KNOW ALL MEN BY THESE PRESENTS:
This Agreement made and entered into this day of , 20 , in the City of Makati, by and between:
METROBANK CARD CORPORATION (A Finance Company), a Philippine corporation with principal office address at the MCC Center, 6778 Xxxxx Avenue, Makati City, represented herein by its Deputy Cards Head, Xxxx Xxxxxxx X. Xxxxxx and its Chief Finance Officer, Xxxxx X. Xxxxxxxxxx Xx hereinafter referred to as “MCC.”
- and –
, a corporation (or partnership) duly organized and existing by virtue of the laws of the Philippines, with principal office address at
, represented herein by its [State Position] , [State Name]
, hereinafter referred to as the “MERCHANT.”.
For Single Proprietorships:
[State Name] , [State Nationality] , of legal age, doing business under the name and style of , with office address at
, hereinafter referred to as the “MERCHANT.” (MCC and the MERCHANT shall also, hereinafter, be individually referred to as "Party" and collectively referred to as the "Parties".)
WITNESSETH: That –
WHEREAS, MCC is engaged in the business of electronic payment processing and issuing credit cards including VISA, MASTERCARD, JCB and UNION PAY (“Credit Cards”) to qualified natural persons and/or juridical entities (“Cardholders”), and desires to make available to Cardholders the opportunity to purchase goods, merchandise and/or services from MERCHANT with the use of such Credit Cards;
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WHEREAS, the MERCHANT is duly licensed to engage in the business of selling and/or supplying goods and/or services and has agreed to honor every valid unexpired VISA and MASTERCARD and is authorized to accept transactions using BancNet Cards and any other card brands (e.g. JCB, UNIONPAY, etc.) which may be issued or acquired by MCC in relation to purchases by Cardholders of its goods/services under the terms and conditions hereinafter stipulated;
NOW, THEREFORE, the Parties hereby agree as follows:
1. DEFINITION OF TERMS – the following terms used in this Agreement shall have the following meanings:
a. “AUTHORIZATION” refers to the approval required to be obtained by the MERCHANT by telephone from the MCC Authorization Hotline before a Credit Card transaction is honored, provided, that such telephone authorization shall only be required if a Point-of-Sale (POS) terminal has not been installed or if present, has failed to provide the necessary approval number. The Authorization contemplated herein shall take the form of an authorization code number obtained from MCC Authorization Hotline by the MERCHANT.
b. “BANCNET CARD” shall refer to the unexpired ATM debit and prepaid card including cash card issued by any of the BancNet member banks or unexpired debit or cash cards issued by other card issuers that have been accredited by MCC to use POS terminals.
c. “BANKING DAY” shall mean any day when banks are open for business. Provided, however, that Saturday and Sunday shall at all times be considered as a non-banking day for purposes of this Agreement and notwithstanding any declaration to the contrary.
d. “CARD” shall mean either Credit Card or BancNet Card, as the case may be.
e. “CARDHOLDER” shall mean the person whose name is imprinted/embossed on the Credit Card or BancNet Card, and whose signature appears on the signature panel as the authorized user thereof.
f. “CHARGEBACK” shall mean the process by which MCC charges the MERCHANT the full/partial amount of the Transaction Draft which had been paid by MCC under such circumstances and situations where a sales transaction is disputed by the Cardholder and/or where the MERCHANT failed to comply with any of its obligations under this Agreement.
g. “CHARGE SLIPS” shall mean the forms supplied or approved by MCC as proof or evidence of sales or credits to be charged or credited to the account of the Cardholder on the basis of the Credit Card properly honored by the MERCHANT pursuant to the terms hereof. This is used whenever a transaction is processed manually.
h. “CREDIT CARD” shall mean an unexpired VISA, MASTERCARD, JCB and/or UNION PAY currently issued by MCC and other Credit Card issuers or brands which may be acquired by MCC.
i. “CARD TRANSACTION” shall mean any payment instruction effected by the Cardholder with the MERCHANT by the use of the Credit Card or BancNet Card, as the case may be.
j. “DEPOSITORY BANK” shall refer to the BancNet Member Bank where the MERCHANT maintains its account, and where transactions subject of this Agreement shall be credited or debited.
k. “ELECTRONIC DRAFT CAPTURE (EDC) MODE” shall refer the electronic means by which a Credit Card is processed. This transaction processing method does not require the
MERCHANT to submit paper drafts to MCC for posting into Cardholder accounts or interchange settlement with other issuing banks.
l. “INSTALLMENT” shall mean the installment feature of MCC Credit Cards that shall allow the Cardholder to avail of a certain product/s or service/s by paying MCC in pre-determined installments at a stipulated rate over a fixed term. MCC installment programs are classified either as regular rate installment, reduced rate installment, 0% installment or deferred installment.
m. “MANUAL TRANSACTIONS” shall refer to transactions consummated between the MERCHANT and the Cardholder, whose approval did not come online or through EDC Mode, but through phone conversation between the MERCHANT and MCC Authorizations.
n. “MOTO TRANSACTIONS” shall mean transactions that are processed by keying in the credit card number and the transaction amount in EDC Mode or by file upload to the system (Cardholder not present).
