ANZ PACIFIC POSMERCHANT SERVICESTERMS AND CONDITIONS | EFFECTIVE JULY 2023
Cook Islands, Fiji, Kiribati, Samoa,
Solomon Islands, Tonga and Vanuatu

TABLE OF CONTENTS
1. Introduction

4

2. General Obligations of the
Merchant4
2.1	Provision for
Merchant Facilities
4
2.2 Conditions Precedent
4
2.3 Merchant Account5
2.4 Nominated Cards
5
2.5	Honoring Nominated Cards
and Permitted Uses
5
3. Transaction Types
3.1 Purchase
3.2 Withdrawal
3.3 Deposit
3.4	Purchase Mobile Phone
Airtime Vouchers (Top-Up
Mobile Phone)
3.5	Purchase Goods with
Cash-Out

66
7
7

4. Processing Transactions
4.1 Processing
4.2 Authorisation
4.3 Refunds
4.4 Fallback Transactions
4.5 Contactless Transaction
4.6 Transaction Information
4.7 Settlement of Transactions
4.8 Merchant’s Account

8
8
11
12
12
13
13
14
18

7
8

5. Electronic Terminals andCard Imprinters18
5.1 Electronic Terminals
18
5.2 Electronic Terminals – Use 19
5.3	Electronic Terminals andCard Imprinters – Security 20

6. ANZ Obligation
21
6.1 Merchant Operating Guides 21
6.2 Training
21
6.3	Supply of Card Imprinters
and Stationery21
6.4 Promotional Material21
7. Information Collection, Storage,
Disclosure and Audit
22
7.1 General22
7.2 Privacy and confidentiality 22
7.3 Audit
24
8. Fees, Charges, Payments andCommissions24
8.1 Payment of Fees and Charges24
8.2 Commission
25
9. Liability, Indemnity and Set-off 25
9.1 Indemnity
25
9.2 ANZ Liability
26
9.3 Third Party Bureau Services 27
9.4 Set-off
27
10. Appointment of Agent,
Subcontractor or Other Party

27

11. Representations and Warranties 27
12. Suspension and Termination
12.1	Suspension of Merchant
Facility or Freezing of
Merchant Account
12.2 Termination

28
28
28

13. Miscellaneous
30
13.1	Variation to the Agreement,
including Fees and Charges 30
13.2 Notice31
13.3 Relationship of the Parties 31
13.4 Assignment
311

13.5 Severability
13.6 Waiver
13.7	Merchant’s Continuous
Obligations
13.8 Security
13.9	Money Laundering
Prevention and Other
Offences
13.10 Governing Law13.11	Dispute Resolution
Procedures
13.12 APS222 Disclosure
13.13 Foreign Exchange Laws
13.14 Fraud Minimisation Guide
14. Protecting your business
14.1 First Line of Defense

31
31
32
32
32
33
33
33
33
33
34
34

15. What are your responsibilities? 34
16. Card present transactions35
16.1 Checks for Credit Cards
35
16.2 Hologram
36
16.3 Account numbers
36
16.4 Signature panel
36
16.5 Magnetic stripe
36
16.6 Checks for Debit Cards
36
16.7	Additional Checks for Card
Present Transactions37
17. Card not present transaction
17.1	Obtain Additional
Card Details
17.2 Delivery of Goods
17.3 Suspicious Orders
17.4 International Orders

2

37
38
38
39
40

18. If suspicious – do not fulfil
the order
18.1	Reducing the Risk of Card
Not Present Transactions18.2	Verified by Visa andMastercard SecureCode

40
40
41

19. Refund fraud41

20. Chargebacks

41

21. Protecting account andtransaction information43
22. Securing your EFTPOS terminal 43
23. Interpretation and Glossary44
23.1 Interpretation
44
23.2	Meaning of Words andExpressions (for General
Conditions and SpecificConditions)45
Specific Conditions A – ANZ eGate 50(Applicable in Cook Islands, Fiji,
Kiribati, Samoa, Solomon Islands,
Tonga and Vanuatu)
1 About these Specific Conditions A 50
2 Merchant Operating System
Requirements
50
3 What are the Merchant’s
obligations50
4 Merchants website
51
5 Intellectual property– ANZ Software
52
6 ANZ’s obligation to the Merchant 53
7 Merchant Acknowledgements
53
8 Termination
54
9. Merchant Statement
54

Specific Conditions B –Customer Preferred Currency
54(Applicable in Fiji)
1 About these Specific Conditions B 54
2 About the CPC service
55
3 Programme requirements
55
4 Processing and Settlement of
CPC transactions56
5 Operating Instructions
56
Specific Conditions C –Recurring Transactions56(Applicable in Cook Islands, Fiji,
Kiribati, Samoa, Solomon Islands,
Tonga and Vanuatu)
1 About these Specific Conditions C 56
2 Terms of Use57
3 Written Authority
57
4 Valid Transactions58
5 Recurring Billing
58
6 Chargebacks
59

3

1. INTRODUCTION

GENERAL CONDITIONS(a) This document contains the General
Conditions and Specific Conditions
for the provision of Merchant Facilities
by ANZ to the Merchant and forms
part of the Merchant Agreement
between the Merchant and ANZ.

2. GENERAL OBLIGATIONS
OF THE MERCHANT(b) The Merchant Agreement consists of:(i) the Letter of Offer including
any special conditions
contained therein;(ii) these “ANZ Pacific POS MerchantServices Terms and Conditions”
comprising:A) the General Conditions; andB) if the Letter of Offer specifies
and the Merchant has accepted
ANZ’s Offer to include any of
the ANZ eGate options, or toprocess Customer Preferred
Currency Transactions, or toprocess Merchant initiated
Recurring Transactions as partof the Merchant Facilities,
the corresponding SpecificConditions A or B or C will apply;(iii) Secure Internet Site Declaration(where applicable); and(iv) all applicable Merchant Operating
Guides, as varied from time
to time in accordance withcondition 13.1.
(c) It is advisable that the Merchantreads all documents comprising theMerchant Agreement under which
ANZ provides the Merchant Facilities
to the Merchant.

4(d) Some terms have special meanings
which are explained in condition 23(Interpretation and Glossary).

2.1 Provision for Merchant Facilities(a) ANZ agrees to provide the Merchantwith the Merchant Facilities inaccordance with the Merchant
Agreement. ANZ agrees to do this in
exchange for the Merchant carryingout the Merchant’s obligations inaccordance with the terms of the
Merchant Agreement.
(b) ANZ will provide the Merchant
Facilities unless:(i) the Merchant Agreement isterminated in accordance withcondition 12.2;(ii) the Merchant Facilities are
suspended in accordance withcondition 12.1; or(iii) there is a change in Law or to
the regulations, by-laws or rulesof a Nominated Card Schemethat prevents ANZ providing theMerchant Facilities.
(c) The Merchant must provide
Cardholders with the Transaction
types in accordance with the termsof the Merchant Agreement.
2.2 Conditions Precedent
ANZ’s obligation to make any of the
Merchant Facilities available to the
Merchant is conditional upon ANZ being
satisfied that:(a) the Merchant has accepted ANZ’soffer in accordance with the methodof acceptance required by ANZ in the
Letter of Offer;

(b) if the Merchant is a company, ANZ
has received all documents requested
by ANZ in writing prior to entering
into the Merchant Agreement;(ii) take Cardholder details via
mail, telephone, facsimile or
the Internet, unless specificallyauthorised in writing by ANZ.

(c) if the Merchant is a trustee of atrust, ANZ has received a copy of
the trust deed, and any variations oramendments to the trust deed, eachcertified to be a complete, correct
and up-to-date copy;

2.5 Honoring Nominated Cards andPermitted Uses(d) if the Merchant is a partnership,
ANZ has received a copy of thepartnership deed and any variations
or amendments to the partnership
deed, each certified to be a complete,correct and up-to- date copy; and(e) any other conditions set out in the
Letter of Offer have been fulfilled.
2.3 Merchant Account
The Merchant shall hold a MerchantAccount with ANZ, in the name of the
Merchant, for the settlement of funds.
2.4 Nominated Cards(a) The Merchant must:(i) accept Nominated Cards inaccordance with condition 2, 5; and(ii) stop accepting a Nominated Card
immediately if:- ANZ gives the Merchant a
notice to do so; or- any of the events described in
condition 2.1(b) occur.
(b) To remove any doubt the Merchantmust not:(i) accept a Nominated Card as ameans of payment for goods
or services ordered by mail,telephone, facsimile or Internet
order; or(a) The Merchant must accept valid
Nominated Cards.
(b) A Nominated Card is valid if:(i) the Nominated Card has current
validity dates;(ii) the Nominated Card is a
UnionPay Nominated Card withor without an expiry date.
(iii) for card present Transactions, theNominated Card has not beenvisibly altered or tampered within any way;(iv) for card present Transactions, theNominated Card is signed on theback in the designated area forcard signatures;(v) for card present Transactions, thecard number appearing on the
Nominated Card corresponds withthe truncated number printed
on the Transaction Voucher or
encoded on the Nominated Card;(vi) for card present Transactions, thesignature on the reverse of theNominated Card has not beenaltered or defaced; and(vii) the Nominated Card meets eachof the criteria for validity set out
in the Merchant Operating Guide.
(c) The Merchant must not:(i) make any representation inconnection with any goods orservices or any Nominated Card
which may bind ANZ;

5

(ii) make any representations to any
Cardholder concerning ANZ’s
products or policies;(iii) pledge the credit of ANZ in
any way;(iv) take part in the preparation ofany documents purporting for
credit to be provided by ANZ to
the Cardholder;(v) engage in any conduct which
is false, misleading or deceptive
concerning goods or services
supplied by the Merchant,
ANZ’s products or policies, orin any other dealings with the
Cardholder; or6(vi) use a Nominated Card in a Credit
Transaction to give a Cardholder
cash unless the Merchant is a
hotel or cruise line Merchantwhere the Merchant may only
give cash disbursements of
up to USD250 or equivalent
to a registered guest provided
that the following conditions
are satisfied:- the Cardholder indicatesat registration the intent to
pay for the hotel or cruiseline’s services with a Visa
Nominated Card;- before disbursement, theMerchant reviews positive
identification (such as a
passport or driver’s license)
and, if permitted underapplicable Law, records
the type and number ofthe identification on theTransaction Voucher; and- the Merchant completes acash disbursement Transaction

Voucher and writes on thefront of the Transaction
Voucher both the Cardholder’spositive identification and thefour (4) digits printed on theaccount card number on the
Nominated Card.
(d) Any Cardholder making enquiries
concerning the matters raised inparagraphs (c) (ii) to (c)(iv) above
must be directed to contact ANZElectronic Banking Services (refer toyour Letter of Offer).
3. TRANSACTION TYPESThis section explains the Transaction
types which may be available to
Cardholders. The Merchant shouldrefer to its Letter of Offer for a list of theTransaction types it has agreed with ANZ
to provide to Cardholders.
3.1 Purchase(a) The purchase Transaction allows
Cardholders to pay for goods orservices with their Nominated Card.
(b) On completion of the purchaseTransaction:(i) the Merchant will provide the
Cardholder with the goods
or services;(ii) the Merchant’s Accountwill be credited with thepurchase amount;(iii) by the end of each day, or whenthe merchant performs a manual
settlement, the Merchant’s
Account will be debited any
applicable fees and charges,
and credited any applicablecommissions.

3.2 Withdrawal(a) Withdrawal allows a Cardholder towithdraw cash from the Cardholder’saccount where the Merchant has
sufficient cash funds to complete
the Cardholder’s withdrawal
request. This Transaction can only be
performed by a Cardholder using an
ANZ Debit Card.
(b) On completion of the withdrawal
Transaction:(i) the Merchant will provide the
Cardholder with cash funds equal
to the withdrawal amount, lessany applicable fees or charges;(ii) the Merchant’s Account willbe credited with the amountwithdrawn; and(iii) by the end of each day, or when
the Merchant performs a manual
settlement, the Merchant’s
Account will be debited any
applicable fees and charges,
and credited any applicablecommissions.
3.3 Deposit(a) Deposit allows a Cardholder tovisit the Merchant with cash andrequest that the Merchant facilitates
a deposit into the Cardholder’saccount. This Transaction can only be
performed by a Cardholder using an
ANZ Debit Card.
(b) The Merchant can only complete
the Deposit request if the Merchanthas sufficient Available Funds
to complete the Cardholder’sdeposit request.

(c) On completion of the deposit
Transaction, the Cardholder’s accountwill be credited with an amountequal to the cash deposited with the
Merchant, less any applicable fees or
charges. The Merchant’s Account will
be debited with the amount of the
cash deposited, less any applicable
fees or charges. Any applicablecommissions will be credited to the
Merchant’s Account by the end ofeach day.
3.4 Purchase Mobile Phone Airtime
Vouchers (Top-Up Mobile Phone)(a) Top-Up Mobile Phone allows the
Cardholder to purchase airtime credit
vouchers for selected mobile phone
networks. This Transaction can only
be performed by a Cardholder using
an ANZ Debit Card.
(b) On completion of the Transaction, thereceipt from the Merchant’s Electronic
Terminal will detail a mobile phone
airtime voucher code and this mustbe given to the Cardholder.
(c) Once the Cardholder has the airtime
voucher code, the Cardholder will beable to contact the mobile phone
network provider and redeem thevoucher for airtime credit.
(d) ANZ is not liable for applying theairtime credit to the Cardholder’smobile phone account. Anyquestions or issues surrounding the
top-up voucher once it has beenpurchased should be directed to
the Cardholder’s mobile phone
network operator.

7

3.5 Purchase Goods with Cash-Out(a) When the Cardholder purchases
goods, the Cardholder has the option
to request to withdraw funds fromtheir account. This Transaction can
only be performed by a Cardholderusing an ANZ Debit Card.
(b) The Transaction is conductedin the same way as a standard
goods purchase Transaction (seecondition 3.1) however the Merchantis required to enter two amounts, firstthe purchase amount, and then the
cash out amount. The terminal willthen display the total amount.
(c) On completion of the Transaction, theMerchant will provide the Cardholder
with cash equal to the withdrawal
amount requested by the Cardholder.
4. PROCESSING
TRANSACTIONS
4.1 Processing(a) The Merchant must only use
Transaction Vouchers, Card Imprinters
and Electronic Terminals authorised
by ANZ for card present Transactions.
(b) If ANZ has agreed that the Merchantcan process card present Transactions
electronically, the Merchant must not
use a Card Imprinter to process thesame Transaction. The Merchant may
only process a Transaction manuallyusing the Card Imprinter if theElectronic Terminal is malfunctioningor it is impossible for Transactions
to be processed through it and theMerchant is instructed by ANZ toprocess the Transaction manually.
8(c) Where the Merchant is authorised
by ANZ to accept a Nominated Cardas payment for goods ordered by
mail, telephone or the Internet inaccordance with condition 2.4(b), theMerchant must ensure such goods
are dispatched to the Cardholder
immediately after processing thatsales Transaction either manually or
through an Electronic Terminal.
(d) The Merchant must not use two
or more Transaction Vouchers toprocess one Transaction or processa Transaction where only part of
the amount due is included on theTransaction Voucher except:(i) where the balance of theamount due is paid in cash or
by cheque; or(ii) where the goods or services areto be delivered or performed at
a later date and one Transaction
Voucher represents a deposit
and the second Transaction
Voucher represents paymentof the balance. The second
Transaction Voucher must not
be presented or processed until
the goods are delivered or theservices performed.
(e) The Merchant must not process a
Transaction on behalf of anotherperson (such as a business) oranother merchant, and must notallow another person to use theMerchant Facilities except under abona fide agency arrangement.

