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Digital Channels Terms and Conditions - Family Bank Limited, Kenya

Digital Channels Terms and Conditions

Mobile and E-banking

These terms and conditions together with the application made by the Customer and as accepted by Family Bank shall form the contract between the Customer and Family Bank, and shall be further subject to such terms as Family Bank may agree with the other service providers, aiding Family Bank in providing the Facility. These terms and conditions shall be in addition to and not in derogation of the terms and conditions governing and related to Family Bank Mobile Banking, electronic products and the Account and/or any other product/services provided by Family Bank and its affiliates. By registering for the Facility, for the first time (and every time thereafter), the Customer acknowledges and accepts (and reaffirms his acknowledgment and acceptance of) these terms and conditions, to the fullest extent possible.

Definitions

Mobile Banking: is a personal financial information management service that allows you to access your Family Bank Account information or the performance of transactions over the phone through the bank’s secure system.
Account: shall mean any account at the bank which has been registered for use via the mobile banking service.
Customer: shall mean the natural person or legal entity acquiring services from the Bank.
Bank: shall mean Family Bank Limited or any successors or assigns.
E-products: the products rendered by the Bank to the Customer and acquired by the Customer from the Bank, whether or not through the internet, using, among others, fax and e-mail.
Facility: shall mean Mobile Banking facility provided to the customers.
System: shall mean the mobile banking and communications software enabling the customer to communicate with the bank.
Request: a request or instruction received by the bank from the customer to communicate with the bank for the purposes of the service. The system service will for the purpose of this agreement be accessed through the mobile phone.
MBS: shall be the acronym for Mobile Banking service
Branch: a branch or branches of the bank which may from time to time be specified by the bank to the customer.

Terms & Conditions

1. The Customer shall apply to the Bank for MBS & E-Products (and/or for any changes to the options available under the facility) by application through forms as prescribed by the Bank from time to time for the use of the facility by visiting his/her branch or such other medium(s) as the Bank may from time to time specify. Customer shall inter-alia provide a Mobile Number which is not already used for MBS provided by the Bank.
2. The Bank will from time to time determine or specify at its discretion the scope and features of the MBS & e-Banking Products and are entitled to modify, expand or reduce the same at any time upon notice to the customer.
3. Customer’s application for MBS & Electronic Banking shall be accepted only after authentication of the customer through any mode of verification as may be stipulated by the Bank from time to time as may be decided at the discretion of the Bank.
4. Customer, by making a request for transaction from his mobile phone in the format prescribed by the Bank, irrevocably and unconditionally authorizes the Bank to access all its accounts linked to MBS for effecting the transaction and also share the information regarding his accounts with the services provider or any third party as may be required for effecting the transaction.
5. The Bank shall endeavor to carry out the instructions promptly, however it shall not be responsible for the delay in carrying out the instructions due to any reason whatsoever including but not limited to failure of operational system, failure at mobile operator end or due to any requirement of law.
6. The e-Banking Products and MBS may, without prior notice be terminated, be suspended or terminated by the bank for any reason whatsoever, including and without limitation to, invalid data, closure of related account(s), breakdown, maintenance, modification, expansion and/or enhancement work caused or initiated by the telecommunications Company(s) concerned in relation to their network or by any service provider in respect of the SMS banking. The Bank will not assume any liability or responsibility for any such suspension or termination. The e-Banking Products may be terminated at any time by notice from the customer. to any such termination shall be effective within (4) days of receipt of the termination notice by the bank.
7. Customer should know that request for transactions, once made through his mobile are non retractable as these are processed instantaneously and on a real time basis. Therefore customer should take sufficient care while making a request for the transaction from his mobile.
8. Customer shall be solely responsible for accuracy and authenticity of the request made by him/her for information/transaction. The Bank shall not be liable for consequences arising out of erroneous information provided by the customer.
9. If the customer suspects that there is an error in the information provided to him/her by the Bank, he/she shall advise the Bank as soon as possible. The Bank shall endeavor to correct the error wherever possible on a best effort basis. The bank shall however not be liable for any inadvertent error which results in providing incorrect information to him.
10. The customer is solely responsible for protecting his PIN and mobile phone. Family Bank shall not be liable for unauthorized use of PIN or mobile phone of the customer. All requests emanating out of customer’s mobile with correct PIN shall be treated as genuine request and shall be acted upon by the Bank as such whether or not actually initiated by the customer.
11. It shall be the Bank’s endeavor to maintain the secrecy and confidentiality of customer’s accounts to the best of its abilities. The Bank, however, shall not be liable if the customer’s accounts are compromised on account of breach of secrecy, denial of service or on account of hacking/other technological failures.
12. If a customer changes his/her mobile number, he should visit his branch and update such change for MBS in the form prescribed by the Bank for this purpose. Once his request is accepted, his MBS shall be de-activated.
13. The customer shall promptly notify the bank of any changes to information provided to the bank related to or for the purposes of the e-Banking Products & MBS including change of email address or the details of the customer’s designated mobile phone number and the telecommunications company providing or servicing it. In addition, the customer shall promptly inform the bank of any loss or theft of their Mobile phone. The bank shall not be liable for any loss or claim resulting from the relaying of any information pursuant to the e-Banking Products to the designated mobile phone number prior to receipt of any notification of loss or theft.
14. The Bank may send messages to the customers regarding products/services of the Bank, or any other promotional message that the Bank may consider from time to time.
15. The customer can request for termination of his MBS by visiting his branch and submit his request in the form prescribed the Bank for this purpose. Customer can also send an SMS in the format prescribed for this purpose.
16. It shall be the Bank’s endeavor to give a reasonable notice for withdrawal or termination of MBS, but the Bank may at its discretion withdraw temporarily or terminate the MBS either wholly or partially anytime without giving prior notice to the customer. MBS may be suspended for any maintenance or repair work, any emergency or security reasons without proper notice and the Bank shall not be liable for denial of MBS.
17. The Bank may at its discretion change terms and conditions as mentioned here any time as it deems fit.
18. Any dispute or difference arising out of or in connection with MBS shall be subject to exclusive jurisdiction of the in Kenya
19. Any notice from the bank to the customer may be made in such manner and by such means of communication as the bank shall deem fit, including and without limitation to, use of direct mailing material, advertisement, branch display, electronic communications such as e-mail or via the e-Banking Products. Any notice from you to us shall be in writing at the following address Family Bank Limited, P.O Box 74145-00200 Nairobi Kenya
Disclaimer of Liability
1. Family Bank is in no way liable for any error or omission in the services provided by any Mobile or any third party service provider (whether appointed by Family Bank in that behalf or otherwise) to the customer, which may affect the Facility.
2. Family Bank does not warrant the confidentiality or security of the messages whether personal or otherwise transmitted through the Facility. Family Bank makes no warranty or representation of any kind in relation to the system and the network or their function or performance or for any loss or damage whenever and howsoever suffered or incurred by the customer or by any person resulting from or in connection with the Facility.
3. Family Bank shall under no circumstance be held liable to the customer if the Facility is not available or there is any delay in the carrying out of the instructions for any reasons whatsoever including but not limited to natural calamities, legal restraints, faults in the telecommunication network or network failure, or any other reason beyond the control of Family Bank. Without limitation to the other provisions of these Terms and Conditions, Family Bank, its employees, agent or contractors, shall not be liable for and in respect of any loss or damage whether direct, indirect or consequential, including but not limited to loss of revenue, profit, business, contracts, anticipated savings or goodwill, loss of use or value of any equipment including software, whether foreseeable or not, suffered by the Customer or any person howsoever arising from or relating to any delay, interruption, suspension, resolution or error of Family Bank in receiving and processing the request and in formulating and returning responses or any failure, delay, interruption, suspension, restriction, or error in transmission of any information or message to and from the telecommunication equipment of the Customer and the network of any Mobile service provider and Family Bank’s system or any breakdown, interruption, suspension or failure of the telecommunication equipment of the customer, Family Bank’s system or the network of any cellular service provider and/or any third party who provides such services as is necessary to provide the Facility. Illegal or improper use of the Facility by the Authorized User or any other person shall render the customer and the Authorized User liable for payment of financial charges as decided by Family Bank and / or will result in suspension of the Facility to the Customer.
4. Notwithstanding anything to the contrary stated herein, Family Bank shall not be involved in or in any way be liable to the customer for any dispute between the Customer and a cellular services provider or any third party service provider (whether appointed by Family Bank in that behalf or otherwise).
Indemnity
1. In consideration of Family Bank providing the Facility, the Customer agrees to indemnify and keep Family Bank safe and harmless from and against all actions, claims, demands, proceedings, loss, damages, costs, charges and expenses whatsoever which Family Bank may at any time incur, sustain, suffer or be put to as a consequence of or arising out in good faith for acting on or omitting or refusing to act on any instructions given by use of the Facility.
2. The Customer holds Family Bank / its Affiliates, harmless against any loss incurred by the Customer due to failure in the network of the mobile service provider. The Customer agrees to indemnify and hold Family Bank harmless for any losses occurring as a result of the Customer permitting persons to use the Facility through any means.

DEBIT CARDS

In consideration of Family Bank Limited pursuant to my/our request making available to me/us a Family Bank Debit Card I/We agree to be bound by the following Terms and Conditions:

1. DEFINITIONS

“Account” means in relation to a Cardholder(s) any account maintained with the Bank, either solely in the name of the Cardholder or jointly with other account holders.
“Bank” means Family Bank Limited together with its successor and assigns
“Card” means Debit Card issued by the Bank at the request of the Cardholder.
“Cardholder” means a person to whom a Card has been issued and whose name appears
on it and who agrees to be bound by these Terms and Conditions as varied by the Bank
from time to time.
“Merchant Establishment” means an establishment wherever located which accepts the Card and shall include but not be limited to stores, shops restaurants, hotels or airlines.
“PIN” means in relation to a Cardholder, the personal identification number required to gain
access to the Account to give effect to a Transaction Instruction.
“Shared Network Partner” means any entity that the Bank enters an arrangement with which allows cardholders of the Bank to effect Transactions on terminals owned by or affiliated to the entity;
“Transaction Instruction” means an instruction given by the use of the Card.
• In these Terms and Conditions, unless the context requires otherwise:
• The word “terminal” means any Automated Teller Machine or point-of-sale terminal through which a Transaction Instruction may be given.
• Words denoting one gender shall include all other genders.
• Words denoting the singular shall include the plural and vice versa.

2. USE OF CARD

2.1 A Card is not transferable and may not be used other than by the Cardholder.
2.2 The Bank shall be entitled to give immediate effect to the following Transaction
Instructions by the Cardholder:
• To effect a debit or credit to the Account;
• To display the current balance of the Bank Account on the Automated Teller
• Machines (ATM).
• To give an account mini statement from the ATM.
• To effect a credit to the Account by the deposit of cash or cheque, any such credit being effected either on the next working day (for cash deposit) or on the day of receipt of cleared funds (for cheque deposits); or
• To effect such other Transaction Instructions authorized by the Bank.
2.3 All withdrawals at the Bank's ATMs or any other shared Network will be subject to a daily withdrawal limit set by the Bank at its sole discretion. Where the Account is a joint account and Cards are issued to more than one or all of the joint Account holders, each card so issued shall jointly be subject to the daily cash withdrawal limit for the Account.
2.4 The Bank may, at its discretion, reserve a certain minimum amount to be maintained in the Account below which a Transaction Instruction will not be allowed even if sufficient funds are available in the Account to allow the Transaction.
2.5 In absence of manifest error, the Bank's record as to any Transaction Instructions shall be conclusive.
2.6 A Cardholder(s) must exercise all due care and attention to always ensure the safety of the Card and the secret of the PIN and prevent the loss of and/or use of the Card or PIN by any third party. A Cardholder of a Joint Account will be fully responsible for ensuring that the PIN is only known to person(s) with authority of the Joint Account holders and each authorized holder must never disclose their PIN to any unauthorized person under any circumstance.
2.7 If a Card is lost or stolen or if a PIN is disclosed to any unauthorized person, the Cardholder must immediately notify the Bank of such loss, theft or disclosure. Any oral notification to the Bank must be confirmed in writing immediately. The Cardholder will be liable in respect of any transaction Instruction given prior to receipt by the Bank of notification of such loss, theft or disclosure.
2.8 The Cardholder is advised to retain the record/receipt of a Transaction Instruction generated by a terminal. However, for all cash/cheque deposit transactions at the ATM, the Cardholder agrees that no receipt shall be issued by the ATM other than an acknowledgement of receipt of a cheque or envelope as the case may be and without express reference to the amount deposited.
2.9 All cash and cheque deposits shall be subject to verification by the Bank and such verified amount shall be binding on the Cardholder.
2.10 Cash or Cheques deposited in an ATM for credit to an Account shall be collected by the Bank and the proceeds shall not be available until the relevant funds have been received for value by the Bank.
2.11 The Bank shall not be liable for the refusal or inability of any Merchant Establishment or terminal to accept or honor a Card or to complete a Transaction or for the retention of a Card.
2.12 The Card is valid for transactions done in other currencies however settlement will be done in the local currency (Kenya Shilling) at a pre-determined exchange rate unless the Card is issued in another currency.
2.13 The use of the Card is subject to the rules and regulations of the Shared Network Partners including VISA and MASTERCARD.

