OTHER TRANSACTION TYPES

Merchant may solicit the following other Transaction types provided that (a) Merchant discloses such method of processing to Servicer in the Merchant Application or otherwise in writing, (b) Merchant has been approved by Servicer to submit such Transactions, and (c) Merchant meets the additional requirements for the applicable type of Transaction set out below. If Merchant completes any of these Transaction types without having received Servicer’s approval, then Merchant will be in breach of the Agreement and Servicer may terminate the Agreement in addition to any other remedies available under the Agreement, Laws, or Payment Network Regulations, and Merchant may pay a surcharge on each such Transaction.

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Recurring Payments are Transactions for which a Cardholder provides written permission or electronic authorization to a Merchant to periodically charge his or her Card for recurring goods or services (e.g., monthly membership fees, utility bills, insurance premiums, or subscriptions). When processing Recurring Payments, you must obtain a separate Authorization Code for each Transaction.

Pre-authorized Orders are Transactions in which the Cardholder provides written or electronic authorization to charge his or her Card, one or more times, at a future date. You must be authorized by us to process Pre-authorized Orders.

You must obtain a signed order form or other written agreement from the Cardholder for all Recurring Payments and Pre-authorized Orders. The order form or agreement must contain the following information:

 Card number

 Card expiration date

 Cardholder’s name

 Cardholder’s signature

 Transaction amount (charged to the Cardholder’s Card)

 Charge frequency (weekly, monthly, etc.)

 Length of time over which the recurring charges will occur

 The words “Recurring Payment” or “Pre-authorized Order” written on the signature line of the Transaction Receipt

You must keep a copy of the order form or written agreement for the duration of the recurring service. You must also provide a copy of the order form or agreement for Recurring Payments or Pre-authorized Orders to us upon request. A new order form or written agreement with the Cardholder is needed when a Recurring Payment is renewed.

Recurring Transaction Requirements. Merchant will not complete any recurring Transaction after receiving: (i) a cancellation notice from the Cardholder; (ii) a notice from Servicer or Member that authority to accept recurring Transactions has been revoked; or (iii) a response that the Payment Device is not to be honored. Merchant is responsible for ensuring its compliance with Laws with respect to recurring Transactions.

Limitations on the Resubmission of Recurring Transactions. In some limited instances, Merchant may resubmit a declined preauthorized recurring Transaction up to four (4) times within sixteen (16) calendar days of the original Authorization request, provided that the decline response is one of the following: (i) authorization denied; (ii) insufficient funds; (iii) exceeds approval amount limit; or (iv) exceeds withdrawal frequency.

Recurring Transaction Receipts. Merchant must print legibly on the Transaction Receipt the words

“Recurring Transaction.” Merchant must obtain the Cardholder’s signature, which may be an electronic signature or other similar authentication that is effective under applicable Laws, on the Transaction Receipt. Merchant must also include the frequency and duration of the Recurring Transaction authorization, as agreed to by the Cardholder, on the Transaction Receipt.

Electronic Commerce Recurring Transactions. In addition to the above, for an Electronic Commerce Transaction, Merchant must also provide a simple and easily accessible online cancellation procedure that complies with Laws, if the Cardholder’s request for goods or services was initially accepted online.

Recurring Transactions with Varying Amounts. For Recurring Transactions of varying amounts, all of the following apply: (i) the order form must allow the Cardholder to specify a minimum and maximum Transaction amount to be charged, unless the Cardholder will be notified of the amount and date of each charge, as specified in the remainder of this section; (ii) Merchant must inform the Cardholder of their right to receive, at least ten (10) calendar days prior to each scheduled Transaction Date, written notification of the amount and date of the next charge; and (iii) the Cardholder may choose to receive the notification in any of the following ways: (a) for every charge; (b) when the Transaction amount does not fall within the range of amounts specified on the order form; or (c) when the Transaction amount will differ from the most recent charge by more than an agreed upon amount. Merchant is responsible for ensuring that all communications with, and disclosures to, Cardholders comply with Laws.

To perform a Pre-authorized Order, follow these specific guidelines:

 Separately authorize each Transaction for the exact amount of that Transaction, instead of authorizing the entire amount of all the Transactions or no amount at all.

 If applicable to the Transaction, write the words “Delayed Delivery,” and “Deposit” or “Balance” on the Transaction Receipt. The Authorization date and Authorization Code must also be printed on the Transaction Receipt.

While you may process the Transaction for the “Deposit” before delivery of the goods and/or services, you may not process the “Balance” of the Transaction until the goods and/or services are delivered.

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Quasi-Cash Transactions represent the sale of items that are directly convertible to cash. Examples of Quasi-Cash Transactions include:

You must be authorized by us to process Cash Transactions. No Merchant may process a Quasi-Cash Transaction as a cash disbursement.

ACCEPTANCE AND ADDITIONAL REQUIREMENTS

In addition to the general requirements described in Chapter 2, Transaction Receipts, Merchants processing Quasi-Cash Transactions must:

 Review identification (such as a valid passport or driver’s license) to validate the Cardholder’s identity.

 Record the type of identification presented by the Cardholder on the Transaction Receipt, along with the serial number, expiration date, and Cardholder name (if different than the embossed name on the Card) and address.

 For Visa and MasterCard: Record the printed four digits from the face of the Card (found above or below the embossed account number) on the Transaction Receipt. Refer to Chapter 4, Unique Card Characteristics for more information.

 For Discover Network: Record the printed three digits on the signature panel on the back of the Card on the Transaction Receipt. Refer to Chapter 4, Unique Card Characteristics for more information.

 Compare the first four digits of the Card account number on the printed Transaction Receipt with the first four digits of the embossed Card account number. If they do not match, decline the Transaction and attempt to recover the Card (reasonably, lawfully, and peacefully), while also noting a description of the Cardholder.

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The Contactless Transaction requirements are as follows:

Participation. Merchant is responsible for:

1. Ensuring that all POS Devices that accept Contactless Cards for Transactions meet the applicable Credit Card Association specifications, are approved by Servicer and/or the applicable Credit Card Associations for use with Contactless Cards, and are configured to transmit the data elements required for Contactless Transactions.

2. Complying with all Payment Network Regulations applicable to Transactions conducted with Contactless Cards, including all operating requirements, technical guides and other requirements specified by the applicable Credit Card Associations in connection with the acceptance of Contactless Cards.

Registration. It is Merchant’s responsibility to ensure that it is eligible and has been approved by Servicer to accept Contactless Cards, and that Merchant has been registered with the applicable Credit Card Associations to participate in their respective Contactless Card payment program(s).

Processing. Merchant is responsible for:

1. Providing any data in the Authorization request as required by the applicable Credit Card Associations.

2. Transmitting the full and unaltered contents of Track 1 or Track 2 data of the Card’s Magnetic Stripe or Contactless payment chip in the Authorization request.

3. Ensuring that Transactions are not processed as Contactless Transactions if currency conversion is performed.

4. Submitting only a single Authorization per clearing Transaction.

Merchants that are eligible for both a Credit Card Association’s No Signature Requirement Program and to accept Contactless Cards may combine these programs to further enhance the benefits of accepting Contactless Cards and participating in a No Signature Required Program.

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