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• You must issue a receipt to the Cardholder upon successful completion of a
<br />transaction and effect PAN Truncation on it.
<br />• You may not manually enter the account number for PIN Debit transactions.
<br />Signature Debit transaction may be key entered if you are unable to swipe the
<br />Card. The account number must be read electronically from the Magnetic Stripe
<br />/chip for transactions authenticated with a PIN. If the Magnetic Stripe/chip is
<br />unreadable, you must request another form of payment from the Cardholder. Do
<br />obtain a signature if PIN authentication is not supported or available.
<br />• Any applicable tax must be included in the total transaction amount for which
<br />Authorization is requested. Tax may not be collected separately in cash.
<br />• YOU ARE RESPONSIBLE FOR SECURING YOUR POS DEVICES AND FOR
<br />IMPLEMENTING APPROPRIATE CONTROLS TO PREVENT EMPLOYEES OR
<br />OTHERS FROM SUBMITTING CREDITS AND VOIDS THAT DO NOT REFLECT
<br />BONA FIDE RETURNS OR REIMBURSEMENTS OF PRIOR TRANSACTIONS.
<br />35.3. Cash Back From Purchase. You may offer cash back to your customers
<br />when they make a PIN Debit Card purchase. You may set a minimum and
<br />maximum amount of cash back that you will allow. If you are not currently offering
<br />this service, your POS device may require additional programming to begin offering
<br />cash back as long as it is supported by the Debit Network.
<br />35.4. Settlement. You must reconcile your accounts for each location daily and
<br />notify us within 24 hours of any issues.
<br />35.5. Adjustments. An adjustment is a transaction that is initiated to correct a Debit
<br />Card transaction that has been processed in error. For signature debit transactions
<br />(including "no signature" signature debit transactions), both the Cardholder and the
<br />card issuing bank have the right to question or dispute a transaction. If these
<br />questions or disputes are not resolved, a chargeback may occur. You are
<br />responsible for all adjustment and Chargeback fees that may be charged by a Debit
<br />network. There are several reasons for adjust ments being initiated:
<br />• The Cardholder was charged an incorrect amount, whether too little or too much.
<br />• The Cardholder was charged more than once for the same transaction.
<br />• A processing error may have occurred that caused the Cardholder to be charged
<br />even though the transaction did not complete normally at the point of sale.
<br />• A Cardholder is disputing the goods or services provided.
<br />All parties involved in processing adjustments and Chargebacks are regulated by
<br />time frames that are specified in the operating rules of the applicable Debit network,
<br />The Electronic Funds Transfer Act, Regulation E, and other applicable law.
<br />36. Special Provisions Regarding EBT Transactions
<br />If you elect to accept EBT Cards and engage in EBT transactions, the terms and
<br />conditions of this Section 36 shall apply.
<br />EBT transactions are provided to you by Processor and not by Bank. The Services
<br />provided, transactions processed and other matters contemplated under this
<br />Section 30 are subject to the rest of this Agreement, as applicable, except to the
<br />extent the terms of this Section 30 directly conflict with another section of this
<br />Agreement, in which case the terms of this Section 30 will control; provided,
<br />however, that Bank is not a party to this Agreement insofar as it relates to EBT
<br />transactions, and Bank is not liable to you in any way with respect to such Services.
<br />For the purposes of this section, the words "we," 'bur" and "us" refer only to the
<br />Processor and not to the Bank.
<br />We offer electronic interfaces to EBT networks for the processing, settlement and
<br />switching of EBT transactions initiated through the use of a state -issued EBT card
<br />("EBT Card") at your POS Terminal(s) for the provision of United States Department
<br />of Agriculture, Food and Nutrition Service ("FNS"), Supplemental Nutrition
<br />Assistance Program ("SNAP") and Women, Infants and Children Benefits ("WIC
<br />Benefits") and/or government delivered Cash Benefits (Cash Benefits, together with
<br />FNS, SNAP and WIC Benefits, collectively are referred to as the "EBT benefits") to
<br />EBT benefit recipients ("EBT customers"), subject to the terms below.
<br />36.1. Acceptance of EBT Benefits. You agree to accept EBT Cards and provide
<br />EBT benefits to EBT customers through the use of a POS Terminals, PIN pad and
<br />printer or other equipment that meet standards as set- forth in the EBT Rules
<br />("Authorized Terminal') applicable to such EBT benefits during your normal
<br />business hours, in a manner consistent with your normal business practices and in
<br />accordance with the EBT Rules.
<br />You will provide EBT benefits to EBT customers, in accordance with the procedures
<br />set forth in the EBT Rules, in the amount authorized through your Authorized
<br />Terminal upon presentation by an EBT customer of an EBT Card and such EBT
<br />customer's entry of a valid PIN. The "EBT Rules" means (i) all procedures that we
<br />establish and provide to you from time -to -time regarding your acceptance of EBT
<br />Cards and provision of EBT benefits to EBT customers; (ii) the Quest Rules, as
<br />amended from time -to -time, issued by the National Automated Clearing House
<br />Association and as approved by the Financial Management Service of the U.S.
<br />Treasury Department, as necessary (and any rules that succeed or replace the
<br />Quest Rules); and (iii) other such laws, rules, regulations and procedures that are
<br />applicable to the acceptance of EBT Cards and the provision of EBT benefits by you
<br />under this Section 30, including without limitation, laws pertaining to delivery of
<br />services to EBT customers and EBT customer confidentiality, the federal Civil
<br />Rights Act of 1964, Rehabilitation Act of 1973, Americans with Disabilities Act of
<br />1990, Clean Air Act, Clean
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<br />Water Act, Energy Policy and Conservation ActSr(mlmidrai,LE' .form and Control
<br />Act of 1986, regulations issued by the Department of Agriculture pertaining to Food
<br />Stamp Program, and, any additional procedures specified by the state regarding lost
<br />EBT Cards, forgotten PINS, discrepancies in benefits authorized and similar matters
<br />by providing EBT customers with information such as telephone numbers and
<br />addresses of the state or other appropriate agencies. The "Food Stamp Program" is
<br />the government benefits program operated under the authority of the Food Stamp
<br />Act of 1964.
