UBB AD GENERAL TERMS FOR ACCEPTANCE OF PAYMENTS WITH DEBIT AND CREDIT CARDS AT MERCHANTS

UBB AD GENERAL TERMS FOR ACCEPTANCE OF PAYMENTS WITH DEBIT AND CREDIT CARDS AT MERCHANTS 1. United Bulgarian Bank AD (UBB AD) provides for use to merchants, with which UBB AD has signed an Agreement for acceptance of payments with bank cards, POS terminal devices and /or imprinters for acceptance of payments with bank cards, bearing the logo of MasterCard Worldwide, VISA Europe, JCB International and Diners Club International. 2. The Merchant is entitled to: 2.1. Receive a summary monthly statement in writing for the payments made with cards at the Merchant s commercial sites; 2.2. Upon effected payment at a POS terminal and/or imprinter to contest a non-credited payment within a 14 (fourteen) day period as of the transaction date. Copies of signed by the buyer sales slips from the POS terminal device and/or imprinter and an invoice or a cash note, certifying the sale shall be accepted as proof of payment, effected at Merchant. The Bank shall be obliged to perform a check within a 14-day period and in case of an error on its part in crediting the account of the Merchant; 2.3. Receive advertising material for the payments with bank cards; 2.4. Inform itself about the effective UBB AD s Interest Rates Tariff and Fees and Commissions Tariff in the banking halls and in the internet site of the Bank www.ubb.bg. Requirements to cardholders: 3. Upon payment with cards, bearing the logo of MasterCard Worldwide, VISA Europe, JCB International and Diners Club International, the client shall be required to: 3.1. upon usage of imprinter to lay a signature on the sales receipt; 3.2. upon usage of a POS terminal device to lay a signature on the sales slip; 3.3. Visa Electron cards shall be used only at a POS terminal device; 3.4. Maestro cards, national debit cards and cards, bearing the TransCard logo shall be used only at POS terminal devices through entering a PIN code; 4. For carrying out the activity under Item 1 of the present General Terms, the Merchant shall be obliged: 4.1 To open (indicate) and maintain a current account with the Bank, on which the payments are to be made between both parties on the grounds of transactions, executed under the terms and conditions stated in the particular agreement; 4.2 Not to close the opened account with UBB AD until termination of the agreement for acceptance of payments with bank cards; 4.3 To monitor the sending of a daily journal of transactions from the POS terminal devices and in case this is not executed automatically to contact the authorization center of the Bank for cooperation. 4.3.1 In case of a non-submitted file over a period of more than 7 calendar days, the Bank shall reserve its right of non-crediting the account of the Merchant with the amounts of the executed transactions. 4.4 To display in prominent places in the commercial sites, where card payments are executed, the information and insignia, indicating that the Merchant accepts payments with cards; 4.5 To check the validity of cards prior to accepting payments with those by comparing the correspondence between the parameters of the presented card and the parameters set for the particular card type in compliance with the agreement, signed with the Bank; Upon discrepancy with the set parameters as per the particular agreement and the appendices thereto the Merchant may refuse a payment with the card; 4.6 To check the identity of the card holder through presenting an ID document ID card, international passport, or a driving license. Identification of a cardholder through other payment cards, possessed by him/her, shall not be allowed. 4.7 To immediately contact the Authorization center of the Bank upon suspicion with regard to the cardholder and/or the presented card by informing the operator on duty about the originated 1

suspicion and requesting execution of Code 10 Procedure. The authorized official of the Merchant shall be obliged to follow the instructions of the Bank; 4.8 To refuse payment on suspicion of theft, forgery or another type of unlawful usage of the card, by immediately informing the Bank and if possible retain the card; 4.9 Not to execute multiple subsequent payments with one and the same card of one card holder and not to include in one sales receipt the total amount of all goods and services, purchased by the cardholder and registered on one and the same POS terminal (imprinter); 4.10 Upon payments with cards not to execute actions that will put cardholders in a less advantageous position than clients, paying in cash; 4.11 Not to require from the card holder to pay additional fees with regard to the payment with the cards, indicated in the particular agreement. Upon a received protest from a cardholder, the Bank shall have the right to deduct the collected fees and refund those to the card holder; 4.12 Not to define a minimum amount for payment with a card without the preliminary consent of the Bank and not to decline payments with cards on that grounds; 4.13 To duly inform the Bank in case of intent for material changes in the nature of activity, reorganization, transferring of the commercial enterprise, change in the representing individuals, closing or change in the address of the commercial site, where terminal devices are installed, by filling in and submitting to the Bank a Merchant Data Change Request form. 4.14 To duly inform the Bank of changes in its terms and conditions for work with clients which lead to the need of new settings of the POS terminal devices. 