3. CANCELLATION OR REPLACEMENT OF CARDS

3.1 A Card remains the property of the Bank and upon cancellation must be surrendered on demand to the Bank. The Cardholder may at any time cancel the Card by returning it to the Bank.
3.2 The Bank shall be entitled to block or cancel the Card at its discretion upon issuance of a 14 days' notice to the Cardholder, which notice shall be issued either by posting to the Cardholder's address last notified in writing to the Bank or by electronic mail to the Cardholder's e-mail address as indicated on the Card application form or the Account opening form. The notice shall be deemed to have been served upon the Cardholder 5 days after the date of posting or 3 days after the date of sending the email as the case may be.
3.3 The Cardholder must not use or attempt to use the Card after any notification of cancellation or withdrawal has been given.
3.4 After blocking of the Card the Card cannot be used by the Cardholder again even if the Card is later recovered.
3.5 The Bank may at its discretion issue a replacement card at the Cardholder's cost if the Cardholder loses the Card, if the term of the Card expires or if the Bank so requires.

4. FEES

In respect to each Card, the Bank shall be entitled to charge and debit from the Customer's Bank account such fees as it may prescribe from time to time including all applicable taxes. The Bank does not accept any responsibility for a surcharge levied by any merchant establishment.

5. LIABILITY OF CARDHOLDER

The Cardholder shall be fully liable in respect of each Transaction Instruction given by use of the Card. Transaction Instructions must be given in such a way that any confidential information displayed on a terminal is not disclosed to a third party. The Bank shall not be liable for any disclosure (including but not limited to the disclosure of the PIN) to any third party arising out of a Transaction Instruction. The Cardholder shall not hold the Bank liable, responsible or accountable in any way whatsoever arising out of the use of the Card.

6. INDEMNITY

A Cardholder (and in case of a Card issued in respect of a joint Account all joint Account holders jointly and severally) shall be liable to indemnify the Bank (on a full and unqualified indemnity basis) in respect of any and all expenses incurred by the Bank in enforcing or attempting to enforce these Terms and Conditions or the recovery of any amounts due from a Cardholder to the Bank including all legal fees and court filing fees and disbursements.

7. DATA PROTECTION

7.1 Each party to this agreement acknowledges the importance of protecting the privacy of all information provided by the other party and warrants that in dealing with data collected during the Transaction, they shall at all times strictly comply with the Data Protection Act, 24 of 2019.
7.2 The parties hereby agree that in dealing with data collected for the purposes of this relationship, the data shall be used only in accordance with the terms of this agreement and for purposes connected to the provision of the Transaction, in accordance with the lawful and reasonable instructions of the party providing the data and with the consent of the data subjects.

8. CIRCUMSTANCES BEYOND THE CONTROL OF THE BANK

8.1 The Bank shall bear no liability for inability to perform its obligations with regard to the terminal operations due to anything whatsoever outside the control of the Bank.
8.2 The Bank shall not be liable if it is unable to perform its obligations due (directly or indirectly) to but not limited to the failure of any machine, data processing system or transmissions link or to industrial dispute, strikes, lock outs, acts of any public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lighting, earthquakes, fires, storms, flood, civil disturbances, terrorisms, governmental regulations and directions and anything outside the direct control of the Bank, its agents or subcontractors.
8.3 A Cardholder (and in case of a Card issued in respect of a joint Account any of the joint account holders) shall not hold the Bank liable, responsible or accountable in any way whatsoever for any loss, injury or damage howsoever arising out of the use of any terminal including inability to make a cash withdrawal due to lack of funds at the ATM where the transaction is being processed.

9.AMENDMENT

These Terms and Conditions may be amended from time to time by the Bank and published on the Bank's website. Any such amendments shall be deemed to be affective and binding on the Cardholders as set out on the notice by the Bank and any subsequent use of the Card shall be deemed to constitute acceptance of the amended terms and conditions. Any failure by the Bank to notify the Cardholder shall not prejudice in any way howsoever the validity and/or enforceability of the Terms and Conditions as so amended, modified and/or replaced.

10. LAW

These Terms and Conditions shall be construed in accordance with the laws of the Republic of Kenya and the courts of Kenya shall have jurisdiction.

PREPAID CARDS

1. Definitions

1.1 Agent means any company or individual appointed and authorized by Family Bank to sell, reload and/or replace Cards.
1.2 ATM means an automatic teller machine or terminal for effecting cash withdrawals at which the Card may be used for the purpose of
withdrawing Funds.
1.3 Card means the Family Bank Prepaid card issued by Family Bank to the Cardholder.
1.4 Cardholder means such person to whom the Card has been issued by Family Bank pursuant to an application by such person.
1.5 Principle Card holder is the customer requesting for the Student card who has been vetted by the Bank and the Bank has maintained their
information.
1.6 Funds means the amount of monies loaded onto the Card by the Cardholder less any amounts previously spent and any applicable fees charges, conversion fees, and other expenses incurred in connection with the use or possession of the Card.
1.7 Family Bank Means Family Bank Limited, including but not limited to its successors in title and assigns and having its registered office at Family Bank Towers, Muindi Mbingu Street P. O. Box 74145-00200, Nairobi, Kenya.
1.8 Merchant shall mean any person who owns or manages or operates a Merchant Establishment.
1.9 Merchant Establishments shall mean establishments which honor the Cards.
1.10 PIN means the Personal Identification Number as provided to the Principal Cardholder's mobile number by Family Bank.
1.11 POS Terminal shall mean point of sale electronic terminals at Merchant Establishments whether in Kenya or overseas, capable of processing transactions.
1.12 Shared Network shall mean ATMs which are not owned by Family Bank but which accept Cards issued by Family Bank.
1.13 Transactions shall mean cash withdrawals from ATMs, POS Terminals and/or any purchases made over the internet or at Merchant Establishments using the Card.

2. Use of the Card

2.1 The Card may be used to access Funds at any ATM worldwide that accepts VISA Cards or such other cards as Family Bank may advise.
2.2 The Card does not constitute a checking, savings or other bank account and is not connected in any way to any other accounts of the cardholder. The Card is not a credit card.
2.3 The Cardholder may also use the Card to pay for charges incurred at Merchant Establishments. Family Bank and Merchant Establishments reserve the right at any time to refuse to permit the use of the Card at the Merchant Establishment.
2.4 In event there are insufficient Funds to honor the requested Transaction, the Transaction will not be honored.
2.5 The Cardholder may surrender the Card, along with copy of the Cardholder's passport/identity card, at any point in time and obtain a refund of the balance of the Funds by completing the refund form as prescribed by Family Bank. The refund shall be made in the currency loaded in the card or the equivalent in any other currency at Family Bank's sole discretion.
2.6 Use of the Card for any unlawful transaction or at any unauthorized location or for any purpose other than as stated under these terms and conditions is strictly prohibited and may result in cancellation of the Card by Family Bank.
2.7 Family Bank will not be liable for any loss, direct or indirect, that may be suffered by the Cardholder as a result of any use of the Supplementary card.
2.8 The Bank shall notify the Card Holder by issuing a thirty (30) day notice before discontinuation of any of the Prepaid Card services offered to the card Holder. The Customer shall be required to acquaint himself/herself with the process of using the Prepaid Card and that he/she shall be responsible for any error made while using the Card.
i) The Bank reserves the right to decide what services may be offered. Additions/ deletions to the services offered under the Card are at its sole discretion.
ii) The instructions of the Customer shall be effected only after authentication under his/her USER ID and MPIN or through any other mode of verification as may be stipulated at the discretion of the Bank.
iii) While it shall be the endeavor of the Bank to carry out the instructions received from the Customers promptly, it shall not be responsible for the delay/ failure in carrying out the instructions due to any reasons whatsoever including failure of operational system.

3. Accuracy of Information

It is the responsibility of the Customer to provide correct information to the Bank through the use of the Card Service or any other method. In case of any discrepancy in this information, the Customer understands that the Bank will not be in any way responsible for action taken based on the information. The Bank will endeavor to correct the error promptly wherever possible on a best effort basis, if the customer reports such error in information.

4. Additional or Supplementary card

4.1 The Bank will issue a maximum of three Supplementary cards (three supplementary cards and the Principal Card holder's card). A fourth will only be issued if any of the three cards is deactivated.
4.2 The Bank may issue a card (hereinafter referred to as additional cards) for use by any person nominated by principal cardholder in writing (additional cardholder) as an authorized user on the principal cardholder's card account upon the written agreement of such persons to be bound by the terms of this agreement.
4.3 The Principal cardholder and the additional cardholder shall be jointly and severally liable to pay all amounts arising from losses incurred by the Bank in connection with the use of the additional card or breach of this agreement. All such costs shall be debited to the Principal cardholder's account.
4.4 The Bank shall cancel any additional card at any time upon verbal or written request by the principal cardholder and upon the return or surrender of such additional card to the Bank. Where the request has been made verbally, written request should follow. The supplementary cardholder must not use or attempt to use the card after any notification of cancellation or withdrawal has been given.

5. Internet Transactions

5.1 The Card can be used over the Internet and the Cardholder will assume all risks associated with such Transactions.
5.2 Notwithstanding anything written herein to the contrary, the Customer acknowledges and agrees that the Bank will not be liable for any fraudulent use of the Card, losses or damages, whether indirect, incidental, special or consequential, in profits, goods or services, irrespective of whether or not the Customer has been advised or otherwise might have anticipated the possibility of such loss or damage while using his/ her Card and/or sharing his/ her CVV number for any transactions.

6. Security of the Card and PIN

6.1 To enable the Cardholder use the Card, Family Bank will issue the Cardholder with a PIN enclosed with the Card. In case of a re-dispatch request of PIN, unless otherwise determined by Family Bank as to the mode of delivery of the PIN, the PIN shall be mailed to the Cardholder (at such address as has been specified in the application form for the Card) in a sealed envelope.
6.2 The Principal Cardholder shall forthwith notify Family Bank of any change in his/her address for communication as stated in the application form for the Card. The responsibility shall be solely of the Principal Cardholder to ensure that Family Bank has been informed of the correct address for communication, and Family Bank disclaims all liability in case of an incorrect address resulting in any loss or liability for the cardholder.
6.3 The PIN (as originally provided or which is subsequently changed), by its usage together with the Card and the transactions or instructions issued pursuant thereto, are deemed to be Transactions conducted or instructions given by the Cardholder.
6.4 The Principal Cardholder shall maintain the confidentiality, safety and security of the Card's PIN and Card information.
6.5 Failure to observe confidentiality, safety or security of the PIN shall result in the Principal Cardholder incurring liability on the Card or use of the PIN. The Cardholder agrees that the security of the Card and PIN is the Cardholder's sole responsibility

7. Limits on Use and Reloading of the Card

7.1 Family Bank reserves the right to limit the amount of Funds that may be used, loaded or reloaded into the Card for effecting any Transaction per day or over a specified period or restrict the number of Transactions that may be effected through use of the Card.
7.2 The Card limit for amounts loaded by the Cardholder shall be a maximum of KES. 1,000,000.00. For all Supplementary cards assigned to the primary cardholder. i.e. KES. 250,000 each.
7.3 In event the Cardholder wishes to reload the Card, Family Bank reserves the right to decline a reload transaction at its sole discretion. The Funds shall be reloaded in same currency in which the Card was originally issued.

