Basicscard Merchant Terms and Conditions

BasicsCard Merchant Terms and Conditions

1.About these Terms and Conditions

These Terms and Conditions set out the basis on which the Merchant agrees with the Department of Human Services (the department) to participate in the BasicsCard Scheme. They are in addition to any terms and conditions the Merchant has with its Acquiring Institution.

These Terms and Conditions commence when the first BasicsCard Transaction occurs.

2.Display material

Unless otherwise agreed with the department in writing, the Merchant must, in all Stores, display the posters, stickers and other display material provided by the department to the Merchant, in accordance with the instructions for display.

3.Merchant’s obligations

3.1General obligations at Stores

The Merchant must, at each Store:

(a)honour a valid BasicsCard tendered by a Card Holder in exchange for the supply of goods and services (subject to these Terms and Conditions, any legal right the Merchant may have to refuse to serve a customer and the availability of the Payment System)

(b) not retain possession of a Card Holder’s BasicsCard (whether for the convenience of the Card Holder, in connection with a Lay-By or for any other reason) or keep a record of their PIN, even if requested by the Card Holder

(c)not accept a BasicsCard as security or collateral for any credit or loan provided by the Merchant to any person, including as part of a Book-Up arrangement

(d)not process a pre-payment on a BasicsCard, unless:

(i)the pre-payment is for the purchase of petrol or diesel, to be supplied immediately after the pre-payment is made, or

(ii)the pre-payment is for the purchase of a taxi-cab service, to be supplied immediately after the pre-payment is made

(e)ensure that instructions and information entered into the Payment System by the Merchant through the Merchant Terminal are correct and reflect the underlying BasicsCard Transaction

(f)not impose any charge or fee on a Card Holder, in addition to the price of the goods and services to be supplied, because the Card Holder has made a BasicsCard Transaction, unless the Merchant imposes that same charge or fee on all EFTPOS card transactions it processes

(g)not impose a minimum spend for a BasicsCard Transaction of more than $5

(h)ensure that any refund in relation to a BasicsCard Transaction (including a refund or any payment arising from the cancellation of an Approved Lay-By), is processed as a refund transaction for the full refund amount to the Card Holder’s BasicsCard through the Payment System, with no amount refunded as cash

(i)provide an Itemised Receipt and the corresponding point-of-sale record for each BasicsCard Transaction to the relevant Card Holder at the time of the transaction

(j)keep Itemised Receipts of each BasicsCard Transaction filed in an ordered and auditable filing system, for at least two years after the date of the BasicsCard Transaction, and

(k)make all reasonable efforts to resolve disputes from a Card Holder in relation to the use of a BasicsCard.

3.2Prohibited transactions

The Merchant must not accept a BasicsCard or process (or continue to process) a BasicsCard Transaction:

(a)using a portable electronic point-of-sale device or equipment outside of a Store

(b)if the Merchant ceases to be Approved for the purposes of the BasicsCard Scheme

(c) if to do so would result in the BasicsCard Transaction being processed through the Payments System more than once

(d)contrary to any messages displayed on the Merchant Terminal (other than as set out in paragraph 3.2(e))

(e) where the Merchant Terminal displays a message advising that a BasicsCard Transaction is “approved with signature”

(f) if the Merchant is aware that the Merchant Terminal or the Payment System is not online or is not functioning normally

(g)using a handwritten voucher or an imprint machine (also known as a “click-clack” machine)

(h) for the sale of any Excluded Goods or Excluded Services

(i)to enable a Card Holder to obtain any cash, whether as a “cash out” transaction, a refund transaction (including a refund or any payment arising from the cancellation of an Approved Lay-By) or otherwise

(j)to enable a Card Holder to acquire a Gift Card or a store card or voucher

(k)where the Merchant becomes aware that the BasicsCard is being used fraudulently

(l)where the Merchant is aware that the person attempting to use the BasicsCard is not the authorised Card Holder

(m)to enable a Card Holder to make internet, mail order or telephone-based purchases

(n)to make a Lay-By payment, unless the Lay-By is an Approved Lay-By (see clause 3.3), or

(o)to repay any debt (or part thereof), including an installment payment under a term credit arrangement for goods or services previously provided to the Card Holder by the Merchant or any third party.