4.15 To keep in secrecy the information, received from the cardholder and the Bank, related to the usage of the cards under the particular agreement, not to reproduce, disclose or spread that information in any form whatsoever. 4.16 To submit to the Bank in a 3(three) day period copies of all collected by it sales receipts and batch header imprinter slips, and/or documents, certifying the executed payments at all commercial sites, where payments at imprinter with the cards, indicated in the particular agreement, are accepted; 4.17 To keep the entire registered information and all documents regarding the payments with cards for a period of 5 (five) years from the transaction date and present those to the Bank within a 3 (three) day period of the request date; 5. In case that the Merchant cannot provide the necessary documents (POS slips, imprinter slips) under the previous item, the amounts of the submitted chargebacks shall be at its expense. 6. In case of registration of the Merchant as a high risk one, according to the provided definition in Definitions section of the present General Terms: 6.1 Upon the Bank s request, the Merchant shall immediately suspend acceptance of payments with international cards upon registering of levels of fraudulent transactions over the minimum requirements for transaction volumes and number, according to the requirements of the International Card Organizations (ICO), as well as upon the Bank s discretion resulting from performed monitoring on the Merchant s authorizations and transactions. In this case both parties shall sign an Annex for execution of a Procedure for acceptance of payments with international cards on the part of high-risk Merchants; 6.2 The Merchant shall continue the processing of debit cards by entering a PIN code at the POS terminal device. 6.3 The Merchant shall be obliged to render maximum assistance to the Bank upon check of the executed payments. 7. Upon operation with POS terminal devices the Merchant shall be obliged: 7.1 To cooperate for the installation of POS terminal devices and not to change their location without the consent of the Bank; 7.2 To observe the technical requirements for operation of POS terminal devices and to immediately inform the Bank about any technical failures that might have occurred at the hot line in accordance with the particular Agreement; 7.3 To comply with all requirements for acceptance of payments with cards, stated in the respective appendix to the particular agreement. 2

7. 4 After the POS device reads the magnetic strip or the chip of the card, to compare the card number embossed on the card front and the card number printed on the sales slip. 7.5 To employ the due care for protecting and managing the POS terminals and/ or imprinters delivered to it. 8. Upon operating with imprinters the Merchant shall be obliged: 8.1 To follow the procedure for voice authorization prior to executing the transaction by contacting the Authorization center over the phone, in accordance with the particular Agreement and to inform the operator on duty of all data required. In case the Merchant receives a confirmation from the Bank, it shall be obliged to issue a receipt for the entire amount of the transaction and to enter the authorization code, provided by the Bank, in the respective field on the receipt; 8.2 To follow all instructions upon receiving a negative reply by the Bank; 8.3 Upon impossibility to use an imprinter, to fill in the receipt by hand and by writing clearly in large print Latin letters all data embossed on card; 8.4 To use only the receipts delivered by the Bank and to process the latter together with the card of the cardholder through an imprinter, approved by the Bank. 9. The Bank shall be obliged to: 9.1 Provide the Merchant with and maintain a POS terminal device and/ or an imprinter for the duration of the particular Agreement, by providing training to the staff on the manner of operation and the procedure for accepting payments with bank cards. The devices, provided by the Bank, shall remain its property; 9.2 Provide the Merchant with sales receipts and batch header imprinter slips; 9.3 Provide monthly the Merchant with the summary statement in writing under item 2.1 of these General Terms; 9.4 Make UBB AD s Fees and Commissions Tariff and UBB AD s Interest Rates Tariff available to the Merchant at prominent places in the banking halls, accessible to clients and at Internet address www.ubb.bg; 9.5 Initiate remedial actions on any technical malfunctions in the POS terminal devices within 24 hours as of the hour and date of notification by the Merchant for Sofia region and within 72 hours for the other regions in this country. 