7900823234MerchantReg.pdf

Merchant Regulations

U.S.

April 2021

Copyright © 2008-2021 American Express. All rights reserved. This document contains published confidential and proprietary information of American Express. No disclosure or use of any portion may be made or reproduced in any form or by any electronic or mechanical means, including without limitation information storage and retrieval systems, without the express prior written consent of American Express Travel Related Services Company, Inc.

Summary of Changes

Change Icons

Important updates are listed in the Summary of Changes Table and also indicated in the Merchant Regulations with a change icon. A change icon alongside the title of a section or subsection denotes revised, added, or removed text from the section or subsection. Changes in the Merchant Regulations are indicated with a change icon as shown here:

Summary of Changes Table

Important updates are listed in the following table and are also indicated in the Merchant Regulations with a change icon.

Chapter Section/Subsection Description of Change

Chapter 2, "Doing Business With American Express"

Section 2.5, "Use of Third Parties" Added clarifying language around the use of third parties.

Section 2.6, "Compliance with the Technical Specifications"

Relocated language to Section 2.6, "Compliance with the Technical Specifications".

Subsection 2.6.3, "Compliance with Payment Product Terms and Conditions"

Added language referencing payment product terms and conditions.

Chapter 4, "Transaction Processing"

Subsection 4.5.1.2, "Contact Chip Card Charges"

• Removed reference to the Oil Fraud Protection Program.

• Removed Chip Card fraud liability shift exclusions for fuel Customer Activated Terminals (CATs).

Subsection 4.8.1, "Substitute Charge Records"

Relocated language for Substitute Charge Records from previous Section 11.10.

Subsection 4.18.1, "Introductory Offers"

Added requirements around Introductory Offer.

Chapter 5, " Authorization" Section 5.3, "The Purpose of Authorization"

Added reference to new Estimated Authorization Subsection 5.3.1, "Estimated Authorization".

Subsection 5.3.1, "Estimated Authorization"

Relocated Estimated Authorization language.

Section 5.4, "Authorization Process" Added description language.

Section 5.5, "Possible Authorization Responses"

Clarified Authorization language.

Chapter 6, "Submission" Section 6.4, "Submission Process" Added description language.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

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Summary of Changes

Chapter 8, "Protecting Cardmember Information"

Section 8.2, "Definitions" Updated definitions.

Section 8.3, "Cardholder Data Compromise"

Added Cardholder Data Compromise Program.

Section 8.5, "Data Incident Management Obligations"

Increased the Data Incident notification timeframe.

Section 8.6, "Indemnity Obligations for a Data Incident"

Updated references to Subsection 14.2.3, " Submission and Settlement Fees".

Chapter 10, "Risk Evaluation" Section 10.2, "Prohibited and Restricted Merchants"

Updated categories description.

Chapter 11, "Chargebacks and Inquiries"

N/A Clarified language in Chapter 11.

Subsection 11.6.3, "Fraud" Added Multiple ROC Chargeback code.

Section 11.7, "Compelling Evidence" Expanded and revised Compelling Evidence policy.

Section 11.11, "Chargeback Programs" Clarified language.

Chapter 12, "Specific Industries"

Subsection 12.7, "Oil/Petroleum" Removed reference to the Oil Fraud Protection Program.

Subsection 12.7.3, "Oil Fraud Protection Program"

Removed Oil Fraud Protection Program section.

Section 12.8, “Parking” Eliminated Parking section. No industry specific procedure needed.

Section 12.9, "Restaurants"

Relocated Estimated Authorization language to Subsection 5.3.1, "Estimated Authorization".

Subsection 12.10.1.1, "Cruise Line— Special Authorization Procedures"

Subsection 12.10.2.1, "Lodging— Special Authorization Procedures"

Subsection 12.10.3.1, "Vehicle Rentals—Special Authorization Procedures"

Section 12.19, "Taxicabs and Limousines"

Section 12.20, "Card Not Present Retail and Grocery"

Chapter Section/Subsection Description of Change

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Summary of Changes

Chapter 13, "Payment Aggregator"

Section 13.1, "Introduction" Reinforced language to comply with changes introduced with new products and/or services.

Section 13.2, "Definitions" Modified definitions.

Section 13.3, "Recruitment of Sponsored Merchants"

Clarified language.

Section 13.4, "General Payment Aggregator Requirements"

Clarified requirement for Aggregated Charges.

Subsection 13.6.1, "Transactional Data Requirements"

Reinforced reference to Section 4.4 requirements.

