HomeMy WebLinkAboutWORLDPAY LLC - CONTRACT - AGREEMENT MISC - WORLDPAY LLCBANK CARD MERCHANT
AGREEMENT
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This Bank Card Merchant Agreement is made among WORLDPAY, LLC (“Processor”) having its principal office at 8500 Governors Hill Drive, Symmes
Township, OH 45249-1384, the Member Bank and CITY OF FORT COLLINS (“Merchant”) having its principal office at
__________________________________________________________________________________________________. Processor, Member Bank
and Merchant hereby agree as follows:
I. Processor and/or Member Bank participates in programs affiliated
with MasterCard, VISA, Discover, and Other Networks which enable
holders of Cards to purchase goods and services from selected
merchants located in the United States by use of their Cards.
II. Merchant wishes to participate in the MasterCard, VISA, Discover,
and the Other Networks systems at its United States locations by
entering into contracts with Cardholders for the sale of goods and
services through the use of Cards.
NOW, THEREFORE, in consideration of the foregoing recitals and of
the mutual promises hereinafter set forth, the parties agree as follows:
1. Definitions.
For the purposes of this Agreement, the following terms shall have the
meanings set forth below:
Account shall mean an open checking account at a financial institution
acceptable to Processor which Processor or its agent can access
through the ACH system.
Account Change means a change in the Account or the financial
institution where the Account is located.
ACH shall mean the Federal Reserve's Automated Clearing House
("ACH") system.
Agreement means this Bank Card Merchant Agreement, the Merchant
Price Schedule, and each exhibit, schedule, and addendum attached
hereto or referencing this Agreement, as well as all documents and
other materials incorporated herein by reference.
Association means VISA, MasterCard, Discover, or any Other
Network, as the same are defined herein.
Rules Summary means the document containing a summary of key
Operating Regulations governing this Agreement as amended from
time to time, which is incorporated into this Agreement by reference
Cards shall mean MasterCard, VISA, Discover and Other Network
cards, account numbers assigned to a cardholder, or other methods of
payment accepted by Processor, for which pricing is set forth in the
Agreement.
Cardholder shall mean any person authorized to use the Cards or the
accounts established in connection with the Cards.
Data Incident shall mean any alleged or actual compromise,
unauthorized access, disclosure, theft, or unauthorized use of Card or
Cardholder information, regardless of cause, including without
limitation, a breach of or intrusion into any system, or failure,
malfunction, inadequacy, or error affecting any server, wherever
located, or hardware or software of any system, through which Card
information resides, passes through, and/or could have been
compromised.
Discover shall mean Discover Financial Services, LLC.
Event of Default shall mean each event listed in Section 13.
Float Event shall mean a circumstance where Processor, for whatever
reason, advances settlement or any amounts and/or delays the
assessment of any fees.
Force Majeure Event shall mean, labor disputes, fire, weather or other
casualty, power outages, and funding delays, however caused,
governmental orders or regulations, or any other cause, whether
similar or dissimilar to the foregoing, beyond Processor’s reasonable
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updates to its point of sale equipment and (ii) any cost associated with
its participation in the applicable program, including any costs
assessed to Merchant by Processor. Other Services applicable to this
Agreement will be contained in the General Services Addendum as
may be published and modified from time to time by Processor and the
parties agree that such Addendum shall be incorporated into and made
part of this Agreement and that such Addendum shall apply only with
respect to those Services actually provided by Processor and received
by Merchant hereunder. Merchant acknowledges receipt and review of
the General Services Addendum. In the event of a conflict between the
fees set forth on the Merchant Price Schedule and the General
Services Addendum, the Merchant Price Schedule shall control.
3. Application; Change in Business. Merchant represents that all
information supplied by Merchant in connection with its application or
other request for services is complete and accurate. In accordance with
Section 326 of the USA Patriot Act, Processor is required to review and
record information from the documents used in identifying new
merchant customers. The preceding sentence is intended to inform
Merchant of Processor’s procedures and of Processor’s responsibility
under the USA Patriot Act. Merchant agrees to provide Processor with
30 days prior written notice of Merchant’s intent to change its business
form or entity in any manner (e.g. a change from a limited liability
company to a corporation), and/or of Merchant’s intent to sell its stock or
assets to another entity.
4. Card Acceptance. Merchant must accept all Cards and
complete all Card transactions in accordance with the Operating
Regulations. In the event Processor for whatever reason is unable to
obtain, or due to system delays chooses not to wait to obtain,
authorization from an Association, Processor may at its option "stand-in"
for such entities and authorize the sales transaction based on criteria
established by Processor, and Merchant remains responsible for such
sales transaction in accordance with this Agreement. Merchant has
identified to Processor the products and/or services for which it intends
to accept Cards as payment. Merchant agrees that it shall only
complete and deliver to Processor sales transactions produced as the
direct result of bona fide sales made by Merchant to Cardholders for
such identified products and/or services, unless otherwise agreed by
Processor in writing
5. Transaction Processing. Processor or Member Bank will initiate
payment to Merchant of the total face amount of each sales transaction
acquired and accepted hereunder, subject to the terms and conditions
of this Agreement, the Operating Regulations, and applicable law, after
Processor receives payment for such sales transactions. Unless
otherwise agreed to in writing by Processor, Merchant shall
electronically deliver to Processor and in a format acceptable to
Processor all credit vouchers and sales transaction records within two
(2) business days after the applicable transaction date (or such shorter
period as determined by the applicable Association), except (i) in the
case of a delayed merchandise delivery, when the sales transaction
record shall be delivered within two (2) business days of the
merchandise delivery or (ii) as specified otherwise in the Operating
Regulations. Merchant agrees that it shall deliver sales transaction
records to Processor at least every business day. The preparation and
delivery to Processor by Merchant of sales transactions shall constitute
an endorsement to Processor by Merchant of each sales transaction,
and Merchant authorizes Processor or its representative to place
Merchant's endorsement on any sales transaction at any time.