9.6 Inform the Merchant through a monthly statement or to an e-mail address, indicated by him/her upon changes in these General Terms. 10. The Bank shall be entitled: 10.1. To debit the Merchant s account with the amount of authorized and already credited payments, which have been subsequently cancelled upon its request in writing: 10.2. Not to accept and process sales slips and receipts which have not been processed and presented in accordance with the provisions of these General Terms and the particular Agreement; 10.3. Not to pay the total amount of the presented sales slips and receipts prior to loading the goods and fulfillment of services; 10.4. Upon registered suspicious transactions to conduct a thorough check on the card payments. During the check the Merchant shall render full assistance to the Bank; 10.5. To perform periodic on site inspections in the commercial sites and upon request to obtain information about the Merchant s business, related to the fulfillment of these General Terms and the particular Agreement. Responsibilities upon a Chargeback procedure 11. In case of violation of the declaration under Item 18 of the particular Agreement and/ or in case of non-performance on the obligation under Item 4.6 of these General Terms, the 3

Merchant shall be held liable before the Bank up to the amount of the received chargeback, upon engagement of the bank s responsibility by the cardholder s bank pursuant to the Chargeback procedure of the respective ICO. 12. The Bank shall inform the Merchant in writing within a 3 (three) day period about a received chargebacks notification. 13. Upon the written consent of the Merchant, the Bank shall initiate an arbitration procedure before the Arbitration Committees of ICO, as all fees and commissions shall be at the expense of the Merchant, in accordance with UBB s Fees and Commissions Tariff. 14. The Bank shall undertake to cooperate for resolving the cases of chargebacks in favour of the Merchant upon timely provided documentation by the latter. The documentation should contain a copy of the sales slip (receipt), an Agreement for sold goods or a rendered service, or invoice and a cash note, as well as other available documentation, including a written explanation by the Merchant regarding the chargeback. 15. The Bank is not a party in the legal relations between the Merchant and the cardholder. It shall not be held liable upon received chargebacks between the Merchant and the cardholders with regard to the processed transactions for effected payments for goods or services, by using the cards, stated in the particular agreement. 16. The Merchant shall be held liable for the damages inflicted by its employees on occasion of payments with the cards, stated in Item 1 of the particular agreement. 17. The Merchant shall be held liable for inflicted damages to the POS terminal devices due to non-fulfillment of Items 7 and 8 of these General Terms, as well as upon loss, theft or other damage of the devices through the fault of the Merchant s staff. The Merchant shall be obliged to immediately notify the Bank upon establishing the lack or damage of the POS terminal. In such cases the Bank shall determine an appropriate valuation and notify the Merchant about the value of the terminal device, respectively of the value of the necessary repair, which is to be paid by the Merchant within 10 days from receiving the notification. After expiration of the specified period, the Bank shall reserve its rights to collect ex officio the due amount from the Merchant s account, and in case of insufficient account balance, to initiate legal actions for its collection. 18. The Merchant shall be held liable in case of its failure to inform the Bank about the origination of serious accidents at the commercial sites, which affect or may lead to damaging the terminal devices and/ or imprinters. 19. In case that the Merchant presents for payment documentation for a transaction, which fraudulence it is aware of, or aware of its non-authorization by the actual cardholder, the value of the chargeback shall be at its expense, as the Bank shall notify the competent authorities thereof. 20. The parties shall not be responsible for non-fulfillment of their obligations under these General Terms and the particular Agreement, which has occurred as a result of extraordinary technical reasons, such as information systems failure, communication lines disruption, electric power outage, etc., as well as in case of extraordinary circumstances, such as natural disasters, general strikes, etc. 21. Upon occurrence of an irresistible force (force majeure circumstance), the affected party shall notify in writing the other by the next business day from the date of origination of this circumstance at the latest and shall state the reasons for its origination and the possible consequences stemming from it for the fulfillment of the Agreement. While the force majeure circumstance persists, the fulfillment of the obligations and the related to them counter obligations shall be suspended. 22. These General Terms and the Agreement for accepting payments with bank cards conform to the requirements for accepting payments with credit and debit cards of the international 4