o. “MERCHANT” shall mean any business establishment contracted by MCC to honor Credit Cards and BancNet Cards as payment for the MERCHANT’s goods and/or services.
p. “MERCHANT DISCOUNT RATE” shall refer to the percentage rate used by MCC to calculate the discount charged for card transactions acquired by MCC.
q. “SALES SUMMARY SHEET” shall refer to the summary document that the merchant accomplishes and submits to MCC and must contain the gross sales amount, total amount of charge slips, discount rate, applicable government tax and net payable amount.
r. “SETTLEMENT” shall refer to the the electronic process of transferring funds for sales and credits between the MERCHANT and MCC.
s. “POINT-OF-SALE (POS) Terminal” shall refer to the authorization and/or transaction terminal or device provided by MCC to its accredited merchants to be used for securing approval for all card transactions.
t. “TRANSACTION DRAFT” shall mean the drafts generated by the MERCHANT’s POS terminal as proof of consummation of a sales transaction done on–line through the use of Credit Card.
u. “TRANSACTION RECEIPT” shall refer to the paper receipt generated by the POS terminal after each successful transaction processed thereat using a BancNet Card.
v. “WARNING BULLETIN” shall mean a notification issued by VISA, MASTERCARD, JCB and/or UNION PAY, or by any other issuer of any Credit Card, which lists Credit Cards which are not to be accepted for card transactions.
2. ACCEPTANCE OF CREDIT CARD
a. The MERCHANT shall honor, without any discrimination, all valid Credit Cards presented by bonafide Cardholders in the purchase of goods and/or services supplied by it on credit.
Every Credit Card issued to a bonafide Cardholders is non-transferrable. Thus, MERCHANT should process transaction only of such Cardholder.
b. The MERCHANT shall honor Credit Cards only after it has determined and become satisfied that:
i. The Credit Card security features have been thoroughly examined and that the card has not yet expired;
ii. The signature affixed by the Cardholder in the presence of the personnel of the MERCHANT on the Transaction Draft or Charge Slip prepared by the latter is the same as the specimen appearing on the Credit Card. In case of doubt, additional identification to determine the genuineness of the signature should be mandatorily requested from the Cardholder; and
iii. The Credit Card is neither mutilated, defaced nor bears any marking/s of alteration in embossing or signature.
c. The MERCHANT shall observe all security measures, whether or not prescribed by MCC in respect of the acceptance of any Credit Card for payment of any card transaction, including but not limited to, ensuring that only Credit Cards which are valid and not listed in any warning bulletin shall be accepted. For this purpose, a valid Credit Card is one which is not expired, not tampered with and presented or used by the Cardholder whose name and signature appears thereon; while a warning bulletin refers to a listing of Credit Cards that have been reported past due, stolen, canceled or compromised in some way.
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d. The MERCHANT shall obtain authorization and authorization code numbers for every card transaction electronically through the POS terminal or following the manual authorization procedure set forth in the Manual Operating Guide (“MOG”) provided by MCC to the MERCHANT.
e. The MERCHANT shall comply with all instructions whatsoever given through the POS terminals in response to requests for authorization of Credit Card transactions made electronically through the POS terminals by the MERCHANT, or over the telephone in response to manual authorization requests following the manual authorization procedure. The MERCHANT shall not mislead the Cardholder by indicating that his Credit Card transaction is being declined or refused, but shall properly notify the Cardholder that the POS terminal registered such response which requires the MERCHANT to call MCC providing the following details: name of MERCHANT, Merchant ID number, Cardholder’s name, Card Account Number, expiration date of the Card, the amount of the Credit Card transaction and the reason for the request of the Credit Card transaction.
f. The MERCHANT may not infer any impropriety, wrongdoing, or lack of credit worthiness on the part of any Cardholder from the referral of the Credit Card transaction to MCC or declining of any authorization request made in respect of a Credit Card transaction attempted to be effected by the Cardholder or from any instruction given to the MERCHANT by MCC under any provision of this Agreement.
g. MERCHANT shall, at no time, open its own charge account for Cardholders or xxxx Cardholders directly or offer its own credit, debit and similar programs without the prior written conformity of
h. Procedures relative to credit authorization and the processing of Credit Card transactions not covered by this Agreement are embodied in the MOG, the terms and conditions thereof shall form part of this Agreement. MCC may from time to time, by notice to MERCHANT, modify or amend the MOG.
3. SURCHARGING PROHIBITION
The selling price of goods and/or services sold/rendered by the MERCHANT to the cardholder shall be at the regular selling price to cash customers, without adding-on any extra percentage of any kind to the Cardholder transactions. However, with respect to items on “Sale” during bargain/discount sale when the prices of goods and/or services are substantially reduced, the MERCHANT, after giving one (1) week written notice to MCC, has the option to: (1) charge the regular price for such item/s; or (2) provide the Cardholder a different discount; or (3) exclude the “Sale” items from the credit facility, Provided, however, that in exercising any of the enumerated options, it is agreed that the MERCHANT shall first disclose and explain the same to the Cardholder.