Processor may refuse to acquire any sales transaction or claim the
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Service Delivery Process, and such fees and/or charges shall be
immediately payable by Merchant when assessed by Processor. In the
event Processor changes or adds its fees and/or charges pursuant to
the immediately preceding sentence ("Fee Change"), Merchant may,
subject to the following provisions, terminate the Agreement upon 60
days advance written notice to Processor provided Processor receives
such written notice from Merchant of its intention to so terminate within
90 days of the date the Fee Change becomes effective. Upon
Processor's receipt of Merchant's written notice pursuant to the
immediately preceding sentence, Processor shall have 30 days to
rescind or waive the Fee Change, and, in the event Processor elects to
rescind or waive the Fee Change, Merchant shall not have the right to
terminate this Agreement as a result of the Fee Change and this
Agreement shall remain in full force and effect notwithstanding
Merchant's written notice to terminate. Merchant acknowledges and
agrees that this Section shall not be intended or construed to permit
Merchant to terminate the Agreement as a result of a change or
increase in fees from third parties and/or in pass through fees as
referenced in this Agreement or the Merchant Price Schedule. At
Merchant’s request, Processor may, in its sole discretion, establish
multiple Merchant billing definitions on its system, and in such event
Processor shall assess all applicable fees separately and independently
with respect to each such billing definition.
11. Third Party Assessments. Notwithstanding any other provision
of this Agreement, Merchant shall be responsible for all amounts
imposed or assessed to Merchant, Processor, and/or Member Bank in
connection with this agreement by Member Bank and/or third parties
such as, but not limited to, Associations and Merchant Suppliers
(including telecommunication companies), to the extent that such
amounts are not the direct result of the gross negligence or willful
misconduct of Processor. Such amounts include, but are not limited to,
fees, fines, assessments, sponsorship fees, penalties, loss allocations,
etc. Any changes or increases in such amounts shall automatically
become effective upon notice to Merchant via Processor’s Service
Delivery Process and shall be immediately payable by Merchant when
assessed by Processor. In the event of a Float Event, Processor
reserves the right to assess to Merchant, and Merchant shall pay to
Processor, a cost of funds associated with the Float Event (which
Processor may at its option assess as a transaction surcharge), the
amount of which shall be determined by Processor in its reasonable
discretion, and which may be changed by Processor from time to time,
and such cost of funds shall be effective as of the start of the Float
Event and shall be immediately payable by Merchant when assessed by
Processor.
12. Exclusivity. Processor and Member Bank reserve the right to
enter into other agreements pertaining to the Services with others
including without limitation other merchants. The parties agree that
Processor shall be the exclusive provider of the Services to Merchant at
all of its locations.
13. Default. The following events shall be considered an "Event of
Default":
(i) Merchant becomes subject to any voluntary or involuntary
bankruptcy, insolvency, reorganization or liquidation proceeding, a
receiver is appointed for Merchant, or Merchant makes an assignment
for the benefit of creditors, or admits its inability to pay its debts as they
become due; or
(ii) Merchant fails to pay or reimburse the fees, expenses or charges
referenced herein when they become due; or
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overnight carrier, registered or certified mail, postage prepaid, to the
following addresses:
(i) if to Processor: Worldpay, LLC, 8500 Governors Hill Drive, Mail
Drop 1GH1Y1, Symmes Township, OH 45249-1384, Attention: General
Counsel/Legal Department;
(ii) if to Merchant: to the Merchant address provided above, Attention
President/Owner; or to such other address or to such other person as
either party shall have last designated by written notice to the other
party.
Notices, etc., so delivered shall be deemed given upon receipt.
18. Unenforceable Provision. If any term or provision of this
Agreement or any application thereof shall be invalid or unenforceable,
the remainder of this Agreement and any other application of such term
or provision shall not be affected thereby.
19. Payment. Merchant shall always maintain an open Account.
Merchant irrevocably authorizes Processor to debit and/or credit the
Account to settle any and all fees and other amounts due Processor
under this Agreement, and such authority shall remain in effect for a
period of one (1) calendar year following the date of termination of this
Agreement, regardless of whether Merchant has notified Processor of
an Account Change as defined below. Merchant shall always maintain
the Account with sufficient cleared funds to meet its obligations under
this Agreement. In the event Merchant desires an Account Change,
Merchant shall give Processor 30 days prior written notice in
accordance with the provisions of Section 17 of any such change, and
Processor shall use reasonable commercial efforts to effect such
Account Change; however, such Account Change shall not be effective
until the date on which Processor actually makes such Account Change
on Processor’s system. In no event shall Processor have any liability for
any amounts directed to an Account that has been designated by any
purported representative of Merchant or its Merchant Supplier at any
time during the term of this Agreement, regardless of any Account
Change. All amounts due Processor under this Agreement shall be
paid without set-off or deduction, and shall be due from Merchant as of
the date Processor originates an ACH debit transaction record to
Merchant's Account. Any fees not collected from Merchant by
Processor when due shall bear interest at one (1) percentage point per
month but in no event more than the highest rate permitted by law. The
acceptance by Processor, Processor's affiliate or other financial
institution of Merchant's closing (or termination of) its Account shall not
constitute a mutually agreed upon termination of this Agreement.
Without limiting the generality of any other provision of this Agreement,
Processor and/or Member Bank are hereby authorized by Merchant to
charge amounts due under this Agreement i) against each day’s sales
transactions ii) against any reserve; or iii) by making an ACH debit to
Merchant’s Account.
20. Reserve; Letter of Credit. As a specifically bargained for
inducement for Processor to enter into this Agreement with Merchant,
Processor at its option reserves the right to i) establish from amounts
payable to Merchant hereunder, and/or cause Merchant to pay to
Processor, a reserve of funds satisfactory to Processor to cover actual
or anticipated fees, liabilities, chargebacks, returns and any other
applicable assessments incurred or expected to be incurred by
Processor or Member Bank related to the Services provided to
Merchant; and/or ii) require Merchant to establish an irrevocable
standby letter of credit, including additional and/or replacement letters of
credit if required by Processor, with a beneficiary designated by
Processor, and which are issued from a financial institution other than
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Merchant, including but not limited to reports, notices, and invoices
provided via Processor’s online reporting tool. Processor reserves the
right to send some or all of the reports and/or invoices and/or notices of
any pricing changes permitted under this Agreement via communication
methods utilized as components of its Service Delivery Process which
method Processor may change from time to time with notice via
Processor’s Service Delivery Process. Merchant expressly agrees that
Merchant's failure to notify Processor that Merchant has not received
any settlement funds within five business days from the date that
settlement was due to occur, or fails to reject any report, notice, or
invoice within thirty business days from the date the report or invoice is
made available to Merchant, shall constitute Merchant's acceptance of
the same. In the event Merchant believes that Processor has failed in
any way to provide the Services, Merchant agrees to provide Processor
with written notice, specifically detailing any alleged failure, within 30
days of the date on which the alleged failure first occurred.
23. Choice of Law; Jurisdiction; Venue. This Agreement shall be
governed by, and construed and enforced in accordance with, the laws
of the State of Colorado without regard to conflicts of law provisions.