8. Lost or Stolen Card or PIN

8.1 The Cardholder shall inform Family Bank at the Family Bank Call Centre immediately if the Cardholder believes that the Card or PIN has been misused, lost or stolen or the PIN has become known to any person and the Cardholder believes that such person may misuse the same.
8.2 On receipt of intimation from the Cardholder, Family Bank will attempt to block the conduct of further Transactions requested through the use of the Card and attempt to prevent the further use of the lost, stolen or damaged Card(s). Family Bank will assist the Cardholder in replacing the lost, stolen or damaged Card. The Cardholder shall pay replacement charges for the Card as directed by Family Bank.
8.3 After blocking or cancellation of a Card and the PIN, the Card cannot be used by the Cardholder again and no refund shall be allowed on the card. However, upon replacement of the Card, the cardholder may request Family Bank to transfer the balance on the blocked or cancelled Card to the new card subject to other provisions hereof.

9. Liability on Unauthorized Transactions

9.1 The Cardholder shall bear all losses resulting from the use of the Card which also includes the situations where purportedly unauthorized transactions have been effected through the use of the Card and/or the PIN or situations where purportedly misuse, loss and/or theft of the card and/ or the PIN has occurred, and such liability continues until: -
(i) notification to Family Bank of such unauthorized transactions or the stolen or misplaced Card and/or PIN and
(ii) Family Bank blocking the further use of the Card and/or the PIN successfully.
9.2 The Cardholder shall further bear all losses resulting from the use of the Additional or Supplementary Card by any third party using the card on behalf of or under instructions of the primary Cardholder and such liability continues until: -
(i) notification to Family Bank of such unauthorized transactions or the stolen or misplaced Card and/or PIN and
(ii) Family Bank blocking the further use of the Card and/or the PIN successfully.

10. No Representation

10.1 Family Bank does not make any representation and/or warranty to the Cardholder (or any person claiming by or under the Cardholder) or otherwise assure the Cardholder (or any person claiming by or under the Cardholder)) as to the services and benefits we provide for use of the cards or the quality of the goods purchased/hired/proposed to be purchased/hired or otherwise and/or of services availed of/ proposed to be availed of by use of the Card with/at any person including the Merchant Establishment/s or for any delay in delivery of the goods/services, non-delivery of goods/services, or receipt of defective/sub-standard goods/ services by use of the Card with/at any person including the Merchant Establishment/s.
10.2 Disputes or claims in connection with the quality of the goods purchased/hired/proposed to be purchased/hired or otherwise and/or of services availed of/proposed to be availed of by use of the Card with/at any person including the Merchant Establishment/s or for any delay in delivery of the goods/ services, non-delivery of goods/services, or receipt of defective/sub-standard goods/services by use of the Card with/at any person including the Merchant Establishment/s must be mutually resolved by the Cardholder (or any person claiming by or under the cardholder) with such person/ Merchant Establishments without reference to Family Bank.

11. Exclusion of Liability

Family Bank shall be under no liability whatsoever to the Cardholder in respect of all actions, claims, demands, proceedings, losses, damages, personal injury (including actual or perceived loss of reputation, defamation or the like), costs, charges and expenses whatsoever arising directly or indirectly out of:
i) any use of the Card and/or PIN;
ii) the refusal by any person or Merchant Establishments in honoring or accepting the Card;
iii) any ATMs/ POS terminals that malfunctions or is otherwise out of order, and whether resulting in such terminal not accepting the Card and/or PIN or otherwise.
iv) any statement made by any person requesting to surrender/cancellation of the Card or any act performed by any person in conjunction thereto;
v) handing over of the Card by the Cardholder to a person other than the designated employees of Family Bank at Family Bank's premises;
vi) the exercise by Family Bank of its right to demand and procure the surrender of the Card prior to the expiry date stated on its face, whether such demand and surrender is made and/or procured by Family Bank or by any other person or ATMs/POS terminals;
vii) the exercise by Family Bank of its right to terminate any Card;
viii) the re-possession/cancellation of the Card and/or request for its return;
ix) any misstatement, misrepresentation, error or omission in any details disclosed to the
x) Cardholder by Family Bank or its staff;
xi) decline of processing of the Card and/or PIN due to such Card exceeding foreign exchange entitlements as prescribed by applicable law, rules or regulations in force from time to time or on Family Bank becoming aware of the Cardholder exceeding entitlements;
xii) In the event a demand or claim for settlement of outstanding dues/funds received in excess of the Funds from the Cardholder is made either by Family Bank or any person acting on behalf of Family Bank;
xiii) communication sent by any means of communication including by facsimile machines, Internet, ATMs POS terminals, payment systems, or any other method over public and/or private lines that may not be encrypted, and which may involve the risk of possible unauthorized alteration and/or unauthorized use of
i) communication; or
ii) upon terminating, suspending, blocking or declining of the use of the Card and/or access to the Funds, inter alia, when it becomes necessary to determine whether any person is rightfully entitled to receive the Funds/use the Card and/or for taking any other steps required by applicable law, rules and regulations or direction of any appropriate authority.

12. Compliance with Applicable Laws, Rules and Regulations

12.1The Card may be used outside Kenya, subject to applicable laws, rules and regulations in force from time to time in Kenya and subject to such restrictions/ limitations under the applicable laws, rules and regulations from time to time in the country where the Card is used. The cardholder shall be solely responsible to the concerned authorities in event of any violation of the applicable laws, rules and regulations in force from time to time.
12.2 Family Bank will not be liable for any direct, indirect or consequential loss or damage, arising from or related to the non-compliance by cardholder with the applicable laws, rules and regulations in force from time to time in relation to use of the Card.

13. Use of Card on Shared Networks

13.1 The Card enables the Cardholder to obtain the Funds in cash by withdrawal from ATMs and/or ascertain information as to the balance on the Card at ATMs/POS terminals (whether of Family Bank or a Shared Network) or make payments at Merchant Establishments through POS Terminals.
13.2 Cash withdrawn at an ATM outside Kenya with the Card shall be in a currency as permitted by the Shared Network which owns/operates the ATM at which the withdrawals are made. Family Bank shall debit from the Cardholder's Funds, the equivalent in the currency in which the cardholder's Funds is held, any additional processing charges, conversion charges or any other fees chargeable in connection with such shared Network Transactions.

14. Suspension and Cancellation of Cards

14.1Family Bank reserves the right to terminate/suspend/block/decline the usage of the Card/access to the Funds, temporarily or permanently, upon the occurrence of any of the following events:
i) failure to adhere to or comply with terms and conditions herein;
ii) an event of default under any agreement or commitment (contingent or otherwise) or the like entered into with Family Bank or its group companies;
iii) the Cardholder becoming subject to any bankruptcy, insolvency proceeding or proceedings of a similar nature;
iv) demise of the Cardholder,
v) when it becomes necessary to determine whether any person is rightfully entitled to receive the Funds/use the Card and/or for taking any other steps required by applicable law, rules and regulations or direction of any appropriate authority.
14.2 Notwithstanding anything contained herein, Family Bank may, at any time, without giving notice or reason, withdraw, suspend or terminate the use of the Card by the Cardholder. The Cardholder undertakes to return the Card to Family Bank immediately upon request.
14.3 Notwithstanding such suspension or termination, the Cardholder shall continue to be bound by these terms and conditions to the extent they relate to any obligations or liabilities of the Cardholder that remain to be performed or discharged.
14.4 In case the Card is cancelled (or its use suspended), whether on account of noncompliance with the applicable laws, rules and regulations in force from time to time or otherwise, Family Bank will not be responsible for any use/ attempted use of the Card, resulting in the Card being dishonored or otherwise. The risk of honoring of a Card that is cancelled (and/or suspended) on its presentment is on the person or Cardholder.

15. Errors, Questions or Complaints

15.1 The Cardholder may call Family Bank Call Center in event of any queries or complaints in connection with the Card. Alternatively, the cardholder may email Family Bank at the applicable email address. Further, in case of complaints, the Cardholder should provide sufficient and correct details in writing to Family Bank in order to enable Family Bank to investigate and respond on the complaint or query appropriately.
15.2 The following information will require being provided in such correspondence:
i) Name, address and Card number of the Cardholder.
ii) A detailed description of the transaction and/or the complaint (including the date of the transaction and the location of the ATM/Merchant Establishment) and the basis or reason for the Cardholder to dispute the Transaction or raise a query or complaint; and
iii) The Transaction amount.
iv) In case any further information/document is required by Family Bank for investigation or resolution of the matter, the Cardholder hereby agrees to provide the same. Where an inquiry is not settled to the satisfaction of the Cardholder, Family Bank may advise the Cardholder in writing or otherwise of the results of its investigation and/or the manner of resolution, if any, of the complaint.

16. Refunds and Claims

16.1 All payments made on the Card with the PIN, whether with the consent of the Cardholder or not, are final and cannot be reversed. Should a cardholder dispute a transaction made on the Card, provided that it was not lost, stolen or misused by someone who obtained the Card due to the Cardholder's negligence, then a dispute period of 30 days from the date of the Transaction is available to the Cardholder to initiate any dispute with the Bank after which the Transaction shall be considered valid and undisputed.
16.2 Once a dispute is raised by the Cardholder, Family Bank shall undertake independent investigations. Before the investigations are over, the cardholder shall have no refund or charge-back rights for such disputed Transactions even if not authorized by the Cardholder. After completing investigations into the disputed Transactions, Family Bank reserves the right to settle the dispute as it deems fit, including but not limited to refunding the charges of a Transaction or incorrect debit to the Card, and if the Cardholder is still aggrieved, the Cardholder may refer the dispute to arbitration.

17. Costs, Charges and Fees

17.1 The Cardholder hereby agrees and acknowledges that all applicable costs, charges and fees in connection with the issue or usage of the card can be deducted automatically from the Cardholder's Funds. Such costs, charges and fees are subject to change by Family Bank from time to time.
17.2 Any statutory levy including duties or taxes payable as a result of the use of the Card shall be the Cardholder's responsibility and if imposed on/recovered/sought to be recovered from Family Bank (either directly or indirectly), such statutory levy shall be deducted from the Funds and/or recovered directly from the Cardholder and/or from any accounts (including joint accounts) maintained by the Cardholder with Family Bank.
17.3 Family Bank may change the applicable costs, charges and fees in relation to the Cards and changes will be implemented at least 30 days after we notify the Cardholder.

18. Indemnity

18.1 In consideration of Family Bank providing the Cardholder with the Card, the Cardholder hereby agrees to indemnify and keep Family Bank indemnified from and against all actions, claims, demands, proceedings, losses, damages, personal injury, costs (including legal costs), charges and expenses whatsoever which Family Bank may at any time incur, sustain, suffer or be put to account as a consequence of or by reason of or arising out of loss, fraud, use or misuse of the Card by the Cardholder.
18.2 The Cardholder hereby indemnifies and agrees to hold Family Bank indemnified against all actions, claims and costs, charges and expenses arising out of or as a consequence of the Cardholder not complying with all the applicable laws, rules and regulations in relation to the Card in force from time to time.
19. Customer Confidentiality
The Bank shall not at any time during or after the termination of this agreement use or disclose to any third party any confidential information or any information concerning or relation to products, customers service, operations and business activities of the customer.

20. Use of Customer Information

20.1Family Bank reserves the right to use the information provided by the Cardholder on his/her application for surveys and for marketing activities carried out by Family Bank/affiliates. Family Bank may use this information to develop mailing lists that may be used by companies with whom Family Bank shall work with to develop, among others, marketing offers for the Cardholders.
20.2 The Cardholder hereby authorizes Family Bank and its Agents to exchange, share or part with all the information relating to the Cardholder's details and payment history information and all information pertaining to the Card to other Family Bank group companies/banks/financial institutions/ credit bureaus/agencies/ statutory bodies as may be required and undertakes not to hold Family Bank Ltd/all other group companies of Family Bank Group and their Agents liable for use of the aforesaid information.
20.3 The Bank shall comply with the data protection and privacy laws of Kenya and will be legally responsible for any personal data that is collected or otherwise processed.

21. Severability and Waiver

Each of the provisions of these terms and conditions is severable and distinct from the others and if at any time, one or more of such provisions is or becomes illegal or unenforceable in any respect under the laws of any jurisdiction, the legality, validity or enforceability of the remaining provisions shall not be affected in any way. No act, delay or omission by Family Bank shall affect its rights, powers and remedies under the terms and conditions or any further or other exercise of such rights, powers or remedies. The rights and remedies under these terms and conditions are cumulative and not exclusive of other rights and remedies provided by law.