4. COMPLETION OF CREDIT CARD TRANSACTION
a. Credit Card transactions supported by a Transaction Draft for online transactions or Charge Slip for manual transactions shall be accomplished and generated strictly in accordance with the MOG provided by MCC to the MERCHANT.
b. Unless otherwise provided in this Agreement, all Transaction Drafts or Charge Slips must be signed by the Cardholder in the appropriate space.
c. MERCHANT represents and warrants to MCC that all Transaction Drafts or Charge Slips to be submitted to and accepted by MCC:
i. Represent bonafide sales of merchandise and/or services in the usual course of business for the total price;
ii. Are not/will not be defective, illegal or otherwise impair the validity or enforceability of collection thereof from the Cardholder who made the transaction; and
iii. Shall consistently be for the full amount of the transaction and shall not be processed in parts constituting “Split Sale” unless the transaction is covered under the conditions stated in section 4.c.ii. For this purpose a Split Sale refers to an intentional act of dividing a merchant installment transaction into multiple charge slips. There is presumption of splitting transactions if there are 2 or more transactions in one merchant outlet or establishment over one and the same product, and the interval between these transactions is 10 minutes or less.
d. MERCHANT assumes full responsibility for any goods and/or services returned and/or questioned by the Cardholder as well as for the accuracy and correctness of any data or information appearing on the Transaction Draft or Charge Slip. MERCHANT agrees to indemnify and hold MCC free and harmless from any claims relating to any Transaction Draft or Charge slip or as may be made by way of defense, offset, counterclaim or affirmative action by the Cardholder.
e. MERCHANT shall not complete the transaction when only part of the amount due is indicated on the Transaction Draft or Charge Slip except under the following circumstances:
i. When the balance of the amount of sales is paid by the Cardholder in cash, check or other Credit Card at the time of the transaction;
ii. In a delivery transaction or where goods/services are to be delivered or performed at a later date and where one Transaction Draft or Charge Slip represents the “deposit,” “initial payment” or “down payment” and another represents the “balance” or “final payment,” the Transaction Draft or Charge Slip for the “balance” or “final payment” shall not be presented to MCC until the goods are delivered or services performed completely and accepted by the Cardholder. Separate approval is required for “deposit” and “balance” Transaction Drafts or Charge Slips. Approval on the “deposit” transaction does not guarantee subsequent approval of the “balance” nor shall it bind or obligate MCC to, thereafter, authorize the “balance” Transaction Draft or Charge Slip.
f. MERCHANT shall give the original copy of the establishment’s sales/commercial invoice or receipt directly to the Cardholder at the time of the purchase, together with the Cardholder’s copy of the Transaction Draft or Charge Slip.
5. TRANSACTION DRAFT/CHARGE SLIP
a. In case of on-line or electronic transactions, Transaction Drafts generated by POS terminals shall be distributed as follows: one (1) copy goes to the MERCHANT and one (1) copy is given to the Customer. MERCHANT is required to maintain copy of the Transaction Draft for eighteen (18) months. In case of dispute, MERCHANT should present its copy to MCC once requested within five (5) business days from the date of such request. Failure to present said copy will result to an outright chargeback.
b. MERCHANT operating twenty-four (24) hours a day/seven (7) days a week (“24/7”) shall settle the day’s transactions from the POS terminal, at the end of each transaction date or at the designated cut-off time and send it to MCC immediately.
c. In the case of Credit Card transactions wherein authorization and authorization codes were manually obtained in accordance with this Agreement, all Charge Slips relating to such Credit Card transactions effected with the MERCHANT during each day shall be submitted to MCC together with the Sales Summary Sheet duly approved by MCC containing the information indicated below, on or before the fifth (5th) day following the Card Transaction date, viz:
i. Merchant name and address;
ii. Merchant code;
iii. Actual number of attached Transaction Drafts or Charge Slips;
iv. Total gross sales;
v. Discount rate and amount of discount;
vi. Applicable government tax/es;
vii. Net amount payable to MERCHANT; and
viii. Signature of the MERCHANT’s personnel who accomplished the Sales Summary Sheet.
6. MERCHANT DISCOUNT RATE
MCC shall undertake to pay the MERCHANT for all the Transaction Drafts or Charge Slips or Transaction Receipts validly incurred via genuine availments at the Discount Rate indicated in the Letter of Offer which MCC shall provide to the MERCHANT. MCC reserves the right to change the Discount Rate upon prior written notice to the MERCHANT; provided that no change in the Discount Rate shall be effective for any period prior to the time of receipt by the MERCHANT of such notice.