(f ) The Merchant must use reasonablecare in processing a Transaction
to detect forged or unauthorised
signatures or the unauthorised use
or forgery of a Nominated Card.
In particular, the Merchant mustcomply with specific requirements
set out in the Merchant Operating
Guide or otherwise notified by ANZ
to the Merchant in writing.
(g) Following each Transaction (includingInternet orders authorised by ANZ
under condition 2.4(b) but excluding
mail, telephone and facsimile
Transactions), the Merchant must
immediately give the Cardholder
a copy of the Transaction Voucher.
When the Transaction is a telephone
Transaction, the Merchant must
provide the Cardholder with a receipt
number for the Transaction and theMerchant must maintain a record ofthat receipt number.

(ii) where the Merchant is authorised
by ANZ to accept a Nominated
Card as payment for goods
or services ordered by mail,telephone or the Internet inaccordance with condition 2.4(b),withdraw that authorisation andrequire the Merchant to only
process Transactions where theNominated Card is presented by
the Cardholder; and(iii) terminate the Merchant
Agreement pursuant tocondition 12.2.
(j) The Merchant must prominently andclearly inform the Cardholder of theidentity of the Merchant so that the
Cardholder can readily distinguish the
Merchant from any supplier of goods
or services to the Merchant or otherthird party. The Merchant must also
provide notice to the Cardholder that
the Merchant is responsible for:(h) Unless otherwise authorised by
ANZ in writing, the information on
the Transaction Voucher must be
identical with information on any
copy of the Transaction Voucher andmust include all information requiredby the Merchant Operating Guide.

(i) the sales Transaction including
any goods or services that are thesubject of the sales Transaction;(i) If ANZ determines that the conductof a Merchant in processing
Transactions may cause loss to the
Merchant or ANZ (through fraudulent
activities or otherwise), ANZ may:(iv) performance of the terms
and conditions of the sales
Transaction.

(i) where the Merchant is usinga Card Imprinter, require theMerchant to replace that Card
Imprinter with an Electronic
Terminal nominated by ANZ;(ii) all customer service relating to
the sales Transaction;(iii) dispute resolution in connection
with the sales Transaction; and(k) In the event that the Merchantis specifically authorised by ANZ
to accept a Nominated Card as
payment for goods or services
ordered by mail, telephone, facsimileor the Internet in accordance withcondition 2.4(b) or the Merchantprocesses recurring payments, the9Merchant must ensure that theTransaction is correctly identified asa mail, telephone, Internet order orrecurring Transaction.
(l) The Merchant must comply with allapplicable Laws in carrying out its
obligations in processing Transactions
under the Merchant Agreement.
For the avoidance of doubt, a breachof any Law including any code of
conduct specifically regulatingor prohibiting the retention by
Merchants of Cardholders’ personal
identification numbers, passwords
or other codes or information thatcan be used to access a Cardholder’saccount will constitute a breach ofthis undertaking.
(m) The Merchant must ensure thatit processes all Transactions inaccordance with the requirements of
any Nominated Card Scheme rulesthat ANZ notifies to the Merchant.
(n) The Merchant must ensure that
the Transaction is recorded in thecurrency of the country of domicile ofthe Merchant except where ANZ has
given prior written approval to the
Merchant to record Transactions inother currencies.
(o) The Merchant must not complete a
Transaction where the amount of the
proposed Transaction (including any
applicable fees and charges), exceeds
the Merchant’s Available Funds.

10(p) The Merchant must not completea Transaction in breach of the
Authorised Floor Limit. ANZ mayat any time change the Merchant’s
Authorised Floor Limit by giving
notice to the Merchant.

(q) Subject to the specific requirementsfor UnionPay Contact Transactions
below, the Merchant must notprocess a Transaction (other thanmail, telephone or Internet order
Transactions) unless the Cardholder’sidentity is verified as follows:(i) the correct entry of the
Cardholder’s PIN into the EFTPOS
Terminal, followed by theverification of the PIN with an‘ACCEPTED’ response displayedon the EFTPOS Terminal; or(ii) verification of the Cardholder’ssignature, whereby the Merchantshall take all reasonable steps
to ensure that the signatureon the Transaction Receipt or
Transaction Voucher is not forgedor unauthorised and that itcorresponds with the signatureon the card.
(r) When a Cardholder uses a chip card,
Merchants are required to:–Insert the chip card into the
EFTPOS terminal. If the chip cardis swiped first, the terminal will
read the service code and display
a prompt to insert the chip card
into the EFTPOS terminal.

–

Follow the picture or diagram
displayed on the terminal screenthat shows which way the chipshould face.

–

Ensure sure the chip card isinserted in the EFTPOS terminal
device during the entire
transaction.

–

Ensure the chip card is not
swiped unless instructed to do soon the terminal screen.

––

Not remove the chip card until
instructed to do so by the
EFTPOS terminal.
Follow the instructions on theterminal screen.

(s) The chip card and Cardholder must
be present for all Chip-initiatedTransactions. If a Chip-initiatedTransaction is declined by theIssuer, the Transaction must not beprocessed by any other means.
(t) The Merchant must process theTransaction using data read from the
Chip on a chip card unless any of thefollowing apply, in which case theTransaction must be completed using
data read from the Magnetic Stripe ofa chip card:–

The Chip is not EMV-Compliant.

–

The Chip reader is inoperable.

–

The Chip malfunctions during theTransaction or cannot be read.

4.2 Authorisation(a) The Merchant must seek priorauthorisation from the Authorisation
and Assistance Centre for any
Transaction (Authorisation) where:(i) in the case of a Credit Transaction:– the value is in excess of the
Authorised Floor Limit; and– the Transaction is processedusing a manual imprinter.
(ii) the Merchant is aware that, or
considers it is possible that,a signature is a forgery or isunauthorised or there is anunauthorised use or forgery of
the Nominated Card;(iii) the account card number
appearing on the Nominated
Card does not correspond withthe truncated card number
printed on the Transaction
Voucher or encoded on the
Nominated Card;

If neither the Chip nor magnetic
stripe of a chip card can be readand the Transaction is acceptedusing a paper voucher or key entry,
the device must follow correct the
Fallback Transaction and acceptanceprocedures specified in condition 4. 4(iv) the truncated card number
appearing on the Transaction
Voucher does not correspondwith the card number printed,
encoded or otherwise shown on
the Nominated Card used for theTransactions;(u) If an unembossed card will not swipe
and the chip cannot be read, theMerchant should ask for another formof payment. The Merchant must not
manually key enter unembossed
cards, or otherwise record thecard number.

(v) the Cardholder presents a
Nominated Card at a time which
is not within current validity dates
shown on the Nominated Card;(vi) the signature panel on the
Nominated Card is blank or
the signature has been alteredor defaced;(vii) The Electronic Terminal instructs
the Merchant of a “card error refer”
message; or11

(viii) the Transaction is of a certain typeor class which has been notified
to the Merchant by ANZ as a typeor class of Transaction requiring
Authorisation.
(b) When the Merchant seeks
Authorisation, the Merchant mustensure that the Authorisation
code appears in writing on eachTransaction Voucher applicable toa Transaction.
(c) The Merchant should seek toretain the Nominated Card until
Authorisation is given. In the eventthat the Merchant is requested by
the Authorisation and AssistanceCentre to retain the Nominated Card,the Merchant should use reasonably
peaceful means to retain the
Nominated Card and deal with theNominated Card in accordance with
the instructions of the Authorisation
and Assistance Centre.
(d) Where the Merchant is authorised
by ANZ to accept a Nominated
Card as payment for goods orservices ordered by mail, telephoneor the Internet in accordance withcondition 2.4(b), Authorisation is not
a representation or warranty by ANZ
to the Merchant that the purchaseis made by the Cardholder unless
notified otherwise by ANZ.
(e) Authorisation of a Transaction is not a
representation or warranty by ANZ to
the Merchant that a Transaction is avalid Transaction.
(f ) ANZ will not accept Authorisation
requests for UnionPay
Nominated Cards.
12

4.3 Refunds
The Merchant must:(a) establish a fair policy for giving
Refunds and for exchanges or returnof goods for sales Transactions;(b) only give a Refund by means of:(i) a Transaction Voucher processed
via the same payment channel
to the same Nominated Card on
which the original Transaction
was made;(ii) a credit note issued by the
Merchant; or(iii) an exchange of goods, and not incash or by cheque;(c) disclose the Merchant’s Refund
policy to the Cardholder prior toundertaking any Transaction;(d) at all times act in accordance with
the Merchant Operating Guide inprocessing Refunds; and(e) obtain the account signature(s) of the
Cardholder(s) for manual Refunds.
4.4 Fallback Transactions
If the EFTPOS terminal cannot read thechip on the embossed card, the Merchantshall follow “fallback” acceptanceprocedures as prompted on theterminal screen;(a) If on the third attempt chip cannot
be read by the terminal, the
EFTPOS terminal will first fallback tomagnetic stripe.
(b) Only if the magnetic stripe cannot
be read should key entry take place.
Key entered Transactions should be
the last option.

(c) Because the Fallback Transaction isswiped or keyed, the normal rulesof transaction processing for zero
floor limit transactions, as applicable,
will apply:(i) a signature will be required,without an option to capture
PIN; or(ii) for key-entered transactions,manual imprints will be required.
(d) The Merchant must not force a
Fallback Transaction if the card ispresented. The Merchant mustensure their staff are trained tofollow the prompts on the terminal
to avoid higher levels of key
entered transactions.
(i) The Merchant may be financiallyliable for any penalties levied due
to ‘forced’ Fallback Transactions
4.5 Contactless Transaction
When a Contactless Transaction isconducted on the EFTPOS terminal in
an amount that does not exceed theapplicable Contactless Transaction CVM
limit amount, as defined in the Letterof Offer:(i) The Transaction must be completed
without Cardholder verification (“NoCVM” as the CVM); and(ii) The provision of a Transaction
receipt to the Cardholder is at the
Merchant’s discretion. The Merchantmust provide a receipt if requested by
the Cardholder.
4.6 Transaction Information(a) The Merchant must lodge all
Transactions with ANZ for settlementin accordance with the MerchantOperating Guide and:(i) in the case of a Transaction
processed manually, within
3 Business Days after theTransaction;(ii) in the case of a Transaction
processed through an
Electronic Terminal other thana Credit Authorisation Terminal,
immediately by entering theTransaction; and(iii) in the case of a Transaction
processed electronically by useof a Credit Authorisation Terminal,
within 3 Business Days after
the Transaction.
(b) The Merchant must retain
information about a Transaction
whether processed manually orelectronically for a period of:(i) twelve (12) months for debit
Nominated Cards, UnionPay
Nominated cards and Visa
Nominated Cards; and(ii) eighteen (18) months for
MasterCard Nominated Cards.
(c) At the end of the relevant record
retention period specified inparagraph (b), or such other period
notified by ANZ from time to time,
the Merchant must destroy any
information about the Transaction.
The Merchant must ensure that any
document containing a Nominated
Card’s card number is securely
destroyed in a manner which makesthat information unreadable.
(d) Within five (5) Business Days of arequest from ANZ, the Merchantmust provide to ANZ information
about any Transaction as set out inthe request.

13

4.7 Settlement of Transactions(a) ANZ agrees to accept:(i) all sales and cash Transactions
processed by the Merchant inaccordance with the Merchant
Agreement, and in particularcondition 4.1 and the MerchantOperating Guidelines, and to
credit the Merchant Account withthe settlement amount of such
Transactions on the basis thatthe debt due by the Cardholder
to the Merchant in respect of theTransaction is extinguished; and(ii) all Refund Transactions processedby the Merchant in accordancewith the Merchant Agreement, inparticular condition 4.3 and theMerchant Operating Guidelines,
and to debit the MerchantAccount with the full amount ofeach Refund Transaction.
(b) Where ANZ is aware or has reason
to believe that a Transaction orInvalid Transaction is fraudulent, ora counterfeit Nominated Card has
been used for that Transaction, ANZ
reserves the right for a period ofthirty (30) days to:(i) withhold payment to the
Merchant Account; and(ii) unless it otherwise agrees inwriting, prevent the debit ofthat part of the balance of the
Merchant Account or any accountheld by the Merchant with ANZ,
as is equal to the amount ANZestimates may become owing to
it by the Merchant in respect ofthat Transaction.
14(c) During that thirty (30) day period
specified in paragraph (b), ANZ
will investigate the Transaction todetermine whether ANZ will:(i) either:- refuse to process theTransaction and return theTransaction to the Merchant; or- if the Transaction has beenprocessed, charge that
Transaction back to the
Merchant; and(ii) set-off amounts owing to it
by the Merchant in respectof that Transaction against
funds standing to the credit of
the Merchant Account or any
account held by the Merchantwith ANZ.
(d) Where:(i) ANZ is aware or has reason tobelieve that a Transaction orInvalid Transaction is fraudulent;(ii) ANZ assesses the Merchant as ahigh credit or fraud risk;(iii) the Merchant has breached theMerchant Agreement; or(iv) ANZ otherwise determines on
reasonable grounds that deferred
settlement is justified in orderto prevent loss to the Merchantor ANZ.
ANZ may defer settlements of any
Transaction which occurs during
a period of up to three (3) months
following the occurrence of thecircumstance set out in paragraphs(i) to (iv) above (the Deferred Period).
Such settlement may be deferred
for up to two (2) Business Days.

Immediately prior to the end of any
Deferred Period, ANZ will review
the relevant circumstance set out
in paragraphs (i) to (iv) above,
to determine whether deferred
settlements should continue andwhat period that deferral shouldbe. ANZ will advise the Merchantin writing of its decision uponcompleting the review.
(e) If a Transaction is an Invalid
Transaction, ANZ may, at its sole
discretion (and without a request or
demand from a Cardholder):(g) Despite any contract, arrangement
or understanding to the contrary, in
respect of all Transactions processedby the Merchant, the Cardholder will
be entitled to initiate a charge backof the Transaction to the Merchantwhere permitted in accordance withthe rules of the relevant Nominated
Card Schemes.
(h) A Transaction is invalid if:(i)the Transaction is illegal,
including, without limitation,
because it is in breach of any
Law governing, for example, thesale of prescription medicines,
controlled substances or otherregulated products;(ii)

the date of the Transaction
is a date after the Merchant
Agreement was suspended or
the Merchant Account frozen inaccordance with condition 12.1
or terminated in accordancewith condition 12.2;(iii)

the Merchant processed theTransaction knowing (or incircumstances where theMerchant should have known)that the signature on theTransaction Voucher is forged or
unauthorised;(iv)

the Merchant processed theTransaction knowing (or incircumstances where theMerchant would reasonably
be expected to know) that
the Nominated Card is usedwithout the authority of the
Cardholder or in the case ofa mail, telephone or internet
order authorised by ANZ in
accordance with condition(i) refuse to accept theTransaction; or(ii) if the Transaction has beenprocessed, at any time within
120 calendar days of the dateof the Transaction processing
date; or if the goods or services
were to be provided after theTransaction processing date,
120 calendar days from the lastdate the Cardholder expected toreceive the goods or services (orbecame aware the goods andservices would not be provided);charge that Transaction back to
the Merchant by debiting theMerchant Account or otherwise
exercising its rights underthe Agreement.
(f ) If ANZ receives a payment from a
Cardholder relating to an Invalid
Transaction that has been charged
back to the Merchant, ANZ will pay
an amount equal to that payment to
the Merchant less any amount which
ANZ is entitled to withhold or set-off
under the Merchant Agreement.

