIRECT, NOR ANY SUPPLIER MAKES ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ANY TERMINAL, ANY EQUIPMENT FURNISHED IN CONNECTION THEREWITH, OR ANY OF THE SERVICES FURNISHED HEREUNDER.

14. RETURNED ITEMS/CHARGEBACKS.

    If a cardholder disputes any transaction, if a transaction is charged back for any reason by the card issuing institution, or if Global Direct or Member has any reason to believe an indebtedness previously purchased is questionable, not genuine, or is otherwise unacceptable, the amount of such indebtedness may be charged back and deducted from any payment due to Merchant or may be charged against any of Merchant's accounts or the Reserve Account (as defined below). Merchant acknowledges and agrees that it is bound by the rules of the card associations and network organizations with respect to any chargeback. Merchant further acknowledges that it is solely responsible for providing Global Direct and Member with any available information to re-present a chargeback and that, regardless of any information it provides or does not provide Global Direct and Member in connection with a chargeback, or any other reason, Merchant shall be solely responsible for the liability related to such chargeback. A list of some common reasons for chargebacks is contained in the Card Acceptance Guide provided, however, that such list is not exclusive and does not limit the generality of the foregoing. If any such amount is uncollectible through withholding from any payments due hereunder or through charging Merchant's accounts or the Reserve Account, Merchant shall, upon demand by Global Direct, pay Global Direct the full amount of the chargeback. Merchant understands that obtaining an authorization for any sale shall not constitute a guarantee of payment, and such sales slips can be returned or charged back to Merchant like any other item hereunder.

15. RESERVE ACCOUNT.

    At any time, Global Direct and Member may, at their option, establish a reserve account to secure the performance of Merchant's obligations under this Card Services Agreement to such party ("Reserve Account"). The Reserve Account may be funded, at Global Direct's sole discretion, through any or all of the following: (a) Direct payment by Merchant -- At the request of Global Direct or Member, Merchant will deposit funds in the Reserve Account; (b) The proceeds of indebtedness presented for purchase; or (c) The transfer by Global Direct and Member into the Reserve Account of funds withdrawn from any of the accounts referred to in Section 5 or any other accounts, including certificates of deposit, maintained by Merchant or Merchant's guarantor, if any, with any designated depositary or other financial institution. Merchant and Merchant's guarantor hereby grants Member a security interest in all said accounts and authorizes Global Direct (to the extent authorized by Member) or Member to make such withdrawals at such times and in such amounts as it may deem necessary hereunder. Merchant and Merchant's guarantor hereby instruct said financial institutions to honor any requests made by Global Direct and Member under the terms of this provision. Merchant and Merchant's guarantor will hold harmless the financial institutions and indemnify them for any claims or losses they may suffer as a result of honoring withdrawal requests from Global Direct and Member.

    Merchant hereby agrees that Global Direct and Member may deduct from this Reserve Account any amount owed to such party in accordance with this Card Services Agreement. Any funds in the Reserve Account may be held until the later of (a) the expiration of any potentially applicable chargeback rights in respect of purchased indebtedness under the rules and regulations of the card associations or network organizations and (b) the period necessary to secure the performance of Merchant's obligations under this Card Services Agreement, which holding period may extend beyond termination of this Card Services Agreement. Merchant will not receive any interest on funds being held in a Reserve Account. Without limiting the generality of the foregoing, Merchant shall, upon termination of this Card Services Agreement, maintain the sum of at least five percent (5%) of gross sales for the 90 day period prior to termination to be held in a Reserve Account in accordance with the terms of this Card Services Agreement. Global may, at its discretion upon termination of this Card Services Agreement, require that the Merchant maintain more than five percent (5%) of gross sales for the 90 day period prior to termination in a Reserve Account.