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7.1. Settlement Payment
a. MCC shall, during the term and subject to the terms and conditions of this Agreement, pay to the MERCHANT at such time/s determined by MCC from time to time in accordance with the prevailing practice at the relevant time, the total amount of the Credit Card transactions effected with the MERCHANT which have been so submitted less: (i) the aggregate Discount Rate on all such Credit Card transactions; (ii) the government taxes; (iii) the aggregate refunds or rebates granted to credit cardholders, if applicable; and (iv) all other amounts payable or due to MCC under this Agreement or otherwise.
b. All payments made to the MERCHANT shall be made available to the MERCHANT by check, drawn in favor of the MERCHANT, or credited to the MERCHANT’s account with any branch of the Metropolitan Bank & Trust Company (“MBTC”) or with other banks, subject to MCC’s right at its discretion at any time to change the mode of such payment to the MERCHANT. For crediting to the MERCHANT’s account with other banks, the relevant transfer fees and other related charges shall be borne by the MERCHANT.
c. All approval codes given to the MERCHANT does not guarantee outright payment, there may be instance/s of fraud and/or disputes that may preclude such payment. If the MERCHANT does not raise any objection to the amount of payment by MCC within thirty (30) days after the date MCC issues the check or credits the MERCHANT’s account, the MERCHANT shall be deemed to have accepted such amount as correct; Provided that nothing in this Section shall preclude MCC from correcting any error or discrepancy in such amount paid.
d. Subject to proof to the contrary, any payment by MCC under this Agreement, whether or not the MERCHANT has complied with all its obligations under this Agreement, shall be made without prejudice to any claims, rights or remedies that MCC may have against the MERCHANT, and shall not constitute any admission or acknowledgment by MCC that the MERCHANT has duly performed its obligations under this Agreement or of the correctness of the amount so paid.
7.2. Crediting of MERCHANT account for purchases using BancNet Card
Given that BancNet is a switch composed of many member banks:
a. The MERCHANT agrees and warrants that it shall maintain a deposit account with its Depository Bank into which will be credited the aggregate amount of purchases net of the agreed commission rate or transaction fee as specified in Section 6.
b. The MERCHANT shall allow the Depository Bank to make the required adjustments within three (3) days from the transaction date without any adverse consequence on the BancNet cardholder, BancNet or the Member Banks for uncredited payments, provided the delay in crediting was unavoidable and beyond the control of the Depository Bank.
c. The MERCHANT shall allow the Depository Bank to debit the account of the MERCHANT, upon prior notice to the latter, for the amount previously credited thereto and which was subsequently proven invalid. Furthermore, the account shall be subject to the terms and conditions, and documentary requirements stipulated in the deposit account agreement.
a. Notwithstanding any provision of this agreement to the contrary or any authorization given in relation to such Credit Card transaction, MCC shall be entitled, without giving any reason, to refuse payment to the MERCHANT of all or part of any amount of any Card Transaction less the discount and less applicable taxes, in case of any of the following events (each a Chargeback Event) occurs:
i. The credit cardholder disputes the nature, quality, use or fitness of the goods sold and/or services rendered under the Card Transaction, or alleges that the MERCHANT has breached the terms of the contract of sale or service entered into between the MERCHANT and the credit cardholder or any representation or warranty made by the MERCHANT to the credit cardholder;
ii. The credit cardholder disputes or denies that the Card Transaction was effected by him or the contract of sale or service with the MERCHANT was entered into by him or delivery of the goods sold and/or performance of the services rendered under the Card Transaction was received by him. MCC shall refer to the MERCHANT all transaction/s disputed by the credit cardholder and MERCHANT undertakes to resolve the dispute with the Cardholder within five (5) business days upon receipt of advice from MCC. Disputed transaction(s) which the MERCHANT has failed to resolve within the aforestated period shall be automatically charged back by MCC to the MERCHANT
iii. The contract of sale or service entered into between the MERCHANT and the Cardholder in relation to the goods and/or services rendered under the Card Transaction is void or voidable at law or the use of the Credit Card or the performance of any person’s obligation’s under such contract of sale or service involves any illegal or unlawful act;
iv. Payment in relation to the Card Transaction has been mistakenly or wrongly made by MCC or the Cardholder to the MERCHANT;
v. No authorization and/or authorization code numbers were sought by and/or granted to the MERCHANT for the Card Transaction as required under this agreement;
vi. The Credit Card used for the Card Transaction is not a valid Credit Card and/or has been listed in any warning bulletin;
vii. The Cardholder alleges that the Transaction Draft or Charge Slips has been drawn or altered without his consent or authority;
viii. The Transaction Draft / Charge Slips is not signed by the Cardholder or any part of it is illegible;
ix. The copy of any Transaction Draft/Charge Slips or any document required to be signed by the Cardholder in relation to any Card Transaction presented to MCC or retained by the
MERCHANT is not identical to the copy of the same as given to the Cardholder;
x. The MERCHANT does not furnish MCC the original copy of the Transaction Draft/Charge Slip or a copy of it, invoice or other document or record relating to the Card Transaction forthwith upon request of MCC;
xi. The MERCHANT does not comply with any of its obligations or the requirements under this agreement in relation to any Card Transaction or any security measures or guidelines relating to this agreement issued by MCC;
xii. There has been a breach by the MERCHANT of any other of its obligations under this agreement not specified herein, or of any other agreement entered into between the
MERCHANT and MCC or of any other obligation whatsoever owed by the MERCHANT to MCC, whether or not related to this agreement;
xiii. The MERCHANT processed the same Card Transaction more than once; or
xiv. The occurrence of fraud and other events determined by Visa International, MasterCard International or any other issuer of any Credit Card and notified by MCC as a Chargeback Event.
xv. In cases of disputed transactions processed as MOTO, chargeback will be affected without notice of confirmation from MCC.
b. If any of the foregoing Chargeback Event occurs, MCC has the right not to accept the transactions and chargeback such to the MERCHANT via a Chargeback Advice.
