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Checks-By-Phone Schedule
This Schedule is only applicable to processing telephone-initiated transactions utilizing the end-customer's Checking account-data, Paya-BFT products and associated software specifically
designed for such transactions will be utilized by Merchant, and such software will either bo hosted and maintained by Paya-EFT on Paya-EFT equipment, or alternatively, provided
directly to Merchant for installation on Merchant equipment. In all cases where Pays-EFT hosts the software for Merchant, the various termis and conditions referenced below régarding
disclosure, transaction and processing requirements, and all other requirements imposed by either regulatory agency, law, Paya-EFT, or otherwise shall have full force and effect, however,
in instances where the Paya-EFT hosted software already complies with Merchant requirements, the Merchant shall be relieved of certain of these responsibilities. Merchant agrees not to
change, modify, or alter such software or product in any way. Upon MERCHANT’S request and Paya-EFT’s approval, check guarantee services (hereinafter referred to as “Checks-By-
Phone Guarantee” service) will also be provided pursuant to provisions below. IF MERCHANT has not requested Checks-By-Phone Guarantee service, or if Paya-EFT has not accepted the
MERCHANT application for Checks-By-Phone Guarantee service, Paya-EFT will not be liable in any way for any rotunied checks of MERCHANT or its customers, for any reason.
1, CHECKS-BY-PHONE NON-GUARANTEE, This program offers no guarantee for checks that are retumed unpaid on CUSTOMER's account. Merchant may utilize the Paya-EFT Checks-By-
Phone Gateway or an approved method of electronic file transmission to use the Checks-By-Phone Non-Guarantes program. Merchant must submit a file for testing purposes prior to using the
Checks-By- Phone Service if Merchant utilizes electronic file transmission, Merchants who utilize electronic file transmission will not receive the benefit of, ‘pre-verification services to determine if
the CUSTOMER's account or driver's license is flagged by the national negative database for unpaid items and may result in higher returns or chargebacks to MERCHANT's account,
2. ACH COLLECTION, MERCHANT authorizes Paya-EFT to represent all retum itenis forwarded to Paya-EFT and to Originate and electronic entry for the amount of any allowable recovery fee.
Paya-EFT shail have sixty.(60) days from the date of receipt of retum ACH transaction item to complete their represontment process. If this Agreementis terminated for any reason, Paya-EFT will
tetain the right to complete their electronic represtntment process for all return ACH Transaction items forwarded to Paya-EFT prior to said termination,
3, REQUIREMENTS FOR PROCESSING CHECKS-BY-PHONE, MERCHANT shall comply with the following conditions when processing electronic checks and agrées to complete all
transactions in accordatiee with the provisions of this Agreement and such niles of operation as may be established by Paya-EFT from time to tine, CUSTOMER will piovide check information via
recorded oral telephone authorization or by completing written ACH authorization form. MERCHANT is aot authorized to process checks through this seryice if CUSTOMER doés not have a pre-
existing relationship with MERCHANT and MERCHANT initiated the call. A pre-sxisting relationship is established ifthe CUSTOMER has purchased goods/servicés from the MERCHANT
within the last two yeais or if there is a written agreement in place between the merchant and the Consumer for provision of goods or setvices (Le, a service contract}, MERCHANT shall accept only
the following sources to initiate ACH debit entries through Paya-EFT; (a) All demand deposit accounts must be drawn on or payable through a federally insured depository financial institution; be
imachine-readable MICR-encoded with the bank routitig mimber and aécount niiniber, and be for an amotint legs than $1,000.00 unless otherwise authorized by Paya-EFT. (b) MERCHANT shall
obtain proper identification in the form of a valid driver’s license number-ftom each customer (c) MERCHANT stall obiain a customer authorization in the form, of a signed written ACH
authorization form or by recorded oral ACH authorization for each transaction submitted for electronic processing; (4) MERCHANT shall authorize each ACH transaction through the Paya-EFT
Checks-By-Phone Gateway-based system to ititiate electronic processing or through approved file transmission. (¢) All items, goods and seivices purchased in a single transaction shall be included
in the total amount ona single ACH authorization form or recorded oral authorization; Once Paya-EFT authorizes the transaction, if MERCHANT: utilizes written ACH authorization form, ~
MERCHANT shal! ensuie that the customer that presented the electronic check signs the ACH authorization form or has provided recorded otal authorization, ‘To be valid, MERCHANT shall ensure
that the ACH Authorization form or recordéd oral ACH Authorization contains the correct customer bank routing, account, and check numbers from the MICR data, MERCHANT'S correct name
aiid telephone number; the'dato ofthe transaction; te total cash price of the sale (including all applicable state, federal or local surcharges and taxes) of the amount to be chargedifa partial payment
is made in gash or by credit card or the amount fo be charged as the remaining balance owing after the deposit has been made; Custoiner's personal information ineluding but riot limited *.