    Upon the later of (a) the expiration of any potentially applicable chargeback rights in respect of purchased indebtedness under the rules and regulations of the card associations or network organizations and (b) the period necessary to secure the performance of Merchant's obligations under this Card Services Agreement, Global Direct shall attempt to return an amount equal to the remaining funds in the Reserve Account, if any, to Merchant. To the extent Global Direct is unable to remit an amount equal to such remaining funds to the account identified in Section 25 and Merchant makes no claim in writing to Global Direct with respect to its right to receive payment of such remaining funds, then, one (1) year following termination of this Card Services Agreement, Merchant shall be deemed to have waived all of its right to receive payment of such remaining funds and Global Direct shall be entitled to retain an amount equal to such remaining funds as additional consideration for the Services.

16. DEFAULT/SECURITY INTEREST.

    Upon failure by Merchant to meet any of its obligations under this Card Services Agreement (including funding the Reserve Account), any of the accounts referred to in Section 5 or any other accounts belonging to Merchant or Merchant's guarantor held by any designated depository (or by any other financial institution) may be debited without notice to Merchant, and Merchant and Merchant's guarantor gives Member and Global Direct a security interest in all such accounts for these purposes. The scope of the security interest, and Merchant's and Merchant's guarantor's instructions to its financial institutions to accept withdrawal requests from Global Direct and Member, and Merchant's agreement to hold such institutions harmless and to indemnify them are described above in Section 15.

    Merchant also agrees that, in the event of a default by Merchant, Member has a right of setoff and may apply any of Merchant's balances or any other monies due Merchant from Member towards the payment of amounts due from Merchant under the terms of this Card Services Agreement. The rights stated herein are in addition to any other rights Global Direct and Member may have under applicable law.

17. CHOICE OF LAW/ATTORNEY'S FEES/VENUE/JURY TRIAL WAIVER.

    Should it be necessary for Global or Member to defend or enforce any of its rights under this Card Services Agreement in any collection or legal action, Merchant agrees to reimburse Global and/or Member, as applicable, for all costs and expenses, including reasonable attorney's fees, as a result of such collection or legal action. Without limiting the generality of the foregoing, Merchant agrees to reimburse Global and/or Member, as applicable, for all costs and expenses, including reasonable attorney's fees, incurred by Global and/or Member in enforcing or defending its rights under this Section 17, without regard to whether there has been an adjudication on the merits in any such action. Merchant waives trial by jury with respect to any litigation arising out of or relating to this Card Services Agreement. Global, Member, and Merchant agree that any and all disputes or controversies of any nature whatsoever (whether in contract, tort or otherwise) arising out, relating to, or in connection with (a) this Card Services Agreement, (b) the relationships which result from this Card Services Agreement, or (c) the validity, scope, interpretation or enforceability of the choice of law and venue provisions of this Card Services Agreement, shall be governed by the laws of the State of Georgia, notwithstanding any conflicts of laws rules, and shall be resolved, on an individual basis without resort to any form of class action and not consolidated with the claims of any other parties. Global, Member, and Merchant agree that all actions arising out, relating to, or in connection with (a) this Card Services Agreement, (b) the relationships which result from this Card Services Agreement, or (c) the validity, scope, interpretation or enforceability of the choice of law and venue provision of this Card Services Agreement shall be brought in either the courts of the State of Georgia sitting in Fulton County or the United States District Court for the Northern District of Georgia, and expressly agree to the exclusive jurisdiction of such courts.

18. AMENDMENTS.

    This Card Services Agreement may be amended only in writing signed by Global Direct, Member, and Merchant, except that (a) the Card Acceptance Guide and any and all fees, charges, and/or discounts (including without limitation non-qualified surcharge rates) may be changed immediately, or (b) Global Direct may mail Merchant either a notice describing amendments to this Card Services Agreement or an entirely new agreement, which amendments or new agreement will be binding upon Merchant if it deposits sales or credit slips after the effective date of such amendment or new agreement set forth in Global Direct's notice.

19. WAIVER.

    No provision of this Card Services Agreement shall be deemed waived by any party unless such waiver is in writing and signed by the party against whom enforcement is sought. No failure to exercise, and no delay in exercising on the part of any party hereto, any right, power or privilege under this Card Services Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege under this Card Services Agreement preclude any other or further exercise thereof or the exercise of any other right, power, or privilege.