c. The amount corresponding to the Chargeback (“Chargeback Amount”) shall first be applied by MCC against the future xxxxxxxx of the MERCHANT. If no sum or payment is due to the MERCHANT that will allow MCC to deduct/set-off the Chargeback Amount, MCC shall seek reimbursement from the MERCHANT of the Chargeback Amount, upon which the MERCHANT shall reimburse MCC immediately upon receipt of a demand. If despite receipt of such demand, MERCHANT fails to reimburse MCC, MERCHANT hereby expressly authorizes MCC to deduct the Chargeback Amount due without need of demand or any further act or deed, against any money, securities and things of value which are now or may hereinafter be in the possession of MCC or any of its subsidiaries and affiliates.
d. MCC shall also enjoy and exercise preferential lien on the stocks, inventories, properties, banks accounts and all other forms of monetary deposits and investments of the MERCHANT. Accordingly, upon failure of the MERCHANT to reimburse MCC for any duly paid Transaction Draft or Sales Slip, whether arising from a Chargeback Advice or such other amount due to MCC under this Agreement, MCC is fully authorized and empowered by the MERCHANT as its attorney-in-fact to take possession of the MERCHANT’s stock inventories and properties, to forthwith sell the same at public auction or private sale, and to apply the proceeds thereof in payment of the MERCHANT’s unpaid obligations and expenses of sale; Provided, however, that any excess shall be turned over to the MERCHANT.
9. COUNTERFEIT CARDS / FRAUD
a. Where the MERCHANT receives a Credit Card or BancNet Card which it believes or suspects may be counterfeit or stolen or otherwise belong to a person other than the purporting to be the Cardholder, the MERCHANT shall, without at any time informing the Cardholder or the purported Cardholder or arousing suspicion, immediately inform MCC by calling MCC Authorization and Fraud Department at the telephone numbers notified to the MERCHANT by MCC for such purpose and comply with the instructions given by MCC.
b. In the event that the MERCHANT is instructed to retain a Credit Card or BancNet Card for any reason, the MERCHANT shall exert its best effort to do the same as discreetly as possible. The MERCHANT shall, at MCC’s request, furnish to MCC full particulars of the circumstances surrounding the retention of such Credit Card or BancNet Card. In the event that MERCHANT is unable to retain a Credit Card or BancNet Card, the MERCHANT shall exert reasonable efforts to furnish MCC with the following information: Name of Cardholder, Card Account Number and Card Expiry date of the Card.
c. The MERCHANT shall not process a Card Transaction that it knows or ought to have known to be fraudulent or not authorized by the Cardholder nor present payment any record in respect of any such transaction. The MERCHANT shall be responsible for the action of its employees while acting in its employ or of its agents while acting in its behalf.
d. Nothing in this Section or any instructions given to the MERCHANT under letter shall be taken to imply that the MERCHANT is authorized by MCC to breach the peace or injure any person or property, or make any defamatory statements or act illegally or unlawfully in any way, and MCC shall not be liable for any such deed, act or conduct on the part of the MERCHANT, its employees and its representatives.
e. The approval codes given to the MERCHANT does not guarantee that it will be paid, in case fraudulent transactions are found to be consummated in the POS terminal of the MERCHANT or through other means, MCC may opt to suspend the operation of the POS Terminal pending further investigation
10. CARD TRANSACTIONS
10.1 Credit Cards
a. INSTALLMENT TRANSACTIONS
MERCHANT may be allowed to honor Credit Cards for purchase of goods or services under Installment subject however to the prior written approval and/or accreditation by MCC. Upon such approval, MERCHANT shall be bound by the rules governing Installment as specified herein which may be modified and amended by MCC from time to time, to wit:
i. MERCHANT shall observe all the standard procedures for card acceptance, completion of card transaction and settlement as provided under this Agreement. MERCHANT
shall likewise observe all the applicable procedures on Installment in the MOG.
ii. MERCHANT has the option to avail of the following installment programs that it deems preferable for its business: regular rate installment, reduced rate installment, zero percent (0%) interest installment and deferred installment. The mechanics, procedures and rates for these programs shall be provided by MCC to the MERCHANT. MCC reserves the right to change the rate on Installment upon prior written notice to the MERCHANT.
iii. The minimum transaction for Installment is PhP3,000.00 or such other amount as may be notified in writing by MCC to the MERCHANT.
iv. MERCHANT shall acquire prior authorization from MCC for the amount being charged to the Credit Card. In requesting authorization for Installment, MERCHANT shall provide MCC with the following minimum information: Cardholder Name, Card Account Number, Merchant Code, Price of the item or service, Payment Terms selected by the Cardholder, Applicable Rate to be used and the Monthly Amortization to be paid by the Cardholder.
v. As a rule, an Installment shall be done on-line. MERCHANT shall strictly follow the procedures governing Installments contained in the MOG. If however, the POS terminal is unavailable, Installment Transactions shall be done via the Manual mode, where the MERCHANT shall call MCC and request for the Authorization specifically for Installment. MCC may modify the approval process and the approving authority from time to time, as may be notified to MERCHANT.