The parties hereby consent and submit to service of process, personal
jurisdiction, and venue in the state and federal courts in Fort Collins,
Colorado or Larimer County, Colorado, and select such courts as the
exclusive forum with respect to any action or proceeding arising out of
or in any way relating to this Agreement, and/or pertaining in any way to
the relationship between Merchant and Processor.
24. Limit of Liability; Force Majeure.
A. EXCEPT FOR THOSE EXPRESS WARRANTIES MADE IN THIS
AGREEMENT, PROCESSOR DISCLAIMS ALL WARRANTIES,
INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. MERCHANT HEREBY ACKNOWLEDGES
THAT THERE ARE RISKS ASSOCIATED WITH THE ACCEPTANCE
OF CARDS AND MERCHANT HEREBY ASSUMES ALL SUCH RISKS
EXCEPT AS MAY BE EXPRESSLY SET FORTH HEREIN.
B. Without limiting the foregoing, neither party shall be liable for lost
profits, lost business or any incidental, special, consequential or
punitive damages (whether or not arising out of circumstances known
or foreseeable by the other party) suffered by such party, its
customers, or any third party in connection with the Services provided
hereunder. However, nothing in the foregoing sentence is in any way
intended, and shall not be construed, to limit (i) Merchant's obligation
to pay any fees, assessments or penalties due under this Agreement,
including but not limited to those imposed by telecommunications
services providers, VISA, MasterCard and/or Other Networks; or (ii)
any damages due from Merchant related to an early termination of this
Agreement; or (iii) any damages due from Merchant related to the
failure by Merchant to exclusively receive the Services from Processor
to the extent required by the Agreement, and/or (iv) Merchant’s
obligation to indemnify Processor pursuant to section 21 .In no event
shall Processor be liable for any damages or losses (i) that are wholly or
partially caused by the Merchant, or its employees, agents, or Merchant
Suppliers that should have been reported to Processor pursuant to
Section 22, (ii) that first occurred, whether or not discovered by
Merchant, more than 30 days prior to Processor's receipt of written
notice from Merchant or (iii) that were caused due to errors in data
provided by Merchant to Processor.
C. Processor's liability related to or arising out of this Agreement shall
in no event exceed an amount equal to the lesser of (i) actual monetary
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(b) Confidential Information Supplied by Merchant. Processor
acknowledges that Merchant will be providing Processor with certain
confidential information, including information relating to the methods,
techniques, programs, devices and operations of Merchant. Such
confidential information does not include transaction information which
has been de-identified or aggregated. Processor will not disclose
confidential and proprietary information about Merchant to any person
or entity (other than to those employees and agents of Processor who
participate directly in the performance of this Agreement and need
access to such information). Merchant acknowledges receipt of
Processor’s privacy notice (“Privacy Notice”). Merchant should direct
any questions or requests for another copy of the Privacy Notice to a
Processor customer service representative or Merchant’s primary
relationship manager, if applicable. Notwithstanding anything to the
contrary in the Privacy Notice or this Agreement, Processor may use,
disclose, share, and retain any information provided by Merchant
and/or arising out of the Services, during the term and thereafter,: (a)
with Merchant's franchisor, Merchant's franchisee(s), association(s) to
which Merchant belongs and/or belonged as of the commencement of
this Agreement, (b) with any affiliate of Merchant; (c) in response to
subpoenas, warrants, court orders or other legal processes; (d) in
response to requests from law enforcement agencies or government
entities; (e) to comply with applicable laws, regulations, or Operating
Regulations; (f) with Processor’s affiliates, partners and agents; (g) to
perform analytic services for Merchant, Processor and/or others
including but not limited to analyzing, tracking, and comparing
transaction and other data to develop and provide insights for such
parties as well as for developing, marketing, maintaining and/or
improving Processor’s products and services; and/or (h) to offer or
provide the Services hereunder.
(c) Miscellaneous. The parties acknowledge that the injury that
would be sustained by the party disclosing information as a result of
the violation of this Section 28 cannot be compensated solely by
money damages, and therefore agrees that the disclosing party shall
be entitled to seek injunctive relief and any other remedies as may be
available at law or in equity in the event of a violation of the provisions
contained in this Section 28. The restrictions contained in this Section
28 shall not apply to any information which becomes a matter of public
knowledge, other than through a violation of this Agreement or other
agreements between the parties.
(d) Publicity. Merchant and Processor agree that they will work
together to issue a mutually agreeable joint press release after the
execution of this agreement and/or after the conversion of Merchant to
Processor’s Services. In any event, Merchant acknowledges and
agrees that Processor may make public the execution of this Agreement
by Merchant and/or any of Merchant’s affiliates, and/or the Services that
may be or have been provided under the Agreement. Merchant agrees
that Processor may include Merchant’s name and logo on a list of
Processor’s customers, which may be made public. Merchant agrees
that, upon Processor’s request, Merchant will provide testimonial
information related to the Services received by Merchant hereunder.
29. Financial Statements. If at any time Merchant is not a publicly
traded company, Merchant shall provide Processor with an audited
financial statement for Merchant's most recent fiscal year end and/or
quarterly financial statements prepared and certified by Merchant's chief
financial officer within 15 days of Processor’s request therefore.
30. No Waiver. If either party waives in writing an unsatisfied
condition, representation, warranty, undertaking or agreement (or
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decision for Limited Acceptance. Merchant will be solely responsible
for policing, at the point of sale, the card type(s) of transactions it
submits for processing by Processor. Should Merchant submit a
transaction for processing for a card type it has indicated it does not
wish to accept, Processor may process that transaction and Merchant
will pay the applicable fees, charges, and assessments associated with
that transaction. For Merchant’s convenience, a general description of
VISA/MasterCard card types are:
a. Consumer Credit - a consumer credit card issued by a U.S.
Issuer or a commercial credit card issued by a non-U.S. Issuer; this
category does not include VISA or MasterCard branded signature-
based debit cards.
b. Consumer Debit - a VISA or MasterCard branded signature-
based debit card (including certain stored-value and prepaid cards).
c. Commercial - a VISA or MasterCard branded credit card issued
by a U.S. Issuer that bears the descriptive term “Business Card”,
“Corporate Card”, “Purchasing Card”, “Fleet Card”, or similar
descriptive term indicated pursuant to the Operating Regulations.