22. Right of Set-off

In addition to the general right to set off or other right conferred by law or under any other agreement, Family Bank may, without notice, combine or consolidate the balance on the Card with any other account(s) which the Cardholder maintains with Family Bank and its group companies, and set-off or transfer money standing to the credit of such other account(s) in or towards the satisfaction of the Cardholder's liability to Family Bank under his/her Card.

23. Funds in expired Cards

23.1 Any residual balance in expired cards will be forfeited if unclaimed after 24 months after the expiry of the Card.
23.2 Any amounts due for submission to the Unclaimed Financial Assets Act 2011 & Regulations will be forwarded to the Authority within the stipulated statutory timelines.

24. Dispute Resolution

24.1 In the event of any dispute or difference arising between the parties in relation to or arising out of this agreement, including the interpretation, rectification, termination or cancellation of this agreement:
24.2 A party claiming such dispute or difference, shall forthwith advise the other in writing thereof.
24.3 Upon receipt of such notice, the parties shall meet and negotiate in good faith in order to resolve such dispute or difference. The Parties herein shall make all attempts to amicably settle such dispute or difference by direct informal negotiation within a period of fourteen (14) business days.
24.4 If the dispute is not resolved at that meeting, the parties will attempt to settle it by mediation in accordance with the Strathmore Dispute Resolution Center (SDRC) Mediation Guidelines. The mediation shall be undertaken by a single mediator to be agreed upon between the parties or failing such agreement, the Mediator will be nominated by SDRC within fourteen (14) days of notice of the dispute. To initiate the mediation a party will give notice in writing to the other party(ies) to the dispute requesting a mediation. A copy of the request will be sent to Strathmore Dispute Resolution Center (SDRC). The mediation will start not later than twenty-eight (28) days after the date of receipt of such notice.
24.5 The mediation shall take place in Nairobi, Republic of Kenya.
24.6 No party may commence any court proceedings or arbitration in relation to any dispute arising out of this agreement until it has attempted to settle the dispute by mediation and either the mediation has terminated or the other party has failed to participate in the mediation, provided that the right to issue proceedings is not prejudiced by a delay.
24.7 The costs of mediation (including fees and expenses of the mediator) shall be shared equally between the parties UNLESS the award expressly provides otherwise.

25. Governing Law

The laws of Kenya govern these terms and conditions as also the use of the Card by the Cardholder subject however to the Cardholder being subject to applicable laws, rules, and regulations of Kenya or such other country where the Card has been used. The Parties hereby agree that any claim, legal action or proceedings arising out of these terms and conditions for the Card instituted by the cardholder (and/or any persons claiming through or under the Cardholder) shall be brought in the courts or tribunals at Nairobi in Kenya and the Parties shall irrevocably submit themselves to the jurisdiction of such courts and tribunals.

26. Data Protection

26.1 Each party to this agreement acknowledges the importance of protecting the privacy of all information provided by the other party and warrants that in dealing with data collected during the Transaction, they shall at all times strictly comply with the Data Protection Act, 24 of 2019.
26.2 The parties hereby agree that in dealing with data collected for the purposes of this relationship, the data shall be used only in accordance with the terms of this Agreement and for purposes connected to the provision of the Transaction, in accordance with the lawful and reasonable instructions of the party providing the data and with the consent of the data subjects.
26.3 Each party to this agreement shall:
i) Comply with the specific security and data protection obligations imposed on them in terms of applicable data protection legislation; and/or
ii) Where applicable comply with the specific obligations imposed on them in terms of the Data Protection Regulation in respect of the specific role they fulfil in terms of providing the services as agreed between the parties; and/or
iii) Take, implement and maintain all such technical and organizational security measures and procedure necessary or appropriate to preserve the security and confidentiality of information in its possession and to protect such confidential information against unauthorized or unlawful disclosure access or processing accidental loss destruction or damage.
26.4 The parties undertake and agree not to disclose to any unauthorized person any data compiled, collected or created as a result of their cooperation under this Agreement.

27. Variation of Terms and Conditions

27.1 Family Bank reserves the right to vary or change at any time, these Terms and Conditions, features and benefits offered on the Card including, without limitation to, changes which affect existing minimum balances, charges or rates and methods of calculation.
27.2 The Bank shall notify the Card Holder by issuing a thirty (30) day notice before any changes are made and effected to the terms and conditions contained herein.

28. Acceptance

By applying for and using the Family Bank Cards, I unconditionally agree to be bound by the laws, rules, regulations, terms and conditions now existing in relation to the Cards or which may hereinafter be enacted, issued or enforced.

MERCHANT PDQ / POS

1.0 Definitions

Settlement day is a day on which the bank is open for general banking operations. usually, the settlement day is any calendar day that is not a Saturday, Sunday, or a national or public holiday.
Authorization is a query to verify the validity of the card and free funds in the account associated with the card, reserve a transaction sum, or cancel a reservation.
Card organization is Visa International, or any other organization, the cards of which the merchant accepts under the agreement.
Cardholder is a natural person to whom a card is issued. Card is an electronic payment instrument that enables the cardholder to make transactions.
Merchant is a legal or natural person with whom the bank has entered into this agreement.
Customer helpline is a helpline that operates 24 hours a day, the telephone number of which the merchant can and on the POS terminal.
Account is the merchant's settlement account which is indicated in the agreement.
Receipt is an electronic or paper printout of the POS terminal with the cardholder's signature, a confirmation of PIN verification, or another confirmation acceptable for the bank that verifies that the transaction took place.
Agreement is the merchant agreement for card transactions concluded between the merchant and the bank with the accompanying instructions and other parts of the agreement (incl. the general terms and conditions and the price list of the bank).
Payment Card Industry data security standard (incl. PCI-DSS, PA-DSS and PTS; https://www.pcisecuritystandards.org/) are the requirements and processes supported by the card organizations to protect sensitive card data at the merchant.
POS terminal is an electronic device with necessary auxiliary devices which has a
card payment function to complete transactions.
POS terminal guide is an integral part of the agreement that provides information on how to adjust and use the POS terminal. The guide is provided together with the POS terminal.
Point of sale (POS) is the service place indicated in the agreement where the merchant accepts the transactions made with cards.
Bank is FAMILY BANK LIMITED
Certification is an action by the bank or a third person authorized by the bank to verify the compliance of the POS terminal with the requirements of the bank and the card organization.
Chargeback is a claim by the bank to cancel a transaction on the bases described in the agreement and to pay the bank the transaction sum.
Transaction is a transaction for the provision of a service and/or sale of goods or some other transaction allowed by the bank carried out using a card at the POS terminal between the cardholder and the merchant. Transaction record is electronically saved information regarding the transaction (incl. cancellation of the transaction).
Technical partner is a legal person who performs operations with the POS terminal received from the bank (installation, setup, repair, expert assessment of the POS terminal, etc.).
Strong authentication is identification or authentication of the cardholder based on at least two security elements that function independently of each other and ensure confidentiality of the authentication data. These security elements are only known to or in the possession of the cardholder (e.g. confirming a chip card transaction with a PIN).

2.1 Use of the Bank's POS at Merchant Outlets is subject to the terms of this Agreement:

2.1 General. Merchant will comply with this Merchant Agreement (including the terms of the Operating Guide) for submitting and processing Transactions with Bank. The Bank is responsible to Merchant for processing Transactions under the Operating Rules for the Card Program services to which Merchant subscribes, which may vary among Card types.
2.2 Merchant's Responsibility for Acts of Others. The Merchant, and not Bank, is responsible for any advice from, acts of, as well as omissions, acts of fraud or acts of misconduct by Merchant's employees, processors, consultants, advisors, contractors, Merchant Servicers, Agents, officers and directors. Merchant, and not Bank, is responsible for the use, unauthorized use or misuse of Merchant's equipment, POS Equipment, or software.
2.3 The use and acceptance of the Family Bank POS to purchase goods or dispense cash, and make various utility bills payments at the tills in Merchant Outlets countrywide will be subject to: -
2.3.1 The transaction being approved and or authorized by the Bank's System;
2.3.2 Any other terms and conditions as may be advised in writing by either party to the
other from time to time.
2.2.3 The point of sale terminal device will route the details to the Bank's Card Management System for authorization and the Bank shall have complete discretion to approve transactions for cardholders. Nothing in this Agreement shall require the Bank to give a reason or reasons for rejecting a transaction.
2.3.3 In the case of credit cards, voice authorization shall be requested for any card transaction which exceeds the Floor limit. This shall apply where online authorization has failed.

2.4 Operating Procedures for Transactions.

In accepting Cards for the purchase of Merchant's goods and services, Merchant shall comply with the requirements of this Merchant Agreement, including but not limited to the Operating Rules and the Operating Guide, as the same are revised from time to time.

2.5 Submission of Valid Transactions.

(a) Merchant will submit to Bank a Transaction only if the Transaction is made or approved by the Cardholder who is issued the Card used for the Transaction. Merchant will not submit directly or indirectly:
(a) any Transaction that Merchant knows or should have known to be fraudulent or not authorized by the Cardholder;
(b) any Transaction that results from a transaction outside of Merchant's normal course of business, as described on the Merchant Application; or
(c) any Transaction containing the account of a Card issued to Merchant or any account numbers issued to Merchant's business owners, family members and principals for Transactions that do not represent a purchase of goods or services from Merchant or a related credit.

2.6 Accepting cards

2.6.1 The merchant accepts in all cards that are of the card type and comply with the requirements specified in the agreement when performing transactions.
2.6.2 The merchant is entitled to refuse to accept a certain card if this right arises from the legislation. The merchant duly informs the cardholders of the cards they do not accept.
2.6.3. For accepting a card, the merchant uses the POS terminal certified by the bank or processor and registered in compliance with clause 14.

2.7 Security

2.7.1 The merchant complies with the requirements of the card organizations and the Payment Card Industry data security standards, which provide secure storage of card data.
2.7.2. The merchant shall not save or store sensitive card data.
2.7.3 The Bank may request the merchant to provide documents certifying that the merchant is compliant with the Payment Card Industry data security standards. In case of a significant payment data security incident, the merchant cooperates with the bank and law enforcement authorities.
2.7.4 The merchant shall adhere to the requirements for accepting bankcards and the instructions given by the POS terminal to avoid any misuse of the card or the use of a fake card.
2.7.5 The Bank has the right to impose compulsory security requirements to the merchant.

2.8 General obligations of the merchant

The merchant is forbidden to:
2.8.1. set a minimum and maximum sum on a transaction or impose other unjustified restrictions;
2.8.2. take an additional fee for the use of the card in addition to the price of goods or services if this is forbidden by legislation;
2.8.3 accept a card for paying or renancing the cardholder's debt (an instalment in case of payment in instalments, outstanding invoice, or some other earlier obligation);
2.8.4 divide a purchase into several transactions or on several receipts, unless the goods or services are paid for as a prepayment, the cardholder has been informed of the payment terms and conditions, and no other agreement with the bank exists;
2.8.5 give cash based on the transaction or cancellation of the transaction;
2.8.6 use a means that copies, saves, or stores in some other way information on the magnetic strip or chip of the card or in the data processing system of the merchant about the card or the cardholder;
2.8.7 provide services, sell products, or make transactions at the point of sale that violate valid legislation, generally accepted ethics standards, or good practice.
2.8.8 The merchant undertakes to maintain in a visible place at the point of sale the identification marks of those card organizations, the cards of which they accept. The merchant shall only use promotional materials previously approved by the bank for this purpose.
2.8.9 If the merchant is entitled to take a fee for using cards, which is allowed by legislation, the merchant undertakes to adhere to all relevant requirements of this legislation.
2.8.10. The interest of the Bank to provide the service under the terms and conditions that were agreed upon is dependent on the area of activity of the point of sale (the goods or services stated in the agreement). The merchant shall not change the area of activity stated in the agreement or the location of the POS terminal without the consent of the Bank.
2.8.11. The merchant maintains records of the POS terminals used by them (among other things, the merchant keeps a register about the serial numbers of the POS terminals and their auxiliary devices in the possession of the merchant by location and keeps these data updated) and, upon the request of the Bank, issues the Bank a list of POS terminals and their auxiliary devices that are actually used.
2.8.12 The merchant shall ensure sufficient protection of the POS terminal and take care that only the merchant's employee(s) and the technical partner can access the POS terminal.
2.8.13 The merchant pays all communication costs and other costs incurred in relation to the use of the POS terminal.
2.8.14 The merchant shall execute transactions, incl. authorize, in compliance with the terms and conditions of the agreement, the requirements for accepting bankcards, the POS terminal guide, the instructions given by the POS terminal, and other guidelines provided by the Bank.
2.8.15 All sums of a transaction are calculated in the official currency of Kenya unless the parties have agreed otherwise.

