Merchant Services Payment Card Program Merchant Agreement December 2019 version © 2009-2019, Bank of Hawaii Bank of Hawaii® and Bankoh® are registered service marks of Bank of Hawaii. Other trademarks and service marks used in this brochure, such as Visa®, Mastercard®, Discover®, Diner’s Club International®, JCB®, UnionPay®, BCcard®, PayPal®, American Express®, Android Pay®, Apple Pay®, First Data®, and Clover®, are the property of their respective owners and, where applicable, are used under license. i Bank of Hawaii Merchant Agreement Confidential Introduction Allowing your customers to make purchases with credit, debit and prepaid cards increases your sales, and enhances customer satisfaction. Thank you for selecting Bank of Hawaii to help you make payment card options available to your customers. The types and brands of payment cards available, and the rules for accepting them, are constantly changing. This Agreement provides you with basic information needed to understand the benefits you will receive through card acceptance, and the responsibilities that you and Bank of Hawaii are taking on. Please read it carefully, and contact us if you have any questions. When we change the services we make available, or when the rules for accepting and processing cards change, we will make you aware of them through paper or electronic notices that become a part of this Agreement. Please keep copies of those notices with this brochure, so that your records are complete and up-to-date. You are required to follow the rules set by the Card Organization that owns or markets the card brands you choose to accept, such as Visa, Mastercard or Discover. The amount you will have to pay to accept transactions is also set, in part, by each Card Organization. Pricing and rules will differ based on the type of Card presented (such as debit, credit or purchasing cards) and your type of business, such as a hotel, restaurant or internet retailer. Prices and Card Organization rules (and any future changes) may be sent to you in paper form, or posted on Card Organization or Bankoh internet web-sites. You are primarily responsible for making sure that you stay up-to-date on this information. Consumers are always concerned about the security of their financial information, and merchants play a key role in safeguarding card transaction data. You must stay informed about the evolving data security requirements imposed by Visa, Mastercard, and other Card Organizations, and assure that the point-of-sale or stand-alone terminals you use for card transactions fully comply with the current standards. Please take the time to read this Merchant Agreement carefully. Knowing its contents can help you maximize the benefits of card acceptance, while reducing its risks. We’re available to answer your questions, or to tell you more about the products and services we offer. For questions about card acceptance, chargebacks, and other processing procedures, please call our toll-free service line at (800) 279-4195. If you have other questions, or to learn about other products and services, please contact your Merchant Services Representative. Mahalo nui loa for selecting Bank of Hawaii Merchant Services. ii Bank of Hawaii Merchant Agreement Confidential Table of Contents Introduction ....................................................................................................................................... ii 1. Defining terms used in this Agreement ................................................................................ 1 2. The Card Program ................................................................................................................... 3 2.1 Overview ............................................................................................................................. 3 2.2 Card Organization Rules and Resources ....................................................................... 3 2.3 Exclusivity; Factoring Prohibited ...................................................................................... 4 3. Confidentiality and Information Security ............................................................................ 4 3.1 Confidentiality .................................................................................................................... 4 3.2 Compliance with Security Requirements ...................................................................... 5 3.3 Security Breach Response ................................................................................................ 8 3.4 Duties of Service Providers ................................................................................................ 8 4. Sales, Returns and Chargebacks ......................................................................................... 9 4.1 Advertising Card Acceptance ........................................................................................ 9 4.2 Card Acceptance and Allowable Card Transactions ................................................ 9 4.3 Internet, Telephone, Mail and Recurring transactions .............................................. 12 4.4 Returns ............................................................................................................................... 12 4.5 Card Transaction Warranties ......................................................................................... 13 4.6 Chargebacks .................................................................................................................... 13 4.7 Records .............................................................................................................................. 15 4.8 Service Providers .............................................................................................................. 15 5. Settlement Account; Payments and Fees ........................................................................ 15 5.1 Settlement Account ........................................................................................................ 15 5.2 Payment ............................................................................................................................ 16 5.3 Fees .................................................................................................................................... 16 6. Account Holds; Right of Set-Off .......................................................................................... 17 7. Reserve Account ................................................................................................................... 18 8. Security Interest; Assessment of Financial Condition ...................................................... 18 9. Allocation of Risk; Indemnification; Time Limit on Claims ............................................... 19 10. Materials and Equipment .................................................................................................... 20 10.1 Materials ............................................................................................................................ 20 10.2 Terminal Equipment ......................................................................................................... 20 10.3 Rental of Terminals through Bankoh ............................................................................. 21 iii Bank of Hawaii Merchant Agreement Confidential 11. Term and Termination ........................................................................................................... 23 11.1 Initial Term and Renewal; Early Termination Fee ........................................................ 23 11.2 Termination ........................................................................................................................ 23 11.3 MATCH/Terminated Merchant File ............................................................................... 25 12. Additional Requirements and Warranties ......................................................................... 26 12.1 Changes in Operations, Location, or Ownership ....................................................... 26 12.2 Your Warranties; Audit ..................................................................................................... 26 13. Administering the Agreement ............................................................................................. 26 13.1 Relationship to Other Agreements ............................................................................... 26 13.2 Time; Nonwaiver; Survival ............................................................................................... 27 13.3 Applicable Law; Severability ......................................................................................... 27 13.4 Supplements and Amendments ................................................................................... 27 13.5 Notice................................................................................................................................. 28 13.6 Electronic Signatures ....................................................................................................... 28 13.7 Miscellaneous ................................................................................................................... 29 APPENDIX “A” - American Express® OptBlue® Addendum .................................................... 30 1. Definitions. ........................................................................................................................