Okaloosa County BOCC — October 5, 2013 — PayPros Merchant Application and Agreement with Addenda — reading text

state the Business Name, Bank Routing Number, and Account Number... Also signed by a bank representative. Payment Processing, Inc. Terms and Conditions 1 Acceptance of Card Transactions 1.1 The following requirements apply to all Card transactions: a) you cannot establish minimum or maximum amounts as a condition for accepting a Card, with the exception that for Discover Network transactions, you may limit the maximum amount a Discover Network Cardholder may spend if, and only if, you have not received a positive Authorization from the Card Issuer; b) you cannot impose a surcharge or fee for accepting a Card; c) you cannot establish any special conditions for accepting a Card; d) you cannot establish procedures that discourage, favor or discriminate against the use of any particular Card; however, you may choose not to accept either U.S. issued Debit Cards or U.S. issued Credit Cards under the terms described in section 1.3; e) you cannot require the Cardholder to supply any personal information (e.g., home or business phone number; home or business address; or driver's license number) unless instructed by us, except for a mail order/telephone order or delivery required transaction, and ZIP code for a Card-present key-entered transaction in order to obtain an Address Verification (AVS); f) Any tax required to be collected must be included in the total transaction amount and not collected in cash; g) you cannot submit any transaction representing the refinance or transfer of an existing Cardholder obligation deemed uncollectible; h) you cannot submit a transaction or sale that has been previously charged back; i) you must deliver at least one copy of the Sales Draft or Credit Draft to the Cardholder; j) you cannot submit a transaction or sale to cover a dishonored check. Failure to comply with any of the Association Rules may result in fines or penalties. 1.2 Prohibited Transactions. a) you are prohibited from depositing transactions originating from Cards of owners, partners or officers of your business establishment except for transactions that are routine in type, size and frequency for your business and that represent actual sales of goods or services. Submission of sales transactions on Cards in order to obtain a cash advance is strictly prohibited and may result in immediate cancellation of your account; b) cash payments by and cash disbursements to Cardholders are also prohibited. You must not accept any direct payments from Cardholders for charges of merchandise or services which have been included on a Sales Draft; it is the right of the Card Issuer to receive such payments. You may not make any cash disbursements to a Cardholder as part of a Card transaction except to the extent expressly authorized by the Merchant Agreement or the Association Rules. 1.3. Card Acceptance. If you have indicated either in the Application or by registering with us at least thirty (30) days in advance that, as between Non-PIN Debit Card transactions and Credit Card transactions, you will limit your acceptance to either (i) only accept Non-PIN Debit transactions; or (ii) only accept Credit Card transactions, then the following terms in this section 1.3 will apply: 1.3.1 You will be authorized to refuse to accept for payment either Non- PIN Debit Cards or Credit Cards that are issued within the United States. You will, however, continue to be obligated to accept all foreign issued Credit or Debit Cards issued by MasterCard, Visa or Discover Network so long as you accept any type of MasterCard, Visa or Discover Network branded Card. 1.3.2 While many Debit Cards include markings indicating debit (such as “Visa Checkcard, Visa Buxx, Gift Card, DEBIT, or Mastermoney), many Debit Cards do not include any such markings and will not have such markings until January 2007. It will be your responsibility to determine at the point of sale whether a Card is of a type that you have indicated that you will accept. You agree to institute appropriate systems and controls to limit your acceptance to the Card types indicated. You may purchase a table of ranges of numbers currently associated with Debit Card transactions upon execution of confidentiality/non-disclosure agreements required by the Associations. You will be responsible for updating your systems to utilize such tables and to obtain updated tables. 1.3.3 To the extent that you inadvertently or intentionally accept a transaction that you are not registered to accept, such transaction will downgrade to a Non-Qualified Credit transaction and the Discount Rate that will be applied to the transaction will be your Non-Qualified Rate. 1.3.4 Based upon your choice to accept only the Card types indicated in the Application, you must remove from your premises any existing signage indicating that you accept all Visa, MasterCard or Discover © 2008 Payment Processing Inc. All rights reserved. Page 1 of 8 Network Cards and use approved specific signage reflecting your policy of accepting only Non-PIN Debit or Credit Cards. 1.3.5 Even if you elect not to accept Non-PIN Debit Card transactions as provided above, you may still accept PIN Debit Card transactions if you have signed up for PIN Debit Card Services. 1.4 If your Merchant Application and Agreement is approved by Processor, you will be provided Operating Procedures, which contain the Operating Procedures, instructions and other directives relating to Card transactions. You agree that if you process Card transactions, you will comply with the Operating Procedures for all transactions you process. The current Operating Procedures are also available online at www.paypros.com/fdmsdocs/ppiopquide0408.pdf . 2 Authorization 2.1 You must obtain an Authorization for all sales that you submit to us. 2.2 An Authorization only indicates the availability of credit on an account at the time the Authorization is requested. It does not warrant that the person presenting the Card is the rightful Cardholder, nor is it a promise or guarantee that you will not be subject to a Chargeback. If you fail to obtain an Authorization or if you submit a Card transaction after receiving a decline (even if a subsequent Authorization attempt provides an approval), your transaction may be assessed fines or fees by the Card Associations for which you will be responsible. These fines or fees currently range from $50 per transaction to $150. To avoid these costs, always obtain an Authorization directly from your terminal before submitting a transaction for settlement. 2.3 Do not attempt to obtain an Authorization provided by someone other than us, except as described in section 2.6. If a Cardholder or another service provider provides you with either an Authorization number or with a telephone number for obtaining Authorizations, the Authorization you receive may not be valid. Even if the transaction is initially processed and funded, it may be subject to a Chargeback at a later date. Also, if you receive an Authorization from someone other than us, we will not have a record of it and will be unable to verify that you received the Authorization if it is later questioned in a Chargeback. 2.4 You may not attempt to obtain multiple Authorizations for a single transaction. If a sale is declined, do not take alternative measures with the same Card to obtain an approval of the sale from other Authorization sources. Instead, request another form of payment. If you accept and process a transaction that was declined, or attempt to submit multiple transactions and/or multiple Authorizations, you are subject to a Chargeback, Association fines and/or cancellation of this Merchant Agreement. 2.5 If you utilize AVS, you must review the response from the Authorization separately from the response from the AVS. A transaction can receive an Authorization from the Card Issuer even if AVS is unavailable or reflects that the address provided to you does not match the billing address on file at the Issuer. If the authorized Cardholder disputes such a transaction, you will be responsible for the resulting Chargeback. 2.6 Third Party Authorization System. If you have contracted with another Authorization network to obtain Credit Card Authorization, i.e., your terminal can Split Dial, liability resulting from discrepancies with that network must be resolved between you and that network. We will not research Chargebacks resulting from Authorization Approval Codes obtained from another authorization service organization. Such Chargebacks will be passed through to you for resolution. If an Authorization provided by a third party authorization system is challenged in a Chargeback, you must obtain proof (e.g., third party authorization logs) from the authorization source and submit it to us within the time frame specified on the Chargeback documentation. IF YOU CONTRACTED TO USE ONE OF OUR AUTHORIZATION SERVICES, DO NOT USE ANOTHER THIRD PARTY SYSTEM WITHOUT NOTIFYING CUSTOMER SERVICE. OTHERWISE, WE WILL BE UNABLE TO SUCCESSFULLY RESEARCH AND DEFEND ANY AUTHORIZATION RELATED CHARGEBACKS ON YOUR BEHALF. THIS DELAY WILL SIGNIFICANTLY DECREASE YOUR TIME TO RESEARCH AND PROVIDE PROOF OF AUTHORIZATION, THUS REDUCING YOUR OPPORTUNITY TO REVERSE A CHARGEBACK. If you utilize another authorization network, you will be responsible for the downgrade of any transactions to a higher cost interchange that result from a mismatch of information to our systems and those of third party authorization networks. ppi0408tc Payment Processing Inc., is a registered ISO/MSP for Wells Fargo Bank, N.A., Walnut Creek, CA. an FDIC insured bank. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. If you use a third party authorization network, you must also comply with section 4.7 of your Operating Procedures. 3 Payment Card Industry (PCI) Data Security. You are required to comply with the Payment Card Industry (PCI) Data Security Standards. These standards are contained in section 4 of your Operating Procedures. Failure to comply with these standards can result in substantial fines. 4 Sales Drafts 4.1 Each transaction that you submit must be supported by a single Sales Draft containing all of the following: a) a clear imprint of the Card showing account number and expiration date; b) the signature of the Cardholder; c) a short description of the goods or services sold; d) the total amount charged; and e) your business name and Merchant number. 4.2 Instead of an imprint of the Card on the Sales Draft, you may rely on the terminal printout of the Card account number on the Sales Draft only in cases where the terminal is able to successfully read the magnetic stripe from the Card (i.e., the Card number is not keyed in) and the transaction is authorized by the terminal without any referral or voice authorization. 4.3. You may not combine different papers to create a single Sales Draft All the requirements of the Sales Draft must be met by a single page document. 4.4 You must timely provide us with copies of any Sales Drafts that we request. Failure to provide us with a valid Sales Draft may result in a Chargeback. 4.5 If you accept a transaction where you do not obtain a Sales Draft meeting all of the requirements of section 4.1, you do so at your own risk 5 Mail Order; Telephone Order; Internet Transactions and Other Card Not Present Sales. You may only engage in mail/telephone/Internet orders provided they do not exceed the percentage of your total payment Card volume reflected on your Merchant Application and Agreement. Failure to adhere to this requirement may result in cancellation of this Merchant Agreement, or we may hold your funds and/or interrupt or terminate your Services. Mail/Telephone/Internet and other Card Not Present transactions have a substantially higher risk of Chargeback. Since you will not have an imprinted or magnetically swiped transaction and you will not have the