Chapter 13.6.2, " Disapproval of Merchant Cancellation Notification and Reporting"

Relocated language to section 13.9.

Chapter 13.9, "Prohibited Categories and Exclusions"

• Clarified language

• Updated categories description

Chapter 14, "Merchant Fees" Subsection 14.2.4, "Data Security Fees" • Added Cardholder Data Compromise Non- Compliance fee table.

• Modified Data Incident non-compliance fee table.

• Updated Non-Validation Fee table.

Glossary Added/modified definitions.

Chapter Section/Subsection Description of Change

Contact Information

Merchant Services

(general customer service for Merchants)

1.800.528.5200

Authorization Department 1.800.528.2121

Travelers Cheque/Gift Cheque Customer Service 1.800.221.7282

Travelers Cheque Authorizations and Fraud 1.800.525.7641

American Express Terminal Assistance

(If a vendor other than American Express provided your terminal, contact that vendor directly.)

1.800.851.5948

General Charge/Credit forms

(Vendor supplying paper Charge and Credit forms.)

1.877.867.3409

American Express Enterprise Incident Response Program (EIRP)

1.602.537.3021 or 1.888.732.3750 EIRP@aexp.com

SecureTrust, a division of Trustwave 1.866.659.9016

Paper submissions American Express Merchant Services Paper ROC SOC Submitters PO Box 981558 El Paso, TX 79998-1558

Rush Paper Submissions Datamark, Inc Attn: ROCs / SOCs 43 Butterfield Circle El Paso, TX 79906 915-242-6227

Customer Service Disputes American Express Credit Card Account Customer Service Department PO Box 981532 El Paso, TX 79998 Fax: 623.444.3000

Fraud Disputes Overnight/Signature Required American Express Datamark, Inc.

43 Butterfield Circle El Paso, TX 79906-5202

Point of Sale materials www.americanexpress.com/decals

Merchant Fraud Prevention information www.americanexpress.com/fraudinfo

American Express Merchant homepage www.americanexpress.com/merchant mailto:EIRP@aexp.com http://www.americanexpress.com/decals http://www.americanexpress.com/fraudinfo http://www.americanexpress.com/merchant