2.9 Receipt, confirmation, and cancellation

2.9.1 For each transaction made with the POS terminal, the merchant formalizes a receipt.
2.9.2. If the cardholder or legislation so requires, the merchant gives the cardholder a copy of the receipt that confirms that the card transaction took place. The merchant gives the cardholder the copy along with the goods or services that were the object of the transaction or makes it available on some other permanent data medium.
2.9.3 The merchant may not demand the cardholder to sign a receipt, confirm the transaction with their PIN, or complete a contactless payment before the entire sum of the transaction is made known to the cardholder.
2.9.4 The merchant executes the transaction at the presence of the cardholder, unless the merchant and the bank have agreed otherwise.
2.9.5 Upon the execution of a transaction, the merchant applies strong authentication measures (e.g. confirmation with a PIN) unless it is impossible for the particular card or if exceptions are specified in the agreement or in legislation (e.g. a contactless payment).
2.9.6 In case the merchant has been granted the right of preliminary authorization of a transaction, the merchant shall make the final transaction within 30 days. In the case of transactions made after this term has passed, the bank cannot ensure payment for the transactions.
2.9.7 After the transaction is completed and a copy of the receipt is handed over or made available to the cardholder, the merchant shall not make any changes in the transaction record or on the receipt.
2.9.10 If the goods are returned, the transaction can be cancelled through the POS terminal. The merchant will be responsible for any reversal of a transaction at their POS.

2.10 Transaction records

2.10.1 The merchant shall ensure that the POS terminal forwards transaction records to the bank no later than on the calendar day following the day of the transaction. For that purpose, the merchant checks the POS terminal day-end report, following the POS terminal guide.
2.10.2 The Bank accepts all transaction records for processing that the merchant has submitted in compliance with the terms and conditions of the agreement.
2.10.3. The Bank shall have the right at its sole discretion to suspend the processing of the transaction record to specify the circumstances relating to the transaction. The bank shall inform the merchant about the suspension of processing on the next settlement day after the receipt of the transaction record. In this case, the deadline for payment specified in this agreement extends automatically by the time needed to clarify the circumstances. If a breach of the conditions of the agreement by the merchant or the misuse of a card is discovered, the bank shall have the right not to process the transaction record.
2.10.4. When forwarding the transaction record to the bank, the merchant undertakes to ensure that all information in the record is correct; the cardholder has received the goods and/or services for the sum stated on the receipt.
2.10.5 The merchant can request a transaction report from the Bank.
2.10.6 The merchant is entitled to order a regular or one-time transaction report, stating, in addition to the transaction sum, processing fee, and the payable sum, the commission fee paid to the bank that issued the card.
2.10.7 The processing fee of a transaction includes the commission fee paid to the bank that issued the card and the scheme fee of the card organization. The rates of
the mentioned fees are defined in the card organization guidelines.

3. Chargeback

The Bank may issue a chargeback to the merchant under the following conditions:
3.1 the cardholder has not received the promised goods or services;
3.2. the goods or services do not have the promised characteristics;
3.3 in case of a transaction that has to be confirmed by a signature, the signature is missing on the receipt or the signature on the receipt does not match with the signature of the cardholder on the signature strip;
3.4. the transaction has not been authorized as required;
3.5 the receipt is filled out deficiently and/or the merchant's receipt is different from the cardholder's receipt;
3.6 the merchant has made a transaction without the physical presence of the card;
3.7 the person that makes the transaction is not the cardholder;
3.8 the merchant has failed to apply strong authentication measures;
3.9 other terms and conditions of the agreement have not been followed.
3.10 Notwithstanding the above, the Bank is entitled to unilaterally deem any invalid receipt as valid. The Bank's right to deem this receipt invalid later and file a chargeback upon the Bank becoming aware of the deficiencies of the relevant transaction is not compromised by the above.
3.11 The Bank shall notify the merchant of issuing a chargeback via the contacts provided by the merchant of either registered mail, fax, or e-mail.
3.12 The merchant agrees that the Bank shall withhold the sum stated in the chargeback from the sums payable to the merchant or debits the relevant sum from the merchant's account.
3.13 If requested by the Bank or processor, the merchant is obliged to present a copy of the receipt with the underlying documents, which prove that the relevant transaction took place. If the merchant fails to present a copy of the receipt compliant with the requirements of the agreement within five settlement days as of the request, the Bank may consider the transaction invalid and demand the merchant to pay the transaction sum by withholding it from the sums payable to the merchant or by making the payment from the merchant's account.
3.14 The merchant shall archive the underlying documentation of the transaction, including documents certifying that the transaction took place (receipt, sales invoice, the list of provided services, etc.), in a place out of reach of unauthorized persons in accordance within the time limits prescribed by law, but not less than two years from the moment the transaction record is transferred to the Bank.

4. POS terminal

4.1 The Bank gives the merchant a POS terminal together with a program to be used for accepting cards. A detailed description of the terminal (name of the model and serial number) is included in the instrument of delivery and receipt of the POS terminal.
4.2 Delivery and installation Within seven settlement days from the moment the agreement is concluded, the technical partner will contact the merchant to make arrangements for the time of installation of the POS terminal.
4.2.1 The technical partner installs the POS terminal for the merchant at the agreed time and place and conducts user training; verifies that the point of sale details specified in the agreement, incl. field of activity, are correct; prepares and signs the instrument of delivery and receipt of the POS terminal; gives the merchant the POS terminal guide along with the POS terminal.
4.2.2 The merchant ensures the bank or the technical partner access to the point of sale to allow them to install the POS terminal as well as for maintenance, repairs, etc.; ensures existence of necessary means of communication, cables, and power connection for the installation and use of the POS terminal; bears the costs of use of the POS terminal (incl. maintenance materials, electricity, communication costs etc.).
4.2.3 If the point of sale information specified in the agreement is incorrect or the merchant fails to ensure the conditions set out in this sub-clause, the Bank may refuse to install the POS terminal.
4.2.4 The merchant pays a fee for the installation in accordance with the price list of the bank. The initial user training of the POS terminal is conducted at the cost of the bank. The bank is entitled to collect the costs of additional training from the merchant.
4.2.5 If the merchant fails to ensure the conditions set out in clause 4.2.1 or has ordered a POS terminal unsuitable for the point of sale, the Bank may collect the costs of the second appointment of the technical partner from the merchant.
4.2.6 By signing the instrument of delivery and receipt of the POS terminal, the merchant confirms that;
• they have received the POS terminal from the Bank;
• the POS terminal is in working order and meets its purpose;
• the POS terminal does not have deficiencies;
• the merchant's information on the receipt is correct;
• they have undergone necessary training for using the POS terminal and accepting the cards;
• they have received the POS terminal guide and act in compliance with it.
4.2.7 The risk of accidental destruction of and damage to the POS terminal is transferred to the merchant the moment they have signed the instrument of delivery and receipt.
4.3 Use, maintenance, and return The merchant undertakes
4.3.1 to use the POS terminal prudently and carefully and for the purpose specified in the agreement, which is accepting card payments in transactions;
4.3.2 not to sublease the POS terminal;
4.3.3 not to give the program into the use of a third person;
4.3.4 not to make any changes or amendments in the program without the consent of the bank;
4.3.5 to download a new version of the POS terminal program no later than within ten calendar days from the day they receive the relevant instruction from the Bank, processor or technical partner;
4.3.6 to ensure that the POS terminal is kept secure in the possession of the merchant and that the conditions in the location shall not damage the POS terminal;
4.3.7 to follow the POS terminal guide and instructions given by the POS terminal and comply with all instructions and guidelines of the bank about the use, maintenance, and security of the POS terminal;
4.3.8 to notify the bank if the POS terminal is used in a changing location or if the location of the POS terminal needs to be changed (use of the POS terminal in a location not indicated in the agreement is forbidden);
4.3.9 to call the customer helpline, which operates 24 hours a day, when they have technical questions regarding the POS terminal.
4.4 The Bank or technical partner is entitled to
• check the state and purpose of use of the POS terminal at any time, maintain it, and enter the merchant's territory and premises to do that, first obtaining the merchant's approval;
• amend and change the POS terminal program by notifying the merchant of the need to download the new version of the program.

4.5 Return

4.5 1 If the agreement expires, the point of sale is closed, or the use of the POS terminal is ceased, the merchant undertakes to return the POS terminal within five settlement days at least in the same condition as when the device was received, except for normal wear and tear. The merchant shall return the POS terminal to the location indicated by the Bank. The address of return can be obtained by calling the customer helpline. The Returned POS machine should be accompanied with Chargers, Samcards, simcards and any other gadget that accompanied the POS.
4.5.2 The merchant is entitled to request the representative of the bank or technical partner that has come to check, maintain, or repair the POS terminal, an employment certificate or other document providing their authorization.

4.6 Elimination of failure

In case of failure of the POS terminal, the merchant stops using the terminal and calls the customer helpline.
4.6.1 If the failure cannot be corrected over the telephone, the parties will agree on repairs or replacement of the POS terminal.
4.6.1 The merchant shall return the replaced POS terminal and/or its auxiliary devices as prescribed in the guide accompanying the POS terminal.
4.6.2 If the merchant fails to return the defective POS terminal, the bank will calculate the service fee for the use of the POS terminal as provided for in the agreement.
4.6.3 The merchant shall not repair or modify the POS terminal themselves (incl. installation of auxiliary devices).
4.6.4 If the hardware and software of the POS terminal is defective, the Bank shall replace it within Fourteen days from receipt of the merchant's notice.

5. Fees and settlements

5.1 Transaction-related settlements
5.1.1 The Bank shall pay the merchant according to the transactions made in compliance with the agreement within two settlement days as of the day of the transfer of the transaction record. The payment shall be made to the account as provided for in the agreement. If the transaction record is received by the Bank on a day that is not a settlement day, the next settlement day is deemed to be the date of receipt of the transaction record.
5.1.2 If the transaction record is received by the Bank after the time specified in clause
5.1, the Bank has the right to not transfer the sum of transactions to the merchant.
5.1.3 The merchant shall pay the Bank a processing fee on the transactions in accordance with the rate specified in the agreement.
5.1.4 The merchant by executing this agreement hereby agrees that the Bank is entitled to withhold the sums to be paid to the merchant or make a payment from the merchant's account to the extent of the following sums:
• chargeback sums presented under the agreement;
• chargeback processing fees in accordance with the price list of the bank;
• claims and damage caused listed in clause 'Responsibility and dispute resolution'
• and 'Confidentiality';
• transaction processing fees and other fees agreed upon between the parties.
5.2 POS terminal related settlements
5.2.1 If the merchant returns the POS terminal before the 15th day of a month, the bank will not calculate the fee for the month for the use of the POS terminal; on the 15th day of a month or later, the bank will calculate the fee for the entire month.
5.2.2 As an exception, the bank is entitled to request the merchant to pay a service fee of the POS terminal for the month, if the period of use of the POS terminal is less than one month.
5.2.3. The day of return of the POS terminal is the date the POS terminal is delivered to the place of return in accordance with the return instructions set out hereinabove.
5.3 POS lease fees The merchant shall pay the annual lease fee on or prior to the acquisition of the POS terminal and on or before 31st December of each year. The merchant shall ensure that there are sufficient funds on the account for making this payment.
5.4 Debts
5.4.1 In case of withholding or payment of any sums proves impossible due to insufficient funds in the account, the bank has the right to make the payment to the extent of the necessary sum from the merchant's other accounts at the Bank. In the event of a failure to pay or make a partial payment of a claim, the merchant shall pay a penalty of 0.1% on the outstanding amount per day.
5.4.2. In case of outstanding arrears by the merchant, the Bank is entitled to set off the arrears of the merchant against any amounts that it would have had to pay to the merchant under the agreement.