Only if checked below, Merchant wishes to be a Limited Acceptance
Merchant, which means that Merchant will accept only the
VISA/MASTERCARD card types indicated below:
VISA Credit Cards
VISA Debit Cards (signature based)
MasterCard Credit
MasterCard Debit Cards (signature based)
37. Security Interest. This Agreement will constitute a security
agreement under the Uniform Commercial Code. Merchant grants to
Processor a security interest in all accounts owned or controlled by
Processor at Member Bank that are funded with settlement amounts,
including the Reserve Account, and the proceeds thereof (collectively,
the “Secured Assets”), to secure all of Merchant's obligations under
this Agreement. With respect to such security interest, Processor will
have all rights afforded under the Uniform Commercial Code, any other
applicable law, and in equity. In addition to the security interest in the
Secured Assets, Processor shall have a contractual right of setoff
against the Secured Assets.
Every such right of setoff shall be deemed to have been exercised
immediately upon the occurrence of an Event of Default hereunder
without any action by Processor or notation in the Processor’s records,
although Processor may enter such set off on its books and records at
a later time. Merchant warrants and represents that no other person or
entity has a security interest in the Secured Assets. If a bankruptcy
proceeding is filed by or against Merchant under the Bankruptcy Code
(whether the petition is filed voluntarily and/or involuntarily), it waives
any applicable protection related to the automatic stay provisions of 11
U.S.C. §362 (or any replacement section) and consents to an
appropriate reserve of funds being established between the parties
pursuant to this Agreement or by Court Order.
38. Modification of Agreement. Except as provided in this
Agreement, this Agreement including any addendum or schedule or
exhibit hereto shall only be modified or amended by an instrument in
writing signed by Merchant and Processor. Any changes, additions,
stipulations or deletions, including lining out, by Merchant, except
where indicated by a space to be filled in (e.g., the space for
Merchant’s name and address), shall not be deemed to be agreed to
or binding upon Processor unless agreed to in writing in the form of an
amendment signed by each party hereto. Merchant agrees that
Processor may amend this Agreement upon notice to Merchant if such
amendment is a requirement of applicable law or an Association.
39. Headings and Construction. The headings used in this
Agreement are inserted for convenience only and will not affect the
interpretation of any provision. Merchant and Processor each
acknowledge that the limitations and exclusions contained in this
Agreement have been the subject of active and complete negotiation
between the parties and represent the parties’ voluntary agreement.
The parties agree that the terms and conditions of this Agreement shall
not be construed in favor of or against any party by reason of the
extent to which any party or its professional advisors participated in the
preparation of this document.
40. Authorization. Each of the parties hereto represents and
warrants on behalf of itself that it has full power and authority to enter
into this Agreement; that the execution, delivery and performance of this
Agreement has been duly authorized by all necessary corporate, limited
liability company or partnership or other appropriate authorizing actions;
that the execution, delivery and performance of this Agreement will not
contravene any applicable by-law, corporate charter, operating
agreement, partnership or joint venture agreement, law, regulation,
order or judgment; that execution, delivery and performance of this
Agreement will not contravene any provision or constitute a default
under any other agreement, license or contract which such party is
bound; and, that this Agreement is valid and enforceable in accordance
with its terms.
41. Counterparts. This Agreement may be executed and delivered in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.
42. Facsimile and Electronic Signatures. Merchant and Processor
agree that electronic signatures will have the same legal effect as
original (i.e. ink) signatures and that an electronic, scanned, facsimile,
or duplicate copy of any signatures will be deemed an original may be
used as evidence of execution.
43. Member Bank. The Processor and Member Bank may jointly or
individually assert or exercise any rights or remedies provided to
Processor and Member Bank hereunder. Processor and Member
Bank reserve the right to allocate the duties and obligations assigned
hereunder to Processor between themselves, as they deem
appropriate in their sole discretion. Member Bank has certain
obligations to Merchant pursuant to the Operating Regulations. In the
event of any conflict between this Agreement and the Operating
Regulations on the subject of Member Bank’s obligations, the
Operating Regulations shall control. Processor is party to an
agreement with Member Bank and under such agreement is
authorized to provide the services described herein. This Agreement
shall be deemed accepted by Member Bank as of the date the first
transaction is acquired under this Agreement. As of the
commencement of this Agreement, Member Bank shall be Fifth Third
Bank, an Ohio banking corporation, located in Cincinnati, OH. The
Member Bank may delegate certain or all of its duties to an affiliate of
the Member Bank at any time, without notice to Merchant. The
Member Bank may be changed, and its rights and obligations assigned
to another party by Processor at any time without notice to Merchant.
44. Appropriation. To the extent this Agreement or any provision in it
constitutes a multiple fiscal year debt or financial obligation of the City,
it shall be subject to annual appropriation by City Council as required in
Article V, Section 8(b) of the City Charter, City Code Section 8-186,
and Article X, Section 20 of the Colorado Constitution. The City shall
have no obligation to continue this Agreement in any fiscal year for
which no such supporting appropriation has been made.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their authorized officers as of the dates
set forth below.
WORLDPAY, LLC
Signature:
Name:
Title:
Date:
MERCHANT LEGAL NAME: CITY OF FORT COLLINS
Signature:
Name:
Title:
Date:
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Reviewed By:_______________________________________________________
DocuSign Envelope ID: C3B3CD86-D108-4147-9AEC-001A6153B685
Head of Contracts Mgmt
10/29/2018
Brian Kessans
10/30/2018
Gerry Paul
Purchasing Director
portion thereof) set forth herein, the waiving party shall thereafter be
barred from recovering, and thereafter shall not seek to recover, any
damages, claims, losses, liabilities or expenses, including, without
limitation, legal and other expenses, from the other party in respect of
the matter or matters so waived. Except as otherwise specifically
provided for in this Agreement, the failure of any party to promptly
enforce its rights herein shall not be construed to be a waiver of such
rights unless agreed to in writing. Any rights and remedies specifically
provided for in any addendum or schedule or exhibit are in addition to
those rights and remedies set forth in this Agreement and/or available to
Processor at law or in equity.
31. Compliance with Law.
Merchant represents and warrants to Processor that it will comply with
all applicable federal, state and local laws and regulations in connection
with Merchant’s receipt of the Services and/or applicable to Merchant’s
business operations. Processor will comply with federal, state and local
laws and regulations applicable directly to Processor in its provision of
the Services.
32. Security, Data Incidents. Merchant will be solely responsible for
the security, quality, accuracy, and adequacy of all transactions and
information supplied hereunder, and will establish and maintain
adequate audit controls to monitor the security, quality, maintenance,
and delivery of such data. Without limiting the generality of the
foregoing, Merchant represents and warrants to Processor that it has
implemented and will maintain secure systems for maintaining and
processing information and for transmitting information to Processor.