CUSTOMER?’s full name, address, telephone cumber, driver’s licénee state and number, last four of sodial security number or dato of birth in YYYY format, sure statement that CUSTOMER,
understands he/she i3 authorizing MERCHANT to process an ACH debit éntry to the CUSTOMER’s account and that if the ACH debit eniry is tetumied mpaid, a fee of $25.00 or as allowable by
law miy be charged to CUSTOMER’s account? (PA fer cuistomeér signs the ACH Authorization forin or clearly agree’ vid Recorded Oral ‘Auithotization, MERCHANT: ‘shall deliver to tie person
Lie... .présenting the ACH transaction a tue and:completed copy of the sales receipt via email, facsimile, or sales receipt must be included with product shipment and provide the consumer with a phone
“number for inquiries and method by which customer’s authorization may be revoked; (g) No ACH authorization form orrecotded oral ACH authorization may be altered after Paya-EFT ©
“authorizes acceptance of the ACH transaction, MERCHANT may not resubmit an ACH ‘transaction electronically or deposit the original source documentby any means, once Paya:EFT authorizes a
transpction; (h) MERCHANT fhiluré to input the correctronting number or account number into the Checks-By-Phone Gateway will result in MERCHANT'S loss of guarantee using the Checks-
‘By-Phone program: Failure to comply with the above requirements will, in addition to other penalties (such as but not limited to loss of guarantee of ALL transactions), subject MERCHANT to
chargebacks or withholding of fitids and diy De grctinds for immediate Suspensior/terinination of services’and indemnification of Paya-EFT. by MERCHANT pursuant to this Agreement, YOU
UNDERSTAND THAT IT IS AFEDERAL VIOLATION TO PROCESS DEBIT REQUESTS AGAINST A CONSUMER BANK ACCOUNT WITHOUT ACCOUNT HOLDER'S
EXPRESSED AUTHORITY. YOU HEREBY ACKNOWLEDGE RECEIPT OF PROPER NOTICE THAT THE USE OF ANY COUNTERFEIT, FICTITIOUS, LOST, STOLEN, OR -
FRAUDULENTLY OBTAINED DEBIT INSTRUMENT TO UNLAWFULLY INITIATE A DEBIT TRANSACTION IS PUNISHABLE BY A MAXIMUM OF A $10,000 FINE PER
INSTANCE UP TO A $500,000 MONTHLY FINE, IMPRISONMENT FOR A TERM OF TEN YEARS, OR BOTH. IT 1S SPECIFICALLY UNDERSTOOD BY YOU THAT ANY
"TRANSACTION EVENT INIATED AS AN UNAUTHORIZED MANUAL ENTRY OR DEPOSITBY YOU AFTER YOU HAVE RECEIVED APPROVAL FOR ELECTRONIC DEPOSIT
OF ACH TRANSACTION (S) OR IS INTENDED FOR ELECTRONIC DEPOSIT SHALL BE INTERPRETED AS AN UNLAWFUL DEBIT TRANSACTION PURSUANT.TO THIS
NOTICE. IN THE EVENT OF SUCH A VIOLATION, MERCHANT. AGREES AND WARRANTS TO HOLD Paya-EFT AND ALL OF ITS ASSIGNS AND ASSOCIATES HARMLESS
AND REIMBURSE Paya-EFT FOR THE TRANSACTION (8) WITHIN 24 HOURS OF SAID OCCURRENCE. IF MERCHANT REFUSES OR IS UNABLE TO. REIMBURSE Paya-EFT FOR,
ANY SUCH OCCURRENCE, IT IS EXPRESSLY STATED AND UNDERSTOOD THAT THE MERCHANT IS IN DIRECT VIOLATION OF THIS AGREEMENT AND FEDERAL LAW,
AND Paya-EFT WILL PURSUE ALL LEGAL, CIVIL, AND COLLECTION REMEDIES AS ARE POSSIBLE UNDER LAW AS REMEDY, FURTHERMORE, Paya-EFT'S CHECKS-BY-
PHONE SERVICE IS NOT APPLICABLE FOR TELEMARKETING BUSINESSES (OR THE LIKE) IN WHICH THE PRIMARY FUNCTION OF THE BUSINESS IS OUTBOUND SALES
CALLS,.UNACCEPTABLE BUSINESSES FOR THIS PROGRAM INCLUDE COLD-CALLING, "BOILER ROOMS", MAIL ORDER MARKETING, CREDIT REPAIR AND/OR CREDIT
FSTABLISHMENT-OPPORTUNITIES, VACATION. AND/OR BENEFIT PACKAGES, AND INVESTMENT OPPORTUNITY OPERATIONS IN WHICH THERE IS NO PREEXISTING
RELATIONSHIP BETWEEN THE MERCHANT AND THE CONSUMER WHEREBY MERCHANT IS ENGAGING PRIMARILY IN OUTBOUND CALL AND/OR OUTBOUND MAIL
ACTIVITY TO INITIATE A CHECKS-BY-PHONE TRANSACTION, IF MERCHANT VIOLATES THIS AGREEMENT BY PARTICIPATING IN SUCH BUSINESS PRACTICES, Paya-
EFT SHALL IMMEDIATELY HOLD ALL MERCHANT'S FUNDS, CANCEL THIS AGREEMENT, DEBIT MERCHANT’S ACCOUNT FOR ALL RETURNS, AND TAKE OTHER
LEGAL ACTION AS DEEMED NECESSARY BY Pays-EI'T’S LEGAL COUNSEL, THE FEDERAL TRADE COMMISSION, THE UNITED STATES POSTMASTER GENERAL, AND/OR
NACHA (National Automated Clearing House).
4, CUSTOMER's AUTHORIZATION INITIATES DEBITENTRY, MERCHANT acknowledges that the customer's authorization allows MERCHANT to instruct Paya-EFT to initiate an
ELECTRONIC ACH TRANSACTION DEBIT ENTRY ("ENTRY") for MERCHANT against customer, It further permits Paya-EFT to reinitiate an ENTRY where the original ENTRY is retumed
and to assess a collection fee against CUSTOMER. All such collection fees shall be the sole property of Paya-EFT. Paya-EFT shall be entitled to multiple re-presentments and to assess a iransaction.
fee as set forth in the schedulo against MERCHANT for each re-presentment, If an electronic check is returned unpaid after each re-presentment, Paya-EFT shall be entitled to debit the
MERCHANTS account for the amount of the electronic check, - .
5, RESTRICTIONS ON ACCEPTANCE OF ELECTRONIC CHECKS FOR ELECTRONIC PROCESSING, From time to time, Paya-EFT shall establish necessary security and
identification procedures for presentment of checks for electronic processing pursuant to the Rules and applicable law. MERCHANT agrees to comply with such procedures and to accept
such "préperly presented" checks for electronic processing. Paya-EFT shall establish minimum and maximurn amount limitations on electronic checks presented for electronic processing
by MERCHANT, MERCHANT shall not accept or attempt to process electronic checks below the minimum or in excess of the smaxinruni limitations established by Paya-EFT. In no event
will Paya-BF'T accept an electronic Checks-By-Phone greater than $1,000.00 for processing without prior written authorization by Paya-EFT. Paya-EFT shall also establish the number of
electronic checks that may be submitted on a daily basis by any customer for electronic processing. MERCHANT agreos to provide Paya-EFT with any and all information needed to
establish such limitations, MERCHANT further agrees to inform Paya-EFT immediately of any changes in business activities, rules or regulations, which may affect these limitations.
MERCHANT further agrees to abide by these limitations as a condition for Paya-EFT to electronically process any checks, Customer must initiate the transaction and complete the ACH
authorization form or recorded oral authorization,
6. UNACCEPTABLE TRANSACTIONS, In addition to the restrictions set out above and in any event, the following transactions are unacceptable for electronic processing. MERCHANT agrees not
to submit any of the following transactions to Paya-EFT for electronic processing; (a) MERCHANT shail not electronically process any electronic checks drawn on any depository institution that is
not federally insured or part of the ACH network, (b) MERCHANT shall not electronically process any electronic checks drawn on the business or personel checking account of MERCHANT or any
‘ofits agents or employees, (c) MERCHANT shall not accept any third party items for electronic processing or electronic checks for "cash" or "cash back", (@) MERCHANT shall not submit for
processing any transaction representing the financing ofan existing obligation whether previously owed to MERCHANT, arising from the dishonor of'a check, a dishonor ofan electronic ACH
transaction or arising from a credit card, debit card or smart card dispute with the MERCHANT, (¢) MERCHANT shall not submit a transaction for processing which represents an attempt to collect
a chargeback, (f) MERCHANT shall not submit an electronic check for goods or services that are not provided to the customer, including any electronic ACH transaction given for a service contract,
gilt certificate, a layaway (except for the final payment) or for a similar transaction, or for goods or services provided to a third party, (g) MERCHANT shall not submit an electronic check which is
altered by the Merchant in any way (h) MERCHANT shall not knowingly submit a check on an account on which Paya-EFT previously dented authorization. MERCHANT's submission of any of
the above transactions for electronic processing may subject the MERCHANT to immediate suspension or termination and ail finds of MERCHANT, including those in MERCHANT'S account,
REVO5152023 Page 40 of 11
4143-1053-4164.4
37048-2 , PLEASE NOTE: The complete Merchant Agreement Includes these Terms and Conditions and the Application on three (3) additional pages.