6. Validity, amendment, and termination of the agreement

6.1 The agreement shall enter into force upon signing and is concluded for an unspecified term.
6.2 The Bank is entitled to amend the agreement unilaterally by notifying the merchant no later than a month before the change takes effect. The bank may notify about a change to the agreement on its website or by written notice to the merchant.
6.3 If any change to the agreement is not acceptable to the merchant, the merchant is entitled to cancel the agreement during the notification period, fulfilling all contractual obligations before the cancellation. If the merchant has not cancelled the agreement within the specified period, they shall be deemed to have accepted the change.
6.4 Either party of the agreement is entitled to cancel the agreement by notifying the other party thereof at least one month in advance.
6.5 The Bank has the right to suspend the performance of the agreement, to limit the functionality of the POS terminal, and/or cancel the agreement without a notice in advance, if
6.5.1 the merchant violates the agreement;
6.5.2 the facts known to the Bank in their logical connection and collection give reason to conclude that the merchant or its related person is related to the misuse of cards;
6.5.3 the merchant incurs financial arrears to the bank or becomes insolvent;
6.5.4 no transactions with the POS terminal have been made for two months;
6.5.5 the merchant has submitted false information to the bank;
6.5.6 the merchant has changed the eld of activity of the point of sale;
6.5.7 it is required by card organizations;
6.5.8 other grounds exist arising from the general terms and conditions of the Bank.
6.6 If the grounds for the suspension of the agreement no longer apply, the Bank will continue fulfilling its contractual obligations.
6.7 The termination of the agreement shall not relieve either party from the fulfilment of contractual obligations. The merchant undertakes to pay all chargebacks submitted to the merchant and other contractual obligations as agreed in clause 6.8 after the expiration of the agreement until all obligations are fulfilled.
6.8 Upon the termination of the agreement, the merchant refrains from using the service marks and trademarks and design related to the cards and does not refer to them in any way.

7. Responsibility and dispute resolution

7.1 A party to the agreement is liable for the direct material damage to the other party and a third party arising from the violation of the requirements specified in the agreement.
7.2 The merchant is liable for damage arising from a transaction made without the physical presence of the card, incl. chargeback claim, regardless whether making a transaction without the physical presence of the card is allowed or not.
7.3 The merchant is obliged to compensate to the Bank, among other things, the claims of ne issued to the bank by a card organization due to the violation cited in 7.2 above.
7.4. In case the merchant damages the POS terminal, the merchant shall compensate the Bank the restoration value of the POS terminal, which is in agreement with the expert assessment of the Bank. The Bank will present the merchant the expert opinion together with the invoice for the recovery value within a reasonable time.
7.5 If the POS terminal is destroyed, lost, stolen, or rendered unusable, the merchant shall compensate the Bank the residual value of the POS terminal. The parties are guided by the expert opinion of the manufacturer of the POS terminal or the technical partner.
7.6 If the merchant incurs a debt to the Bank for two consecutive months in the amount of the monthly service fee, the Bank is entitled to take back the POS terminal from the merchant. If this is impossible, the bank considers the POS terminal lost and demands the merchant to compensate the residual value of the POS terminal.
7.7. If the merchant fails to return the POS terminal pursuant to the procedure prescribed in this agreement, the Bank is entitled to demand the merchant payment of contractual penalty in the amount of Kshs 1,000 for each day delayed in returning the terminal and take back the POS terminal from the merchant. If taking back is impossible, the Bank is entitled to consider the POS terminal lost and demand the merchant to compensate the residual value of the POS terminal.
7.8. The Bank shall not be liable for any damage arising from the use of sub-standard communications network or connection. In the event of failures in the communication network or connection, using the POS terminal until the failures are eliminated shall be forbidden. The costs of eliminating failures shall be paid by the merchant.
7.9. Notwithstanding the terms laid down in the settlement account agreement, the merchant undertakes to submit all transaction-related claims no later than within six months from the execution of the transaction. A claim submitted later shall be deemed expired.
7.10 Disputes arising from the agreement shall be resolved by way of negotiations and /or mediation by the Head of Business of the parties. Where the parties are unable to agree, the disputes shall be determined by Courts of Kenya. The applicable law shall be the laws of Kenya.

8. Confidentiality

8.1. The merchant shall maintain the confidentiality of information that has become known to them during the performance of the agreement, especially the data on the cardholders and their activities (the data of cardholders shall be considered banking secrecy within the meaning of the Credit Institutions Act). The confidentiality obligation is valid for an unspecified term. The merchant shall ensure that all the merchant's employees are aware of the obligation to maintain confidentiality and observe it.
8.2 The merchant undertakes to use the data and the information collected during the performance of the agreement only to fulfil their obligations under the agreement (for completing a transaction). This obligation shall be valid after the expiration of the agreement.
8.3 The terms and conditions of the agreement (except for product conditions published on the website of the Bank) are confidential and not allowed to be revealed to a third person, unless the right or obligation of disclosure arises from legislation or the general terms and conditions of the Bank or if the card organizations request it.

9. Other Provisions

9.1 The merchant shall not assign or transfer its rights and obligations arising from the agreement without the consent of the Bank. Every assignment and transfer without a prior written permission of the bank is invalid.
9.2 The Bank is entitled to transfer and assign its rights and obligations under the agreement.

FAMILY PAY

DEFINITIONS

In this document the following words and phrases have the meaning set opposite them unless the context indicates otherwise:
BANK refers to Family Bank Limited, a limited liability company incorporated under the provisions of the Companies Act Chapter 486, Laws of Kenya and licensed under the Banking Act Chapter 488 Laws of Kenya as a bank having its registered office at Nairobi and care of Post Office Box 74145-00200 Nairobi and includes such branches of the bank as may from time to time be specified by the Bank to the customer.
CUSTOMER refers to the applicant herein as approved by the Bank to access Family Pay services with the Bank.
END-USER refers to the customer and / or person(s) authorized by the customer to use Family Pay One or more USERs can be identified to operate the Account(s) through the Internet and each USER can be assigned limits and rights to perform financial transactions in line with the Operating Instructions Mandate provided by the customer for operating the Account(s) through Family Pay.
CIF NUMBER refers to the number held/marked to a customer. All the accounts held/operated by the customer and /or by his assigned users will be marked under the same CIF number
TRANSACTION - with respect to online Family Pay, is the performance and use of the different services through Family Pay.
LOGIN PASSWORD - A password used to login in to the Family Pay portal
TRANSACTION PASSWORD - A secret code auto generated by the Family Pay system or authorize certain transactions
USER ID refers to user login ID, access code or PIN that the customer/uses together with the password to log in to the Family Pay portal. The User ID can only consist of six characters.
ACCOUNT refers to the customer’s Savings and / or Current Account and / or any other type of account held by the customer. All the accounts held by a customer will be marked under the CIF number(s) assigned to the customer.
FAMILY PAY means the bank’s online banking service or the performance of transactions, outlined under the Family Pay services through the internet. To access the services and transact, the customer will be required to go to the bank’s website and click on the Family Pay link available on the bank’s website.
TERMS refer to Terms and Conditions for use of Family Pay facility as specified in this document. In this document, all references to the USER being referred in masculine gender will also include the feminine gender, 'US' means the Bank, 'WE' and 'OUR'
shall be construed accordingly.

APPLICABILITY OF TERMS

These TERMS form the contract between the Customer and the bank. By applying for Family Pay and accessing the service through the internet, the customer acknowledges and accepts these terms subject to the payment by the customer to the bank of fees and charges as will from time to time be specified by the bank depending on the bank's tariff guide.
These terms will be in addition to and not in derogation of the terms and conditions relating to any account of the customer.

PRODUCT AGREEMENT

These Terms (governing the use of Family Pay) must be read together with and form part of each product agreement.

AMENDMENTS TO THESE TERMS

The Bank has the absolute discretion to amend or supplement any of the terms at any time and will endeavor to give prior notice of fifteen days for such changes wherever feasible except for changes to interest rates and/ or other variations that are subject to market changes.
The Bank may introduce new services within Family Pay from time to time. The existence and availability of the new functions will be notified to the Customer as and when they become available.
By using these new services, the Customer /end user, agrees to be bound by the terms and conditions applicable.

FAMILY PAY ACCESS

The customer will apply for the Bank’s Family Pay services by completing an Application Form provided by the Bank. The application shall be subject to the Bank’s approval.
Once an application has been approved and the customer’s account(s) have been registered an automatically generated PIN (password) will be sent to the customer via their mobile number as provided in the respective customers’ account details maintained at the bank.
The customer will be prompted to change the password assigned by the Bank on accessing Family Pay for the first time. As a security measure the customer shall change the password as frequently thereafter as possible. The User ID can be changed after logging in and must have a maximum of 6 characters.
For joint or corporate accounts whose mandate includes multiple user(s), different passwords will be sent to each user and such users shall have a separate USER ID and Password.
For customers operating personal, joint or corporate accounts, each of them will be treated as a retail account holder and each will have a separate user ID and password for purposes of accessing Family Pay services.
The Customer shall not attempt or permit others to attempt accessing the account information stored in the computers of the BANK through any means other than the Family Pay service.

USER ID AND PASSWORD

The Customer/User must:
Keep the User-ID and password totally confidential and do not reveal the password to any third party.
Choose a password which shall be a minimum of 8 characters long and shall consist of a mix of alphabets, numbers and special characters which must not relate to any readily accessible personal data such as the user’s name, address, telephone number, driver license etc. or easily guessable combination of letters and numbers.
Commit the User-ID and password to memory and do not record either in a written or electronic form.
Do not let any unauthorized person have access to your computer or leave the computer unattended whilst accessing Family Pay.
If the User/Customer forgets Family Pay User-ID, he can request for change of the password by sending a written request to the Bank.

ACCURACY OF INFORMATION

The Customer/User(s) is responsible for the correctness of information supplied to the bank through the use of Family Pay. The Bank accepts no liability for the consequences arising out of erroneous information supplied by the user(s).
If the User suspects that there is an error in the information supplied to the Bank by him, he shall advise the Bank as soon as possible. The BANK will endeavor to correct the error wherever possible on a 'best efforts' basis.
If the USER notices an error in the account information supplied to him through Family Pay or by the use of any of the Family Pay services, he shall advise the Bank as soon as possible. The Bank will endeavor to correct the error promptly and adjust any interest or charges arising out of the error.

AUTHORITY TO THE BANK

By filling the application form and duly executing the same, the Customer grants express irrevocable authority to the Bank for carrying out the banking transactions performed by the authorized User(s) through Family Pay.
The Bank shall have no obligation to verify the authenticity of any transaction received from the User(s) through Family Pay or purporting to have been sent by the users(s) via internet other than by means of verification of the User-Id and the password.
The display or printed output that is produced by the User(s) at the time of operation of Family Pay is a record of the operation of the Internet access and shall not be construed as the BANK's record of the relative transactions.
The Bank’s own records of transactions maintained through computer systems or otherwise shall be accepted as conclusive and binding for all purposes unless any discrepancy is pointed out within a week from the date of sending the periodical statement to the Customer

LIABILITY OF THE USER AND THE BANK

The Customer shall not be liable for any unauthorized transactions occurring through the use of Family Pay which can be attributed to the fraudulent or negligent conduct of the employees or agents of the Bank.
If the User has complied with the terms and advises the Bank in writing under acknowledgement immediately after he suspects that his User-Id or password is known to another person and/ or notices an unauthorized transaction in his Family Pay account, he shall not be liable for losses arising out of the unauthorized transactions occurring in the Family Pay accounts after the receipt of such advice by the Bank.
The user(s) shall be liable for some or all loss from unauthorized transactions in the Family Pay accounts if he has breached the terms or contributed or caused the loss by negligent actions such as the following:
Keeping a written or electronic record of Family Pay password.
Disclosing or failing to take all reasonable steps to prevent disclosure of the User-Id or password to anyone including Bank’s staff and/ or failing to advise the Bank of such disclosure in time.
Not advising the Bank in a reasonable time about unauthorized access to or erroneous transactions in the Family Pay accounts.
The Bank shall not be liable for any unauthorized transactions occurring through the use of Family Pay which can be attributed to the fraudulent or negligent conduct of the user.
The Bank shall in no circumstances be held liable to the user if Internet access is not available in the desired manner for reasons including but not limited to natural calamity, floods, fire and other natural disasters, legal restraints, faults in the telecommunication network or Internet or network failure, software or hardware error or any other reason beyond the control of the Bank.
Under no circumstances shall the Bank be liable for any damages whatsoever whether such damages are direct, indirect, incidental, consequential and irrespective of whether any claim is based on loss of revenue, investment, production, goodwill, profit, interruption of business or any other loss of any character or nature whatsoever and whether sustained by the user(s) or any other person.
The Bank will not be responsible or liable in the event of any losses suffered by you by reason of the shut down or delay in the availability of a website, any computer viruses, logic software or other programs affecting any website or in the event of incomplete messaging.
The Bank shall not be liable for any damage or loss arising from unauthorized access to any service by a third party using any Customer identification or User identification or ID unless we have received prior notification from the customer in accordance with the user guides or other relevant notification that no further access to the relevant service shall be granted to any person using such customer’s Identification or User identification with effect of receipt of such notification.