Processor shall have no liability whatsoever for the security or
availability of any communications connection used in connection with
the Services provided hereunder. Merchant acknowledges that
Processor is responsible only for the security of its own proprietary
systems, and not for the systems of any third party, including without
limitation any Merchant Supplier of Merchant. Merchant shall notify
Processor immediately if Merchant becomes aware of or suspects a
Data Incident. The parties agree to fully cooperate with each other and
any Association with respect to any investigation and/or additional
requirements related to a suspected Data Incident. The Data Security
Addendum attached hereto is hereby incorporated in its entirety.
33. Audits. At any reasonable time upon reasonable notice to
Merchant, Merchant shall allow auditors, including the auditors of any
Association or any third party designated by Processor or the applicable
Association, to review the files held and the procedures followed by
Merchant at any or all of Merchant’s offices or places of business.
Should Processor conduct an audit which is not required by the
Operating Regulations or is not requested by an Association, such audit
will be at Processor’s sole expense; otherwise the audit shall be at
Merchant’s expense. Merchant will assist such auditors as may be
necessary for them to complete their audit. In the event that a third-
party audit is requested by an Association, and/or required by the
Operating Regulations, Processor may, at its option, and at Merchant’s
sole expense, either retain a third party to perform the audit, or require
that Merchant directly retain a specific third party auditor. If Processor
requires that Merchant directly retain the auditor, Merchant shall
arrange immediately for such audit to be performed, and will provide
Processor and the Associations with a copy of any final audit report.
34. System Requirements and Upgrades. Merchant agrees that the
Services shall be provided in accordance with Processor's then current
systems, standards and procedures and that Processor shall not be
required to perform any special programming, to provide any special
hardware or software or to implement any other system, program or
procedure for Merchant. Unless otherwise agreed in writing by
Processor, all sales transaction, settlement and other data and
information used in connection with the Services shall be provided to
Processor in Processor's then current data formats and by means of
Processor's then current telecommunications configurations and
protocols. Processor may make changes in the Services based upon,
but not limited to, technological developments, legislative or regulatory
changes, or the introduction of new services by Processor. Merchant
shall comply with all time deadlines, equipment and software
maintenance and upgrading requirements to the extent required by the
Associations and/or Operating Regulations. Merchant shall use best
efforts to comply with all other time deadlines, equipment and software
maintenance and upgrading requirements which Processor may
reasonably impose on Merchant from time to time.
35. Title to the Services. Merchant agrees it is acquiring only a
nontransferable, non-exclusive right to use the Services. Processor
shall at all times retain exclusive title to the Services, including without
limitation, any materials delivered to Merchant hereunder and any
invention, development, product, trade name, trademark, service mark,
software program, or derivative thereof, developed in connection with
providing the Services or during the term of this Agreement.
36. Limited Acceptance. If so indicated below, Merchant
acknowledges and agrees that it wishes to be a Limited Acceptance
merchant, which means that Merchant has elected to accept only
certain VISA/MasterCard card types as indicated below, or via later
notification. Merchant further acknowledges and agrees that Processor
has no obligation other than those expressly provided under the
Operating Regulations and applicable law as they may relate to limited
acceptance and that Processor’s obligations do not include policing
card types at the point of sale. As a Limited Acceptance Merchant,
Merchant will be solely responsible for the implementation of its
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damages incurred by Merchant or (ii) fees paid to and retained by
Processor for the particular Services in question for the three calendar
months immediately preceding the date on which Processor received a
written notice from Merchant detailing Processor's material
nonperformance under this Agreement. For avoidance of doubt, the
cap on Processor’s liability set forth in the immediately preceding
sentence will not limit Processor’s obligation to settle funds due to
Merchant under this Agreement.
D. Processor shall not be deemed to be in default under this
Agreement or liable for any delay or loss in the performance, failure to
perform, or interruption of any Services to the extent resulting from a
Force Majeure Event. Upon such an occurrence, performance by
Processor shall be excused until the cause for the delay has been
removed and the Processor has had a reasonable time to again provide
the Services. No cause of action, regardless of form, shall be brought
by either party more than 1 year after the cause of action arose, other
than one for the nonpayment of fees and amounts due Processor under
this Agreement. Any restriction on Processor’s liability under this
Agreement shall apply in the same manner to Member Bank. In the
event that Merchant has a claim against Member Bank in connection
with the Services provided under this Agreement, Merchant shall
proceed against Processor (subject to the limitations and restrictions
herein), and not against Member Bank, unless otherwise specifically
required by the Operating Regulations.
E. Processor and Merchant recognize and agree that any limitations
of liability set forth in this Agreement are fair and reasonable.
25. Controlling Documents. This Agreement (including all addenda
and schedules and exhibits hereto and all documents and materials
referenced herein) supersedes any and all other agreements, oral or
written, between the parties hereto with respect to the subject matter
hereof, and sets forth the complete and exclusive agreement between
the parties with respect to the Services and, unless specifically provided
for herein, other services are not included as part of this Agreement. If
there is a conflict between the Bank Card Merchant Agreement and an
addendum or schedule or exhibit hereto, the addendum or schedule or
exhibit shall control. If there is a conflict between the Rules Summary
and this Agreement, the Rules Summary shall control. If there is a
conflict between Operating Regulations and this Agreement, the
Operating Regulations shall control. If there is a conflict between the
Operating Regulations and the Rules Summary, the Operating
Regulations shall control.
26. Regulatory Remedial Right. Processor may suspend or cease
providing any Service in this Agreement if: (i) in Processor’s
reasonable opinion, such Service, or the business of Merchant,
violates or would violate the Operating Regulations, or any federal,
state or local statute or ordinance, or any regulation, order or directive
of any governmental agency or court; (ii) Merchant is accused by any
federal, state or local jurisdiction of a violation of any applicable statute
or ordinance or any regulation, order or directive of any governmental
agency or court, or if Processor reasonably believes, based upon the
opinion of its legal counsel, that Merchant may be in violation of any of
the foregoing; and/or (iii) in Processor’s reasonable opinion,
Merchant’s activities may result in increased regulatory scrutiny or
reputational harm. Processor may also suspend or cease providing
any Service in this Agreement to Merchant if directed to do so by
Member Bank. Should Merchant not process sales transactions
through Processor's system for a period of one year or more,
Processor may remove Merchant from Processor’s systems without
notice, without relieving Merchant from any of Merchant's obligations
under this Agreement.
