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2.24 Rec,rrine Transactions. If Merchant agrees to accept a recurring trastsaclion from a Cardholder for the purchase of goods or services which are delivered or performed periodically (a
<br />"Recurring Transaction"), the Cardholder shall complete and deliver to Merchant an order form containing a written request for such goods or services to be charged to the
<br />Cardholders account, the frequency of the recurring charges and the duration of time for which such Cardholder's pemtission is granted. In the event a Recurring Transaction is
<br />renewed, the Cardholder shall complete and deliver to Merchant a subsequent order form for continuation of such goods or services to be charged to the Cardholder's account. A
<br />Recurring Transaction may not include partial payments made to Merchant for goods or services purchased in a single Transaction, nor may it be used for periodic payments of
<br />goods or services on which Merchant assesses additional finance' charges. A copy of the order form must be retained for the duration of the recurring charges and provided in
<br />response to Provider's request. In addition. Merchant must record, retain, and promptly produce upon request the "ship to address" and address verification service code (where
<br />applicable) for each transaction. Merchant must not complete an initial or subsequent Retuning Transaction after receiving a cancellation notice from the Cardholder. the Card
<br />Issuer. Provider or other party or a response that the Card is not to be honored.
<br />2.25 Limited Acceptance.
<br />(a) If appropriately indicated on the Merchant Application, Merchant shall be a limited acceptance merchant. which means that Merchant has elected to accept only certain Visa and
<br />MasterCard Card types as indicated on the Merchant Application, or via later notification. The Visa or MasterCard credit acceptance option on the Merchant Application refers to
<br />Visa credit and business transactions, and is what MasterCard refers to as "Other Card" transactions. Notwithstanding anything to the contrary in the Merchant Application,
<br />Merchant can elect (i) to accept only Visa or MasterCard non -PIN based debit/stored voludelectronic benefit transactions (sometimes referred to as "signature debit" transactions,
<br />whether or not an actual signature is required), (ii) to accept only Visa or MasterCard Credit transactions, or (iii) to accept all Visa or MasterCard credit and signature debit
<br />transactions; provided, however, that a Merchant who accepts any Visa or MasterCard Card types must accept all valid Visa or MasterCard Card types issued by a non -U.S.
<br />issuer. Merchant is not required to accept Cards of Card Networks other than Visa or MasterCard in order to accept Visa or MasterCard Cards (except that transactions using
<br />Diner's International Cards which also carry the MasterCard Mark must be accepted if Merchant accepts MasterCard Card transactions of the same type). Provider has no
<br />obligation other than those expressly provided under the Network Rules and applicable Law as they may relate to limited acceptance. Provider's obligations do not include
<br />policing card types at the point-of-sale. Merchant will be solely responsible for the impleinemation of its decision for limited acceptance including but not limited to policing
<br />the Card Network type(s) of transactions at the point-of-sale submitted for processing by Provider. Should Merchant submit a Transaction for processing for a card type it has
<br />indicated it does not wish to accept, Provider may process that Transaction and Merchant will pay the applicable fees, charges, and assessments associated with that
<br />Transaction. Merchant will comply with any applicable Laws and Newyork Rules and other applicable rules and regulations for the Card Network type processed.
<br />(b) II -Merchant has chosen to accept Discover Cards in the Merchant Application, Merchant must accept Discover Cards at all Merchant establishments, including in payment
<br />for purchases of goods and services. for charitable contributions and for Cash Over Transactions (subject to the terms of the Network Rules and other applicable rules and
<br />regulations), when properly presented for payment by a Cardholder. Subject to this section. Merchant must create a Transaction Record for each Discover Card Transaction and
<br />deliver at least one copy of the Transaction Record to the Cardholder. Ah4erchant may issue a Cash Over (subject to the terms of the Network Rules) in connection with a
<br />Discover Card Transaction. Merchant must deliver a single Authorization request for the aggregate total of the goods/services purchase amount and the Cash Over amount. In
<br />addition, the Transaction Record must include both the purchase amount and the Cash Over amount.
<br />ARTICLE 111- PRESENTMENT. PAYMENT, CIIARGEBACK
<br />3.01 Acceptance. Bank will accept from Merchant all Sala Drafts deposited by Merchant under the terms of this Agreement and will proem the same to the appropriate Card Issuers for collection
<br />against Cardholder accounts. Merchant is required to transmit Sala Drafts and Credit Vouchers to Bank or its processing vendor on the same of next business immediately following the
<br />day that such Sales Drafts and Credit Vouchers have been originated. All presentment and assignment of Sales Drafts, collection therefore and re -assignment or rejection of such Sales
<br />Drafts are subject to the terms of this Agreement and regulations of the Card Associations. Bank will only provisionally credit the value of collected Sales Drafts to Merchant's Account
<br />and reserves the right to adjust amounts collected to reflect the value of Chargebacks (actual and anticipated), fees, penalties, late submission charges, Reserve deposits. negative Sates
<br />Draft batch deposits and items for which Bank did not receive final payment.