20. EXCHANGE OF INFORMATION.

    Merchant authorizes Global Direct to order a credit report on Merchant or any owner, officer, shareholder, partner, proprietor, managing agent or guarantor of Merchant. Merchant hereby authorizes Member or any depository institution to release any financial information concerning Merchant or its accounts to Global Direct. Subsequent credit reports may be ordered in connection with updating, renewing or continuing this Card Services Agreement. Upon the written request of any individual who is the subject of a consumer credit report, Global Direct will provide the name and address of the consumer credit reporting agency furnishing such report, if any. Global Direct may exchange information about Merchant, Merchant's owners, principals, partners, proprietors, officers, shareholders, managing agents and guarantors with Member, other financial institutions and credit card associations, network organizations and any other party. Merchant hereby authorizes Global Direct to disclose information concerning Merchant's activity to any card association, network organizations, or any of their member financial institutions, or any other party without any liability whatsoever to Merchant.

21. GENERAL.

    If any provision of this Card Services Agreement or portion thereof is held to be unenforceable, such a determination will not affect the remainder of this Card Services Agreement. Paragraph headings are included for convenience only and are not to be used in interpreting this Card Services Agreement.

22. NOTICES.

    All notices required by this Card Services Agreement shall be in writing and shall be sent by facsimile, by overnight carrier, or by regular or certified mail. All notices sent to Global Direct or Member shall be effective upon actual receipt by the Corporate Secretary of Global Payments Direct, Inc., 10 Glenlake Parkway North Tower, Atlanta, Georgia 30328. Any notices sent to Merchant shall be effective upon the earlier of actual receipt or upon sending such notice to the address provided by Merchant in the Merchant Application or to any other e-mail or physical address to which notices, statements and/or other communications are sent to the Merchant hereunder. The parties hereto may change the name and address of the person to whom notices or other documents required under this Card Services Agreement must be sent at any time by giving written notice to the other party.

23. MERGER.

    This Card Services Agreement, including these Card Services Terms & Conditions and the Merchant Application, constitutes the entire agreement between Merchant, Global Direct, and Member and supersedes all prior memoranda or agreements relating thereto, whether oral or in writing.

24. EFFECTIVE DATE.

    This Card Services Agreement shall become effective only upon acceptance by Global Direct and Member, or upon delivery of indebtedness at such locations as designated by Global Direct for purchase, whichever event shall first occur.

25. DESIGNATION OF DEPOSITORY.

    The financial institution set forth in the Merchant Application is designated by Merchant as a depository institution ("Depository") for its credit card indebtedness. Such financial institution must be a member of an Automated Clearing House Association. Merchant authorizes payment for indebtedness purchased hereunder to be made by paying Depository therefore with instructions to credit Merchant's accounts. Depository, Member, and/or Global Direct may charge any of Merchant's accounts at Depository for any amount due under this Card Services Agreement. Global Direct must approve in writing any proposed changes to the account numbers or to the Depository. Merchant hereby authorizes Depository to release any and all account information to Global Direct as Global Direct may request without any further authorization, approval or notice from or to Merchant.

26. FINANCIAL ACCOMMODATION.

    The acquisition and processing of sales slips hereunder is a financial accommodation and, as such, in the event Merchant becomes a debtor in bankruptcy, this Card Services Agreement cannot be assumed or enforced, and Global Direct and Member shall be excused from performance hereunder.

27. DEBIT / ATM PROCESSING SERVICES: ADDITIONAL TERMS AND CONDITIONS.

    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 (the "Covered Terminals") in each of the following debit card networks ("Networks"): Accel, AFFN, Alaska Option, CU24, Interlink, Maestro, NYCE, Pulse, Shazam, Star, and Tyme, which Networks may be changed from time-to-time by Debit Sponsor or Global Direct without notice. Merchant may also have access to other debit networks that do not require a sponsor. Global Direct will provide Merchant with the ability to access the Networks at the Covered Terminals for the purpose of authorizing debit card transactions from cards issued by the members of the respective Networks. Global Direct will provide connection to such Networks, terminal applications, settlement, and reporting activities.

