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

indicated in the Merchant Application and Agreement. Debit Network Processing Fees are subject to change without notice. Dial-Up Terminal. An Authorization device which, like a telephone, dials an Authorization center for validation of transactions. Discount Rate. An amount charged for processing Credit Card transactions or Non-PIN Debit Transactions. Discount Rates are charged on all sales and refunds. The discount rates for mid-qualifying and non- qualifying transactions are higher as described in section 8.3 and the “Discount Rates” section of the Merchant Application and Agreement. Early Cancellation Fee. A fee in the amount of three hundred dollars ($300.00), charged in the event that: a) you elect to cancel this Merchant Agreement prior to the expiration of the initial term of the Merchant Agreement; or b) the Merchant Agreement is terminated prior to the expiration of the initial three (3) year term due to an Event of Default, except as provided in section 16.1. Electronic Benefit Transfer (EBT). An electronic system that allows a government benefit recipient to authorize the transfer of his/her benefits from a federal, state or local government account to a Merchant account to pay for products and services received. Electronic Data Capture (EDC). A process which allows a merchant's Dial-Up Terminal to receive Authorization and capture transactions, and electronically transmit them to a Card processor. This eliminates the need to submit paper for processing. Excessive Chargebacks. a) Chargebacks or Retrieval Requests in excess of MasterCard, Visa or Discover Network rules as they may exist from time to time, b) Chargebacks relating to a Merchant's transactions processed by Bank in excess of one percent (1%) of the average monthly dollar amount of such transactions, c) Chargebacks relating to a Merchant's transactions processed by Bank in excess of one and a half percent (1.5%) of the total number of transactions processed by the Merchant for a particular month or, d) Retrieval Requests in excess of three percent (3%) of the total number of transactions processed. Factoring. The submission of authorization requests and/or Sales Drafts by a Merchant for Card sales or Cash Advances transacted by another business. Imprinter. A manual or electric machine used to physically imprint the Merchant's name and ID number as well as the Cardholder's name and Card number on a Sales Draft. Issuer. The bank or Association which has issued a Card to an individual. MasterCard and Visa only issue Cards through banks (“Issuing Banks”) while Discover Network may issue Cards directly or issue Cards though an Issuing Bank. Magnetic Stripe. A stripe of magnetic information affixed to the back of a plastic Credit or Debit Card. The magnetic stripe contains essential Cardholder and account information. Media. The documentation of monetary transactions (i.¢., Sales Drafts, Credit Drafts, computer printouts, etc.). Merchant. The party identified as “Merchant” on the Merchant Application and Agreement. The words “you” and “your” refer to Merchant. © 2008 Payment Processing Inc. All rights reserved. Page 7 of 8 Merchant Application. The Application portion of the Merchant Application and Agreement, sometimes referred to as the “Application”. Monthly Account Fee. A recurring monthly fee, as indicated in your Merchant Application and Agreement, for maintaining an account with Processor. Monthly Customer Service Fee. A recurring monthly fee, as indicated in your Merchant Application and Agreement, for customer service access. Monthly Minimum Fee for MasterCard/Visa/Discover Network. A fee, as indicated in the Merchant Application and Agreement, less the net Discount Rates, if any, for your MasterCard/Visa/Discover Network transactions during the month. Non-PIN Debit Transaction. A transaction in which a Debit Card is used at a Merchant location bearing a MasterCard, Visa or Discover Network logo, but where the Cardholder does not enter a PIN. Operating Procedures. The then-current manual prepared by Processor, containing operating procedures, instructions and other directives relating to Card transactions. If you process Card transactions, you must comply with the Operating Procedures. The current Operating Procedures are available online at www.paypros.com/fdmsdocs/ppiopquide0408. pdf. PIN. A Personal Identification Number entered by the Cardholder to submit a PIN Debit Card transaction. PIN Debit Card. A Debit Card used at a merchant location by means of a Cardholder-entered PIN in the merchant PIN Pad. PIN Debit Cards bear the marks of ATM networks (such as NYCE, Star). PIN Debit Transaction. A transaction in which a Debit Card is used at a Merchant location by means of a Cardholder-entered Personal Identification Number (PIN) in the Merchant PIN Pad. PIN Debit Cards bear the marks of ATM networks (such as MAC, NYCE, STAR). Processor. Payment Processing, Inc., or any successor, transferee, assignee or delegate thereof. Recurring Payment Indicator. A value used to identify transactions for which a consumer provides permission to a Merchant to bill the consumer's Card account at either a predetermined interval or as agreed by the Cardholder for recurring goods or services. Referral. The message received from a Card Issuer when an attempt for Authorization requires a call to the Voice Authorization Center or Voice Response Unit (VRU). Reserve Account. A fund established and managed by us to protect against actual or contingent liability arising from Chargebacks, adjustments, fees and other charges. Retrieval Request/Transaction Documentation Request. A request for documentation related to a Card transaction such as a copy of a Sales Draft or other transaction source