3.3Approved Lay-Bys

The Merchant may accept a BasicsCard and process a BasicsCard Transaction to make a payment for an Approved Lay-By.

An Approved Lay-By is a purchase of goods from the Merchant based on terms that the total price is paid over time in regular payments with the goods received by the Card Holder upon completion of payment, and where the Merchant provides the Card Holder with:

(a)a document setting out the Merchant’s terms and conditions of the lay-by service, and

(b)a detailed lay-by docket for the particular lay-by purchase of goods stating:

(i)the deposit amount

(ii)the duration of the lay-by period

(iii)the frequency and minimum amount of payments required, and

(iv)the Merchant’s lay-by cancellation policy (including refunds of deposits or any payments made).

3.4Designated petrol stations

If a Store is approved by the department to accept BasicsCards on the condition that the Merchant only accepts the BasicsCard as a method of payment for the purchase of petroleum, fuel products and automotive goods and services, the Merchant must not accept a BasicsCard or process a BasicsCard Transaction at that Store for any other type of goods or services.

3.5Transactions processed in breach of these Terms and Conditions

(a)The Merchant acknowledges and agrees that a BasicsCard Transaction processed in breach of clause 3.2 (Prohibited transactions) or clause 3.4 (Designated petrol stations) will constitute an invalid transaction, and any amount paid to the Merchant for that invalid transaction will constitute an “Invalid Transaction Amount” that the Merchant may need to repay.

(b)If for any reason an Invalid Transaction Amount has not been credited back by the Merchant through the Payment System, the department may issue the Merchant with a notice requiring payment of the “Invalid Transaction Amount”, and the Merchant must pay that amount in accordance with the notice.

3.6Measures to ensure compliance

The Merchant must:

(a)take all reasonable steps to implement systems and processes, to give effect to its obligations under this clause 3

(b)conduct staff training to ensure that, at all times, staff who may process BasicsCard Transactions or who are in a managerial role at any Store, understand the Merchant’s obligations under these Terms and Conditions and how to facilitate BasicsCard Transactions in compliance with these Terms and Conditions, and

(c)ensure that any other person it contracts to operate a Store, or that it allows to use its In-Store Facility:

(i)understands the Merchant’s obligations under these Terms and Conditions and how to facilitate BasicsCard Transactions in compliance with these Terms and Conditions, and

(ii)complies with these Terms and Conditions.

3.7Breach by Merchant

If the Merchant breaches any provision of these Terms and Conditions, without limiting any of the department’s rights or remedies, the department may issue a notice (Remedy Notice) to the Merchant detailing the nature of the breach and requiring the Merchant to remedy the breach within a period specified in the notice (the Remedy Period) after receipt of the notice.

The Merchant must remedy any breach notified in a Remedy Notice to the satisfaction of the department within the applicable Remedy Period.

The department may take any breach of these Terms and Conditions into account in making a determination to revoke the Merchant’s Approval.

4.Liability, costs and charges

4.1Participation in BasicsCard Scheme

The Merchant acknowledges and agrees that the department will not be responsible or liable to acquire or settle any BasicsCard Transactions for the Merchant.

The Merchant should rely on its In-Store Facility with its Acquiring Institution (if it has one) for acquisition and settlement of BasicsCard Transactions.

4.2The department not liable

The Merchant acknowledges and agrees that the department will not be liable for any loss incurred by the Merchant, however caused, arising directly or indirectly as a result of:

(a)the Merchant’s inability to complete a sale or refund transaction using a BasicsCard, or

(b)delays in the Merchant’s ability to process a sale or refund transaction using a BasicsCard.