<br />3.02 f-ndorsement The presentment of Sales Drafts to Bank for collection and payment is Merchant's agreement to sell and assign all its right, title and interest in each Sales Draft completed in
<br />conformity with Bank's acceptance procedures and shall constitute an endorsement by Merchant to Bank of such Sales Drafts. Merchant hereby authorizes Bank to supply such
<br />endorsement on Merchant's behalf.
<br />3.03 Prohibited Payments. Bank will have the sole right to receive payment of any Sales Draft presented by Merchant and paid by Bank unless and until there is a Chargeback . Unless specifically
<br />unauthorized in writing by Bank, Merchant will not make or attempt to make any collections on any Sales Draft, including Chargelacks, and will hold in tout for Bank and will
<br />promptly deliver in kind to Bank any payment Merchant receives, in whole or in pan, of the amount of any accepted Transaction, together with the Cardholder's name and account number
<br />and any correspondence accompanying the payment
<br />3.04 Charvebacks. Merchant will accept for chargeback any sale for which the Cardholder disputes the validity of the sale according to prevailing Card Association regulations , ora Card issuer or
<br />Bank or ETS CORPORATION determines that Merchant has in any way failed to comply with Card Association regulations or Bank's or ETS CORPORATION's procedures in accepting
<br />a Card and presenting the resulting Sales Draft to Bank for purchase. Section 2.03 notwithstanding. Bank may charge back the amount of a Card sale for which the Cardholder disputa that
<br />authorizing the charge if Merchant failed 10 obtain the Card Imprint or the Cardholder's signature. Merchant may not initiate a sale Transaction in an anempt to collect a Chargeback
<br />Merchant will pay the current published fees for each Chargeback as listed on $chesluleA.
<br />3.05 Chareehnck Reserve Account Notwithstanding anything to the contrary in this Agreement, Bank or ETS CORPORATION may establish (without notice to Merchant) and Merchant agrees
<br />to fund a non-interest bearing chargeback reserve account (the "Reserve Account"). or demand other security or raise any discount. transaction or other fees. This account may be
<br />established at any time or for any reason. Specific examples might include: (a) Merchant engages in any charge processing that creates an overcharge to a Cardholder by duplicating
<br />charges: (b) any activity designed by Merchant to circumvent a "all center" message When attempting to process a transaction; (c) Merchant breaches this Agreement, violates any
<br />representation, covenant or warranty herein, violates any applicable Card Association rule or applicable law; (d) Merchant's application is in any way inaccurate or becomes inaccurate
<br />subsequent to Bank's approval of the application; (e) Merchant changes its type of business without Bank's prior wiitten approval: (1) fraud, Merchant protases an unauthorized charge.
<br />or other action that violates Bank's or ETS CORPORATION's applicable risk management standards or is likely to cause a loss ; (g) Merchant has etargebacks exceeding I% of the total
<br />number of transactions completed by Merchant in any 30 calendar day period; (h) excessive numbers of requests from consumers or issuing banks to retrieve documentation: (1) Merchant's
<br />financial stability is in question or hlerclant cases doing business; or (j) Merchant terminates this Agreement. Once the Reserve Account is established. collected funds will be placed in
<br />the Reserve Account. Before releasing funds after this Agreement is terminated. Merchant will pay any equipment cancellation fees and any outstanding charges, losses or amounts, and
<br />Chargebaeks for which Merchant has provided indemnification under this Agreement. Further. Bank or ETS CORPORATION may require Merchant to deposit additional amounts based
<br />upon Merchant's processing history and/or anticipated risk of loss to Bank or ETS CORPORATION into the Reserve Account. Once established, unless Bank or ETS CORPORATION
<br />determines otherwise at its sole discretion, the Reserve Account will remain in place for 180 days and a reasonable period thereafter during which Cardholder disputes may remain valid
<br />under applicable Card Association rules. The provisions of this Agreement relating to account debits and credits apply to the Reserve Account and survive this Agreement's termination
<br />until Bank terminates the Reserve Account. Any balance remaining after chargeback rights have expired and all of Bank's or ETS CORPORATION's other expenses, losses and damages
<br />have been paid will be disbursed to Merchant
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