15

2.4(b), the Transaction is not
authorised by the Cardholder;
(v)

(vi)

the Merchant was notified
by ANZ not to accept theNominated Card used in
the Transaction;
the Nominated Card used in theTransaction is not used within
the current validity dates shownon the Nominated Card;(vii) the Transaction Voucher is notcompleted in accordance withcondition 4.1 or is illegible;(viii) the particulars on the copy of
the Transaction Voucher given
to the Cardholder are not
identical with the particulars
on any copy and the Merchanthas not been authorised by
ANZ in writing to accept
copy vouchers which are not
identical in accordance withcondition 4.1(h);
(ix)

16

the Transaction is recorded
in a currency other than thecurrency of the country of
domicile of the Merchant,
except where ANZ has
given prior written approvalto the Merchant to record
Transactions in othercurrencies in accordance withcondition 4.1(n);(x)

the Transaction price charged
for the goods or services towhich the Transaction relates
is more than the Merchant’s
normal price which is charged
to the general public;(xi)

the Transaction value exceeds
the Authorised Floor Limit, andthe Merchant did not obtain
authorisation for a Transaction
above the Authorised
Floor Limit;(xii) the Transaction requires
Authorisation by ANZ and
the Transaction Voucher does
not contain the Authorisation
code in accordance withcondition 4.2;
(xiii) in ANZ’s reasonable opinion
the Transaction relates to one
or more purchases made in thesame Merchant establishment
which have been split into
two (2) or more Transactionsin an attempt to avoid the
Authorised Floor Limit;(xiv) the Merchant has arranged
without ANZ’s consent fora person other than the
Merchant to supply the goods,
services or cash the subject of
the Transaction;(xv) the Merchant processed
the Transaction knowing(or in circumstances where
the Merchant should have
known) that the Transaction
is fraudulent;(xvi) the Cardholder has not received
the goods or service as requiredby the terms of the Transaction(and, in the case where theMerchant is not the providerof the goods or services andacts as agent for the providerof the goods or services, thegoods or services have notbeen provided by the principal)
and the Merchant has failed
to provide ANZ with proof

of receipt of, and satisfaction
with, the goods or services by
the Cardholder within five (5)Business Days of ANZ’s request
to do so;(xvii) the goods or services towhich the Transaction relates
were supplied from outside
the country of domicileof the Merchant without
ANZ’s consent;(xviii) in the case of a Transaction
being a mail, telephone,facsimile or internet orderauthorised by ANZ in
accordance with condition
2.4(b), the Merchant did notrecord Reasonable Identification
Details of the Cardholder
and the expiry date of theNominated Card;(xix) except in the case of a mail,telephone, facsimile or Internet
order authorised by ANZ in
accordance with condition
2.4(b), the Nominated Card was
not presented to the Merchant;(xx) in the case of a Transaction
where the details are keyed
into an Electronic Terminal, theMerchant did not record on theTransaction Voucher Reasonable
Identification Details of
the Cardholder;(xxi) the Merchant has not otherwise
complied with the Merchant
Agreement in connection with
the Transaction and ANZ is of
the reasonable opinion thatsuch non-compliance may
result in either ANZ or the
Merchant suffering a loss;(xxii) the Transaction is processedby the Merchant on behalfof another person, or has
allowed another person to
use the Merchant Facilities
in connection with theTransaction, except under abona fide agency arrangement;(xxiii) the Merchant has accepted a
Nominated Card as payment
for goods and services by mail,telephone or internet orderwithout specific authorisationin writing by ANZ pursuant tocondition 2.4(b);(xxiv) the Merchant bills the amountof the Transaction direct to
the Cardholder or receives
payment through the use ofcard, or by any other means,
which is not the card number
or truncated card number
appearing on the Transaction
Voucher does not correspondwith the card number printed,
encoded or otherwise shownon the Nominated Card used
for the Transaction unlessprior Authorisation from the
Authorisation and AssistanceCentre has been obtained;(xxv) the Merchant fails to lodge
Transactions with ANZ for
settlement in accordance withcondition 4.4(a);(xxvi) the same Transaction iserroneously processed by the
Merchant more than once;(xxvii) the Merchant key-enters
incorrect Transaction
details into the Electronic
Terminal or key-enters the17Transaction otherwise than inaccordance with the MerchantOperating Guide;(xxviii) the Merchant manuallyprocesses a Transaction using
a damaged Nominated Card
which is not a valid Nominated
Card referred to in condition
2.5(b) without obtaining priorapproval by ANZ;
(xxix) if, in ANZ’s reasonable opinion,
the Cardholder justifiably
disputes liability for theTransaction for any reason;(xxx) if the Cardholder makes a claim
for set-off or counter claim
in respect of the Transaction
against ANZ;
(xxxi) the Transaction was processedin breach of the requirementsof any Nominated Card
Scheme rules notified by
ANZ to the Merchant undercondition 4.1(m);(xxxii) the Transaction is not
Authorised by ANZ or the
Authorisation request is
declined for any reason;(xxxiii) the Merchant charges any
credit or debit card surcharge
or any other charge notapproved by ANZ for the useof the Nominated Card by
the Cardholder.

18(xxxiv) the Merchant notifies ANZ of aTransaction that is not credited
to the Merchant Accountmore than 30 days after theTransaction has been processedby the Merchant on the ANZ
EFTPOS terminal provided.

ANZ at its sole discretion, may
reprocess the Transaction as
an Unbanked Transaction
however the Merchant accepts
liability if this is disputed by the
Cardholder and/or issuing bankdue a late presentment.
4.8 Merchant’s Account(a) The Merchant authorises ANZ todebit and credit the MerchantAccount for the purposes of the
Merchant Agreement.
(b) The Merchant must maintain aminimum credit balance in the
Merchant Account during the termof the Merchant Agreement andsix (6) months post termination of
the Merchant Agreement. Any suchminimum credit balance will be
specified in the Letter of Offer or
notified by ANZ to the Merchant fromtime to time.
5. ELECTRONIC TERMINALSAND CARD IMPRINTERS
5.1 Electronic Terminals(a) Unless otherwise agreed, theMerchant must arrange, at the
Merchant’s cost, for an approved
telecommunication supplier toinstall and maintain all necessary
telecommunications infrastructure
and associated services (including, forexample, a telephone line or wirelesscommunication device) to enable theuse of the Electronic Terminal. ANZ is
not responsible for maintaining any
telecommunications requirements
in connection with the Merchant
Agreement except for terminals
that operate via GPRS technology.

For GPRS-enabled terminals, ANZ
will provide SIM cards to allow theterminal to connect to ANZ via thedesignated mobile network.
(b) The Merchant must arrange at the
Merchant’s cost for the preparationof the location of the Electronic
Terminal in accordance with ANZ’srequirements, including thoserequirements applicable to site
security standards and suitable power
supply described in the MerchantOperating Guide or as otherwise
notified by ANZ in writing. The
Electronic Terminal site must enable
the Cardholder to use the Electronic
Terminal instruction keypad without
the Cardholder’s use of the keypad
being observed by security cameras,
observation mirrors, and reflective
surfaces or by any other person.
(c) The Merchant must notify ANZ
immediately if any Electronic Terminal(or part of an Electronic Terminal) is
not operating or is malfunctioning.
(d) The Merchant must use reasonablecare and diligence to prevent anddetect unauthorised use of any
Electronic Terminal.
(e) The Merchant must allow any
properly authorised and suitably
identified ANZ employee, agent orcontractor free access to Electronic
Terminals during normal businesshours for the purposes of inspection
or testing of Electronic Terminals and,in the event ANZ has supplied theElectronic Terminal, for the purposesof installation, maintenance andremoval of the Electronic Terminal.

(f ) The Merchant must not, without
ANZ’s prior written consent (suchconsent not to be unreasonably
withheld):(i) remove or relocate an Electronic
Terminal; or(ii) make any alteration or addition to
an Electronic Terminal.
In the event that ANZ provides such
written consent, all costs applicableto the removal, relocation or change
to the Electronic Terminal are payable
by the Merchant.
(g) If ANZ determines that the continued
use of the Electronic Terminal by
the Merchant may cause loss to the
Merchant or ANZ (through fraudulent
activities or otherwise), ANZ may
require the Merchant to replace that
Electronic Terminal with another
Electronic Terminal nominated by ANZ.
5.2 Electronic Terminals – Use(a) The Merchant must:(i) use the Electronic Terminal forthe purposes of the Merchant
Agreement; and(ii) use the Electronic Terminal inaccordance with the Merchant
Agreement and any applicablemanufacturer’s manual, warranty
or conditions of use; and(b) The Merchant agrees that theElectronic Terminal remains theproperty of ANZ and undertakes
to protect, and not prejudice,
ANZ’s proprietary right to theElectronic Terminal.
(c) The Merchant must notify ANZ in
the event that the Merchant is awareor should reasonably be aware that19

the Electronic Terminal is being usedfraudulently or otherwise improperly.
(d) The Merchant is responsible for any
loss, theft or damage to the Electronic
Terminal at the Merchant’s Premises.
In the event of damage, the Merchantmust pay ANZ the actual cost of
repairing the Electronic Terminal.
In the event of loss or theft, theMerchant must pay ANZ:(i) the cost of recovering theElectronic Terminal, to be
determined in ANZ’s absolute
discretion: or(ii) where:- the Electronic Terminal cannot
be recovered; or- the Electronic Terminal isrecovered but is damaged,
the actual cost of repairing or
replacing the Electronic Terminal.
(e) The Merchant must take propercare of and maintain regularservicing of the Electronic Terminalas directed by ANZ. The Merchant is
responsible for all maintenance costs
including payment for any repairs
to the Electronic Terminal which arenecessary because of the Merchant’s
neglect or misuse.
5.3 Electronic Terminals and Card
Imprinters – Security

20(a) The Merchant must take all steps
that are, in the circumstances,
reasonable to ensure that eachElectronic Terminal and each Card
Imprinter is protected against
loss, theft, unauthorised access oruse, modification or other misuse.
The Merchant agrees that such steps
include, without limitation, ensuring

that, at the start and at the close ofbusiness each day, each Electronic
Terminal and each Card Imprinteris secure and has not been lostor stolen.
(b) The Merchant must notify ANZ in
writing as soon as the Merchantbecomes aware (or should
reasonably have become aware)that an Electronic Terminal or Card
Imprinter has been stolen, lost or
may otherwise have been altered,tampered with or compromised.
(c) Any breach of this condition 5.3
by the Merchant may result in the
Merchant being liable for any loss
suffered by ANZ as a result of theftor loss of, or other breach of security
in connection with, an Electronic
Terminal or Card Imprinter, including,
without limitation, any loss arisingfrom any unauthorised or fraudulent
use of an Electronic Terminal or Card
Imprinter that occurs before theMerchant gives notice to ANZ in
accordance with paragraph (b).
(d) If the Merchant:(i) ceases trading;(ii) no longer requires the Merchant
Facilities; or(iii) the Merchant Agreement isterminated, the Merchant must,within 7 days of either paragraphs(i) or (ii) above occurring,terminate the Merchant
Agreement in accordance withcondition 12.2, and within 7 daysof paragraphs (i), (ii), or (iii)
occurring, return all stationery,
promotional material, Transaction
Vouchers, Card Imprinters orequipment (including Electronic
Terminals) supplied in connection
with the Merchant Agreement toa location designated by ANZ.
6. ANZ OBLIGATIONS
6.1 Merchant Operating Guides
ANZ will provide the Merchant with allapplicable Merchant Operating Guide
at ANZ’s cost. The Merchant Operating
Guides includes policies, procedures
and other information the Merchantrequires for the day-to-day operation of
the Merchant Facilities, including, without
limitation, requirements set down under
Nominated Card Scheme rules.
6.2 Training
ANZ shall, at the Merchant’s cost,provide the necessary training to the
Merchant’s employees, contractors or
agents who are to operate Electronic
Terminals or otherwise process
Transactions so that those employees,
contractors and agents are familiar with
the Merchant’s obligations under the
Merchant Agreement and Transactions
are processed in accordance with the
Merchant Agreement.
6.3 Supply of Card Imprinters
and Stationery
ANZ will supply the Merchant with, andmay charge the Merchant for the supply
of, Card Imprinters, Transaction Vouchersand other stationery requirements inaccordance with the Letter of Offer or asotherwise agreed by ANZ from time totime in writing.
6.4 Promotional Material(a) ANZ will supply the Merchant with
Nominated Card signs, decals andother promotional material as agreed
in the Letter of Offer or otherwise inwriting from time to time.
(b) The Merchant must prominently
display in the Merchant’s Premises
each Nominated Card decal andother promotional material supplied
by ANZ or ANZ’s authorised
representative.
(c) The Merchant must not use any
promotional material in relation
to ANZ or any Nominated Card
Scheme except as authorised by
ANZ. The Merchant cannot use thename, logo, any trademarks, brandnames, business names or copyrightbelonging to ANZ or any Nominated
Card Scheme without the priorwritten approval of ANZ.
(d) The Merchant authorises ANZ topublish the name, address, telephone
number, facsimile number and email
address of the Merchant, and to use
any logo applicable to the Merchantin any correspondence, circular or
publication of ANZ.
(e) The Merchant must only advertise
goods and services which can bepurchased with a Nominated Cardin the currency of the country of
domicile of the Merchant or any othercurrency authorised in writing by ANZ.
(f ) The Merchant acknowledges thatany unauthorised reproduction by
the Merchant of any proprietary
information provided or available via
the Merchant Facilities may result in
legal action being taken by ANZ.

21

7. INFORMATION COLLECTION,
STORAGE, DISCLOSURE
AND AUDIT
7.1 General(a) The Merchant must not sell, purchase,provide or exchange any informationor document relating to a Cardholder,a card number or a Transaction to
any person other than ANZ, theNominated Card issuer or as requiredby Law. The Merchant may disclosesuch information or document to the
Merchant’s employees, contractors or
agents in the course of conducting
the Merchant’s business.
(b) The Merchant must ensurethat information relating to any
Cardholder accessed by the Merchantin connection with a Transaction is
maintained in a secure environment
with restricted access.
(c) The Merchant must not take an
imprint of, or record any information
relating to, a Nominated Card or
Cardholder, unless the imprint or
information is required to process a
Transaction being made at that time.
(d) If permitted to record any information
under paragraph (c) in respect of
the Nominated Card, the Merchant
may only record account number,
expiration date and name of
the Cardholder.

22(e) Except with ANZ’s prior writtenconsent, the Merchant must not
request or retain a Cardholder’spersonal identification number,password or other code orinformation that can be used toaccess a Cardholder’s account.

Consent will only be given by
ANZ in exceptional circumstancesand conditions may apply.
This condition is a material
obligation of the Merchant under the
Merchant Agreement.
(f ) The Merchant must not record,
store, replicate or otherwise use
full card-read data, and not record,
store, replicate or otherwise use thefull contents of any track from themagnetic stripe located on the backof a Nominated Card, containedin a chip or elsewhere, for any
purpose other than as set out in the
Merchant Agreement..
7.2 Privacy and confidentiality(a) This condition sets out when and
how ANZ may collect and share theMerchant’s information.
(b) If the Merchant is a corporation,
the Merchant agrees to obtain theconsent of the Merchant’s directors
and shareholders for ANZ to use anddisclose their personal information asprovided in this condition.
(c) ANZ may collect the Merchant’s
information:(i) to provide information about aproduct or service;(ii) to consider the Merchant’s
request for a product or service;(iii) to provide the Merchant with aproduct or service;(iv) to tell the Merchant about otherproducts or services;(v) to assist in arrangements withother organizations (such as
loyalty partners, third party
processors) in relation to thepromotion and provision of a
product or service;(vi) to perform administrative andoperational tasks (including, for
ANZ Group, risk management,
debt collection, systems
development and testing, credit
scoring, staff training, and market
or customer satisfaction research);(vi) other parties ANZ Group is
authorised or required by Law todisclose information to;(vii) participants in the payments
system (including Nominated
Card Schemes, payment
organizations and merchants)
and other financial institutions(such as Nominated Card issuers);(vii) to prevent or investigate any
fraud or crime (or a suspectedfraud or crime); and(viii) insurers and re-insurers;(viii) as required by relevant Laws of oroutside the country of domicileof the Merchant and external
payment systems.