INDEMNITY

The Customer shall indemnify and hold the BANK harmless against any loss suffered by the BANK, its customers or a third party or any claim or action brought by a third party which is in any way the result of the improper use of Family Pay by the User.

DISCLOSURE OF PERSONAL INFORMATION

The customer agrees that the Bank or its contractors may hold and process his Personal Information on computer or otherwise in connection with Infinity services as well as for statistical analysis and credit scoring.
The Customer also agrees that the Bank may disclose, in strict confidence, to other institutions, such Personal Information as may be reasonably necessary for reasons inclusive of, but not limited to, the following:
for participation in any telecommunication or electronic clearing network
in compliance with a legal directive
for credit rating by recognized credit agencies
for fraud prevention purposes

BANK’S LIEN

The Bank shall have the right of set-off and lien, irrespective of any other lien or charge, present as well as future on the deposits held in the Customer’s linked Account(s) or in any other account, whether in single name or joint name(s), to the extent of all outstanding dues, whatsoever, arising as a result of the Family Pay Service extended to and / or used by the Customer.

PROPRIETARY RIGHTS

The user acknowledges that the software underlying the Family Pay Service as well as other Internet related software which is required for accessing the service is the legal property of the respective vendors. The permission given by the Bank to access the Family Pay services through the internet will not convey any proprietary or ownership rights in the above software.
The User shall not attempt to modify, translate, disassemble, decompile or reverse engineer the software underlying Family Pay or create any derivative product based on the software.

NON-TRANSFERABILITY

The grant of facility of Family Pay to a Customer is not transferable under any circumstance and shall be used only by the user(s) authorized by the Customer.

TERMINATION OF FAMILY PAY SERVICE/CONTRACT

The Customer may request for termination of the Family Pay facility any time by giving a written notice of at least 15 days to the Bank. The Customer will remain responsible for any transactions made on his Family Pay account(s) through the service prior to the time of such cancellation of the Family Pay Service.
The closure of all Family Pay accounts of the Customer will automatically terminate the Family Pay Service.
The Bank may withdraw the Family Pay facility anytime provided the Customer is given reasonable notice depending on the circumstances.
The Bank may suspend or terminate Family Pay facilities without prior notice if the Customer has breached these terms and conditions or the Bank learns of the death, bankruptcy or lack of legal capacity of the User(s).

NOTICES

Notices under these Terms and Conditions may be given by the Bank and the Customer:
Electronically to the mail box of either party. Such notices will be regarded as being in writing
In writing by delivering them by hand or by sending them by post to the last address given by the Customer and in the case of the Bank to the address mentioned in the heading above
In addition, the Bank may also publish notices of general nature which are applicable to all Customers of Internet on its Family Pay Link of the bank’s Website. Such notices will have the same effect as a notice served individually to each Customer.

GOVERNING LAW

These terms and conditions and/ or the operations in the accounts of the Customer maintained by the Bank and/ or the use of the services provided through Family Pay shall be governed by the laws of Kenya.
The Bank accepts no liability whatsoever, direct or indirect, for non-compliance with the laws of any country other than the Laws of Kenya. The mere fact that the Family Pay service can be accessed through Internet by a Customer in a country other than Kenya shall not be interpreted to imply that the laws of the said country govern these terms and conditions and/ or the operations in the Internet accounts of the Customer and / or the use of Family Pay.

GENERAL

The clause headings in this agreement are only for convenience and do not affect the meaning of the relative clause.
The Customer shall not assign this agreement to anybody else. The BANK may sub-contract and employ agents to carry out any of its obligations under this contract.

LIPA NA FAMILY

1.0 Definitions

1.1 Authorization is a query to verify the validity of the Alias Code of the merchant receiving the payment and free funds in the mobile wallet account associated with the customer making the payment.
1.2 Mobile Numbers Operations (MNOs) these are local telcos network operators hosting the money wallets.
1.3 Lipa Na Family (LNF) – This is a mobile payment solution that is powered by MNOs to facilitate Merchant payment collections.
1.4 The Bank – Family Bank Limited.
1.5 Customer – a legal or Natural individual or entity that has been issued with mobile money wallets by MNOs.
1.6 Merchant is a legal business entity with whom the Bank has entered into this agreement to facilitate business payments collection using Lipa Na Family.
1.7 Customer helpline is a helpline that operates 24 hours a day, the telephone number of which the merchant can call the Bank on Lipa Na Family or any other Bank Product inquiry.
1.8 Account is the merchant's settlement account which is indicated in the agreement.
1.9 Receipt is the transaction notification.
1.10 Agreement is the merchant agreement for Lipa Na Family concluded between the merchant and the Bank with the accompanying instructions and other parts of the agreement (incl. the general terms and conditions and the price list of the bank).
1.11 Alias Code Account this is a short code account that is configured to receive and route the funds to a particular merchant Bank Account.
1.12 Merchant Account this is a merchant core banking account hosted in Family Bank Limited.
1.13 Lipa Na Family Branding – this is the authorized Branding materials by Family Bank Ltd that are displayed in the Merchants Business location.
1.14 Dispute is a claim by the Merchant or the customer to cancel a transaction on the basis described in agreement and to reverse or re-route the funds to the correct account upon availing the evidence.
1.15 Transaction is a transaction for the provision of a service and/or sale of goods or some other transaction allowed by the bank carried out using Lipa Na Family between the Virtual Mobile Holder Customer and the merchant.
1.16 Transaction record is electronically saved information regarding the transaction (Inc. Cancellation of the transaction).
1.17 Till is Lipa Na Family Code
1.18 Technical Partner is the Authorized Bank Officer.

2. Use of the Bank's LNF at Merchant Outlets is subject to the terms of this Agreement:

2.1 General Merchant will comply with this Merchant Agreement (including the terms of the Operating Guide) for submitting and processing Transactions with Bank. The Bank is responsible to Merchant for processing transactions under the Operating Rules for the MNOs to which Merchant subscribes, which may vary among Mobile network types.
2.2 Merchant's Responsibility for Acts of Others. The Merchant, and not Bank, is responsible for any advice from, acts of, as well as omissions, acts of fraud or acts of misconduct by Merchant's employees, processors, consultants, advisors, contractors, Merchant Servicers, Agents, officers and directors. Merchant, and not Bank, is responsible for the use, unauthorized use or misuse of Merchant's LNF or software.
2.3 The use and acceptance of the Family Bank LNF to purchase goods or dispense cash, and make various utility bills payments at the tills in Merchant outlets countrywide will be subject to: -
2.3.1 The transaction being approved and or authorized by the MNOs and the Bank’s System;
2.3.2 Any other terms and conditions as may be advised in writing by either party to the other from time to time.
2.3.3 The LNF alias code will route the details to the Bank's System via MNOs for authorization and the Bank shall have complete discretion to approve transactions. Nothing in this Agreement shall require the Bank to give a reason or reasons for rejecting a transaction.
2.4 Operating Procedures for Transactions. In accepting Mobile payments for the purchase of Merchant's goods and services, Merchant shall comply with the requirements of this Merchant Agreement, including but not limited to the Operating Rules and the Operating Guide, as the same are revised from time to time.
2.5 Submission of Valid Transactions.
(a) Merchant will accept a transaction only if the transaction is made or approved by the customer who is issued the Mobile Money wallet used for the transaction. Merchant will not accept directly or indirectly:
i) Any Transaction that Merchant knows or should have known to be fraudulent or not authorized by the customer;
ii) Any Transaction that results from a transaction outside of Merchant's normal course of business, as described on the Merchant Application; or
iii) Any Transaction containing the account of a Mobile money wallet issued to Merchant or any account numbers issued to Merchant's business owners, family members and principals for transactions that do not represent a purchase of goods or services from Merchant or a related credit.
2.6 Security
2.6.1 The merchant complies with the requirements of the MNOs that provide secure storage of money wallets.
2.6.2 The merchant shall not save or store sensitive mobile network data.
2.6.3 The Bank may request the merchant to provide documents certifying that the merchant is compliant with the MNOs data security standards. In case of significant payment data security incident, the merchant will be required to cooperate with the bank and law enforcement authorities.
2.6.4 The Bank has the right to impose compulsory security requirements to the merchant.
2.7 General obligations of the merchant The merchant is forbidden to:
2.7.1 set a minimum and maximum sum on a transaction or impose other unjustified restrictions;
2.7.2 take an additional fee for the use of the LNF in addition to the price of goods or services if this is forbidden by legislation;
2.7.3 divide a purchase into several transactions or on several receipts, unless the goods or services are paid for as a prepayment.
2.7.4 give cash based on the transaction or cancellation of the transaction;
2.7.5 provide services, sell products, or make transactions at the LNF that violate valid legislation, generally accepted ethics standards, or good practice.
2.7.6 The merchant undertakes to maintain in a visible place the LNF the identification marks of those MNO organizations, the Networks of which they accept. The merchant shall only use promotional materials previously approved by the bank for this purpose.
2.7.7 The merchant maintains records of the LNF alias codes used by them (among other things, the merchant keeps a register about the Alias codes in the possession of the merchant by location and keeps these data updated) and, upon the request of the Bank, issues the Bank a list of LNF Alias accounts that are actually used.
2.7.8 All sums of a transaction are calculated in the official currency of Kenya.
2.8 Receipt, confirmation and cancellation
2.8.1 For each successful transaction made with the LNF alias code, transaction receipts are received in form of message alerts from Family Bank Ltd to both the sender and the merchant.
2.8.2 Upon the execution of a transaction, the merchant must confirm receipt of the transaction notification message in the nominated mobile number before releasing the goods and services to the customers.
2.8.3 After the transaction is completed and transaction notifications received by both the merchant and the customer, the merchant shall not make any changes in the transaction record.
2.8.4 If the goods are returned, the transaction can be reversed through the reversal/dispute resolution process provided by the bank that requires the merchant to notify the Bank. The merchant will be responsible for any reversal of a transaction.
2.9 Transaction records
2.9.1 The Bank shall ensure that it receives transaction records from MNOs in real-time basis
2.9.2. The Bank accepts all transaction records for processing that the MNOs has submitted in compliance with the terms and conditions of the agreement.
2.9.3 The Bank shall have the right at its sole discretion to suspend the processing of the transaction record to specify the circumstances relating to the transaction. The bank shall inform the merchant about the suspension of immediately after the decision to suspend has been reached. In this case, the deadline for payment specified in this agreement extends automatically by the time needed to clarify the circumstances. If a breach of the conditions of the agreement by the merchant or the misuse of a LNF is discovered, the bank shall have the right not to process the transaction record.
2.9.4 When forwarding the transaction record to the bank, the merchant undertakes to ensure that all information in the record is correct; the customer has received the goods and/or services for the sum stated on the receipt.
2.9.5 The merchant can request a transaction report from the Bank.
2.9.6 The merchant is entitled to order a regular or one-time transaction report, stating, in addition to the transaction sum, processing fee if any, and the payable sum, the commission fee paid to the bank that issued the Alias code.
2.9.7 The processing fee if any of a transaction includes the commission fee paid to the MNO that issued the money wallet, and the acquiring bank that has issued the Alias codes. The rates of the mentioned fees are defined in the MNOs or Banks organization guidelines which can be reviewed time to time and communicated to all parties.