vi. The foregoing conditions shall govern only to Installment and shall not apply to regular purchases not made on installment basis.
vii. All other terms and conditions in the Agreement, including but not limited to the provisions on Chargeback, Fraud, et al., which are not inconsistent with this provision on Installment shall remain in full force and effect.
b. MOTO TRANSACTIONS
i. Approval of MOTO Transactions –
a. Before the MERCHANT may accept any MOTO Card Transaction, it shall require the Cardholder to submit an Order Form which must be signed by the Cardholder and contain the following details:
i. The name and the address of the MERCHANT, the Merchant ID Number, and the name, Card or Card account number and Card expiry date of the Cardholder;
ii. The name or trade name of the issuer of the Card as it appears on the face of the card; and
iii. The total amount of the order in Philippine Pesos or such other currency permitted by MCC.
b. The MERCHANT shall also request and keep a photocopy of the Cardholder’s valid identity card and the front portion of the Card subject to the Account Data Security.
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c. The MERCHANT shall always secure authorization and authorization code numbers for MOTO Card Transactions through the EDC Terminals or through manual authorization, in accordance to this agreement. There is no Floor Limit for MOTO Card Transactions.
d. MCC reserves the right to reject any MOTO Card Transaction if the Card account has no available credit, has been delinquent, is canceled, or has expired. MOTO Card Transactions shall likewise be disapproved in accordance with the Terms and Conditions Governing the Issuance and Use of MCC Credit Cards or when the Cardholder is in default under any of his obligations on one or more MCC credit cards or any of his credit facilities with MCC.
e. If the reason for disapproval of the MOTO Card Transaction is that the Cardholder is over the credit limit or delinquent or the Card is canceled or expired, the MERCHANT may submit another request for approval two (2) weeks after first attempt. Should the MOTO Card Transaction be disapproved again after the second attempt, the MERCHANT must cancel the order.
ii. Liability – Any claim or loss suffered by the Cardholder arising from unauthorized MOTO transactions such as, but not limited to the following, shall be absorbed by the
c. Batch Authorization
d. Manual Key Entry (MKE)
The Authorization given by MCC to the MERCHANT to approve the MOTO Transaction shall not excuse the MERCHANT from its obligation to absorb the claim or loss suffered by the Cardholder arising from an unauthorized MOTO Transaction.
10.2. BancNet Cards
a. The MERCHANT shall honor and accept the BancNet Card presented by the Cardholder in the purchase of merchandise and/or services rendered by the MERCHANT, subject to the following verification:
i. the BancNet Card has not yet expired;
ii. it belongs to any of the BancNet Member Banks or to any card issuer accredited by BancNet;
iii. its ownership has been ascertained through the PIN encoded on the PIN pad; and
iv. the approval of the transaction by the Cardholder Bank was obtained through the MCC POS terminal BancNet application.
The MERCHANT shall secure electronic transaction approval through the MCC POS terminal BancNet application in accordance with the verification procedures set forth above. Manual or voice-approval of BancNet transactions is not allowed.
Each transaction shall be covered by a Transaction Receipt generated by the MCC POS terminal BancNet application. The amount in the Transaction Receipt represents the amount debited from the account of the Cardholder for the merchandise purchased and/or services rendered.
11. MERCHANT MATERIALS/SUPPLIES
a. MCC shall provide the MERCHANT with sufficient forms of Transaction Drafts, Charge Slips, Transaction Receipts and other forms/supplies and marketing/promotional materials which shall be used exclusively in connection with the credit/debit purchases contemplated under this Agreement.
b. The MERCHANT will prominently display marketing/promotional materials provided by MCC to inform the public that Credit Cards and BancNet Cards will be honored and accepted at the MERCHANT’s place(s) of business. Such displayed Credit Card and BancNet Card xxxx or logotype must be at least of the dimension of and as prominent as any other card program xxxx or logotype displayed. The cost of these materials shall be shouldered by MCC.
c. MCC, without cost to the MERCHANT, shall include the MERCHANT’s name, address and telephone numbers in MCC’s Merchants Directory.
d. MCC reserves the right to charge the MERCHANT for the costs of stationery including paper rolls that will be used in the Point-of-Sale terminal.
12. POINT-OF-SALE (POS) TERMINAL
a. MCC, shall provide the MERCHANT with POS terminal(s) and reserves the right to charge the MERCHANT a rental fee for the use of the said terminal(s). It is understood, that the MERCHANT shall exercise reasonable care in handling and operating the POS terminal(s). MCC shall shoulder all costs related to the installation, repair and maintenance of the POS terminal(s) including but not limited to the ordinary wear and tear except those repairs which can be traced to negligence on the part of the MERCHANT. All electrical consumption for the use of the POS terminal(s) shall be for the account of the MERCHANT.
b. MERCHANT shall at all times provide communication lines for the POS terminal(s). It is agreed in the event that such telephone is rendered inoperative, MERCHANT, on its part, shall provide the POS terminal(s) with another telephone line as a substitute.
c. In the event the POS terminal(s) is lost or stolen or damaged beyond repair which can be traced to negligence while in the possession of the MERCHANT, it shall pay MCC for the replacement cost of the POS terminal plus installation charges.