Table of Contents

Summary of Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

1 Introduction

1.1 About American Express

1.2 About the Merchant Regulations

1.3 Organization of the Merchant Regulations

1.4 Changes in the Merchant Regulations

1.4.1 Scheduled Changes

1.4.2 Unscheduled Changes

2 Doing Business With American Express

2.1 Introduction

2.2 Benefits of Accepting the American Express Card

2.3 The American Express Merchant Number

2.4 Merchant Information

2.5 Use of Third Parties

2.6 Compliance with the Technical Specifications

2.6.1 Merchant Category Codes

2.6.2 POS System Non-Compliance Program

2.6.3 Compliance with Payment Product Terms and Conditions

2.7 Establishment Closing

2.8 Verification and Disclosure of Information

2.9 Call Monitoring

2.10 Permitted Uses of Merchant Information

2.11 Cardmember Offers

2.12 Marketing Programs

2.12.1 Honoring the Offer

2.12.2 License

2.12.3 Hyperlinking

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Table of Contents

2.12.4 Copy Requirements; Approval of Marketing Materials

2.12.5 Promotion of the Offer

2.12.6 Audit

2.12.7 No Reverse Engineering

2.12.8 Confidentiality

2.12.9 Registered Card-Specific Terms

2.12.10 Intellectual Property Rights

2.12.11 Indemnity

2.12.12 Limitation of Liability: Disclaimer

2.12.13 Termination

3 Card Acceptance

3.1 Card Acceptance

3.2 Treatment of the American Express Brand

3.2.1 Treatment of the American Express Marks

3.3 Prohibited Uses of the Card

3.4 Prohibited Merchants

3.5 Treatment of American Express Cardmember Information

4 Transaction Processing

4.1 The Many Types of Transactions

4.2 Transaction Process

4.3 American Express Payment Options

4.4 Completing a Transaction at the Point of Sale

4.5 Processing an In-Person Charge

4.5.1 Electronic Charges

4.5.2 Key-Entered Charges

4.5.3 Actions for In-Person Charges

4.6 Customer Activated Terminals

4.7 Processing a Card Not Present Charge

4.8 Charge Records

4.8.1 Substitute Charge Records

4.9 Processing a Credit

4.10 Credit Records

4.11 Return and Cancellation Policies

4.11.1 Return Policy For Prepaid Products

4.12 Processing Transactions for Specific Industries

4.13 Corporate Purchasing Card Charges

4.14 Advance Payment Charges

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Table of Contents

4.15 Aggregated Charges – Internet

4.16 Delayed Delivery Charges

4.17 No PIN Program

4.18 Recurring Billing Charges

4.18.1 Introductory Offers

4.19 Processing Prepaid Cards

4.20 Processing Travelers/Gift Cheques

4.20.1 Acceptance Procedures

4.21 Property Damage to Accommodations and other Rentals

5 Authorization

5.1 Introduction

5.2 Transaction Process

5.3 The Purpose of Authorization

5.3.1 Estimated Authorization

5.4 Authorization Process

5.5 Possible Authorization Responses

5.6 Obtaining an Electronic Authorization

5.7 Obtaining a Voice Authorization

5.8 Card Identification (CID) Number

5.9 Authorization Reversal

5.10 Authorization Time Limit

5.11 Floor Limit

5.12 Pre-Authorization

5.13 Additional Authorization Requirements

6 Submission

6.1 Introduction

6.2 Transaction Process

6.3 Purpose of Submission

6.4 Submission Process

6.5 Submission Requirements—Electronic

6.5.1 Charge Submissions

6.5.2 Credit Submissions

6.6 Submission Requirements—Paper

6.7 How to Submit

7 Settlement

7.1 Transaction Process

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7.2 Settlement Amount

7.3 Discount/Discount Rate

7.3.1 Corporate Purchasing Card Discount Reduction

7.4 Method of Payment

7.5 Speed of Payment

7.6 Payment Options

7.6.1 Net Pay

7.6.2 Gross Pay

7.7 Reconciliation Options

7.8 Payment Errors or Omissions

7.9 Collecting from Cardmembers

8 Protecting Cardmember Information

8.1 Data Security Operating Policy

8.2 Definitions

8.3 Cardholder Data Compromise

8.4 Standards for Protection of Cardmember Information

8.5 Data Incident Management Obligations

8.6 Indemnity Obligations for a Data Incident

8.6.1 Technology-Based Indemnity Reduction

8.7 Periodic Validation of Merchant Systems

8.7.1 Merchants Not Compliant with PCI DSS

8.7.2 Non-Validation Fees and Termination of Agreements

8.7.3 Periodic Validation of STEP-eligible Merchants

8.8 Confidentiality and Disclosure

8.9 Disclaimer

9 Fraud Prevention

9.1 Introduction

9.2 Transaction Process

9.3 Strategies for Deterring Fraud

9.4 Card Acceptance Policies

9.5 Card Security Features

9.5.1 Compromised Card Security Features

9.6 Recognizing Suspicious Activity

9.7 Prepaid Card Security Features

9.8 Recognizing Suspicious Activity for Prepaid Cards

9.9 Travelers Cheque and Gift Cheque Security Features

9.10 Fraud Mitigation Tools

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9.10.1 Track 1

9.10.2 Code 10

9.10.3 Terminal ID

9.10.4 Enhanced Authorization

9.11 Verification Services

9.11.1 Electronic Verification Services

9.11.2 Additional Services

9.12 American Express SafeKey

9.12.1 American Express SafeKey Fraud Liability Shift

10 Risk Evaluation

10.1 Introduction

10.2 Prohibited and Restricted Merchants

10.3 Monitoring

10.3.1 High Risk Merchants

10.3.2 Fraudulent, Deceptive, or Unfair Business Practices, Illegal Activities, or Prohibited Uses of the Card

11 Chargebacks and Inquiries

11.1 Introduction

11.2 Transaction Process

11.3 Disputed Charges Rights

11.4 Disputed Charges Process

11.5 Chargebacks and Inquiries Response Timeframe

11.6 Chargeback Reasons

11.6.1 Authorization

11.6.2 Cardmember Disputes

11.6.3 Fraud

11.6.4 Inquiry/Miscellaneous

11.6.5 Processing Error

11.6.6 Chargeback Programs

11.7 Compelling Evidence

11.7.1 Compelling Evidence for goods/services not received or only partially received (ISO 4554/C08)

11.7.2 Compelling Evidence for Card Not Present Fraud (ISO 4540/F29)

11.8 Inquiry Types

11.9 Chargeback and Inquiry Monitoring

11.10 How We Chargeback

11.11 Chargeback Programs

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11.12 Ways to Receive Chargebacks and Inquiries