<br />If the Authorized Terminal fails to print EBT benefit issuance information as
<br />approved and validated as a legitimate transaction, you will comply with the
<br />procedures set forth in the EBT Rules for authorization of EBT benefits in such
<br />instance. You are solely responsible for your provision of EBT benefits other than in
<br />accordance with authorizations timely received from EBT service provider. You will
<br />not resubmit any EBT Card transaction except as specifically permitted by the EBT
<br />Rules and procedures applicable to such EBT Card transaction. You must provide a
<br />receipt for each EBT transaction to the applicable EBT customer.
<br />You will not accept any EBT Card for any purpose other than providing EBT
<br />Benefits, including without limitation accepting an EBT Card as security for
<br />repayment of any EBT customer obligation to you. In the event of any violation of
<br />this provision, you will be obligated to reimburse the state or us for any EBT benefits
<br />unlawfully received by either you or an EBT customer to the extent permitted by law.
<br />Cash should never be dispensed for FNS, SNAP and WIC Benefits.
<br />36.2. Manual EBT Vouchers. In accordance with the procedures set forth in this
<br />Section 30 and the EBT Rules, you will manually accept EBT Cards during periods
<br />of time when your Authorized Terminal is not working or the EBT system in not
<br />available; you will manually provide EBT benefits in the amount authorized through
<br />the applicable EBT service provider to the EBT customers at no cost to the EBT
<br />customers upon presentation by an EBT customer of his/ her EBT Card. All manual
<br />voucher authorizations must be cleared on your POS terminal for payment of
<br />voucher to be made to you. In addition to any procedures set forth in the EBT Rules,
<br />the following limitations will apply to manual issuance of FS Benefits by merchant:
<br />I. An authorization number for the amount of the purchase must be received by you
<br />from the applicable EBT service provider while the respective EBT customer is
<br />present and before you provide such EBT customer with any FNS, SNAP and WIC
<br />Benefits, or Cash Benefits, as applicable. You must not attempt to voice authorize a
<br />manual EBT transaction if the EBT customer is not present to sign the voucher. The
<br />EBT customer must sign the voucher. A copy of the voucher should be given to the
<br />EBT customer at the time of authorization and you should retain one copy for your
<br />records.
<br />ii. Specified EBT customer, clerk and sales information, including the telephone
<br />authorization number, must be entered properly and legibly on the manual sales
<br />draft.
<br />iii. All manual voucher authorizations must be cleared on your Authorized Terminal
<br />before payment of voucher will be made to you. Vouchers must be cleared within 10
<br />Business Days after the date of applicable voice authorization. Vouchers cannot be
<br />cleared by any manner except by your Authorized Terminal therefore you should
<br />never mail vouchers requesting payment. If a voucher expires before it has been
<br />cleared by your Authorized Terminal for payment, no further action can be taken to
<br />obtain payment for the voucher.
<br />iv. In the event that, due to EBT host failure, EBT benefit availability for an EBT
<br />customer cannot be determined at the time you request authorization, the maximum
<br />authorized manual transaction and benefit encumbrance will be $40.00 or such
<br />other state specific floor limit as set forth in the most current version of the
<br />applicable EBT Rules.
<br />v. Except as specifically provided in the applicable EBT Rules, you will not be
<br />reimbursed and will be solely responsible for a manual transaction when you fail to
<br />obtain an authorization number from the applicable EBT service provider as set forth
<br />in this Section 36 or otherwise fail to process the manual transaction in accordance
<br />with the EBT Rules.
<br />vi. If you have not received an authorization number in accordance with paragraph
<br />36.1 above, you may not "re -submit' a manual sales draft for payment for the same
<br />transaction.
<br />36.3. Acceptance of Cash Benefits. If you agree to accept EBT Cards and to
<br />provide Cash Benefits, you agree to maintain adequate cash on hand to issue EBT
<br />service provider authorized Cash Benefits and will issue such Cash Benefits to EBT
<br />customers in the same manner and to the same extent cash is provided to your
<br />other customers. You may not require, and may not in your advertising suggest, that
<br />any EBT customers must purchase goods or services from you as a condition to
<br />receiving Cash Benefits, unless such condition applies to other customers as well.
<br />You may not designate and direct EBT customers to special checkout lanes
<br />restricted to use by EBT customers unless you also designate and direct other
<br />customers to special checkout lanes for Debit Cards or Credit Cards and/or other
<br />payment methods such as checks other than cash.
<br />36.4. Interoperability. If you accept EBT Cards and provide EBT benefits (FNS,
<br />SNAP and WIC Benefits and/or Cash Benefits), you must do so for EBT customers
<br />from all states.
<br />36.5. Required Licenses. If you provide FNS, SNAP and WIC Benefits under this
<br />Agreement, you represent and warrant to us that you are a FNS authorized
<br />merchant and are not currently disqualified or withdrawn from redeeming food
<br />stamp coupons or otherwise disqualified or withdrawn by FNS. You agree to secure
<br />and maintain at your own expense all necessary licenses, permits, franchises, or
<br />other authorities required to lawfully effect the issuance and distribution of EBT
<br />benefits under this Agreement, including without limitation, any applicable franchise
<br />tax certificate and non-governmental contractor's certificate, and covenant that you
<br />will not accept EBT Cards or provide EBT
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