27. Conversion; Deconversion. Merchant shall take all necessary
steps to, and shall, promptly convert to Processor’s system for the
Services in this Agreement not later than 90 days after the execution of
this Agreement by Processor. Processor agrees that it shall not
charge Merchant for Processor’s standard and customary internal
testing and conversion preparation only, in connection with Merchant’s
initial conversion to Processor’s system at the commencement of this
Agreement, and as determined by Processor in its sole reasonable
discretion. The foregoing shall not be deemed to limit Merchant’s
obligation to pay any third party fees and expenses incurred by
Processor in connection with Merchant’s conversion, which shall
remain the sole responsibility of Merchant. Merchant agrees to be
responsible for all direct and indirect costs (including but not limited to
those incurred by Processor, its affiliates and/or agents) in connection
with and/or related to Merchant's conversion from Processor at the
termination of this Agreement and/or related to any conversion or
programming effort affecting the Services after Merchant's initial
conversion to Processor.
28. Confidential Information.
(a) Confidential Information Supplied by Processor. Merchant
acknowledges that Processor will be providing Merchant with certain
confidential information, including but not limited to, this Agreement,
third party audit reports, and information relating to the finances,
systems, methods, techniques, programs, devices and operations of
Processor and/or the Associations. Merchant shall not disclose any
such confidential information to any person or entity (other than to
those employees and Merchant Suppliers of Merchant who participate
directly in the performance of this Agreement and need access to such
information). Without limiting the foregoing, Merchant agrees that it will
fully comply with any and all confidentiality and security requirements
of the USA Patriot Act (or similar law, rule or regulation), VISA,
MasterCard, Discover, and/or Other Networks.
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Member Bank or any of its affiliates, that is acceptable to Processor, in
a format, with an expiration date, and in an amount acceptable to
Processor in its sole discretion. In the event Merchant fails to establish,
for any reason whatsoever, a reserve and/or a letter of credit as
required above, Processor shall have all of the rights and remedies
available to Processor in this Agreement, including but not limited to
exercising the rights and remedies of Processor in Section 13. In the
event Processor exercises its right to establish a reserve or require a
letter of credit pursuant to this Section, Merchant may, subject to the
following provisions, terminate the Agreement upon 30 days advance
written notice to Processor provided Processor receives such written
notice from Merchant of its intention to so terminate within 90 days of the
date on which Processor establishes the reserve or requires the letter of
credit. Upon Processor's receipt of Merchant's written notice pursuant to
the immediately preceding sentence, Processor may, at its option, return
the reserve to Merchant or waive the requirement for a letter of credit,
and, in the event Processor elects to return the reserve to Merchant or
waive the requirement for a letter of credit, Merchant shall not have the
right to terminate this Agreement pursuant to this Section and this
Agreement shall remain in full force and effect notwithstanding
Merchant's written notice to terminate.
Merchant shall not sell, assign, transfer or encumber all or any part of
its interest in the reserve account, if any, or any present or future rights
under this Agreement, including but not limited to, Merchant’s right to
receive any payments or funds. Neither Processor nor Member Bank
shall be obligated to honor any such purported attempt to sell, assign,
transfer or encumber such interest, rights, payments or funds unless
both Processor and Member Bank consent in writing. In the event
Merchant breaches this paragraph, then, in addition to any other rights
and remedies Processor may have under this Agreement and
otherwise, Processor shall have the right, at its option, to withhold any
or all funds or payments which would otherwise be payable to
Merchant under this Agreement until it shall have received instructions
concerning the disposition of such payments or funds, satisfactory in
form and substance to Processor and signed by both Merchant and
any purported assignee. Merchant shall indemnify Processor and hold
it harmless from and against any and all claims, liabilities and damages
which may be asserted against Processor by any purported assignee
or any other person arising out of Merchant’s purported sale,
assignment, transfer or encumbrance of all or any of Merchant’s
present or future rights under this Agreement.
21. Indemnification.
A. Subject to the other limitations, terms and conditions of this
Agreement, Processor shall indemnify, defend, and hold harmless
Merchant, and its directors, officers, employees, affiliates and agents
from and against all third party proceedings, claims, losses, damages,
demands, liabilities and expenses whatsoever, including all reasonable
legal and accounting fees and expenses and all reasonable collection
costs, incurred by Merchant, its directors, officers, employees, affiliates
and agents to the extent resulting from or arising out of Processor's
gross negligence, or willful misconduct.
B. Subject to liability caps established by state law, Merchant shall
indemnify, defend, and hold harmless Processor, and its directors,
officers, employees, affiliates and agents from and against all
proceedings, claims, losses, damages, demands, liabilities and
expenses whatsoever, including all reasonable legal and accounting
fees and expenses and all reasonable collection costs, incurred by
Processor, its directors, officers, employees, affiliates and agents
resulting from or arising out of the Services in this Agreement,
Merchant’s processing activities, the business of Merchant or its
customers, any sales transaction acquired by Processor, any
noncompliance with the Operating Regulations (or any rules or
regulations promulgated by or in conjunction with the Associations) by
Merchant or its agent (including any Merchant Supplier), any Data
Incident, any infiltration, hack, breach, or violation of the processing
system of Merchant, its Merchant Supplier, or any other third party
processor or system, or by reason of any breach or nonperformance of
any provision of this Agreement on the part of the Merchant, or its
employees, agents, Merchant Suppliers, or customers.
C. The indemnification of each party shall survive the termination of the
Agreement. The indemnified party shall (i) provide prompt written notice
of any claim to the indemnifying party; (ii) cooperate with all reasonable
requests of the indemnifying party; and (iii) surrender exclusive control
of the defense and settlement of any third party claim to the
indemnifying party provided that the indemnifying party will obtain the
indemnified party’s written consent prior to agreeing to any settlement or
agreement that requires the indemnified party to make any admission of
fault or to pay any amounts in connection with such settlement or
agreement that are not fully paid for by the indemnifying party. The
indemnified party shall not unreasonably withhold or delay any consent
required under this Section. The indemnified party may elect to
participate in the action with an attorney of its own choice at its own
expense.
22. Review of Settlement Activity and Reports; Notice of Failure
by Processor. Merchant agrees that it shall review all reports, notices,
and invoices prepared by Processor or its agent and made available to
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(iii) Merchant is in default of any terms or conditions of this Agreement
whether by reason of its own action or inaction or that of another; or
(iv) Processor reasonably believes that there has been a material
deterioration in Merchant's financial condition; or
(v) any standby letter of credit, if and as may be required pursuant to
Section 20, will be cancelled, will not be renewed, or is not in full force
and effect; or
(vi) Merchant ceases to do business as a going concern, or there is a
change in ownership of Merchant which changes the identity of any
person or entity having, directly or indirectly, more than 30% of either
the legal or beneficial ownership of Merchant.