documents. Sales Draft. Evidence of a purchase of goods or services by a Cardholder from Merchant using a Card, regardless of whether the form of such evidence is in paper, or electronic form or otherwise, all of which must conform to Association Rules. Servicers. Bank, and Processor collectively. The words “us” and “we” refer to Servicers . Services. The activities undertaken by Processor and Bank to authorize, process and settle all United States Dollar-denominated MasterCard, Visa and Discover Network Card transactions undertaken by Cardholders at Merchant's location(s) in the United States, and all other activities necessary for Processor and Bank to perform the functions required by this Merchant Agreement for all other Cards covered by this Merchant Agreement. Settlement Account. An account at a financial institution designated by Merchant as the account to be debited and credited by Processor or Bank for Card transactions, fees, Chargebacks and other amounts due under the Merchant Agreement or in connection with the Merchant Agreement. Split Dial. A process which allows the Authorization terminal to dial directly to different Card processors (e.g., American Express) for Authorization. In this instance, the Merchant cannot be both Electronic Draft Capture (EDC) and Split Dial. Split Dial is also utilized for check guarantee companies. Submission. The process of sending batch deposits to us for processing. This may be done electronically or by mail. Summary Adjustment. An adjustment to your Submission and/or Settlement Account in order to correct errors. ppi040oste 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. Telecommunication Card Sale. Individual local or long-distance telephone calls, for which the telephone service provider is paid directly by use of a Card. These do not include, however, calls paid for with pre-paid telephone service cards. Telecommunication Card Sales are considered Card Not Present sales. Transaction Fees. Service costs charged to a Merchant on a per transaction basis. Us. Bank and Processor collectively. We. Bank and Processor collectively. You, your. See Merchant. Agreement. © 2008 Payment Processing Inc. All rights reserved Page 8 of 9 ppi0408te 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. CONFIRMATION PAGE Please read the Terms and Conditions and Operating Procedures in their entirety. These documents describes the terms under which we will provide merchant processing services to you. From time to time you may have questions regarding the contents of your Agreement with us. The following information summarizes portions of your Agreement in order to assist you in answering some of the questions we are most commonly asked: 1. Your discount rates are assessed on transactions that qualify for certain reduced interchange rates imposed by MasterCard and Visa. Any transactions that fail to qualify for these reduced rates will be charged an additional fee (see Terms and Conditions Section 8). 2. We may debit your bank account from time to time for amounts owed to us under the Agreement. 3. There are many reasons why a Chargeback may occur. When they occur we will debit your settlement funds or settlement account. For a more detailed discussion regarding Chargebacks see Terms and Conditions Section 11. 4. If you dispute any charge or funding, you must notify us within 45 days of the date of the statement where the charge or funding appears, or should have appeared. 5. The Agreement limits our liability to you. For a detailed description of the limitation of liability see Terms and Conditions Section 13. 9. Association Disclosure Member Bank Information: Wells Fargo Bank, N.A. 6. We have assumed certain risks by agreeing to provide you with Card processing. Accordingly, we may take certain actions to mitigate our risk, including termination of the Agreement, and/or hold monies otherwise payable to you (see Terms and Conditions Section 16, Term of Agreement; Section 19, Events of Default and Section 20, Reserve Account; Security Interest), under certain circumstances. 7. By executing this Agreement with us you are authorizing us to obtain financial and credit information regarding your business and the signer and guarantors of the Agreement until all your obligations to us are satisfied. 8. The Agreement contains a provision that in the event you terminate the Agreement early, you will be responsible for the payment of an early termination fee as set forth in Terms and Conditions Section 17 and Schedule A. The Bank's mailing address is Wells Fargo Bank, N.A., 1200 Montego Way, Walnut Creek, CA 94598 and its phone number is 1-800-451-5817. Important Member Bank Responsibilities: (a) The Bank is the only entity approved to extend acceptance of Association products directly to a Merchant. (b) The Bank must be a principal (signer) to the Merchant Agreement. (c) The Bank is responsible for educating Merchants on pertinent Association Rules with which Merchants must comply. (d) The Bank is responsible for and must provide settlement funds to the Merchant. (e) The Bank is responsible for all funds held in reserve that are derived from settlement. Print Merchant's Business Legal Name: Important Merchant Responsibilities: (a) Ensure compliance with cardholder data security and storage requirements. (b) Maintain fraud and chargebacks below Association thresholds. (c) Review and understand the terms of the Merchant Agreement. (d) Comply with Association rules. By its signature below, Merchant acknowledges that it has received the complete Terms and Conditions and Operating Procedures (consisting of two separate documents. The Terms and Conditions include this confirmation). Merchant further acknowledges reading and agreeing to all terms in the Terms and Conditions, which shall