MERCHANT shall keep strictly confidential the terms of this Agreement and its annexes, as well as any information pertaining to Cardholder and/or his/her transactions, and/or relating to MCC’s
Credit Card business, and shall not disclose the same to any third party without the prior written consent of MCC. This provision shall survive the termination of this Agreement.
MERCHANT shall not retain documents with card information, name and other sensitive data after the lapse of eighteen (18) months from transaction date. After the said retention period, MERCHANT shall immediately turnover the aforesaid documents to MCC, without need of any demand from MCC. In the conduct of its review of the records of MERCHANT pursuant to paragraph 18 herein, if there are above-mentioned documents which should have been turned-over to MCC but MERCHANT failed to do so, such breach may be a ground for termination of this Agreement by MCC.
14. ACCOUNT DATA SECURITY
a. Should storage of customer information be required by the MERCHANT for business, legal, and/or regulatory purposes, the MERCHANT should only store such specific information as is expressly required and should establish a data retention and disposal policy and procedure. For this purpose, the MERCHANT should provide MCC a copy of the policy, instructions, ruling for the storage of customer information.
PLEASE SIGN ON ALL PAGES
b. The MERCHANT shall securely safe keep the merchant copy of the sales slips and limit access only to authorized personnel.
c. Under no circumstances shall the MERCHANT store sensitive card authentication data prior to, during, or subsequent to authorization, even if such sensitive card authentication data is encrypted. Sensitive card authentication data shall include:
i. any data from the magnetic stripe or chip;
ii. the card validation code which is the three digit code found at the back of the card such as the CVV2 and CVC2; and
iii. the Personal Identification Number, or PIN.
d. The MERCHANT undertakes to strictly abide by the rules and procedures of BancNet, Visa and MasterCard, including but not limited to the rules on prohibition of Sale or Exchange of Information under Rule 5.12.1 of the MasterCard Rules.
15. LOYALTY/PROMOTIONAL PROGRAM
MERCHANT hereby agrees to participate in loyalty/promotional programs which may be developed and implemented by MCC without cost or expense to the MERCHANT. The MERCHANT may, however, develop and implement its own loyalty/promotional program at its own cost and expense. MCC shall not be liable in case of failure of MERCHANT to fulfill its obligations under its own loyalty/promotional program.
16. SUSPENSION OF OPERATION
The MERCHANT shall notify MCC in writing, thirty (30) calendar days in advance, in the event that the MERCHANT decides to stop operating its business.
17. RIGHT OF INSPECTION
a. Upon prior notice, MCC reserves the right to send its representatives to visit and enter the premises of the MERCHANT at reasonable time and subject to the MERCHANT’s security measures, to inspect its records, finances, properties and operation.
b. The MERCHANT shall take the necessary corrective measures to comply with the findings and recommendations of the internal/external auditors of MCC or its own auditors.
c. MCC reserves the right to request documents from the MERCHANT from time to time to comply with the requirements of various government and regulatory agencies.
d. If there are findings including but not limited to non-submission of requested document as aforementioned the preceding paragraph, and no corrective action was taken after the next visit, unless said finding may be due not to the fault of the MERCHANT, operations of the POS terminal on said MERCHANT shall be suspended until such time that corrective actions have been taken.
a. The MERCHANT acknowledges that MCC has the right to conduct a regular review and evaluation of the MERCHANT’s over-all performance of its obligations under this Agreement. Should MCC determine, based on such criteria and conditions at it deems appropriate, that the MERCHANT has failed to satisfactorily comply with its obligations hereunder, MCC shall have the option to terminate this Agreement.
b. For this purpose, the performance of the MERCHANT shall be measured by the use of Performance Indicators to be provided by MCC.
19. LIABILITY CLAUSE
The MERCHANT shall hold MCC or any of its officers or representatives free and harmless from any and all liabilities, claims, losses or causes of action arising from the errors incurred by or judgments/decisions made by the MERCHANT’s cashiers/POS terminal operator, such as in the release of goods despite (a) the POS terminal, does not display a message of approval or (b) the POS terminal displays a message other than “APPROVED”. MCC shall be indemnified for any loss that it may incur relating to these errors.
MCC shall not be liable in any way to the MERCHANT for any claims, liabilities, expenses, costs, loss or damage of whatever nature brought against, suffered or incurred by or caused to the
MERCHANT due to or arising out of or in connection with this Agreement, including, without prejudice to the generality of the foregoing:
a. any disruption, defect or breakdown in or failure of any POS terminal or any system used to authorize or record card transactions or any other facilities;
b. any authorization or authorization code number or other information or instruction requested by the MERCHANT being inaccurate, incomplete, delayed or not given for any reason;
c. any direction, instruction, notice or request given to MCC by any of the MERCHANT’s employees or agents and all act’s or omission by MCC pursuant thereto, whether or not such direction, instruction, notice or request was followed and regardless of whether MCC had any notice or knowledge that such direction, instruction, notice or request was lawfully given or given in breach of any part of the MERCHANT’s Articles of Incorporation or Partnership and By-Laws or Registration of Business Name or other rules of incorporation or was otherwise irregular in any way;
d. any act, omission or variation of this Agreement by MCC which is required by any change in law, regulation or official directive; or
e. the inability of MCC, including its head office or other branch or subsidiary thereof, to perform any of its obligations under this agreement, which inability is due directly or indirectly to the defect, failure or damage of any machine or communications system, industrial dispute, civil disorder, war, act of God, or anything outside the control of MCC or its agents.
f. The MERCHANT shall be held solely liable and hold MCC, its officers, employees and agents free and harmless for whatever claims, liabilities and judgements, directly or indirectly, that any cardholder may have against the MERCHANT or MCC due to identity theft, account takeover or other similar machinations in relation to the use of POS terminals, MERCHANT’s cash registers and other similar appliance or instruments or perpetuated by the MERCHANT or its employees, officers, or agents.
Furthermore, in case of unauthorized storage of sensitive credit card information, or sensitive card authentication data, as the case may be, or failure of the MERCHANT to abide with the provisions of Item no.14 on ACCOUNT DATA SECURITY which would result to monetary claims or damages, or the imposition of fines and/or penalties against MCC, the MERCHANT shall indemnify MCC in full the corresponding monetary claims or damages, or fines and/or penalties imposed.
All sums payable to MCC under this Agreement shall be payable in cleared funds in the agreed currency on the due date of such amounts and without deduction for any taxes, levies, imposts, duties, charges, fees deductions, withholding restrictions or conditions of any nature now or hereafter imposed by the Republic of the Philippines or any political subdivision or taxing authority thereof or therein. All such taxes, levies, imposts, duties, charges and fees shall be charged to and will be borne solely by the MERCHANT.
MCC shall pay the MERCHANT the full amount in the Sales Summary Sheet, net of the following: (1) the one-half percent (½ %) creditable withholding tax on income payments made by credit card companies to be withheld by MCC; and the (2) Merchant Discount Rate as agreed in the Letter of Offer.
MCC shall furnish MERCHANT the corresponding Certificate of Taxes Withheld (CTW) pertaining to the amount of creditable withholding taxes withheld.
21. TERM and TERMINATION OF AGREEMENT
a. MCC reserves the right to unilaterally terminate this Agreement without prior notice to the MERCHANT and without giving the reason, in case the MERCHANT, as solely determined by MCC, has committed acts prejudicial to the interest of MCC or if any of the terms and conditions contained herein is violated or when MCC, at its sole discretion, deems necessary for reasons including, but not limited to, fraud or counterfeit card transactions, excessive Chargeback or if the MERCHANT has breached the fraud threshold imposed by MCC or by VISA, MASTERCARD, JCB and UNION PAY.
b. In the event that the MERCHANT shall decide to dispose of or discontinue its business, MCC shall be given at least thirty (30) days prior written notice.
c. In the event of termination, the MERCHANT shall return to MCC all materials pertaining to the MCC program, including but not limited to MCC POS terminal (which shall be in good working order and condition), Transaction Draft, Charge Slips and Sale Summary Sheet and promotional materials and shall remove all decals and signs from the premises immediately.
d. This agreement shall remain in force upon signing hereof and terminated by either party for any reason provided notice in writing shall be sent to other party thirty (30) days prior to the efficacy.
All notices permitted or required by this Agreement will be sent by regular mail, posted prepaid at the address set forth at the beginning of this Agreement, unless notification in writing of change of address is received by the other party.
23. GOVERNING LAW
The Agreement shall be governed by and interpreted by the laws of the Republic of the Philippines.
24. VENUE OF ACTION
Venue of all actions arising from this Agreement shall be brought exclusively to the jurisdiction of the appropriate Court of Makati City, Philippines.
25. SEPARABILITY CLAUSES
If any one or more of the provisions contained in this Agreement or any document executed in connection herewith shall be invalid, illegal or unenforceable, the remaining provisions contained herein shall not in any way be affected or impaired.
26. AMENDMENTS AND REVISIONS
Any amendments, revision or change in this Agreement should be in writing and upon mutual agreement of both parties.
27. ENTIRE AGREEMENT
Both parties acknowledge that this Agreement constitutes the entire agreement between them and shall completely supersede all other prior understanding, previous communications or contracts, oral or written, between the parties relating to the subject matter thereof.
IN WITNESS WHEREOF, the parties herein have hereunto signed these presents by their respective authorized signatories on the date and place first above-written.
METROBANK CARD CORPORATION (A FINANCE COMPANY)
Xxnx Xxxxxxx X. Xxxxco
Deputy Cards Head
Printed Name and Signature
Xxxxx X. Xxxxxxxxxx Jr.
Chief Finance Officer
Signed in the presence of:
Republic of the Philippines )
Makati City ) S.S.
Before me, A Notary Public and in the above jurisdiction personally appeared:
ID Type and Number
Xxxx Xxxxxxx X. Xuenco
28 April 2014
DFA NCR Xxxx
Xxxxx X. Xxxxxxxxra Jr.
made known to me to be the same person/s who executed the foregoing instrument and acknowledged to me that the same is his free and voluntary act and deed and of the principal he represents. This document refers to the Merchant Agreement executed by and between MCC and of ( ) pages signed by the above-named.
WITNESS MY HAND AND SEAL this day of 20 at Makati City.
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