card organizations MasterCard Worldwide, Visa Europe, JCB International and Diners Club International, as to all issues not provided for herein the requirements of the respective ICO shall apply. 23. These General Terms are an integral part of the particular Agreement for accepting payments with bank cards. DEFINITIONS Within the meaning of these General Terms and the particular Agreement: CARD shall mean a card, issued by a Bank or another financial institution, bearing the logo of MasterCard WorldWide, VISA Europe, JCB International, TransCard or Dinners Club International. The card shall be valid, when it is presented within the period marked on its front side, it is not visibly damaged (scratched, greased, bearing marks from sharp objects, cracked, with damaged integrity, etc.) and complies with the essential elements given in the standard procedure for accepting payments under the particular agreement. CARD-HOLDER is the individual in whose name the card has been issued. MERCHANT has the meaning adopted pursuant to the effective Bulgarian legislation, which, being a party to these General Terms and the particular agreement has agreed to accept payments with the bank cards presented to it. THE PARTICULAR AGREEMENT is the Agreement for accepting payments with bank cards, signed between the Merchant and the Bank. SALES SLIP and SALES RECEIPT documents, official record of a transaction between the Merchant and the cardholder and represents an official permit for debiting the cardholder s account. THE SALES SLIP shall have to contain the following requisites: 1. relief printed (embossed) details on the card; 2. relief printed (embossed) on the work surface of the imprinter details about the Merchant (in case this is not ensured, the requisites from Item 8.3. shall be applicable); 3. signature of the cardholder, laid in the presence of the Merchant; 4. date of effecting the transaction; 5. description of the sold goods/ services; 6. authorization code; 7. total amount of the transaction; 8. transaction currency. CREDIT SLIP is issued in case of electronic refund of an amount to the cardholder s account upon return on his/ her part of purchased goods or refusal of rendered services, paid before that with the card. BATCH HEADER SLIP is the receipt which summarizes the content of the sales receipts for the effected transactions and which is delivered by the Merchant to the Bank together with the receipts. SALES SLIP from a POS terminal device shall have to contain the following requisites: 1. transaction date and time; 2. card type; 3. the last four digits of the card s number; 4. merchant name; 5. merchant address; 6. authorization code; 7. transaction total amount and currency; 8. cardholder s signature. 5

IMPRINTER is a mechanical device for processing of credit cards, placed at the Merchant s and property of the bank. TRANSACTION is a single payment operation as of a specific moment, performed by a cardholder at the Merchant s and registered by the Bank. SUSPICIOUS TRANSACTION is such, registered by an Issuing Bank, ICO and the Bank, and performed in the offices of the Merchant that has signed an Agreement with the Bank for accepting payments with cards. Such transaction has been effected through using a forged, stolen or lost card without the permission of the actual cardholder. SUSPICION within the meaning of these General Terms and the particular agreement shall be treated as aroused upon any discrepancy of the card proposed for payment with any parameter of the card, described in detail in the particular agreement. CHARGEBACKS PROCEDURE Procedure, which the Issuing bank will initiate after a received complaint on the part of a client- cardholder who has established an illegally performed transaction or a non-effected refund ; a processing error of the processing Bank; lost/ stolen card; use of a forged card; suspicion of a fraud, etc. ARBITRATION PROCEDURE Process in which ICO define the financial liability among their members for transactions, protested pursuant to the chargebacks procedures. HIGH-RISK MERCHANT A Merchant, registered by ICO upon exceeding specific minimum requirements for effecting suspicious transactions. The bank is a member of: 1. MasterCard Worldwide since 22.06.1994 and has been licensed to perform payments with Eurocard/ MasterCard cards on the territory of the Republic of Bulgaria; 2. Visa Europe since 26.10.1996 and has been licensed to effect payments with VISA cards on the territory of the Republic of Bulgaria; 3. JCB INTERNATIONAL since 31.10.1997 and has been licensed to effect payments with JCB cards on the territory of the Republic of Bulgaria. 4. The bank has signed an agreement for cooperation with TransCard Financial Services EAD dated 01/11/2010. 5. The bank has signed an agreement for cooperation with Diners Club Bulgaria AD dated 02/08/2011. THESE GENERAL TERMS HAVE BEEN APPROVED WITH MINUTES 216/26.06.2009, HAVE BEEN AMENDED BY UBB S EXECUTIVE DIRECTORS AND ARE IN EFFECT SINCE 17.10.2011. 6