Upon the occurrence of an Event of Default, Processor may at any time
thereafter terminate this Agreement by giving Merchant written notice
thereof. However, except in instances where immediate termination is
required by any Association or if Member Bank and/or Processor
reasonably believe that the Event of Default poses material risk to either
of them or involves a violation of applicable law, Merchant will have 30
days following Processor’s notice to cure an Event of Default under
Section (ii), (iii), (iv) or (v) prior to termination under this section.
Termination of Merchant for any reason shall not relieve Merchant from
any liability or obligation to Processor. If, prior to the date on which the
then current term of this Agreement is scheduled to expire, either this
Agreement is terminated by Processor as specifically permitted by this
Agreement, or Merchant for any reason discontinues receiving the
Services from Processor (except as may be specifically permitted by
this Agreement), Merchant shall be liable to Processor for liquidated
damages in an amount equal to the average monthly revenue (which
does not include interchange and other Association fees) payable to
Processor as a result of this Agreement for the three calendar months in
which such revenue was the highest during the preceding 12 calendar
months, or such shorter period if this Agreement has not been in effect
for 12 months, multiplied by the number of months remaining during the
then current term of this Agreement. Merchant recognizes and agrees
that the liquidated damages are fair and reasonable because it is not
possible to establish the actual increase in volume and activity by
Merchant during the term of this Agreement. Merchant shall also
reimburse Processor for any damage, loss or expense incurred by
Processor as a result of a breach by Merchant, including any damages
set forth in any addendum and/or schedule and/or exhibit hereto and
including all past due, unpaid and/or future invoices for services
rendered by Processor in connection with this Agreement. All such
amounts shall be due and payable by Merchant upon demand.
Processor shall also have the option to require Merchant to reacquire all
outstanding sales transactions acquired by Processor hereunder. In
addition to, and not in limitation of the foregoing, Processor may refuse
to provide the Services in the event it has not been paid for the Services
as provided herein.
14. Processor Nonperformance: In the event Merchant, in good
faith, reasonably believes that Processor has substantially failed to
provide the Services, other than as a result of (i) a failure by Merchant
(or any Merchant Supplier, or other third party acting at the request of
or on behalf of Merchant) to perform any obligation under the
Agreement, or to provide accurate data to Processor upon which
Processor is dependent to provide accurate and timely Services to
Merchant, or (ii) any Force Majeure Event, Merchant agrees to notify
Processor in writing within 30 days of the date upon which such failure
first occurred. Merchant agrees that such notice shall be sent in
accordance with the terms of this Agreement, and shall specifically
describe the nature of such failure by Processor, specify the date such
failure first occurred and specifically reference this section.
Processor will attempt to resolve such failure within 30 days of
Processor's actual receipt of such notice from Merchant. Should
Processor not resolve such failure within the cure period described in
the foregoing sentence, Merchant may terminate this Agreement upon
90 days prior written notice to Processor, provided Processor actually
receives such notice of termination within 60 days after the end of such
cure period.
15. Taxes. Any sales, use, excise or other taxes (other than
Processor's income taxes) payable in connection with or attributable to
the Services provided to the Merchant per this Agreement shall be paid
by Merchant. Processor may, but shall not have the obligation to, pay
such taxes In the event Processor pays such taxes, Merchant shall
immediately reimburse Processor or Processor may, at Processor's sole
option, charge Merchant's Account.
16. Binding on Successors; Assignment. This Agreement and all
of the provisions hereof shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, administrators, successors,
transferees and assignees. Neither this Agreement nor any interest
herein may directly or indirectly be transferred or assigned by Merchant,
in whole or in part, without the prior written consent of Processor, which
will not be unreasonably delayed or withheld. Merchant will remain
liable for any amounts owed under this Agreement after an
unauthorized transfer or assignment by Merchant, even if Processor
continues to provide Services to such transferee or assignee. This
Agreement is for the benefit of, and may be enforced only by, Processor
and Merchant and their respective successors and permitted
transferees and assignees, and is not for the benefit of, and may not be
enforced by, any third party.
17. Notices. All notices, requests, demands and other
communications to be delivered hereunder unless specified otherwise
herein shall be in writing and shall be delivered by nationally recognized
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amount of which, in whole or in part, it could charge back to the
Merchant pursuant to this Agreement, if it had acquired the sales
transaction or claim. Merchant acknowledges and agrees that
Processor is not responsible for any action or inaction taken by the
financial institution or other entity that issued the Card(s) to the
Cardholder or the processor of such Card(s). Merchant agrees that
Processor may set off any amounts due to Processor from amounts
owed to Merchant, including but not limited to any amounts owed to
Merchant from Processor and/or any of its affiliate(s).
6. Exception Items. Merchant agrees to reacquire and pay
Processor the amount of any sales transaction, and Processor shall
have the right at any time to charge Merchant's Account therefore with
notice via Processor’s Service Delivery Process, for any return,
chargeback, compliance case, any other Association action, or if the
extension of credit for merchandise sold or services or sales
transactions performed was in violation of law or the rules or regulations
of any governmental agency, federal, state, local or otherwise; or if
Processor has not received payment for any sales transaction,
notwithstanding Processor’s prior payment to Merchant for such sales
transaction pursuant to Section 5 above or any other section. Not
limiting the generality of the foregoing, Merchant agrees that any
operational and/or other Services performed on behalf of Merchant,
including but not limited to, production of facsimile drafts in response to
copy requests, response to compliance cases, augmentation of
Merchant data for interchange, transaction stand-in, digital draft storage
and retrieval, etc. shall in no way affect Merchant's obligations and
liability in this Agreement including those in the foregoing sentence.
Merchant may instruct Processor in the defense of chargebacks,
compliance cases and similar actions, and Merchant agrees that it will
promptly provide any such instructions to Processor. When Processor
has determined it has all necessary information and instructions,
Merchant hereby authorizes Processor to resolve chargebacks and
respond to retrieval requests and other inquiries without further
consulting Merchant.