    Merchant will comply with all federal, state, and local laws, rules, regulations, and ordinances ("Applicable Laws") and with all by-laws, regulations, rules, and operating guidelines of the Networks ("Network Rules"). Merchant will execute and deliver any application, participation, or membership agreement or other document necessary to enable Debit Sponsor to act as sponsor for Merchant in each Network. Merchant agrees to utilize the debit card Services in accordance with the Card Services Agreement, its exhibits or attachments, and Global Direct's instructions and specifications (including but not limited to the Card Acceptance Guide which is incorporated into and made a part of this Card Services Agreement), and to provide Global Direct with the necessary data in the proper format to enable Global Direct to properly furnish the Services. Copies of the relevant agreements or operating regulations shall be made available to Merchant upon request. Merchant shall not in any way indicate that Debit Sponsor endorses Merchant's activities, products, or services. Debit Sponsor and Merchant are and shall remain independent contractors of one another, and neither they, nor their respective individual employees, shall have or hold themselves out as having any power to bind the other to any third party. Nothing contained in this Section shall be construed to create or constitute a partnership, joint venture, employer-employee, or agency relationship between Debit Sponsor and Merchant.

    In the event that Debit Sponsor's sponsorship of Merchant in any Network is terminated prior to the termination of the Card Services Agreement, Global Direct may assign Debit Sponsor's rights and obligations hereunder to a third party. All provisions in this Section necessary to enforce the rights and obligations of the parties contained in this Section shall survive the termination of Debit Sponsor's debit sponsorship of Merchant under the Card Services Agreement. Debit Sponsor may assign this Agreement to any parent, subsidiary, affiliate, or successor-in-interest.

28. MERCHANT ACCEPTANCE OF EBT TRANSACTIONS: ADDITIONAL TERMS AND CONDITIONS.

    Merchant agrees to issue Benefits to Recipients in accordance with the procedures specified herein, and in all documentation and user guides provided to Merchant by Global Direct, as amended from time-to-time (including but not limited to the Card Acceptance Guide which is incorporated into and made a part of this Card Services Agreement); and pursuant to the Quest Operating Rules (the "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. Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed them in the Rules. Merchant will provide each recipient a receipt of each Benefit issuance. Merchant will be solely responsible for 9 Rev. 10/09-TPE Merchant's issuance of Benefits other than in accordance with authorizations. Merchant agrees to comply with all the requirements, laws, rules and regulations pertaining to the delivery of services to Benefit Recipients and Benefit Recipient confidentiality. If Merchant issues FS Benefits under this Card Services Agreement, Merchant represents and warrants to Global Direct that Merchant is an FNS-authorized "Merchant" (as such term is defined in the Rules) 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 this Card Services 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 applicable law. Merchant agrees to hold Global Direct harmless from any costs of compliance or failure to comply with any such obligation by Merchant. Global Direct may terminate or modify the provision of Services to Merchant if any of Global Direct's agreements with government EBT agencies are terminated for any reason or if any party threatens to terminate services to Global Direct due to some action or inaction on the part of Merchant. If any of these Card Services Terms & Conditions are found to conflict with Federal or State law, regulation or policy of the Rules, these Card Services Terms & Conditions are subject to reasonable amendment by Global Direct, the State or its EBT Service Provider to address such conflict upon ninety (90) days written notice to Merchant, provided that Merchant may, upon written notice, terminate the Card Services Agreement upon receipt of notice of such amendment. Nothing contained herein shall preclude the State from commencing appropriate administrative or legal action against Merchant or for making any referral for such action to any appropriate Federal, State, or local agency. Any references to "State" herein shall mean the State in which Merchant issues Benefits pursuant hereto. If Merchant issues Benefits in more than one State pursuant hereto, then the reference shall mean each such State severally, not jointly.