(x) the Merchant’s referee(s) or its
representative (for example theMerchant’s lawyer, administrator,
attorney or executor).

(d) If the Merchant does not provide
some or all of the information
requested, ANZ may be unable
to provide the Merchant with aproduct or service (including theMerchant Facilities).
(e) The Merchant agrees that ANZ may
provide its information to:(i) any other member of ANZ Group;(ii) any outsourced service
provider to ANZ Group (forexample mailing houses, debt
collection agencies or third
party processors);(iii) an alliance partner for the
purpose of promoting or using its
products or services (and any of
its outsourced service providers);(iv) credit reporting agencies;(v) regulatory bodies, government
agencies, law enforcement
bodies and courts of or outside
the country of domicile ofthe Merchant;(ix) any person who introduces the
Merchant to ANZ; and(f ) Where the Merchant does not want
ANZ Group or ANZ’s alliance partners
to tell the Merchant about theirproducts or services, the Merchant
may withdraw its consent by calling
the Merchant’s ANZ Electronic
Banking Services representative.
(g) The Merchant further agrees that
any ANZ Group member may, to theextent permitted by Law, transfer
any of the above information to any
party to whom it is authorized todisclose the same referred to above
notwithstanding that such party’s
principal place of business is outside
the country of domicile of the
Merchant or that such information
will be collect, held, processed orused by such party in whole or in partoutside the country of domicile ofthe Merchant.
(h) To the extent permitted by Law, theMerchant may access any personal
information at any time by calling the23

Merchant’s ANZ Electronic Banking
Services representative. ANZ may
charge the Merchant a reasonable fee
for access.
(i) If the Merchant can show that
information about it is not accurate,complete and up to date, ANZ musttake reasonable steps to ensure it isaccurate, complete and up to date.
(j) ANZ will not collect sensitive
information about the Merchant,such as health information, without
the Merchant’s consent.
(k) If the Merchant gives ANZ
information about someone else, theMerchant must show that person a
copy of this condition 7.2 so that they
may understand the manner in which
their information may be used or
shared by ANZ Group.
7.3 Audit
In the event of any dispute involving
a Transaction, or if ANZ suspects thatfraud is involved in any Transaction, theMerchant authorizes ANZ, or its agent,
to enter the Merchant’s Premises during
the Merchant’s normal business hours
to examine and take copies of the
Merchant’s books of account and records.
8. FEES, CHARGES, PAYMENTS
AND COMMISSIONS
8.1 Payment of Fees and Charges(a) The Merchant must pay to ANZ thefees and charges at the times and in
the manner set out in the Letter ofOffer, as varied under paragraph (f )below from time to time.
24(b) The Merchant authorises ANZ todebit the Merchant Account, without
notice for:(i) all fees, charges and costs owing
to ANZ by the Merchant pursuant
paragraph (a);(ii) all other credits paid by ANZ in
respect of Transactions due toerrors and omissions;(iii) all credits paid by ANZ in respectof Transactions which are Invalid
Transactions;(iv) the full amount of any Refund
Transaction less any amounts
in respect of such Transaction
already debited to the
Merchant Account;(v) all Taxes incurred or payable
by ANZ in connection with
the Merchant Agreement,
the Merchant Facilities, anytransaction contemplatedby the Merchant Agreement,
the Merchant Account or any
Electronic Terminal;(vi) all fines, penalties and othercharges incurred by ANZ as aresult of any act or omission of
the Merchant; and(vii) all other amounts owing to ANZ
by the Merchant pursuant to the
Merchant Agreement.
(c) If ANZ debits the Merchant Accountfor reasons other than specified
above in paragraph (b), ANZ will
provide the Merchant with written
notice that this has occurred.

(d) The Merchant must pay, on demand
by ANZ, any amount referred to inparagraph (b) which remains unpaid
by the Merchant because there areinsufficient funds in the MerchantAccount to satisfy the payment ofthat amount in full.
(e) ANZ may continue to charge theMerchant the Terminal Rental Fee
for an Electronic Terminal until the
Merchant has returned that Electronic
Terminal to ANZ or ANZ has
otherwise recovered the Electronic
Terminal, irrespective of whether
the Merchant Agreement has been
terminated or another Electronic
Terminal has been provided to the
Merchant by ANZ.
(f ) ANZ reserves the right to vary thefees and charges in accordance withcondition 13.1.
(g) The Merchant is not permitted tocharge Cardholders fees, charges orcommissions (including sub- charges)
without prior written agreement orapproval from ANZ.
8.2 Commission
Subject to the terms of the Letter ofOffer, when the Merchant processes
Transactions using the ANZ Merchant
Facilities, the Merchant may earncommission. Any such commissions will
be paid to the Merchant at the end of
the Business Day on which the relevant
Transaction was made. The Merchantauthorises ANZ to credit the MerchantAccount with any commissions due.

9. LIABILITY, INDEMNITY
AND SET-OFF
9.1 Indemnity
The Merchant indemnifies ANZ against
all claims, damages, actions, losses andliabilities (including, without limitation,
all fines, penalties and other charges
incurred by ANZ as a result of any act
or omission of the Merchant), whether
made by the Merchant, Cardholder orother third party, which ANZ or any of its
employees, contractors or agents suffers
or incurs arising directly or indirectly from:(a) the negligence or fraud of the
Merchant or an employee, contractor
or agent of the Merchant;(b) the failure of the Merchant, or an
employee, contractor or agent of
the Merchant, to observe any of the
Merchant’s obligations under the
Merchant Agreement;(c) any dispute arising between the
Merchant and the Cardholder inrespect of the supply, use, quality
or fitness for purpose of goods orservices or the provision of cash;(d) any use of an Electronic Terminal orCard Imprinter by the Merchant or its
employees, contractors or agents;(e) any representation, warranty orstatement made by the Merchant or
its employees, contractors or agentsto the Cardholder; or(f ) any misrepresentation, breach ofcontract or failure of consideration
relating to any contract for the supply
of goods or services by the Merchantto a Cardholder, except that the
Merchant is not obliged to indemnify
ANZ or its employees, contractors or

25

agents against any claims, damages,
actions, losses or liabilities which aresolely the result of the fraud, willful
default or gross negligence of ANZ or
its employees, contractors or agents.
9.2 ANZ Liability(a) To the extent permitted by Law, ANZ
will not be responsible for any loss
or damage (including consequential
loss or damage) suffered by the
Merchant or any third party including,but not limited to, loss or damage
arising from:(i) an Electronic Terminal or
any telephone line or othercommunications device orservice malfunctioning or
not operating:(ii) software failure;(iii) insufficient Available Funds
in the Merchant’s Account fora Transaction to proceed or
be completed;(iv) the Merchant having insufficient
cash funds for a Transaction toproceed or be completed;(v) ANZ delaying, blocking or
refusing to process a Transaction
for any reason;(vi) the inability of the Merchant’s
Electronic Terminal to access or
use the Merchant Facilities;(vii) a Force Majeure event, including
during Scheduled Downtime;(viii) any loss or damage or claim
from a Cardholder or any otherthird party as a result of the
Merchant completing an Invalid
Transaction; or26(ix) an act of fraud or negligenceon the Merchant’s part(either alone or together withanother person), including an
employee, contractor or agentof the Merchant.
(b) ANZ is liable for direct loss that:(i) is attributable to the negligenceor willful default of ANZ;(ii) is caused by fraudulent or
negligent conduct by employees
or contractors of ANZ;(iii) results from the same Transaction
being incorrectly debited morethan once, by ANZ, to the sameaccount(s), provided such loss
was not caused or contributed toas a result of fraud, negligence oran unlawful act by the Merchant.
(c) To remove any doubt and without
limiting the generality of this provision,
ANZ services and Merchant Facilities
are dependent on messaging,communications, processing andother systems. ANZ will endeavour
to ensure continuous access to the
ANZ Merchant Facilities, however,
ANZ is not responsible for any loss
the Merchant suffers as a result of
the Merchant being unable to use
the Merchant Facilities, or as a resultof delays or errors in processing theMerchant’s instructions.
(d) In the event an Electronic Terminal
supplied by ANZ is malfunctioning
or not operating, ANZ’s liability
is only to repair or replace theElectronic Terminal.

(e) ANZ is not liable for any loss, liability
or damage which a Merchant
may suffer or incur resulting from
ANZ’s failure to credit the MerchantAccount when required due totechnical or administrative difficulties
or any other reason whatsoever.
9.3 Third Party Bureau Services
ANZ is not responsible for the acts oromissions of any third party which provides
services, including without limitation,
processing services, to the Merchant inconnection with the Merchant Facilities.
For the avoidance of doubt, ANZ is notliable for any losses, claims, damages,
costs, terms or expenses suffered by the
Merchant (including consequential loss)
arising from or in connection with any
act or failure to act by such third party inconnection with a Transaction.
9.4 Set-off(a) ANZ may at any time without noticeto the Merchant set-off any Liability
owed by ANZ to the Merchant on
any account against any Liability
owed by the Merchant to ANZ underor in connection with this Merchant
Agreement. For the purpose of thiscondition, “Liability” means any debt
or monetary liability, irrespectiveof whether the debt or monetaryliability is future or present, actual
or contingent.
(b) If ANZ exercises its right of set-off
under paragraph (a) in respect of acontingent debt or monetary Liability
owed by the Merchant and the actual
Liability proves to be less than theamount set-off, ANZ must pay the
Merchant the amount of the difference.

(c) Where the Merchant is a partnership,unincorporated joint venture or sole
trader and the Merchant Account isin the name of one or more, but not
all partners or joint venturers, or isa joint account in the names of thesole trader and one or more otherpersons, the Merchant must procurethat an “Irrevocable Authority to
Debit” in a form approved by ANZ iscompleted and signed.
10. APPOINTMENT OF AGENT,SUBCONTRACTOR OR
OTHER PARTY(a) The Merchant must not appoint any
agent or subcontractor or a person
in any other capacity (Appointee) tocarry out the performance of any of
the Merchant’s obligations under the
Merchant Agreement without the
specific written agreement of ANZ.
(b) In the event that ANZ agrees to theappointment of an Appointee, theMerchant will be responsible for any
act or omission of that Appointee as
if the Merchant had performed suchact or omission.
11. REPRESENTATIONS
AND WARRANTIES(a) When the Merchant supplies
Transaction details to ANZ, whether theTransaction is processed electronicallyor manually, the Merchant represents
and warrants to ANZ that:(i) all Transaction details are trueand correct;(ii) the Merchant has compliedwith the requirements of the27

Merchant Agreement applicableto processing of Transactions;(iii) the Merchant is not aware of
any fact which would cause
the Transaction to be an Invalid
Transaction; and(iv) the Merchant has complied withall applicable Laws in carryingout its obligations in connection
with the Transaction under the
Merchant Agreement.

(b) When ANZ suspends the Merchant
Facilities or freezes the MerchantAccount, or both, as the case may be:(b) The Merchant represents and warrants
to ANZ that the Merchant has thepower to enter into and perform
its obligations under the Merchant
Agreement and that the Merchant
Agreement is valid, binding andenforceable against the Merchant.

(i) the Merchant must not accept
any Nominated Cards as payment
for goods or services; and(c) The Merchant represents and warrants
to ANZ that the information the
Merchant has provided ANZ in the
Application is true and correct and not
misleading in any material respect.

(c) ANZ may during the period ofsuspension or freezing of the
Merchant Account, or both, as thecase may be, terminate the Merchant
Facilities pursuant to condition 12.2.

(d) The Merchant acknowledges thatthe issue of a Nominated Card to a
Cardholder is not a representation or
warranty by ANZ or the Nominated
Card issuer as to the Cardholder’scredit worthiness or identity.

12.2 Termination

12. SUSPENSION ANDTERMINATION
12.1 Suspension of Merchant Facility
or Freezing of Merchant Account28

Merchant Account, immediately upon
notice to the Merchant if any of theevents listed in condition 12.2(b) occur.
When exercising this right ANZ is not
required to notify the Merchant of thedate upon which the suspension or
freezing of the Merchant Account, orboth, as the case may be, will end.

(a) ANZ reserves the right to suspend
the Merchant Facilities or freeze theMerchant Account and refuse toallow withdrawals of funds from theMerchant Account, or both suspend
the Merchant Facilities and freeze the(ii) ANZ is not obliged to accept
any Transactions processed by
the Merchant after notificationof suspension.

(a) Either the Merchant or ANZ may at
any time terminate the Merchant
Agreement by giving the other noticein writing. The notice does not needto include any reason and will takeeffect thirty (30) days after the dateon which it is given.
(b) ANZ may terminate the Merchant
Agreement immediately by noticeto the Merchant should any of thefollowing occur:(i) an Insolvency Event occurs in
relation to the Merchant;(ii) the Merchant breaches any of its
material obligations under the
Merchant Agreement;

(iii) the Merchant does not process
any Transactions with ANZ
for a continuous period ofsix (6) months;(iv) if, in ANZ’s reasonable opinion,
the Merchant is involved in an
unacceptably high number ofchargebacks, Refund requests
or retrieval requests, without
justification acceptable to ANZ;(v) it becomes illegal or impossible
in practice for ANZ to continue toprovide the Merchant Facilities tothe Merchant;(vi) the Merchant Agreement
becomes wholly or partly void,
voidable or unenforceable or aclaim is made to that effect;(vii) The Merchant processes a
Transaction that the Merchantknew, or ought to have known,
was fraudulent or illegal;a change to the nature andtype of business conducted by
the Merchant;(xi) the Cardholder has not received
the goods or services as requiredby the terms of the Transaction(and, in the case where theMerchant is not the provider ofthe goods or services and acts
as agent for the provider of thegoods or services, the goods orservices have not been provided
by the principal) and theMerchant has failed to provide
ANZ with proof of receipt of, andsatisfaction with, the goods orservices by the Cardholder within
five (5) Business Days of ANZ’srequest to do so;(xii) upon the request of theNominated Card Scheme(s); or(xiii) ANZ is required to do so by Law.

(ix) any of the information provided
by the Merchant in the
Application or otherwise is or
becomes incorrect, or false or
misleading in a material respect;(c) Termination of the Merchant
Agreement or any part of it does
not affect any rights or obligationsof the Merchant or ANZ that arose
prior to termination. In particular,
any obligation the Merchant has
under the Merchant Agreement
to indemnify ANZ or to pay ANZ
any amounts (including costs), isa continuing and independent
obligation and survives even if the
Merchant Agreement is terminated.
All Transactions made prior totermination are subject to the termsof the Merchant Agreement.