4.3Costs and charges

The Merchant will be responsible for any fees, charges, costs or expenses it incurs associated with the processing of BasicsCard Transactions through the Payment System and the BasicsCard Scheme.

5.Notification events

5.1Events requiring immediate notification

The Merchant must notify the department immediately if the Merchant:

(a)suspects or becomes aware that a BasicsCard has been used, or attempted to be used, at a Store in a fraudulent manner or contrary to these Terms and Conditions

(b)becomes aware of any technical or operational error in relation to a BasicsCard, or

(c)becomes aware that the Merchant Terminal is unable to process a BasicsCard Transaction or is otherwise not functioning generally.

5.2Other notification events

The Merchant must notify the department promptly (and in any event within one business day) after the occurrence of any of the following:

(a)the Merchant changes its Acquiring Institution from the acquiring institution nominated in the Merchant Application Form or changes the nature of its In-Store Facility (including if it becomes a self-acquirer)

(b)if any of the information contained in the Merchant Application Form becomes incorrect or misleading in
any respect

(c)if any other person or organisation is contracted to operate a Store, or has been permitted by the Merchant to use its In-Store Facility (if a notification is given under this paragraph, the notification must include the name of the relevant person or organisation)

(d)where the Merchant is not listed on the Australian Securities Exchange, there is any change in the direct or indirect beneficial ownership or control of the business

(e)it disposes of the whole or any part of its assets, operations or business to the extent that such assets, operations or business include one or more Stores

(f)it ceases to carry on business or closes one or more Stores

(g)it ceases to be able to pay its debts as they become due

(h)any step is taken by a mortgagee to take possession or dispose of the whole or any part of its assets, operations or business

(i)any step is taken to enter into any arrangement between the Merchant and its creditors

(j)any step is taken to appoint a receiver, a receiver and manager, a trustee in bankruptcy, a liquidator, a provisional liquidator, an administrator or other like person of the whole or any part of its assets or business, or

(k)where the Merchant is a partnership, any step is taken to dissolve that partnership.

5.3Voluntary withdrawal

A Merchant may voluntarily withdraw from the BasicsCard Scheme at any time. The Merchant must give at least 28 days’ written notice to the department. The department can specify any BasicsCard deactivation date within the 28 day period if necessary.

The department, in its sole discretion, may withdraw its approval of a Merchant, by giving 28 days’ written notice to the Merchant of the date on which the Merchant ceases to be approved for the purposes of the BasicsCard Scheme.

6.Intellectual Property

The Merchant acknowledges and agrees that it has no right, title or interest in the department’s Material, other than the right to use the department’s Material for the purpose of performing its obligations under these Terms and Conditions.

7.Audit and compliance review

7.1Audit and review rights

The Merchant acknowledges and agrees that, subject to clause 7.2, the department, the Australian National Audit Office (ANAO), or a person nominated by the department, may conduct audits and reviews of the Merchant’s compliance with its obligations under these Terms and Conditions, including in relation to:

(a)the Merchant’s processes, practices and procedures as they relate to these Terms and Conditions

(b)the accuracy of the Merchant’s records and reports in relation to these Terms and Conditions, or

(c)any other matters reasonably determined by the department to be relevant to compliance with these Terms and Conditions.

Without limiting the above, the Merchant acknowledges and agrees that the department or a person nominated by the department may, without prior notice to the Merchant, undertake random compliance testing at any Store (during normal opening hours) to confirm the Merchant’s compliance (or otherwise) with its obligations under these Terms and Conditions.

7.2Department nominees

Where an audit or review of the Merchant is conducted by a person nominated by the department (ie, not a department officer), the department must ensure:

(a)the person is not a commercial competitor of the Merchant

(b)the person has executed a deed of confidentiality in the form required by the Commonwealth

(c)the Merchant is given reasonable notice of the proposed person, specifying the name and organisation that the person works for, and

(d)the person observes all relevant occupational health and safety requirements of the Merchant and the Store.