3.0 Disputes

The Bank may issue a Dispute claim to the merchant under the following conditions:
3.1 the customer has not received the promised goods or services;
3.2 the goods or services do not have the promised characteristics;
3.3 the transaction has not been authorized as required;
3.4 the person that makes the transaction proves he/she is not the real Mobile wallet owner;
3.5 the merchant has failed to apply strong authentication measures;
3.6 Other terms and conditions of the agreement have not been followed.
3.7 Notwithstanding the above, the Bank is entitled to unilaterally deem any invalid receipt as valid. The Bank's right to deem this receipt invalid later and file a dispute claim upon the Bank becoming aware of the deficiencies of the relevant transaction is not compromised by the above.
3.8 The Bank shall notify the merchant of issuing a dispute claim via the contacts provided by the merchant of either registered mail, fax, phone number or e-mail.
3.9 The merchant agrees that the Bank shall withhold the sum stated in the dispute claim from the sums payable to the merchant or debits the relevant sum from the merchant's account.
3.10 If requested by the Bank or MNO, the merchant is obliged to present a copy of the receipt/notification with the underlying documents, which prove that the relevant transaction took place. If the merchant fails to present a copy of the receipt compliant with the requirements of the agreement within five working days as of the request, the Bank may consider the transaction invalid and demand the merchant to pay the transaction sum by withholding it from the sums payable to the merchant or by making the payment from the merchant's account.
3.11 The merchant shall archive the underlying documentation of the transaction, including documents certifying that the transaction took place (receipt, sales invoice, the list of provided services, etc.), in a place out of reach of unauthorized persons in accordance within the time limits prescribed by law, but not less than two years from the moment the transaction record is transferred to the Bank.
4. ALIAS code account.
4.1 The Bank gives the merchant a short Code together with a user journey to be used for accepting the payments
4.2 Delivery and installation Within five working days from the moment the agreement is concluded, the technical partner will contact the merchant to make arrangements for the time of Delivery and training of the LNF till.
4.2.1 The technical partner
• Provides the LNF till for the merchant at the agreed time and place and conducts user training;
• Performs a test transaction to verify that the mobile transaction alerts are being received accordingly by the merchant and the customer.
• The merchant confirms that the funds are being settled in the correct merchant account.
• Prepares and signs the instrument of delivery and the merchant training acknowledgement template
4.2.2 The merchant
• Ensures the bank or the technical partner access proper space to display the branding materials for the LNF.
• Ensures existence of necessary means of communication, mobile phone to hold the SIM card receiving the transaction alerts and charging ports for the phone.
4.2.3 If the LNF alias code information specified in the agreement is incorrect or the merchant fails to ensure the conditions set out in this sub-clause, the Bank may refuse to install the LNF.
4.2.4 If the merchant fails to ensure the conditions set out in clause 4.2.1, the merchant is liable for such omissions/commissions. By signing the instrument of delivery and merchant training acknowledgement form, the merchant confirms that
• they have received Lipa na Family from the Bank;
• the LNF Code is in working order and meets its purpose;
• the LNF Code does not have deficiencies;
• the merchant's information on the receipt is correct;
• they have undergone necessary training for using the LNF and accepting the Mobile payments;
• they have received the LNF guide and act in compliance with it.
4.3 Use, maintenance, and return The merchant undertakes
4.3.1 to use the LNF Code prudently and carefully and for the purpose specified in the agreement, which is accepting mobile payments in transactions;
4.3.2 not to sublease the LNF alias code;
4.3.3 not to give the program into the use of a third person;
4.3.4 not to make any changes or amendments in the LNF branding materials without the consent of the bank;
4.3.5 to ensure that the LNF branding materials are well displayed and very visible by the customers
4.3.6 to follow the Lipa Na Family guide and instructions given by the bank and comply with all instructions and guidelines of the bank about the use and maintenance
4.3.7 to notify the bank if the LNF Alias code is used in a changing location or if the location of the Lipa Na Family code needs to be changed (use of the LNF Alias code in a location not indicated in the agreement is forbidden);
4.3.8 to call the customer helpline, which operates 24 hours a day, when they have questions regarding the Lipa Na Family.
4.4 The Bank or technical partner is entitled to
• check the state and purpose of use of the Lipa Na Family at any time, maintain it, and enter the
merchant's territory and premises to do that, first obtaining the merchant's approval;
• amend and change the Lipa Na Family program by notifying the merchant of the need to download the new version of the program.
4.5 Return
4.5.1 If the agreement expires, the Lipa Na Family alias code is closed, or the use of the LNF alias code is ceased, the merchant undertakes to return the LNF branding materials within five working. The merchant shall notify the bank of the intention to close the Alias code via the contacts indicated by the Bank. The address of return can be obtained by calling the customer helpline.
4.5.2 The merchant is entitled to request the representative of the bank or technical partner that has come to check, maintain, or repair the POS terminal, an employment certificate or other document providing their authorization.

4.6 Elimination of failure

In case of failure of the LNF, the merchant stops using the Alias Code and calls the customer helpline.
4.6.1 If the failure cannot be corrected over the telephone, the parties will agree on what it will entail to fix the error and the TAT to resume operations.
4.6.1 If the merchant fails inform the bank of the errors and proceeds to use the code, the merchants stand to bear the responsibilities for the omissions or commissions, including any loss of funds
4.6.2 If the LNF system is not operational or in case of system downtime, the bank shall notify the merchants and indicate possible timelines of resolving the error.

5.Fees and settlements

5.1 Transaction-related settlements
5.1.1 The Bank shall pay the merchant according to the transactions made in compliance with the agreement not exceeding T+1 basis. The payment shall be made to the merchant account as provided for in the agreement. If the transaction record is received by the Bank on a day that is not a settlement day, the next settlement day is deemed to be the date of receipt of the transaction record.
5.1.2 The merchant shall pay the Bank a processing fee if any on the transactions in accordance with the rate specified in the agreement.
5.1.3 The merchant by executing this agreement hereby agrees that the Bank is entitled to withhold the sums to be paid to the merchant or make a payment from the merchant's account to the extent of the following sums:
• Dispute claims sums presented under the agreement;
• Dispute processing fees if any in accordance with the price list of the bank;
• Claims and damage caused listed in clause 'Responsibility and dispute resolution' and 'Confidentiality';
•Transaction processing fees if any and other fees if any agreed upon between the parties.

5.2 Debts

5.2.1 In case of withholding or payment of any sums proves impossible due to insufficient funds in the account, the bank has the right to make the payment to the extent of the necessary sum from the merchant's other accounts at the Bank. In the event of a failure to pay or make a partial payment of a claim, the merchant shall pay a penalty of 0.1% on the outstanding amount per day.
5.2.2. In case of outstanding arrears by the merchant, the Bank is entitled to set off the arrears of the merchant against any amounts that it would have had to pay to the merchant under the agreement.

6 Validity, amendment, and termination of the agreement

6.1 The agreement shall enter into force upon signing and is concluded for an unspecified term.
6.2 The Bank is entitled to amend the agreement unilaterally by notifying the merchant no later than a month before the change takes effect. The bank may notify about a change to the agreement on its website or by written notice to the merchant.
6.3 If any change to the agreement is not acceptable to the merchant, the merchant is entitled to cancel the agreement during the notification period, fulfilling all contractual obligations before the cancellation. If the merchant has not cancelled the agreement within the specified period, they shall be deemed to have accepted the change.
6.4 Either party of the agreement is entitled to cancel the agreement by notifying the other party thereof at least one month in advance.
6.5 The Bank has the right to suspend the performance of the agreement, to limit the functionality of the till, and/or cancel the agreement without a notice in advance, if
6.5.1 the merchant violates the agreement;
6.5.2 the facts known to the Bank in their logical connection and collection give reason to conclude that the merchant or its related person is related to the misuse of tills.
6.5.3 the merchant incurs financial arrears to the bank or becomes insolvent;
6.5.4 no transactions with the LNF tills have been made for two months;
6.5.5 the merchant has submitted false information to the bank;
6.5.6 the merchant has changed the field of activity of the till;
6.5.7 other grounds exist arising from the general terms and conditions of the Bank.
6.6 If the grounds for the suspension of the agreement no longer apply, the Bank will continue fulfilling its contractual obligations.
6.7 The termination of the agreement shall not relieve either party from the fulfilment of contractual obligations. The merchant undertakes to pay all disputes submitted to the merchant and other contractual obligations as agreed in clause 6.8 after the expiration of the agreement until all obligations are fulfilled.
6.8 Upon the termination of the agreement, the merchant refrains from using the till and sticker designs and does not refer to them in any way.

7 Contractual Dispute resolution

7.1 In the event of any dispute or difference arising between the parties in relation to or arising out of this agreement, including the interpretation, rectification, termination or cancellation of this Agreement:
7.2 A party claiming such dispute or difference, shall forthwith advise the other in writing thereof.
7.3 Upon receipt of such notice, the parties shall meet and negotiate in good faith in order to resolve such dispute or difference. The Parties herein shall make all attempts to amicably settle such dispute or difference by direct informal negotiation within a period of fourteen (14) business days.
7.4 If the dispute is not resolved at that meeting, the parties will attempt to settle it by mediation in accordance with the Strathmore Dispute Resolution Center (SDRC) Mediation Guidelines. The mediation shall be undertaken by a single mediator to be agreed upon between the parties or failing such agreement, the Mediator will be nominated by SDRC within fourteen (14) days of notice of the dispute. To initiate the mediation a party will give notice in writing to the other party(ies) to the dispute requesting a mediation. A copy of the request will be sent to Strathmore Dispute Resolution Center (SDRC). The mediation will start not later than twenty-eight (28) days after the date of receipt of such notice.
7.5 The mediation shall take place in Nairobi, Republic of Kenya.
7.6 No party may commence any court proceedings or arbitration in relation to any dispute arising out of this agreement until it has attempted to settle the dispute by mediation and either the mediation has terminated or the other party has failed to participate in the mediation, provided that the right to issue proceedings is not prejudiced by a delay.
7.8 The costs of mediation (including fees and expenses of the mediator) shall be shared equally between the parties UNLESS the award expressly provides otherwise.

8 Transactional Dispute resolution

8.1 The Bank policy and procedures on dispute resolution will be maintained accordingly.

9. Data Protection

9.1 Each party to this agreement acknowledges the importance of protecting the privacy of all information provided by the other party and warrants that in dealing with data collected during the Transaction, they shall at all times strictly comply with the Data Protection Act, 24 of 2019.
9.2 The parties hereby agree that in dealing with data collected for the purposes of this relationship, the data shall be used only in accordance with the terms of this Agreement and for purposes connected to the provision of the Transaction, in accordance with the lawful and reasonable instructions of the party providing the data and with the consent of the data subjects.
9.3 Each party to this agreement shall:
9.3.1 Comply with the specific security and data protection obligations imposed on them in terms of applicable data protection legislation; and/or
9.3.2 Where applicable comply with the specific obligations imposed on them in terms of Data protection (General) Regulations in respect of the specific role they fulfil in terms of providing the services as agreed between the parties; and/or
9.3.3 Take, implement and maintain all such technical and organizational security measures and procedure necessary or appropriate to preserve the security and confidentiality of information in its possession and to protect such confidential information against unauthorized or unlawful disclosure access or processing accidental loss destruction or damage.
9.4 The parties undertake and agree not to disclose to any unauthorized person any data compiled, collected or created as a result of their co-operation under this Agreement.

10.0 Confidentiality

10.1 The merchant shall maintain the confidentiality of information that has become known to them during the performance of the agreement, especially the data on the mobile wallet customers and their activities (the data of mobile wallet customers shall be considered banking secrecy within the meaning of the Credit Institutions Act). The confidentiality obligation is valid for an unspecified term. The merchant shall ensure that all the merchant's employees are aware of the obligation to maintain confidentiality and observe it.
10.2 The merchant undertakes to use the data and the information collected during the performance of the agreement only to fulfil their obligations under the agreement (for completing a transaction). This obligation shall be valid after the expiration of the agreement.
10.3 The terms and conditions of the agreement (except for product conditions published on the website of the Bank) are confidential and not allowed to be revealed to a third person, unless the right or obligation of disclosure arises from legislation or the general terms and conditions of the Bank or if the MNO request it.

11. Other Provisions

11.1 The merchant shall not assign or transfer its rights and obligations arising from the agreement without the consent of the Bank. Every assignment and transfer without a prior written permission of the bank is invalid.
11.2 The Bank is entitled to transfer and assign its rights and obligations under the agreement.