(x) the Merchant’s details and otherinformation disclosed in the
Application materially changes,
including, but not limited to,(d) In the event that ANZ receives aTransaction Voucher after terminationof the Merchant Agreement, ANZ
reserves the right, at its option,(viii) ANZ reasonable determinesthat the continued provisionof the Merchant Facilities tothe Merchant may damage thereputation of ANZ or otherwise
reasonably considers that ANZor the Merchant may suffer
loss if it continues to provide
the Merchant Facilities tothe Merchant;29

to return the Transaction Voucher
to the Merchant or to retain theTransaction Voucher. If ANZ decides
to retain the Transaction Voucher,
the Merchant is not entitled to any
payment for the Transaction in
respect of the Transaction Voucher
until such time as ANZ has received
payment and no chargeback claim
can be made by the issuer of theNominated Card in connection with
the Transaction Voucher.
(e) Upon termination of the Merchant
Agreement, the Merchant must
immediately return to ANZ all
stationery, promotional material,
Transaction Vouchers, Card Imprintersor equipment (including Electronic
Terminals) supplied in connection
with the Merchant Agreement.
(f ) If the Merchant Agreement isterminated for any reason within
the time period set out in the Letterof Offer or any other agreement
between ANZ and the Merchant,
ANZ reserves the right to charge
the Merchant a termination fee, in
accordance with the Letter of Offer orother agreement, as the case may be.
(g) The Merchant authorises ANZ to:(i) disclose to any person the factthat all or part of the Merchant
Agreement has been terminated;(ii) disclose information concerning
the termination and reasons fortermination of all or part of the
Merchant Agreement to any
credit provider or Nominated
Card Scheme; and30(iii) give a banker’s opinion toother financial institutions

with whom the Merchant may
make application for othermerchant facilities.
The Merchant acknowledges thatthe disclosure of this information
may affect the Merchant’s ability
to successfully apply for merchantfacilities in the future.
(h) The obligations contained in
Conditions 4.4, 4.5(b) and 4.5(c),4.5(e) to 4.5(h), 4.6, 7.1, 7.2, 8, 5, 9.1,
9 and 12 survive termination of the
Merchant Agreement.
(i) ANZ has the right of inquiry
and recourse for any UnionPaytransactions that occurred before
the termination of the Merchant
Agreement provided that it iswithin twenty-four (24) months
after the termination of the
Merchant Agreement.
13. MISCELLANEOUS
13.1 Variation to the Merchant
Agreement, including Fees
and Charges(a) ANZ may vary all or any of theprovisions of the Merchant
Agreement, including fees,
charges and minimum volumes ofTransactions, at any time by giving
the Merchant notice in writing. Suchvariation will apply immediately when
notice is deemed to be received by
the Merchant in accordance withcondition 13.2(b).
(b) The Merchant acknowledges that
where ANZ agrees to an increasein the Merchant’s Refund limit,
Authorised Floor Limit or tipping limit

in respect of the Merchant Facilities,
additional or increased incidenceof liabilities or losses may arise as aresult, including from erroneous or
fraudulent Transactions.
13.2 Notice(a) The Merchant acknowledges that
ANZ may deliver notices to it in anyof the ways listed in paragraph (b)below and consents to notices being
delivered in any of these ways.
(b) A notice must be in writing and istaken to be received:(i) if delivered personally, at the timeof delivery;(ii) if sent by pre-paid post, on theseventh day after the posting;(iii) if sent by facsimile transmission,on the date the transmitting
machine records transmission of
the complete document;(iv) when the party sending thenotice is ANZ, if sent by email, at
the time when the email enters
the Merchant’s information
system; or(v) when the party sending thenotice is ANZ, if delivered via the
ANZ website to the “MerchantServices” part of that website, on
the third day after the posting of
the notice to that website.
(c) The address, facsimile number or
email address to be used for notices
is the last address, facsimile number
or email address advised by a party.
The Merchant must inform ANZ
immediately of any change of the
Merchant’s address, facsimile number
or email address.

13.3 Relationship of the Parties
Nothing in the Merchant Agreement
creates a relationship of joint venture,
partnership or principal and agent
between ANZ and the Merchant.
The Merchant must not act as if, orrepresent or attempt to represent to any
person that, any such relationship exists.
13.4 Assignment
This Merchant Agreement is binding
upon the parties, their executors,
administrators, successors and permitted
assigns. The Merchant must nottransfer any of the Merchant’s rights
or obligations under the Merchant
Agreement unless ANZ consents inwriting. ANZ may transfer any of its
rights or obligations under the Merchant
Agreement to a third party without the
Merchant’s consent. To remove any doubt
ANZ may at any time arrange with a third
party to provide any of the services ANZ
is obliged to provide to the Merchantpursuant to the Merchant Agreement.
13.5 Severability
If in any jurisdiction, a provision of
the Merchant Agreement is illegal or
unenforceable, the Merchant Agreement
is to be interpreted for the purposes ofthat jurisdiction only, as if it had neverincluded the provision so far as theprovision is illegal or unenforceable.
13.6 Waiver
The rights ANZ has under the Merchant
Agreement cannot be waived except by
ANZ giving the Merchant written notice
waiving the particular rights. In particular,
ANZ does not waive any right that ANZ
has in connection with the Merchant
Agreement merely because ANZ does31not exercise it or does not exercise it assoon as ANZ can.

13.9 Money Laundering Prevention
and Other Offences

13.7 Merchant’s Continuous
Obligations(a) By entering into this Merchant
Agreement, the Merchant agrees
that ANZ may delay, block or refuse
to process any Transaction without
incurring any liability to the Merchantor its customer if ANZ suspects that:(a) The Merchant must notify ANZ:(i) in the event that circumstancesarise which may have a material
adverse effect on the Merchant’sbusiness, assets or financial
condition or the Merchant’s
ability to perform the Merchant’s
obligations under the Merchant
Agreement. It is advisable that the
Merchant informs ANZ promptly
when it is in financial difficulty;(ii) if the Merchant sells, leases ortransfers its business or any of
the Premises;(iii) if a Merchant changes theaddress where it carries on
business or otherwise changes
its contact details (including theMerchant’s telephone number,facsimile number or email
address) or starts carrying on
business at any other place; or(iv) if the Merchant changes thenature or type of its business.
(b) The Merchant must provide copies
of its latest financial statements andother financial information reasonably
requested by ANZ within thirty (30)days of a request by ANZ.
13.8 Security
At any time, ANZ may request that the
Merchant provide ANZ with a Securityof a type, and to secure an amount,
specified by ANZ.
32(i) the Transaction may breach any
sanctions, or Law of the country
where the Merchant is domiciled
or any other country;(ii) the Transaction may directly or
indirectly involve the proceeds of,or be applied for the purposes of,unlawful conduct.
(b) The Merchant must provide all
information to ANZ which ANZ
reasonably requires in order tomanage money-laundering,terrorism-financing risk and economic
and trade sanctions risk or to comply
with any Law of the country where
the Merchant is domiciled or any
other country, or to comply withother prohibitions that may be
applicable to ANZ with respect to
any Transaction and the Merchantagrees that ANZ may disclose any
information concerning the Merchantor the Transaction to:(i) any law enforcement, regulatory
agency or court where requiredby any such Law of the country
where the Merchant is domiciled
or elsewhere; and(ii) any correspondent or third party
ANZ uses to make the payment
for the purposes of compliancewith any such Law.

(c) Unless the Merchant has disclosedthat the Merchant is acting in atrustee capacity or on behalf ofanother person, the Merchantis acting in a trustee capacity or
on behalf of another person, theMerchant warrants that the Merchantis acting in its own capacity inagreeing to this condition 13.9.
(d) The Merchant declares, agrees andundertakes to ANZ that the paymentof monies by ANZ in accordance with
instructions submitted to ANZ for
processing will not breach any Lawof the country where the Merchant isdomiciled or any other jurisdiction.
13.10 Governing Law
The Merchant Agreement is governedby the Law in force in the country where
ANZ’s office is shown in the Letter ofOffer is located. ANZ and the Merchantagree to submit to the non-exclusive
jurisdiction of the courts having
jurisdiction under that Law in relation to
any proceedings about or in connection
with the Merchant Agreement.
13.11 Dispute Resolution Procedures
Where the Merchant has a complaint inrelation to the provision of the Merchant
Facilities, it should speak with ANZ
Merchant Services in the first instance.
If the complaint cannot be resolved
promptly, a supervisor within ANZ
Merchant Services will take responsibility
for resolution of the complaint. ANZ’s aim
is to resolve any complaint within ten
Business Days. If this is not possible,
ANZ will keep the Merchant informedon the progress of the matter and how
long ANZ expects it will take to resolve
the complaint.

13.12 APS222 Disclosure
The Merchant acknowledges that where
ANZ is a subsidiary of Australia and
New Zealand Banking Group Limited,
it is a separate entity to Australia and
New Zealand Banking Group Limited
and the obligations of that subsidiary
under this Agreement do not constitutedeposits or other liabilities of Australia
and New Zealand Banking Group Limited,nor does Australia and New Zealand
Banking Group Limited guarantee theobligations of that subsidiary.
13.13 Foreign Exchange Laws
This Merchant Agreement is subject toForeign Exchange Laws.
13.14 Fraud Minimisation Guide
Fraud can occur in and is a risk for any
business that accepts credit cards and it
can have a significant financial impact on
your business. At ANZ, we assist all ourcustomers to minimise the likelihood of
fraud occurring in their business throughon-going education. The more you know
about the potential risks the more you
will be able to protect your business.
If a credit card transaction turns out tobe fraudulent, it may be charged backto you and could end up costing you
more than the original sale. High fraudand chargeback levels can also attract
penalties from the Card Schemes(UnionPay, Amex, Visa and MasterCard)and can result in the termination of yourmerchant facilities.
Please take the time to read andfamiliarise yourself with this guide as
it provides information to assist you in
identifying and minimising fraud andchargebacks occurring in your business.

33

For further information, please refer toyour Merchant Operating Guide andthe Merchant Agreement Terms andConditions or if you wish to speak withsomeone about your merchant facility or
this guide, please contact our MerchantBusiness Team on +679 331 6644 or referto section 2 for country phone number inthe Merchant Operating Guide.

–

14. PROTECTING YOUR
BUSINESS

For example – if a first time customer toyour business is buying a large quantityof your goods and is not concerned
about the price, colour, size, etc and theirpurchase is much larger than a normalpurchase and it all seems too good to betrue, it probably is. If you come across asituation like this, it is better to ask for analternative form of payment, i.e. a bankdeposit or cash.

It is important to know that some typesof credit card transactions carry a higher
level of risk than others. The products
you sell can also increase your risk as
fraudsters often target businesses sellinghigher value goods with easy resalepotential like electrical goods, furnitureand jewellery.
Higher Risk transactions may include:–

First time customers–

International orders – particularly
South East Asia and Africa–

Card not present transactions,
including email, internet, mail andphone orders–

Any transaction where the card is
not swiped, inserted or tapped on an
EFTPOS terminal–

Transactions which are manually
keyed into an EFTPOS terminal–

Manual transactions where no
authorisation has been obtained.

Lower Risk transactions may include:

34–

Transactions where the card is swiped
on an EFTPOS terminal–

Manual transactions where a card
imprint, signature and authorisation
have been obtainedInternet transactions authenticatedby Verified by Visa or MasterCard
SecureCode.

14.1 First Line of Defense
You and your staff are the first lineof defense against fraudulent cardtransactions and you should always be on
the lookout for any unusual behaviour or
spending patterns.

15. WHAT ARE YOURRESPONSIBILITIES?
Your responsibilities are outlined inyour Merchant Agreement, including
the Merchant Operating Guide and any
applicable Additional Service Schedules.
You must follow all the instructions inthese booklets.
It is your responsibility to verify that thepurchaser of your goods and/or services
is the genuine cardholder and to validate
all cards presented.
You MUST:–

Accept all valid cards for payment–

Follow correct authorisation
procedures–

Ensure the customer authorises
all credit card transaction receipts(unless the transaction is by

Internet, phone, fax or mail order).
Customers authorise credit cardtransactions by using a Personal
Identification Number (PIN) or signingtransaction receipts–

Provide a copy of the authorised
transaction receipt to the customer–

Be alert to possible card fraud andreport all instances–

Protect account and transaction
information at all times–

Notify us of any material change toyour business. This includes, but is
not limited to a change in businessname or if you would like to change
the types of goods and services yourbusiness sells–

Ensure the physical security of yourmerchant facility. Never leave yourterminal unattended during trading
hours or let a customer tell you how
to process a transaction–

Always identify technicians attending
your premises and never reveal
any passwords. Fraudsters may
approach your business posing
as a terminal, electrical or phone
technician wanting to access yourterminal. They may then process
refund transactions or insert card
readers in to your terminal that will
enable them to steal cardholder
information whenever a card isswiped or inserted.

You MUST NOT:–

Give cash out with a credit cardtransaction–

Process transactions on behalf ofanother business through yourmerchant facility–

Transfer funds from a credit card inyour name via the merchant facility toyour settlement account.

If you fail to comply with any of theabove responsibilities you are in breachof your Merchant Agreement with us
and this may result in the termination ofyour merchant facilities and possible finesfrom the Card Schemes.
16. CARD PRESENTTRANSACTIONS
A card present transaction where thecard and cardholder are present in person
for the transaction is less risky than acard not present transaction, however
fraud can still occur. You should always
undertake the security checks described
below for card present transactions toensure the purchaser is the genuine
cardholder and that the card is not acounterfeit or been tampered with.
Failure to recognise a fraudulent card
could result in a chargeback and a loss toyour business.
16.1 Checks for Credit Cards
Most credit cards have the card details
embossed on them–Embossing should be even with all
numbers the same size and shape–

Check the card expiry date, is it valid?

–

Ensure the cardholder name ispresent and does not look like it has
been tampered with–

Does the name on the card matchany other information provided?

35

16.2 Hologram–

UnionPay – Temple of Heaven–

Visa: Flying Dove–

MasterCard: Interlocking Globes

16.6 Checks for Debit Cards–

Check the last three or four digits ofthe card number are embossed overthe hologram.

–Embossing should be even with all
numbers the same size and shape.

–

Check the card expiry date, is it valid?
Note: Union Pay Debit Cards may
have Zero or past date expiry date.

–

If there is a name of the card,
check that it matches any otherinformation provided?

Check that there is a four digit number
printed below the account number–

Even if scratched, this number cannot
be removed–

Check it matches the first four digitsof the account number.

16.3 Account numbers–

These start with a ‘3, 4, 5, 6 or 9’ forUnion Pay; a ‘4’ for Visa or a ‘5’ for
MasterCard.

16.4 Signature panel–

Card Security Code: There shouldbe three additional numbers on
the signature panel which must
be present–

Check that the card has beensigned and that the signature on
the card matches the signature of
the transaction receipt or any othersignature provided.

16.5 Magnetic stripe–

36

authorisation officer who will ask you
a series of questions requiring ‘yes’ or‘no’ answers.

Check the card has a magnetic stripeon the reverse.

If the card is suspicious in anyway or
you notice a discrepancy, please phone
the Credit Card Authorisation Centre
on +679 331 6644 or refer to section 2
for country phone number in MerchantOperating Guide, and advise them thatyou would like a ‘code 10 authorisation’.
Follow the instructions given by the

Authorising Card Present Transactions
Authorisation for electronic debit andcredit card transactions is online andautomatic via a Personal Identification
Number (PIN). A credit card transaction
may also be authorised by signing thetransaction receipt. If the transaction is
authorised through an EFTPOS terminal,an ’‘Approved’ message appears on theterminal and a transaction receipt prints
with the following details.
–

The authorisation number–

The type of card–

The relevant card number–

The type and amount of
the transaction–

The date of the transaction–

The time of the transaction–

The terminal transaction
record number.

If the card fails any validation checks or
the transaction is declined:–

Request another form of payment or
retain the goods–

If the ‘declined’ message tells you tokeep the card, then do so if this canbe done peacefully. Then phone theCredit Card Authorisation Centre on+679 331 6644 or refer to section 2 forcountry phone number in MerchantOperating Guide.

16.7 Additional Checks for Card
Present Transactions
Take note of the customers’ behaviour
during a transaction and while
performing the card security checks takenote of the customer’s behaviour.
Individuals using credit cards fraudulently
often behave unusually or appear overly
anxious. The following behaviours can beused as a guide but do not necessarily
indicate criminal activity. You should
always let common sense be your guide.
Be alert for a customer who:–

Makes indiscriminate purchases
without regard to size, colour or price–

Is unnecessarily talkative or delays
a selection repeatedly, until you
are flustered–

Hurries you at closing time–

Requests you split the transaction
over two or more cards–

Purchases an extended warranty
without hesitation even though it
may be costly–

Makes purchases, leaves the store,
and returns to make additionalpurchases–

Pulls the credit card out of theirpocket rather than a wallet–

Does not have a driver’s license oranother form of identification or says
it is in the car–

Needs to see the card in order to signa transaction receipt–

Chooses an item in store, requests
delivery and says they will phone
their credit Card details through.

If you are suspicious of a customer andthe card they are using:Call the Credit Card Authorisation
Centre on +679 331 6644 or refer tosection 2 for country phone number in
Merchant Operating Guide. Select thesuspicious card option, ask for a‘code 10’ authorisation and follow theoperator’s instructions.
No physical attempt should be made toprevent a cardholder from leaving. It isbest to establish where the cardholder
went to, and if using a motor vehicle,
record the registration number anddescription of the vehicle. This information
together with a full description of the
cardholder and associates should be
written down as soon as possible so it canbe provided to the Police.
17. CARD NOT PRESENTTRANSACTIONSInternet, mail and telephone ordertransactions are commonly referred
to as card not present transactions.
The cardholder and card are not present
in person for these types of transactions.
If you are accepting card not present
transactions, there is generally at greaterrisk of fraud. This is because fraudsters
take advantage of the anonymity a card
not present transaction provides. They areable to make purchases with or without aphysical card, at anytime from anywherein the world.

37

17.1 Obtain Additional Card Details
When taking an order for a card notpresent transaction as well as obtaining
the standard information – credit card
number, expiry date and full name –it is recommended you also obtain thefollowing additional information.
–

Cardholder’s physical address–

Cardholder’s contact phone numbers,
including landline contacts–

The name of the card-issuing bankand the country the card wasissued in.

Immediately following the order, waita short period of time, then call thetelephone number provided and ask forthe caller. Confirm details of the orderand record the date and time you spokewith the customer.
Alternatively, if an order is received via
the telephone or the Internet, ask thecustomer to fax written confirmationof the transaction and get them toinclude the additional information above,
including a photocopy of both sides of
the card if possible. You may also ask
them to sign the fax and then compare
the signature on the card with thesignature on the fax.
If the card or card details have beenstolen, the fraudster is unlikely to be able
to provide all of this information and willprobably not complete the transaction.

38

Authorising Card Not Present Transactions
Authorisation must be obtained for allcard not present transactions, regardlessof the value. An authorisation does notguarantee that the legitimate cardholder
is making the purchase and that thecard number quoted by the customer

has not been stolen. It only confirmsthat funds are available at the time ofthe purchase and that the card has notbeen reported lost or stolen. It does notguarantee payment.
If you are processing transactions
using an online payment gatewaythese are authorised electronically at
the time of the transaction. If you areprocessing mail order or telephone ordertransactions using the IVR Authorisation
Service or a Card Imprinter you must
call the Credit Card Authorisation
Centre on +679 331 6644 or refer tosection 2 for country phone number in
Merchant Operating Guide, to obtainan authorisation.
–

If approval is given, record theauthorisation number as detailed inyour Merchant Operating Guide anddispatch the goods–

If the authorisation is declined ask
the cardholder for another form of
payment or retain the goods.

17.2 Delivery of Goods–

If a courier delivers the goods,
ensure the courier company returns
the delivery acknowledgment so
the signature of the recipient canbe verified–

Ensure goods are not left at vacantpremises or left with a third party–

Obtain a manual imprint of the cardand signature on delivery of thegoods where possible–

Confirm suspicious orders separately
before shipping–

Do not send goods that are not partof your core business.

17.3 Suspicious Orders
Being vigilant about unusual spending
patterns or behaviour can help you
identify early warning signals thatsomething may not be right with anorder. While the following situations
or scenarios may occur during a validtransaction, combinations of these may
be cause for alarm.
Be wary when:–

Recurring or sequential data
elements appear. Look fortransactions that might be ‘testing’your system (e.g. multiple sales to thesame address)–

Multiple cards are presented withmultiple declines within a shortperiod of time generally via yourInternet payment page. These cards
may have the same BIN (first six
digits) or may appear to be sequential
with only the last four digits changing–

You are requested to split
transactions over a number of cards–

A customer places a number oforders within a short space of time–

Items that are ordered in unusual
quantities and combinations
and/or greatly exceed your averageorder value–

An order is requested to be delivered
quickly. Fraudsters will often want
their illegally obtained items as soon
as possible for quick resale–

An order originates from Internet
addresses using free email services,
i.e. yahoo, hotmail, g-mail. They do
not require a billing relationshipor verification that a legitimate
cardholder opened the account–Orders are placed where thepurchaser admits it is not their card
being used Orders are being shipped
to international destinations you may
not normally deal with, especiallythird world countries–

Orders are received from locations
where the goods or services would
be readily available locally–You receive orders for additional
products you do not normally sell–

Orders are cancelled and refunds arerequested via telegraphic transfer toan account other than the card used
to make the purchase–

Goods or services have been orderedover the phone to be collected inperson at a later date. When the
cardholder collects the goods, ensure
the following:- The credit card is presented at
the point of collection. Checkthe name on the credit card is
the same as the person nameyour recorded when the order
was placed- Check the credit card
security features- Ask the cardholder to sign an
acknowledgement form toconfirm they have received
the goods- The signature is the same as thaton the back of the credit card
- Ask for suitable identification(photo ID preferable)- Be suspicious if a third party
wants to collect goods on behalfof the cardholder.
39

17.4 International Orders
We suggest that you take extra carewhen receiving any international orders
particularly large orders (much bigger
than your average order size) andthose originating from countries you
do not normally deal with. While allinternational orders carry an increased
fraud risk, transactions originating fromthe following countries have shownto generate higher levels of credit
card fraud:–

Nigeria

–

Ghana

–

Indonesia

18. IF SUSPICIOUS – DO NOTFULFIL THE ORDER
If you are suspicious of the purchaser or
the transaction and cannot verify that thepayment details provided are genuine,
ask for an alternative form of payment.
If the customer is unable to provide analternative payment, we recommend thatyou do not process the order.
18.1 Reducing the Risk of Card Not
Present Transactions
You can help minimise the possibilityof card not present transaction fraud byimplementing the following measures:
1. Develop a standard credit cardtransaction checklist that all staff
must use when taking an order
2. Develop and maintain a secure
customer database to track buying
patterns and identify changes inbuying behaviour
3. Advertise that your business willprosecute identified fraudulent
40

activity on your website. This mayhelp to deter fraud
4. Discuss additional security withyour service provider or an IT
expert to help you redevelop your
web/payment page. This could
include blocking suspect IP
addresses, BIN ranges and using
Verified by Visa and MasterCard
Secure Code.
If you think that your website has becomea target for fraud, we suggest that you
shut the site down for a short period oftime and conduct an investigation on
where the fraud is coming from. Onceyou have established the threat, block
the IP address from which the orders are
originating if this is possible.
Card Verification Value (CVV2/CVC2/
CVN2) or Card Identification Number(CID) the Card Verification Value isthe three-digit number located on
the signature panel of the credit card.
For AMEX cards the Card Identification
Number (CID) is the four-digit number
on the front of the card.
If the purchaser cannot provide thisnumber it is likely that they are not inpossession of the card and they may
be using card details that they havefraudulently obtained. It is important tonote that validation of the CVV2 or CID
is not a guarantee of payment or thatthe card is not a stolen card, it simply
confirms that the purchaser has the cardin their possession.
To prevent the Card Verification Value or
CID data from being compromised orstolen never keep or store this data.

18.2 Verified by Visa andMasterCard SecureCode

To guard against this type of fraud, werecommend you:

Verified by Visa and MasterCard
SecureCode are online, real time security
tools that can protect your businessagainst certain chargeback types byvalidating the cardholder is the legitimate
owner and user of the card during an
online transaction.

–

Closely monitor all refunds, checking
they all correspond to a legitimate
sale and are refunded back to thecard used in the original purchase–

Pay particular attention to large
refund amounts or an increase in thenumber of refunds

A cardholder registers with their bank andcreates a unique password (similar to thatof a PIN on a card). When a cardholder
makes a purchase on your website (if you
are a participating business), the card
number is recognized as being registeredin the program and a Verified by Visa
and MasterCard SecureCode window
will appear. The cardholder will then be
prompted to enter their password whichis then forwarded to their card issuer
to verify the cardholder’s identity andcard number.

–

Limit the number of employees withaccess to your merchant number–

Restrict access to your refund card–

Watch for high volumes of ‘key
entered’ transactions – key enteredtransactions are where the card
number is entered into a terminal byhand instead of swiping or insertingthe card–

Be alert to changes in staff behaviouror sudden evidence of an increase in
their wealth–Be wary of staff taking cash sales andbalancing by processing fraudulent
card transactions.

Following confirmation, the window
disappears and the cardholder is returnedto the checkout screen. If the cardholder
is not confirmed, the transaction will
be declined.
19. REFUND FRAUD
Refund fraud is a common type of fraud
which involves issuing credits (refunds)
via your EFTPOS terminal. It is often
committed by employees processing
refunds to their own debit and/or credit
card. To avoid detection they may createa large sale on a fraudulent card thenprocess a refund to their own card.
Refunds may also be processed to theirown cards without a corresponding sale.

20. CHARGEBACKS
Chargebacks can have a financial impact
on your business. A chargeback is theterm used for debiting your bank accountwith the amount of a transaction that had
previously been credited.
A chargeback occurs when a cardholder(or their bank) raises a dispute inconnection with a credit card transaction.
If the dispute is resolved in the favour ofthe cardholder, the transaction is ‘charged
back’ to you and the value is debited fromyour settlement account. You may lose
the value of the sale as well as incurring achargeback fee. You are financially liable41

for all chargebacks that occur against
your business.
There are a number of reasons why atransaction may be charged back. Some of
the most common reasons are listed
below. They can be broadly put into two
categories, either where the cardholder
is disputing the transaction, for example
the card or cardholder was not present at
the point of sale or they do not recognise
the transaction on their statement andsecondly, where you may have made anerror processing the transaction.
Common Chargeback Reasons–

Processing errors–

Unauthorised use of a card–

No signature on the receipt–

Unauthorised transactions–

Invalid card account number–

Transaction exceeds floor limit–

Card details not imprinted on thesales voucher–

Incorrect transaction amount–

Expired card–

Illegible details on the sales voucher–

Failing to respond to a retrieval
request–Merchandise not received bypurchaser or wrong goods sent.

A cardholder or their bank can generally
raise Chargebacks within 540 days ofthe expected delivery date and up to
120 days from the transaction date orfrom the date the goods or services
should have been provided. For thisreason, you are required under yourMerchant Agreement to retain all
42

cardholder signed Transaction receipts
and validating documents (cardholder
identification and billing) for a minimumof 18 months.
If a transaction is disputed, the bank that
holds the account of the cardholder inquestion will notify us and we will notify
you of the dispute. If our transaction
records cannot show sufficient proofof the transaction, you will be notified
in writing and asked to respond inwriting within seven days with sufficient
information to validate the transaction.
If you fail to respond within seven days,cannot provide sufficient proof of thetransaction, or we find proof that you
have breached your Merchant Agreement
the chargeback may be upheld and youraccount will be debited.
If you are subject to an excessive numberof chargebacks, we reserve the rightto charge for the processing of thesedisputes and your merchant facility could
be terminated.
Avoiding Chargebacks–

Make every effort to abide by theguidelines and rules set out in thisdocument and in the MerchantOperating Guide–

In card not present transactions, if a
fraudster is intent on defrauding you,it is very difficult to protect yourself.
It is up to you to decide the amountof checking and what processes you
have in place to lessen the chance offraud. Usually, any fraud will manifest
itself in the form of a chargeback wellafter you have sent the goods.

21. PROTECTING ACCOUNTAND TRANSACTION
INFORMATION
If you accept credit card paymentsfrom your customers, or use a third
party service provider to do this (i.e. an
Internet Payment Gateway provider) you
are responsible for ensuring that yourcustomer’s payment details are kept
secure at all times.
The Payment Card Industry Data Security
Standard (PCI DSS) defines industry bestpractices for handling and protecting
credit card details. All businesses thatprocess, store or transmit credit card data
must be compliant with the standard.
It details what information needs tobe protected and/or made secure andprovides you with a framework to control
the risks and keep credit card information
in your possession safe and secure.

22. SECURING YOUREFTPOS TERMINALAll EFTPOS terminals are equipped witha number of in-built security features
which are designed to help protect yourcustomers’ information. By implementing
the recommendations below, you
can help protect your business, yourcustomers and your reputation from
Credit Card fraud or misuse through your
EFTPOS terminal.
Always ensure that your EFTPOS terminals
are secure and under supervision during
operating hours (including any spare or
replacement EFTPOS terminals you have.
–

Ensure that only authorised
employees have access to your
EFTPOS terminals and they are fully
trained on their use–

When closing your store always
ensure that your EFTPOS terminals
are securely locked and not exposed
to unauthorised access–

Never allow your EFTPOS terminal
to be maintained, swapped or
removed without advance noticefrom your terminal provider. Be awareof unannounced service visits andonly allow authorised personnel
to maintain, swap or remove your
EFTPOS terminal, and always ensurethat security identification is provided–

Inspect your EFTPOS terminals on aregular basis – ensure that there areno additional cables running fromyour terminals and that the casing
has not been tampered with

Benefits of your business––

Ensuring the security of cardholder
data can lessen the likelihoodof a data breach Resulting fromyour business
Helps to identify potential
vulnerabilities in your business andmay reduce the significant penalties
and costs that result from a data
breach should one occur.

Failure to take appropriate steps toprotect your customer’s payment card
details means you risk both financial
penalties and cancellation of yourmerchant facility in the event of adata compromise.
Our website contains comprehensive
information on the Payment Card
Industry Data Security Standard.

43

–

–

–

Check your EFTPOS terminal islocated where it should be each time
you open your store or premises
and is printing the correct details
on receipts
Record your EFTPOS terminal’s serial
number and store it in a secure
location. Check the serial number
matches this record each morning
Make sure that any CCTV or othersecurity cameras located near your
EFTPOS terminals cannot observe
cardholders entering details.

Contact ANZ on +679 331 6644 orrefer to section 2 for country phone
number in Merchant Operating Guide
immediately if:–

Your EFTPOS terminal is missing;–

You or any member of your staff isapproached to perform maintenance,
swap or remove your EFTPOS
terminal without prior notificationfrom your terminal provider and/or
security identification is not provided;–

Your EFTPOS terminal prints incorrect
receipts or has incorrect details;–Your EFTPOS terminal is damaged orappears to have been tampered with.

This material is provided for information
purposes and is intended as a general
guide only. Adopting some or all of
the procedures outlined above will notguarantee that you will not be exposed to
fraud. While ANZ has taken care to ensure
this information is accurate, it cannot
warrant its accuracy, completeness or
suitability for your intended use. To theextent permitted by law, ANZ does not
accept any responsibility or liability
arising from your use of the information.
44

23. INTERPRETATIONAND GLOSSARY
23.1 Interpretation(a) If the Merchant consists of morethan one person, the liability of
those persons under the Merchant
Agreement is joint and several.
(b) If there is an inconsistency between
the documents forming theMerchant Agreement, the following
order prevails:(i) the Letter of Offer and Variation
Letter of Offer (if any);(ii) the Specific Conditions;(iii) the General Conditions; and(iv) the Merchant Operating Guide.
(c) A reference to an individual or
person includes a reference to acompany and any other entity the
Law recognises.
(d) The singular includes the plural andvice versa.
(e) A reference to the Merchant
Agreement or any document forming
part of the Merchant Agreement, or
any Law is a reference to the Merchant
Agreement, document or Law asamended, novated, supplemented,
replaced or re‑enacted.
(f ) A reference to “you” is a reference tothe Merchant.
(g) A reference a “mail” includes
information sent or received byfacsimile or email.
(h) The use of headings are forconvenience only and do notaffect the interpretation of the
Merchant Agreement.

23.2 Meaning of Words andExpressions (for General
Conditions and SpecificConditions)
In the Merchant Agreement:“ANZ” means Australia and
New Zealand Banking Group Limited
ABN 11 005 357 522 if operation is abranch in the country of domicile of the
Merchant or the subsidiary of Australia
and New Zealand Banking Group Limited
ABN 11 005 357 522 operating in the
country of domicile of the Merchant.
“ANZ eGate™” means the Internet based
payments service that facilitates thepayment by customers for goods andservices purchased from ANZ eGate™
Merchants both over the Internet
and through other ANZ Approved
Payment Methods.
“ANZ eGate™ Merchant” means the
person named as Merchant in the Letterof Offer and has been assigned an
ANZ eGate™ Merchant Number by ANZ.
“ANZ Group” means ANZ and theirrelated bodies corporate located insideor outside the country of domicile ofthe Merchant.
“Available Funds” means the amount ofcleared funds available to transact withfrom the Merchant’s Account.
“Application” means the application
form (or other mode of application
permitted by ANZ from time to time)completed, and submitted to ANZ, by the
Merchant for the Merchant Facilities and,for the avoidance of doubt, includes all
supporting documentation provided to
ANZ in connection with the Merchant’s

application and the Secure Internet
Site Declaration.
“Approved Currency” means the overseas
currencies for which Customer Preferred
Currency is available in the Country
where ANZ’s office shown in the Letter ofOffer is located.
“Approved Payment Method” means:a) Using a credit Nominated Card
accepted by a Merchant; andb) Any other ANZ approved
payment method.
“Authorisation” has the meaning given
in condition 4.2(a).
“Authorisation and Assistance Centre”
means the authorisation centre approved
by ANZ for the purposes of the Merchant
Agreement and the details of which arenotified to the Merchant by ANZ.
“Authorised Floor Limit” means
the total value of sales or payment
which the Merchant is authorised
to make to a Cardholder in any one
Transaction without ANZ’s Authorisation.
The Authorised Floor Limit is set out inthe Letter of Offer and may be varied by
ANZ in accordance with condition 4.1(p)“Business Day” means a week day on
which ANZ is open for general banking
business the country of domicile ofthe Merchant.
“Cardholder” means a person issued with:(a) a Nominated Card; or(b) authorised to use a Nominated Card.
“Card Imprinter” means any card
imprinter to be used to process
Transactions manually.
45

“Chargeback” means a Transaction that
ANZ charges back to the Merchant inaccordance with Condition 4.5.
“Chip” means an electronic component
designed to perform processing or
memory functions.
“chip card” means a card embedded witha Chip that communicates information toa point-of-transaction terminal.
“Chip-initiated Transaction” means
an EMV and chip card Transaction thatis processed by the EFTPOS terminal
reading the card via its chip.
“Chip-Reading Device” means an
EFTPOS Device capable of reading,communicating, and processing
Transaction data from a chip card.
“Contactless Card” means an EMV
Contactless chip card which supports
EMV Contactless Transactions. EMVContactless chip cards transmit datausing radio waves instead of a device
physical reading the card magnetic strip,
stripe or card.
“Contactless Reader” means a device
approved by us that reads Contactless
Cards using radio waves rather thanreading the card via its chip and/or
magnetic stripe.
“Contactless Transaction” or“EMV Contactless Transaction”
means a Transaction made using a
Contactless Card.
“CPC Service” refer to the definition for
Customer Preferred Currency.
“CPC Transaction” means a Transaction
where the Overseas Cardholder has
elected to use the CPC Service.
46“Credit Authorisation Terminal” meansa device which facilitates authorisationof sale Transaction and Refund
Transactions using a Nominated Card(being a credit card), which captures
Transactions information, and which
can be used by the Merchant at a latertime or date to initiate the credit or debit
of funds to facilitate the settlement of
those Transactions.
“Credit Transaction” means a Transaction
where payment is made by ANZ oranother card issuer of a Nominated
Card (being a credit card) on behalfof the Cardholder pursuant to a credit
card contract between ANZ and theCardholder or the Cardholder and theother Nominated Card issuers (as the casemay be) in discharge of the Cardholder’sdebt for goods or services supplied by
the Merchant to the Cardholder.
“Customer Preferred Currency” or“CPC Service” means the conversionof the local currency in which the
Merchant’s goods and services are priced
into an Approved Currency, as agreed
upon by the Overseas Cardholder and theMerchant, in accordance with the terms
and conditions of the Agreement.
“CVM” means – cardholder verification
method initiated via pin entry andcardholder signature.
“Debit Card” means an electronic card
linked to an ANZ bank account whichuses the Cardholders own funds.
“Debit Transaction” means a Transaction
where payment is made by debiting
funds in an account which is authorised
for access by the Cardholder’sNominated Card.

“Electronic Banking Services” means
the electronic banking services team of
ANZ for the purposes of the Merchant
Agreement, the details of which is notified
to the Merchant in the Letter of Offer andmay be updated from time to time bynotification to the Merchant by ANZ.
“Electronic Terminal” means:(a) any electronic device or equipment(including where applicable a
portable electronic device orequipment but not including an
automatic telling machine), forprocessing Transactions using
Nominated Cards and for initiating thecredit or debit of funds to facilitate thesettlement of those Transactions; or(b) any Credit Authorisation Terminal.
“Exchange Rate” means the exchange
rate set by Currency Select PTY Limited
that applies on any given day.
“Fallback Transaction” means an EMV
chip card is present and the Transaction
initially attempted at a Chip-Reading
Device, where the device’s inability toread the Chip prevented the Transaction
from being completed using the chipcard data, and the Transaction is instead
completed using magstripe.
“Forced Fallback Transaction” theMerchant intentionally foregoes thechip card processing requirements andfall back procedures and proceeds tousing an alternate means of data capture
and transmission through magstripe
or key entering the card details or
voice authorisation.

“Force Majeure” means any act of nature,war, riot, sabotage, revolution, or any
other unlawful act against public order orauthority, an industrial or labour dispute,a governmental restraint, civil unrest,
coup, power shortages or power failure,sudden or unexpected system failure,or any other event or cause which is notwithin the reasonable control of ANZ or
the Merchant.
“Foreign Exchange Laws” means theforeign exchange laws and regulations of
the country of domicile of the Merchant.
“GPRS” means general packet
radio service.
“Insolvency Event” means any of
the following:(a) the Merchant has a receiver, receiverand manager, mortgagee inpossession or voluntary administrator
appointed to the Merchant or any of
the Merchant’s assets; or(b) the Merchant becomes subject
to any other form of external
administration; or(c) a resolution is passed for winding upof the Merchant or an order is madefor winding up of the Merchant;(d) an application for winding up of the
Merchant is presented, which relates
to an amount of money owed by
the Merchant which is not bona fidein dispute;(e) a credit provider, credit reporting
agency or other financial institution
reports that, in their opinion, theMerchant is insolvent and unable tomeet its financial commitments asthey fall due;47

(f ) if the Merchant is a partnership,
the partnership is dissolved or the
Merchant resolves to dissolve thepartnership; or(g) if the Merchant is an individual, theMerchant becomes, or is declared,
bankrupt or dies.
“Intellectual Property Rights” means:(a) inventions, discoveries and novel
designs, whether or not registeredor able to be registered as patents,
designs, including developments
or improvements of equipment,
products, technology, processes,
methods or techniques;(b) copyright (including future copyright)
throughout the world in all literaryworks, artistic works, computer
software, and any other works or
subject matter in which copyrightsubsists and may in the future subsist;(c) confidential information and trade
secrets; and(d) trade and service marks (whether
registered or unregistered).
‘International Transaction” means aTransaction undertaken by an Overseas
Cardholder including CPC Transactions“Internet” means the public on-line
computer network of that name or any
successor of it.
“Invalid Transaction” means a transactionthat is invalid under condition 4.5(e).
“Law” includes any law, statute,regulation, ordinance, proclamation,by-law or statutory instrument or order,
including codes of conduct issued byregulatory bodies.
48“Letter of Offer” means the letter in which
ANZ made the offer of Merchant Facilities
to the Merchant.
“Merchant” means the person named as
Merchant in the Letter of Offer.
“Merchant Account” means the bankaccount or accounts nominated by
the Merchant for the purposes of the
Merchant Agreement.
“Merchant Agreement” means theagreement constituted by the Merchant’s
acceptance of ANZ’s offer on the terms
and conditions set out in the Letter ofOffer and comprising the documents
referred to in the introduction section ofthis document (condition 1(b)), as varied
from time to time.
“Merchant Facilities” means theservices and facilities ANZ makes
available to the Merchant under the
Merchant Agreement.
“Merchant Operating Guides” means
each current merchant operating
guide(s) which is provided by ANZ to the
Merchant, as varied from time to time.
“Nominated Card” means each card
being a debit card or credit card or both
described in the Letter of Offer and anyother card authorised by ANZ for the
purposes of the Merchant Agreement
and notified to the Merchant in writing.
“Nominated Card Scheme” means any
scheme established to manage andestablish standards and proceduresfor the issuance and acceptance ofNominated Cards and the settlementof Transactions.

“Overseas Cardholder” means a
Cardholder whose Nominated Card isissued by an overseas financial institution.
“Overseas Transaction Amount”
means the Purchase Amountonce converted at the applicable
Exchange Rate in accordance with the
Merchant Agreement.
“PIN” means the Personal Identification
Number selected by a Cardholder,which when used in conjunction with aNominated Card, enables the Cardholder
to make Electronic Transactions“Premises” means the various locations or
location where the Merchant conducts
business and is authorised by ANZ toaccept Nominated Cards.
“Reasonable Identification Details” means:(a) the Cardholder’s name (as it appearson the card);(b) the Cardholder’s home address (not a
PO box);(c) delivery address (if not same ashome address);(d) the Cardholder’s signature (unless theorder is made by telephone or via theInternet); and(e) the Cardholder’s contact
telephone number.
“Refund” means, in respect of a sales
Transaction, the reversal in accordancewith the Merchant Operating Guide ofthat sales Transaction.
“Scheduled Downtime” means aperiod of time scheduled by ANZ
for internal administrative purposes
resulting in restricted or no access to the
Merchant Facilities.

“Secure Internet Site Declaration”
means the declaration completed by the
Merchant in accordance with SpecificConditions A.
“Security” means any guarantee orguarantee and indemnity or bill of sale,mortgage charge or other security
interest or any authority to appropriate
and set-off deposits ANZ may request
the Merchant to provide undercondition 13.8.
“SIM” means subscriber
identification module.
“Software” means the software provided
by ANZ to the Merchant for the purposesof ANZ eGate.
“Taxes” means all taxes, levies, imposts,
duties and charges, including, but
not limited to, stamp duty, financial
institutions duty, goods and services tax,
consumption tax, value added tax orsimilar tax.
“Terminal Rental Fee” means the amountspecified in the Letter of Offer as theterminal rental fee.
“3D Secure Online Authentication”
means the process of authenticating theidentity of Cardholder(s) at the time ofpurchase through the:(a) Visa service known as “Verified byVisa”; or(b) MasterCard service known as“MasterCard SecureCode”.
“Transaction” includes a sales transaction(being the supply of goods or services
or both), Refund transaction or cashtransaction in which a Nominated Cardor a card number of a Nominated Cardis used and which is processed by the49Merchant manually or electronically andincludes any transaction for the supply
of goods or services by a Merchant to a
Cardholder.
“Transaction Voucher” includes asales voucher or transaction record or
Refund voucher or transaction record(as applicable) or any transaction record
used in processing transactions manually
or electronically.
“Unbanked Transaction” means atransaction that has not been settled to
the Merchants Account successfully.
“UnionPay” – UnionPay defines themembership Scheme network forthe acceptance of China Union pay
branded cards.
SPECIFIC CONDITIONS A –ANZ EGATE™
1. About these Specific Conditions A
These Specific Conditions A apply if
the Letter of Offer specifies and theMerchant has accepted ANZ’s offer toinclude the ANZ eGate™ option as partof the Merchant Facilities. These SpecificConditions are read together withall other documents comprising
the Agreement.
ANZ eGate™ is an Internet payment
gateway, which enables the Merchantto send Transactions to ANZ forauthorisation and settlement, all via theInternet. It may be used in the eventof the Merchant accepting card notpresent Transactions.

50

The use of the information, graphics andmaterials on the ANZ eGate™ website isgoverned by the website terms of use
and the privacy statement.

2. Merchant Operating System
Requirements
The Merchant must acquire and maintainall equipment, services and software (otherthan the Software which ANZ provides
to you) necessary for the Merchantto connect to, and use, ANZ eGate™.
The terms on which ANZ provides the
Merchant with the Software are set out in
Condition 5 of these Specific Conditions.
3. What are the Merchant’s
Obligations
3.1 The Merchant must install andmaintain the Software provided by
ANZ at the Merchant’s own expense.
3.2 The Merchant is responsible forcomplying with all legal obligations
to its customers, including thedelivery of goods or services to thecustomers whose Transaction(s) areprocessed through ANZ eGate™.
3.3 The Merchant is responsible forresolving any dispute between the
Merchant and any of the customers
involving any Transaction processed
through ANZ eGate™. If the dispute
relates to the authorisation of any
Transaction through ANZ eGate™,
ANZ agrees to provide reasonableassistance in resolving the disputeshould the Merchant require it.
3.4 Unless expressly permitted by
the Agreement, the Merchant, its
employees, agents and contractors
must not make any representation
or statement to a customer about
ANZ eGate™, ANZ or any of ANZGroup’s procedures, policies orfinancial products.

3.5 If the Merchant offers customers theability to make payments online, thenthe Merchant:(a) acknowledges and agrees that
it will utilise 3D Secure On-line
Authentication; and(b) must adhere to the requirementsof the VerifiedbyVisa andMasterCard SecureCode
programmes.
3.6 In using 3D Secure Online
Authentication, the Merchant:(a) must use 128 SSL bit encryption
on the Merchant’s website;(b) must provide ANZ with
the information reasonably
requested by ANZ for inclusion
in authentication marketing or
registration sites including ANZ
websites, VISA and VerifiedbyVisa,
and MasterCard and MasterCard
SecureCode sites, Currency
Pty Limited sites, and others inagreement with the Merchant;(c) the Merchant must display on the
Merchant’s payment page the
ANZ identification device for 3D
Secure Online Authentication;(d) the Merchant must terminate
the Transaction and advise thecustomer the Transaction cannot
proceed if Visa or MasterCard(as the case may be) returns any
response other than a successfulauthentication; and(e) if the Merchant provides specificonline promotions specified
on the Merchant’s site for ANZ
cardholders, the Merchant musthave these promotions first

approved by Visa or MasterCard(as the case may be) and ANZ.
3.7 The Merchant agrees that it will notstore Cardholder’s account numbers
without ANZ’s prior written approval,
which approval shall be granted
at ANZ’s sole discretion and only
following a security review by ANZ of
the Merchant’s systems and processes.
3.8 The Merchant agrees to pay all
fees and charges that relate to
ANZ eGate™ as detailed in the Letterof Offer.
4. Merchant’s Website
4.1 Where the Merchant is specificallyauthorised by ANZ to accept acredit Nominated Card as payment
for goods or services ordered via
the Internet:(a) in addition to any information set
out in the Merchant Operating
Guide or as otherwise notified
by ANZ from time to time, theMerchant’s website must containall of the following information:(i) a complete description of thegoods or services offered;(ii) a returned merchandise andRefund policy;(iii) a customer service contract,
including electronic address
and/or telephone number andthe physical address of the
Merchant’s Premises;(iv) any export or legal restrictions(if known);(v) a delivery policy (including thedelivery cost, if any); and51

(vi) a privacy policy (including
the Merchant’s policy
for transmission of the
Cardholder’s details).
(b) except with ANZ’s prior writtenconsent, the Transaction currency
on the Merchant’s website
must be in the local currencyof the country of domicile ofthe Merchant;(c) the Merchant must complete a
Secure Internet Site Declaration
to ANZ’s satisfaction;(d) must operate a firewall that isregularly updated; and(e) the Merchant, at its own cost,arrange for the Merchant’s
website to be prepared andmaintained in accordance with
ANZ’s reasonable requirements,
including those requirements
applicable to Internet security
standards as described in the
Merchant Operating Guide orotherwise notified by ANZ in
writing from time to time.
5. Intellectual Property –ANZ Software
5.1 ANZ grants the Merchant a
non‑exclusive, non-transferable
licence to use the Software forthe duration of the Agreement.
The Merchant may install theSoftware on any of the Merchant’s
computers or web-servers.
5.2 The Merchant does not have anproprietary rights (including any
Intellectual Property Rights) in:(a) the Software;
52(b) any authorised or unauthorised
modifications to the Software; or(c) any updates or new releases to
the Software.
5.3 The Merchant must not copy, alter,
modify or reproduce the Software or
merge all or any part of the Softwarewith any other software except;(a) inactive copies made solely
for the purposes of backup
or archiving;(b) copies which are necessary tointegrate the Software for use
with the Merchant’s website or
any other software the Merchantuse in the Merchant’s business; or(c) as otherwise reasonably required
for the purposes of the Agreementwith ANZ’s prior written consent.
5.4 The Merchant must ensure that any
copy of the Software, which the
Merchant makes, as permitted under
this Condition, bears all Intellectual
Property Rights ownership notices
contained in, or supplied with,
the Software.
5.5 The Merchant must not distributeor resell the Software to any person,
including by supplying access to theSoftware through bureau service
processing, without ANZ’s priorwritten consent.
5.6 The Merchant agrees to comply withany other terms specified by ANZ
and/or ANZ’s third party vendors withrespect to the ANZ Software notified
by ANZ from time to time.

5.7 Except where specifically authorisedby Law, the Merchant must not, andmust not directly or indirectly allow
or cause a third party to, reverse
assemble or reverse compile thewhole or any part of the Software.
The Merchant indemnifies ANZ for
any use, copying, modification or
reproduction of the Software outside
the terms of this Agreement.

6.4 ANZ has no obligation to provide:

6. ANZ’s Obligations to the Merchant

7. Merchant Acknowledgements

6.1 ANZ will:

7.1 The Merchant acknowledges that:(a) keep the Merchant informed
about new services offeredthrough ANZ eGate™ which
may benefit the Merchant’sbusiness; and(b) endeavour to resolve any
complaints that the Merchant
may have about ANZ eGate™.
6.2 If the Merchant is unable to use
ANZ eGate™ or the Merchant has
enquiries relating to the operationof ANZ eGate™, the Merchant cancontact the ANZ Electronic Banking
Services Team as set out in the Letterof Offer (refer also to section 2 forcountry phone number in yourMerchant Operating Guide).
6.3 If Letter of Offer specifies and theMerchant has accepted ANZ’s offer
to include the ANZ eGate™ option aspart of the Merchant Facilities, ANZ
will provide the Merchant with theSoftware to enable the Merchant toconnect to, and use, ANZ eGate™.

(a) advice or training on the
Software; or(b) error-correction, modifications or
updates to the Software; or(c) new releases or enhancements
for the Software; or(d) support or maintenance for the
Software once it is installed.

(a) ANZ eGate™ may be affectedby outages, faults or delays.
Such outages, faults or delays
may be caused by many factors,
including without limitation,technical difficulties with theperformance or operationof ANZ’s or another person’s
software, equipment or
systems, traffic or technicaldifficulties with the Internet or
infrastructure failures;(b) although ANZ has implemented
the security procedures describedon ANZ’s website(s), it cannot
warrant that unauthorised accessto information and data could
not occur;(c) ANZ does not verify the identityof any person who registers with,or uses, ANZ eGate™;(d) ANZ does not verify any
information which the Merchantor customer provides to ANZ
to enable ANZ to process a
Transaction through ANZ eGate™;53

(e) Notwithstanding that a
Transaction has been authorised
through ANZ eGate™, in certain
circumstances a Transaction
may nevertheless be declined
or charged back. Some of thecircumstances in which this may
happen are described in the
Merchant Operating Guide;(f ) the Merchant has relied on the
Merchant’s own independent
assessment and judgment
in determining whether the
ANZ eGate™ provided under the
Agreement meets the Merchant’s
requirements and the Merchanthas not relied on any statement
or representation made on behalfof ANZ in deciding to enter into
the Agreement.
7.2 The Merchant acknowledges andagrees that any loss, damage or
liability (including without limitation,
any direct or consequential loss,
damage or liability arising from
disruption to the Merchant’sbusiness) the Merchant may suffer orincur as a result of any of the above is
the Merchant’s responsibility and is arisk that the Merchant assumes.
8. Termination
If the Merchant’s ANZ eGate™ Merchant
Facility is terminated, then in addition to
any other provisions under Condition 12of the General Conditions:

54(a) ANZ may enter the Merchant’s
Premises to repossess from theMerchant any software (including theSoftware), equipment, documents
or promotional material supplied by
ANZ or any of its contractors; and(b) The Merchant must immediately
remove all references to ANZ eGate™
from the Merchant’s website and theMerchant’s current advertising andmarketing materials.
9. Merchant Statement
The Merchant will receive a statement ofTransactions each day for all transactions
settled for ANZ eGate. The statement will
be emailed to the Merchant’s nominatedsettlement email address.
The statement shows:(a) All Transactions debited/credited forthat date;(b) The merchant service fee (and whereapplicable, scheme and interchangefees) applicable to the Transactions
and the net merchant service fee
calculation for the month.
The Merchant will also be emailed amonthly summary on the first day of theevery month, giving a summary of thetotal ANZ eGate settled transaction types
for the previous month.
SPECIFIC CONDITIONS B –CUSTOMER PREFERRED
CURRENCY
1. About these Specific Conditions B
These Specific Conditions B apply if
the Letter of Offer specifies and theMerchant has accepted ANZ’s offer toprocess Customer Preferred Currency
Transactions as part of the Merchant
Facilities. These Specific Conditions areread together with all other documents
comprising the Agreement.

When an Overseas Cardholder chooses
to pay for goods or services in a currency
other than New Zealand dollars, the rate
at which the Transaction is converted
is based on an exchange rate provided
by Currency Select Pty Limited which
includes a fee paid to Currency SelectPty Limited, plus a commission that ischarged by ANZ and shared with the
Merchant. Additional fees may be charged
by the Overseas Cardholder’s bank.
2. About the CPC Service
2.1 The CPC Service will enable Overseas
Cardholders to present a Nominated
Card which is a credit card at the
Merchant’s Premises and to pay
for a purchase in the Approved
Currency in which the Nominated
Card is denominated, based upon an
Exchange Rate, while the Merchantreceives settlement of the PurchaseAmount in the local currency of thecountry of domicile of the Merchant.
2.2 The Merchant acknowledges andagrees that the Purchase Amountwill be converted to the Approved
Currency in which the Nominated
Card is denominated based upon
the Exchange Rate and the Overseas
Transaction Amount will be cleared
through the applicable Nominated
Card Scheme in the Approved
Currency in which the Nominated
Card is denominated.
2.3 ANZ reserves the right to add, delete
or suspend any currency to or fromthe CPC Service at any time without
notice to the Merchant. Further, ANZ
may terminate or suspend the CPC
Service for any reason upon notice tothe Merchant.

3. Programme Requirements
3.1 The Merchant must comply with allreasonable instructions provided by
ANZ pertaining to the CPC Service asdetailed in this Agreement.
3.2 Without limiting the foregoing, theMerchant agrees to comply with thefollowing CPC Service requirements:(a) Overseas Cardholder Opt-In:
The Merchant must provide
Overseas Cardholders who hold aNominated Card which is a credit
card with the ability to ‘opt-in’ orconsent to use the CPC Service;(b) Credits or Returns:
In the event that the Merchantissues a credit to a Nominated
Card account, reflecting either
the partial or complete returnor reimbursement of a CPC
Transaction, the Overseas
Cardholder may elect to have that
Refund or credit processed using
the CPC Service. If the Overseas
Cardholder elects to opt-in, thecredit or return will be converted
to the Approved Currency using
the Exchange Rate applicableon the date of presentation of
the credit by the Merchant andthat credit, as converted, will becleared through the applicable
Nominated Card Scheme in the
Approved Currency in which theNominated Card is denominated;

55

(c) Commission:
The Merchant must comply withany legal obligation requiring
the Merchant to disclose any
commission (if any) the Merchantreceives when an Overseas
Cardholder elects to use the
CPC Service.
4. Processing and Settlement of
CPC Transactions
4.1 When the Merchant has a CPC
enabled Electronic Terminal, all of
the Merchant’s Transactions will beprocessed by Currency Select Pty
Limited on behalf of ANZ.
4.2 Settlement of Transactions is in
the Merchant’s local currency to
the Merchant Account. ANZ eGate
Transaction settlements andsettlement for CPC Transactions on
CPC enabled Electronic Terminals,
occur one business day following theTransaction date (for purchases prior
to the cut-off period).
5. Operating Instructions
5.1 When the Merchant has a CPC
enabled Electronic Terminal, theMerchant must:(a) inform the Overseas Cardholderthat CPC is optional (theCardholder may wish to complete
the Transaction in the Merchant’s
local currency);(b) inform the Overseas Cardholder
if the Merchant receives acommission for processing
CPC Transactions;56(c) not impose any additional
requirements or charges on theOverseas Cardholder to process
the Transaction in the Nominated
Card’s local currency;(d) not use any language orprocedures that may cause theOverseas Cardholder to choose
CPC by default.
5.2 The CPC approved currencies mayvary from time to time. The Merchantshould contact the ANZ Electronic
Banking Services Team (contact
details are set out in the Letterof Offer) for a current list of CPC
approved currencies.
SPECIFIC CONDITIONS C –RECURRING TRANSACTIONS
1. About these Specific Conditions C
These Specific Conditions C apply if
the Letter of Offer specifies and theMerchant has accepted ANZ’s offer toprovide Recurring Transactions services
as part of the Merchant Facilities. These
Specific Conditions are read together
with all other documents comprising
the Agreement.
‘Recurring Transactions’ means
Transactions that occur where a Merchanthas an ongoing signed authority fromthe Cardholder to process Transactions
against a Cardholders credit card,
scheme debit or charge card account(as applicable).

Definitions
In this schedule unless the context
requires otherwise Written Authority
has the meaning given to that termin paragraph 3.1 of these SpecificConditions.
2. Terms of Use
2.1 You acknowledge that our Recurring
Transactions service will only be
used in accordance with the criteria
specified in these Specific Conditions,
the ANZ Pacific POS MerchantServices Terms and Conditions
and Merchant Operating Guide as
amended by us from time to time.
2.2 You must ensure that the Cardholder
is notified when goods or services
cannot be delivered or provided on
the agreed upon date.
2.3 You must provide the Cardholder
with:(a) clear information on all charges
related to the goods or services
including:• the Recurring Transactions
amount (unless the Transactions
are for varying amounts);• the frequency of the Recurring
Transactions;• the duration for which
Cardholder permission to
charge their card for Recurring
Transactions is granted.

(b) a contact number for any billingor general enquiries.
2.4 You must provide a clear statement
and instructions of how the
Cardholder can inform you ofchanges to card and accountdetails and/or cancel the Recurring
Transactions, either in the Cardholder’sagreement with you or on yourwebsite. If the Cardholder request
for the goods or services was initiallyaccepted online, a simple andeasily accessible online cancellation
procedure must be available to the
Cardholder. You are required to action
any Cardholder request to change
and/or cancel payment arrangements
within five (5) Business Days of receiptof the Cardholder’s request.
2.5 You must comply with all relevant
security standards, including
the Payment Card Industry Data
Security Standard when storing any
Cardholder information.
3. Written Authority
3.1 You must obtain authority (written
or electronic) from the Cardholder
in order to establish Recurring
Transactions, which must contain:(a) the name of your business whichmust be consistent with thename of the business on your bill,
invoice or other correspondence
to the Cardholder;57

(b) the account or reference
number used by your business
when communicating with the
Cardholder;

4.1 For a Recurring Transaction to
be valid:(c) the Cardholder’s name as it
appears on the card;(a) it must not include part payment
for goods or services purchasedin a single transaction;(d) the First 6 and last 4-digit card
number appearing on the
Cardholder’s card;(b) it must not include any additional
finance charges above the priceof the goods or services; and(e) the 4-digit expiry date appearing
on the Cardholder’s card;(c) you must not continue to process
Recurring Transactions if you
receive a decline response ora cancellation notice from the
Cardholder.

(f ) the date the Recurring
Transactions will commence,
the ongoing Frequency (theCardholder must be able tochoose this);(g) the Cardholder’s acceptance of
the Terms of Use described inclause 2 above (as applicable); and(h) the Cardholder’s authority(written or electronic).
Authority to Accept Recurring
Transactions – suggested format
Name of business:
Start date:Frequency:
Reference number:
Cardholder’s name on card:
Card type:
Card account number:
Card expiry date:Terms of Use acceptance:
Cardholder’s signature:
3.2 You must retain the written or
electronic authority securely for theduration of the recurring services andprovide it to us on request.
58

4. Valid Transactions

5. Recurring Billing
5.1 Once the initial authorisation isestablished, you can automaticallyinitiate Recurring Transactions
provided written advice is forwarded
to the Cardholder at least 14 days
prior to each Transaction processingdate.
5.2 You must contact the Cardholder
to obtain alternative account billing
details if the authorisation response
is declined.
5.3 You must ensure that Recurring
Transactions are discontinued
immediately upon the Cardholder
cancelling the Recurring Transactions.
You must also provide the Cardholder
with a cancellation confirmation
including when the last billing will
occur if this has not already occurredor, if a credit is due, when the credit
will be processed.

6. Chargebacks
6.1 No further Recurring Transactions
can be accepted from Cardholders
with whom previous Recurring
Transactions have been charged backor a Chargeback or otherwise.

59

60

Australia and New Zealand Banking Group Limited, Cook Islands Branch
Australia and New Zealand Banking Group Limited, Fiji Branch
Australia and New Zealand Banking Group Limited, Solomon Islands Branch
Australia and New Zealand Banking Group Limited, Tonga Branch
ANZ Bank (Kiribati) Limited
ANZ Bank (Samoa) Limited
ANZ Bank (Vanuatu) Limited
07/23  22190