Within five Business Days of receiving notice from the department under clause (c), the Merchant may make representations to the department in relation to the proposed person participating in the audit and request a copy of the executed deed of confidentiality.

The department must consider any representation made by the Merchant in good faith and must provide the Merchant with a copy of the executed deed of confidentiality.

7.3Audit and review costs

Generally, each party must bear its own costs of any audits or compliance reviews. However, if the audit or compliance review concludes that the Merchant has breached these Terms and Conditions, the Commonwealth may, by notice in writing to the Merchant, require the Merchant to reimburse the Commonwealth for the Commonwealth’s reasonable costs incurred in conducting the audit or compliance review.

7.4Access

The Merchant acknowledges and agrees that the department (including its officers, agents or a person nominated by the department in accordance with clause 7.2) or the ANAO may, at reasonable times and on giving reasonable notice to the Merchant:

(a)access the premises of the Merchant to conduct an audit or compliance review under clause 7

(b)inspect and copy documentation, books and records, however stored, relating to BasicsCard Transactions or the Merchant’s performance of these Terms and Conditions, or

(c)require assistance in respect of any inquiry into or concerning these Terms and Conditions or the BasicsCard Scheme.

The Merchant must provide access to its records (including providing use of any device necessary for access), to the extent necessary for the department or the ANAO to exercise its rights under this clause.

8.Termination

8.1Automatic termination

These Terms and Conditions automatically terminate with immediate effect upon the Merchant ceasing to be Approved for the purposes of the BasicsCard Scheme.

8.2Consequences of termination

Upon termination of these Terms and Conditions:

(a)the Merchant must not accept or process a BasicsCard Transaction

(b)the Merchant must promptly remove any BasicsCard logo or other BasicsCard display material from each Store

(c)the Merchant must return any department Material to the department

(d)the Merchant waives all rights to damages, claims or other compensation from the department for any loss it suffers or may suffer as a result of the termination, however caused, and

(e)the accrued rights or remedies of the department and the Merchant (other than as referred to in paragraph (d) above) are not affected.

8.3Survival

Clauses 3.2, 3.5, 4, 6, 10, 11 and 12 survive any termination of these Terms and Conditions.

9.Variation

9.1Right to Vary these Terms and Conditions

The Merchant acknowledges and agrees that the department may, by giving notice to the Merchant, vary these Terms and Conditions at any time without the consent of the Merchant, provided that the department will only mark a variation as ‘Urgent-Security’ for the purposes of clause 9.2, if the department, acting reasonably, considers that the variation is required to protect the integrity of the BasicsCard Scheme or the security of the practices and processes that underpin the BasicsCard Scheme.

9.2Effective Date of Variations

The Merchant acknowledges and agrees that a variation under clause 9.1 takes effect:

(a)28 days after the date of the notice or any later date as specified in the notice, or

(b)if the variation is marked as ‘Urgent-Security’, when the Merchant first accepts a BasicsCard after receiving notice of the variation.

If a variation is marked as ‘Urgent-Security’, for a period of 28 days after the variation becomes effective, the Merchant will be taken to comply with any such variation if it takes reasonable steps to do so.

10.Warranties

10.1Merchant Application Form

The Merchant represents and warrants to the department that the information contained in its Merchant Application Form is true and not misleading (by omission or otherwise) as at the time it completed its Merchant Application Form.

The Merchant must notify the department immediately if any of the information contained in its Merchant Application Form becomes incorrect or misleading in any respect.

10.2BasicsCard Transaction information

The Merchant represents and warrants to the department that all BasicsCard Transaction information provided by the Merchant to the department from time to time is true and complete when provided.

11.General

11.1Assignment

The Merchant may not assign its rights under these Terms and Conditions.

11.2Governing law

These Terms and Conditions are governed by the laws in force in the Australian Capital Territory and the Merchant irrevocably and unconditionally submits to the non-exclusive jurisdiction of the Courts of the Australian Capital Territory.

12.Privacy

12.1General

In connection with the use of a BasicsCard, the Merchant must: