Dynamic Currency Conversion Terms of Service

1. These Terms of Service add DCC Service (defined below) to your merchant processing agreement and govern how those transactions are processed. If these DCC Terms of Service conflict with your merchant processing agreement, then these DCC Terms of Service will control as to transactions processed using the DCC Service. Capitalized terms used in these DCC Terms of Service not otherwise defined will have the same meaning as used in your merchant processing agreement. As used here, the term “we and us” refer to your payment processor.

2. While we provide the DCC Service, we do not provide Foreign Exchange Services, which are provided solely by the Card Organizations. You are solely responsible, except as otherwise provided in your merchant processing agreement, for all aspects of a Card transaction that uses the DCC Service. You must comply with all applicable Card Organization Rules and applicable laws. You will only use the DCC Transaction Rate solely in connection with your receipt of the DCC Service.

3. You may use the DCC Service to initiate DCC Transactions on a point of sale device as a part of a card present transaction or as a card not present transaction.

4. Settlement of DCC Transactions will be made in the Local Currency Equivalent, based on the Transaction Price.

5. Settlement funds will be converted by the appropriate Card Organization, and not by us.

6. We will provide the following information: (i) the Currency Equivalent amount of the Card transaction, (ii) the DCC Transaction Rate applied, (iii) the Contracted Margin used in calculating the DCC Transaction Rate, and (iv) any other information required to be furnished by us under applicable laws. You must clearly and conspicuously disclose all information to the Cardholder as required by Card Organization Rules and applicable laws. We will use the Currency Equivalent to authorize the Card transaction with the applicable Card Organization. You are solely responsible to obtain the Cardholder’s consent to a Card transaction using a Transaction Currency Conversion, including obtaining the Cardholder’s agreement for any DCC Transaction.

7. The DCC Service is available only for Card transactions using a Visa or a Mastercard-branded Card.

8. The DCC Service supports only certain Foreign Currencies and certain types of Foreign Currency Transactions. We have the right to change which Foreign Currencies and which Foreign Currency Transactions the DCC Service will support without notice and at our sole discretion.

9. You shall retain the electronic Rate ID when possible for each Card transaction that entails a Transaction Currency Conversion which is authorized in a currency other than the Local Currency.

10. Settlement of Chargebacks of DCC Transactions will occur in the Local Currency, using the then current Foreign Exchange Rate applied by the cardholder’s issuing bank or card scheme. You accept any FX Transaction exposure in connection with chargebacks. Because of how FX Transactions are processed, this exposure may include liability for Contracted Margin as well as the price of goods.

11. Refunds, credits, and returns of DCC Transactions will occur in the Local Currency, using the DCC Transaction Rate that was applied on the date of the original Transaction Currency Conversion, not the DCC Transaction Rate in effect on the date of the refund. Any Margin Amount credited to you on the original Card transaction will be deducted from the Foreign Currency Fee credited to you. FX Transaction exposure in connection with refunds, credits, or returns shall be borne by the cardholder. You are solely responsible for disclosing the risk of FX Transaction exposure to a Cardholder in accordance with the Card Organization Rules and any Applicable Laws.

12. We have the sole right and discretion to add, delete or substitute the source of the Wholesale Rate used to process a Foreign Currency Transaction.

13. The following apply to fees in relation to the DCC Service:

a. All standard fees that apply to Card transactions generally also apply to Card transactions that use the DCC Service. You will pay us the same fees and charges for processing these Card transactions that you pay us for processing other Card transactions, including all Assessment fees.

b. Payment of fees in connection with Card transactions that use the DCC Service will are assessed at the same time and manner as the fees for your other Card transactions.

c. The Contracted Margin amount will be deducted from Settlement to you and retained by us. Each month, we will credit you a Foreign Currency Fee in an amount equal to the Applicable Percentage, multiplied by the Local Currency Turnover.

14. In these DCC Terms of Service, the following definitions apply:

Applicable Percentage: the percentage used to calculate the Foreign Currency Fees. Applicable Percentage may vary based on account setup.

Contracted Margin: the margin (expressed as a percentage) that we add to a Wholesale Rate to create the DCC Transaction Rate. This margin is currently 3.5% and may change at our discretion. We will provide notice to you of any such changes.

DCC Service: the service performed to authorize, process, and settle a DCC Transaction.

DCC Transaction: a Foreign Currency Transaction in which the Cardholder authorizes (i) the Foreign Transaction Price to be converted to the Currency Equivalent, and (ii) the Cardholder’s account to be charged in the amount of the Foreign Currency Equivalent.

Foreign Card: a Visa or Mastercard-brand Transaction Card that is denominated in a Foreign Currency.

Currency Equivalent: the Foreign Currency equivalent of the Transaction Price, which we calculate using the DCC Transaction Rate.

Foreign Currency Fees: the fees we pay you in connection with a Transaction Currency Conversion transaction that we process.

Foreign Currency Transaction: a Card transaction between you and a Cardholder who uses a Foreign Card as a payment method with you to complete the Card transaction.

Foreign Exchange Services: the exchange of one fiat currency into another fiat currency.

Local Currency: the default fiat currency assigned to your merchant identification number with the applicable Card Organization.

Local Currency Equivalent: the equivalent in Local Currency of the amount of a Foreign Currency Transaction that is processed as Transaction Currency Conversion.

Local Currency Transaction: a Card transaction between you and a Cardholder in the Local Currency that is submitted to us for processing in the Local Currency.

Local Currency Turnover: the total Local Currency Equivalent of all DCC Transactions you process in each calendar month.

Margin Amount: the amount equal to the Contracted Margin multiplied by Transaction Price of the applicable Local Currency Transaction.

Transaction Currency Conversion: the process in respect of a Card transaction entailing the use of the DCC Service that converts one currency into another by applying the DCC Transaction Rate.

Transaction Price: the original price (in Local Currency) of the good or service that is subject of the Card transaction between you and a Cardholder, prior to Transaction Currency Conversion.

Wholesale Rate: a market wholesale exchange rate published by the Card Organizations which is then used by the DCC Service to derive the DCC Transaction Rate.