7. Merchant Suppliers. Merchant may use one or more Merchant
Suppliers in connection with the Services and/or the processing of
some or all of its Card transactions. In no event shall Merchant use a
Merchant Supplier unless such Merchant Supplier is compliant with
PCI and/or the Payment Application Data Security Standard (“PA-
DSS”), depending on the type of Merchant Supplier, as required by the
Operating Regulations. Merchant acknowledges and agrees that
Merchant shall cause its Merchant Supplier to complete any steps or
certifications required by any Association (e.g., registrations, PA-DSS,
PCI, audits, etc.). Merchant shall cause its Merchant Supplier to
cooperate with Processor in completing any such steps or certifications
(if applicable), and in performing any necessary due diligence on such
Merchant Supplier. Merchant shall be solely responsible for any and
all applicable fees, costs, expenses and liabilities associated with such
steps, registrations, and certifications. Merchant shall bear all risk and
responsibility for conducting Merchant’s own due diligence regarding
the fitness of any Merchant Supplier(s) for a particular purpose and for
determining the extent of such Merchant Supplier’s compliance with
the Operating Regulations and applicable law. Merchant expressly
agrees that Processor shall in no event be liable to Merchant or any
third party for any actions or inactions of any Merchant Supplier used
by Merchant, even if Processor introduced and/or recommended the
use of such Merchant Supplier to Merchant, or never objected to the
use of such Merchant Supplier, and Merchant hereby expressly
assumes all such liability.
8. Cardholder Information. Merchant shall not disclose, sell,
purchase, provide, or exchange Cardholder name, address, account
number or other information to any third party other than to Processor or
an Association for the purpose of completing a sales transaction unless
specifically permitted by the Operating Regulations. Merchant
represents and warrants that neither it nor its Merchant Supplier shall
retain or store any portion of the magnetic-stripe data subsequent to the
authorization of a sales transaction, nor any other data prohibited by the
Operating Regulations and/or this Agreement.
Processor acknowledges responsibility for payment card data on its
proprietary systems. Processor will (i) maintain its PCI-DSS
certification and (ii) be validated as a PCI-DSS compliant service
provider. In the event Processor is deemed not to be in compliance
with PCI-DSS, Processor shall make commercially reasonable efforts
to become compliant and maintain compliance thereafter. As of the
execution of the Agreement, PCI-DSS information and standards can
be found at the Payment Card Industry Security Council website at
https://www.pcisecuritystandards.org/index.htm.
9. Term. The term of this Agreement shall commence the date
Processor executes this Agreement, and shall continue for the Initial
Term as defined in Section 1 of this Agreement. Except as hereafter
provided, unless either party gives written notice to the other party at
least 30 days prior to the expiration of any term, the Agreement
including all addenda, schedules and exhibits hereto or referencing this
Agreement shall be automatically extended on a calendar month to
calendar month basis unless otherwise mutually agreed upon between
the parties. All obligations of Merchant incurred or existing under this
Agreement as of the date of termination, shall survive such termination.
10. Processor Fees. Merchant agrees to pay Processor the fees,
expenses and all other amounts set forth in the Agreement including,
but not limited to, the Merchant Price Schedule. Processor may change
or add fees and/or charges upon notice to Merchant via Processor’s
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control.
Initial Term shall mean three years from the date Processor executes
this Agreement.
Member Bank shall mean a member of VISA, MasterCard and/or Other
Networks, as applicable, that provides sponsorship services in
connection with this Agreement. As of the commencement of this
Agreement, the Member Bank shall be Fifth Third Bank, an Ohio
banking corporation.
Service Delivery Process means Processor’s then standard methods
of communication, service and support, including but not limited to
communication via an online Merchant portal, email communication,
statement notices, other written communications, etc.
Merchant Supplier shall mean a third party other than Processor or
Member Bank used by Merchant in connection with the Services
received hereunder, including but not limited to, Merchant’s software
providers, equipment providers, and/or third party processors.
MasterCard shall mean MasterCard International, Inc.
Operating Regulations means the by-laws, operating regulations
and/or all other rules, policies and procedures of VISA, MasterCard,
Discover, and/or Other Networks as in effect from time to time.
Other Network shall mean any network or card association other than
VISA, MasterCard, or Discover that is identified in the Merchant Price
Schedule and in which Merchant participates hereunder.
PCI shall mean the Payment Card Industry Data Security Standard.
Service shall mean any and all services described in, and provided by
Processor pursuant to, this Agreement.
VISA shall mean VISA USA, Inc.
Other defined terms and Services applicable to this Agreement will be
contained in a “General Services Addendum” as described herein.
2. Rules Summary; Operating Regulations; General Services
Addendum. Merchant acknowledges receipt and review of the Rules
Summary, which are incorporated into this Agreement by reference.
Merchant agrees to fully comply with all of the terms and obligations in
the then current Rules Summary, as changed or updated by Processor
from time to time, at Processor’s sole reasonable discretion with notice
in accordance with the Service Delivery Process. The Rules Summary
is a summary of key Operating Regulations that govern this
Agreement. In the event there is a change in the Rules Summary by
Processor that is not related to or based on a corresponding
Association rule or requirement, such provision will not be binding on
Merchant. Merchant agrees to participate in the Associations in
compliance with, and subject to, the Operating Regulations. Without
limiting the foregoing, Merchant agrees that it will fully comply with any
and all confidentiality and security requirements of the USA Patriot Act
(or similar law, rule or regulation), VISA, MasterCard, Discover, and/or
Other Networks, including but not limited to PCI, the VISA Cardholder
Information Security Program, the MasterCard Site Data Protection
Program, the American Express Data Security Requirements (DSR),
and any other program or requirement that may be published and/or
mandated by the Associations. Should any Operating Regulation(s)
not be publicly available or otherwise made available to the Merchant,
such unavailability shall not alter or limit Merchant’s obligation to
comply with the Operating Regulations. Notwithstanding Processor’s
assistance in understanding the Operating Regulations, Merchant
expressly acknowledges and agrees that it is assuming the risk of
compliance with all provisions of the Operating Regulations, regardless
of whether Merchant has possession of those provisions. Both
MasterCard and VISA make excerpts of their respective Operating
Regulations available on their internet sites. Merchant acknowledges
responsibility for any liability resulting from its decision not to
participate in optional Association programs, including but not limited to
any increased Data Incident liability resulting from its decision not to
participate in an Association EMV program. In the event Merchant
chooses to participate in an optional Association program, including
but not limited to an EMV program, Merchant acknowledges and
agrees that it shall be responsible for (i) ensuring compliance with any
applicable program requirements and/or Operating Regulations
applicable to such program, including but not limited to making any
7.2018-VNTV
300 Laporte Avenue, Fort Collins, CO 80521
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