29. DISCOVER PROGRAM MARKS.

    Merchant is hereby granted a limited non-exclusive, non-transferable license to use Discover brands, emblems, trademarks, and/or logos that identify Discover cards ("Discover Program Marks"). Merchant is prohibited from using the Discover Program Marks other than as expressly authorized in writing by Global Direct. Merchant shall not use the Discover Program Marks other than to display decals, signage, advertising and other forms depicting the Discover Program Marks that are provided to Merchant by Global Direct pursuant to this Card Services Agreement or otherwise approved in advance in writing by Global Direct. Merchant may use the Discover Program Marks only to promote the services covered by the Discover Program Marks by using them on decals, indoor and outdoor signs, advertising materials and marketing materials; provided that all such uses by Merchant must be approved in advance by Global Direct in writing. Merchant shall not use the Discover Program Marks in such a way that customers could believe that the products or services offered by Merchant are sponsored or guaranteed by the owners of the Discover Program Marks. Merchant recognizes that it has no ownership rights in the Discover Program Marks and shall not assign to any third party any of the rights to use the Discover Program Marks.

30. ELECTRONIC SIGNATURES.

    Under the Electronic Signatures in Global and National Commerce Act (E-Sign), this Card Services Agreement and all electronically executed documents related hereto are legally binding in the same manner as are hard copy documents executed by hand signature when (1) your electronic signature is associated with the Card Services Agreement and related documents, (2) you consent and intend to be bound by the Card Services Agreement and related documents, and (3) the Card Services Agreement is delivered in an electronic record capable of retention by the recipient at the time of receipt (i.e., print or otherwise store the electronic record). This Card Services Agreement and all related electronic documents shall be governed by the provisions of E-Sign. By pressing Submit, you agree (i) that the Card Services Agreement and related documents shall be effective by electronic means, (ii) to be bound by the terms and conditions of this Card Services Agreement and related documents, (iii) that you have the ability to print or otherwise store the Card Services Agreement and related documents, and (iv) to authorize us to conduct an investigation of your credit history with various credit reporting and credit bureau agencies for the sole purpose of determining the approval of the applicant for merchant status or equipment leasing. This information is kept strictly confidential and will not be released.

31. NON-QUALIFIED SURCHARGES/OTHER FEES.

    Merchant pricing appears in the Card Services Fee Schedule of the Merchant Application. T&E merchants (airline, car rental, cruise line, fast food, lodging, restaurant, travel agent, transportation) may have separate rates quoted for consumer and commercial (business) transactions. Transactions that do not clear as priced are subject to non-qualified surcharges (NQS) that are billed back to you on your monthly statement. The most predominant market sectors and applicable non-qualified surcharge rates appear below. Most non-qualified surcharges can be avoided by using a product that supports authorization and market data requirements established by the card associations and that are subject to change from time to time. Some non-qualified surcharges occur on specific types of cards (including without limitation Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, MasterCard World Elite Card, Discover Rewards Card, and "foreign" cards issued outside the United States). Unless your Card Services Fee Schedule specifically addresses commercial cards (i.e., Business Cards, Corporate Cards, Fleet Cards, GSA Cards, Purchase Cards), you will be billed back for the higher cost of acceptance of commercial cards, unless you are primarily a business-to-business supplier with corresponding pricing based on acceptance of commercial cards. The card associations require that information from the original authorization, including a lifecycle identifier, be retained and returned with subsequent authorizations and/or the settled transaction data. The card associations validate this information as part of the clearing and settlement process. If authorization data is not retained and returned at settlement, then the transaction will not clear as priced and will incur NQS. For more information concerning NQS and to view market data, you may wish to check the Global Direct website (www.globalpaymentsinc.com) for best practices information and to license Global Access @dvantage (GA@) for transaction detail review.

    The items listed in this Section 31 are not and are not intended to be a comprehensive list of all instances in which non-qualified surcharges may apply. Nonqualified surcharges may apply in additional situations. All non-qualified surcharges include additional fees assessed by the applicable card association and Member or Global Direct. In addition, Merchant may be assessed additional fees which will be in addition to the fees stated on the Merchant Application, as follows: Merchant will also be assessed (a) Cross-Border fees and a U.S. Acquirer Support fee for international MasterCard and Maestro transactions. (b) an International Service Assessment fee and International Acquirer fee for international Visa transactions, and (c) an International Processing fee and International Service fee for international Discover transactions. These fees, which are applicable to transactions between Merchant and a non-U.S. MasterCard, Maestro, Visa, or Discover cardholder will be displayed as a separate item on Merchant's monthly statement and may include fees assessed by both the applicable card association and Member or Global Direct. Merchant will also be assessed per transaction access fees for Visa, MasterCard and Discover transactions, which will be displayed as a separate item on Merchant's monthly statement and may include fees by both the applicable card association and Member or Global Direct.

    Merchant may also be assessed a PCI fee, which will appear as a separate item on Merchant's monthly statement. This fee is assessed by Member and Global Direct in connection with Member and Global Direct's efforts to comply with the PCI Data Security Standard and does not ensure Merchant's compliance with the PCI Data Security Standard or any law, rule or regulation related to cardholder data security. The payment of such fee shall not relieve Merchant of its responsibility to comply with all rules and regulations related to cardholder data security, including without limitation the PCI Data Security Standard. Merchant will also be assessed the following fees on Visa transactions: the Visa Misuse of Authorization System fee, which will be assessed on authorizations that are approved but never settled with the Merchant's daily batch, the Visa Zero Floor Limit Fee, which will be assessed on settled transactions that were not authorized, and the Visa Zero Dollar Verification fee, which will be assessed on transactions where Merchant requested an address verification response without an authorization. These fees will be displayed as separate items on Merchant's monthly statement and may include fees assessed by both the applicable card association and Member or Global Direct.

NON-QUALIFIED SURCHARGES FOR PREDOMINANT MARKET SECTORS

Retail/Restaurant Electronic Merchant

If you are a Retail Merchant or a Restaurant Merchant with retail-only pricing (no Business Card Rate) and utilize a certified terminal product or electronic system 10 Rev. 10/09-TPE for authorization and settlement through Global Direct, each consumer card transaction you submit which meets all of the following requirements will be priced at the rate quoted. Each transaction not processed as outlined, including without limitation retail commercial card transactions in addition to transactions using Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, MasterCard World Elite Card and all Commercial Cards, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain a single electronic authorization with magnetic strip read or contactless data capture (electronic imprint) at the time of sale.
• Obtain a single electronic authorization and settle for authorized amounts.
• Obtain a cardholder signature (unless transaction is eligible for No Signature Required [NSR] program).
• Settle and transmit batches same day via your terminal/electronic system.
• The electronic authorization amount must be equal to the transaction amount on all Visa debit card transactions unless a Restaurant (MCC 5812), Fast Food (MCC 5814), Service Station (MCC 5541) or, Bar/Tavern (MCC 5513), Beauty/Barber Shop (MCC 7230), or Taxi/Limousines (MCC 4121).
• The electronic authorization amount must be equal to the transaction amount on Discover retail transactions except that Taxi Limousines (MCC 4121) and Beauty/Barber Shop (MCC 7230) merchant transactions may vary up to 20%. Restaurant (MCC 5812), Fast Food (MCC 5814), Service Station (MCC 5541) or Bar/Tavern (MCC 5513) transactions may vary by more than 20% from the electronic authorization without incurring NQS.

Restaurant Electronic Merchants

If you are a Restaurant Merchant MCC 5812 or Fast Food Merchant MCC 5814 and utilize a certified terminal product or electronic system for authorization and settlement through Global Direct, each consumer card transaction you submit which meets all of the following requirements will be priced at the rate quoted. Each transaction not processed as outlined, in addition to transactions using Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, and MasterCard World Elite Card will be priced at the rate quoted plus the nonqualified rate quoted in the Merchant Application. Commercial Card transactions that meet these requirements will be subject to the Business Card rate quoted in the Fee Schedule. Commercial Card transactions not processed in accordance with these requirements will be subject to the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain a single electronic authorization with magnetic strip read or contactless data capture (electronic imprint) at the time of sale.
• Obtain a cardholder signature (unless transaction is eligible for NSR program).
• Settle and transmit batches same day via your terminal/electronic system. Supermarket Electronic Merchant

If you are an approved (certified) supermarket merchant and utilize a terminal or electronic system for authorization and settlement through Global Direct, each transaction you submit which meets all of the following requirements will be priced at the rate(s) quoted for Supermarket Credit Card and Supermarket Check Card. Each transaction not processed as outlined, in addition to transactions using Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, MasterCard World Elite and commercial cards, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain a magnetic strip read (card swipe/contactless data capture/electronic imprint) at the time of sale.
• Obtain a single electronic authorization and settle for authorized amounts.
• Obtain a cardholder signature (unless transaction is eligible for NSR program).
• Settle and transmit batches same day via your terminal/electronic system.
• The electronic authorization amount must be equal to the transaction amount on all Visa debit card transactions.

Supermarket Electronic Merchant

If you qualify as a Developing Market Merchant (as defined by Association guidelines from time to time) and utilize a terminal or electronic system for authorization and settlement through Global Direct, each transaction you submit which meets all the following requirements will be priced at the rates quoted. Any other transaction, including commercial card transactions, Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, and MasterCard World Elite Card, and non-magnetic stripe read foreign transactions will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application In addition, each Visa transaction not processed as outlined, but transmitted same day or next day via your terminal/electronic system, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain a single electronic authorization.
• Settle and transmit batches same day via your terminal/electronic system.
• Provide market data as required. See Note.
  NOTE: If card is not present and a magnetic stripe read does not occur, then Merchant may be required to comply with "Direct Marketer" market data requirements including AVS request on cardholder billing address at time of authorization. If card is present and cardholder signature is obtained, however the magnetic stripe is damaged, then Merchant may be required to obtain AVS match on cardholder billing address zip code.

Direct Marketer Electronic Merchant

If you are a Direct Mail/Telephone Order Merchant (non-magnetic swipe read transactions), and utilize a certified terminal product or electronic system for authorization and settlement through Global Direct, each transaction you submit which meets all of the following requirements will be priced at the rate quoted. Any other transaction, including all foreign transactions and commercial card transactions in addition to transactions using Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, and MasterCard World Elite Card will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain an electronic authorization and settle for authorized amounts (one reversal permitted on Visa transactions to make authorization amount equal to settle amount).
• Address Verification Request in authorization on cardholder billing address. For Discover transactions, Merchant must obtain full address verification request on street number and/or 9 digit postal code.
• CID verification for Discover merchants on non-recurring transactions.
• Purchase date (settled date) is ship date.
• Send order number with each transaction.
• Settle and transmit batches same day via your terminal/electronic system.
• Send level 3 data (line item detail, sales tax, customer code) with every eligible commercial card transaction.
  NOTE: Card Not Present transactions involving one-time, recurring, or installment bill payment transactions are subject to additional card association requirements which must be complied with to avoid NQS. Electronic commerce transaction requirements are also subject to additional card association requirements which must be complied with to avoid NQS. Please refer to Card Acceptance Guide for additional requirements.

Purchase Card Electronic Merchant

If you are a Purchase Card Merchant (non-magnetic swipe read transactions) and utilize a certified terminal product or electronic system for authorization and settlement through Global Direct, each transaction you submit which meets the following requirements will be priced at the rate quoted. Each Visa transaction not 11 Rev. 10/09-TPE processed as outlined, but transmitted same day or next day via your terminal/electronic system, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application. Each Visa business and commercial card transaction will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application. Any other transaction that does not meet the following requirements, including without limitation foreign transactions, tax-exempt Visa Commercial transactions, Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, and MasterCard World Elite Card, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain an electronic authorization and settle for authorized amounts (one reversal permitted on Visa transactions to make authorization amount equal to settled amount).
• Address Verification Request in authorization on cardholder billing address.
• Purchase date (settled date) is ship date.
• Send order number (customer code) with each transaction.
• Send tax amount with every transaction.
• Send Level 3 data (line item detail) with every eligible commercial card transaction. Sales tax exempt transactions will not be considered to meet these requirements unless they include Level 3 data (line item detail).
• Settle and transmit batches same day via your terminal/electronic system.

Lodging/Auto Rental Electronic Merchant

If you are a Lodging or Auto Rental Merchant utilizing a terminal or electronic system for authorization and settlement through Global Direct, each consumer card transaction you submit which meets the following requirements will be priced at the rate quoted. Each transaction not processed as outlined, including without limitation non-magnetic stripe read foreign transactions, and transactions using Discover Rewards Card, Visa Rewards Card, Visa Signature Card, Visa Signature Preferred Card, Visa Infinite Card, MasterCard Rewards Card, MasterCard World Card, MasterCard World Elite Card will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.Commercial Card transactions that meet these requirements will be subject to the Business Card rate quoted in the Fee Schedule. Commercial Card transactions not processed in accordance with these requirements will be subject to the rate quoted plus the non-qualified rate quoted in the Merchant Application.

• Obtain a magnetic swipe read (card swipe/electronic imprint) at the time of check-in.
• Obtain additional electronic authorizations or send partial reversals to bring total authorized amount within 15% of settled amount. Authorizations must meet card association requirements.
• Obtain a cardholder signature for final transaction amount.
• Purchase Date is hotel check-out date/auto return date.
• Length of guest stay/rental in initial authorization.
• Hotel Folio/Rental Agreement Number and check-in date/check-out date transmitted with each transaction.
• Additional market data may be required for commercial card transactions to avoid NQS. Lodging merchants who (1) accept credit cards for advance payment; (2) guarantee reservations using a credit card; or (3) provide express check-out services to guests, must comply with additional card association requirements for these services in addition to additional authorization and settlement market data requirements. Lodging merchants who subject charges to final audit and bill for ancillary/additional charges must comply with additional bank card association requirements for these services in addition to additional authorization and settlement market data requirements to avoid NQS. These transactions may also be subject to the rate quoted plus the non-qualified rate quoted in the Merchant Application. Please see Card Acceptance Guide for requirements and best practices for these transactions.

TouchTone Capture Merchant

Transactions which utilize our TouchTone Capture system for authorizations and settlement, settle beyond 48 hours, or are not transmitted via the TouchTone Capture system, will be priced at the rate quoted plus the non-qualified rate quoted in the Merchant Application.

Paper Deposit Merchant

Non-terminal/electronic paper deposit transactions will be priced at the rate quoted in the Card Services Fee Schedule of the Merchant Application.

Debit Card Merchant

Each debit card transaction will be assessed the network's acquirer fee in addition to the debit card per item fee quoted in the Card Services Fee Schedule of the Merchant Application.

Card Present: / Mag Stripe Failure:

A magnetic stripe read is also referred to as an electronic imprint. If the magnetic stripe is damaged, then other validation means may be required to protect against counterfeit cards and merchant must obtain a manual imprint. Most products will prompt for cardholder billing zip code and perform an AVS check for a zip code match. CID verification is recommended for Discover key-entered transactions. Key-entered retail transactions are subject to higher interchange and NQS. The foregoing information regarding NQS is not comprehensive and is subject to change by the card association. Additional or different rates or fees may apply based on the details of a subject transaction.

All questions regarding Card Services should be referred to The Payment Exchange, attn: Customer Service, 3250 Monier Cir. Ste. K., Rancho Cordova, CA, 95742 or call: 916-635-8800.

Note: Billing disputes must be forwarded, in writing, to Customer Service within 60 days of the date of the statement and/or notice.

For Member Contact:

HSBC Bank USA, National Association
Merchant Support Group
P.O. Box 3263
Buffalo, NY 14240
716-841-6360

Debit sponsorship provided by Wells Fargo Bank N.A.

Toll-free 24-hour customer support and voice authorization is available through The Payment Exchange, at 877-635-8803. Please have your merchant number and daytime telephone number available with all inquiries.