11.13 Response Methods

12 Specific Industries

12.1 Introduction

12.2 Rental Establishments

12.3 Auto Dealers

12.4 Business-to-Business (B2B)/Wholesale Distribution

12.5 Charitable Donations

12.6 Insurance

12.7 Oil/Petroleum

12.7.1 Requirements

12.7.2 Recommendations

12.8 Telecommunications

12.9 Timeshares

12.10 Travel Industries

12.10.1 Cruise Line

12.10.2 Lodging

12.10.3 Vehicle Rentals

12.10.4 Assured Reservations

12.11 Government/Utilities/Education

12.12 Internet/Online Pharmacies

12.13 Online/Mail Order Tobacco Retail

12.14 Franchises

12.15 Transit Contactless Transactions

12.15.1 Card Acceptance Requirements for Transit Contactless Transactions . . . 148

12.15.2 Authorization and Submission Requirements

12.15.3 Transit Thresholds

12.15.4 Transit Charge Information

12.15.5 Transit Debt Recovery

12.15.6 Management of the Deny List

12.15.7 Pay-In-Advance Transit Passes

13 Payment Aggregator

13.1 Introduction

13.2 Definitions

13.3 Recruitment of Sponsored Merchants

13.3.1 Payment Aggregator Registration Process

13.3.2 Payment Aggregator Changes

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13.3.3 Sponsored Merchant Agreements

13.3.4 Conversion of Large Merchants

13.4 General Payment Aggregator Requirements

13.4.1 Customer Service Information

13.4.2 Disclosures to Cardmembers and Sponsored Merchants

13.4.3 Chargebacks / Disputed Charges

13.4.4 Marketing

13.4.5 Treatment of Specific Industries

13.4.6 General Testing and Monitoring Activities

13.5 Financial and Payment Terms

13.6 Sponsored Merchant Reporting Requirements

13.6.1 Transactional Data Requirements

13.7 Indemnity—Limitation of Liability

13.7.1 Termination

13.8 Audit and Oversight

13.8.1 Audit Rights

13.8.2 Oversight Reviews

13.8.3 Audit and Oversight Review Follow-up

13.9 Prohibited Categories and Exclusions

14 Merchant Fees

14.1 Introduction

14.2 Types of Fees

14.2.1 Card Acceptance Discount Fees

14.2.2 Authorization Fees

14.2.3 Submission and Settlement Fees

14.2.4 Data Security Fees

14.2.5 Data Pass Violation Fee

14.2.6 Excessive Chargeback Fee

14.2.7 American Express Merchant Regulations Fee

14.2.8 Payment Aggregator Fees

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

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Table of Contents

Glossary

Appendix A.1 Arbitration Agreement (as to Claims involving American Express)

A.2 Payment Aggregator Registration Form

A.3 Payment Aggregator Change Form

A.4 Affidavit of Compliance with Laws—Online/Mail Order Tobacco

A.5 Affidavit of Compliance with Laws—Internet/Online Pharmacies

Introduction 1

1.1 About American Express

1.2 About the Merchant Regulations

1.3 Organization of the Merchant Regulations

1.4 Changes in the Merchant Regulations

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Introduction :: About American Express

1.1 About American Express

American Express was established more than 160 years ago and has undergone remarkable changes over the years. One characteristic has remained constant, however: our commitment to the core values of our founders. American Express is guided by a value system that is steadfastly focused on doing business in more than 130 countries around the globe with trust and integrity, delivering quality products and services to our valued customers.

The American Express Network operates worldwide, including in Territories where Applicable Law, or other considerations, may require that certain of our Affiliates or licensees act as Acquirers.

The Network also supports millions of Merchants globally and processes a vast number of Transactions daily, forging relationships between Cardmembers and Merchants. We help build the businesses of millions of Merchants, from neighborhood shops to multinational corporations.

1.2 About the Merchant Regulations

We are pleased to provide the American Express Merchant Regulations. It offers best practices, helpful tips, and available tools to assist your businesses. You can be more successful if you have access to and understand Card acceptance policies and procedures.

To serve all Merchants consistently, we require them to operate under the Merchant Regulations.

The Merchant Regulations set forth the policies and procedures governing your acceptance of the American Express® Card. It is a part of, and is hereby incorporated by reference into, the Agreement. You agree to be bound by and accept all provisions in the Merchant Regulations (as changed from time to time) as if fully set out in the Agreement and as a condition of your agreement to accept the Card.

1.3 Organization of the Merchant Regulations

The American Express Merchant Regulations are designed to meet the needs of busy Merchants. The content is organized into:

• global policies that apply to your Establishment, and

• country-specific policies that apply to your Establishments located in the specific country listed.

In the event of any conflict between the global policies and country-specific policies, the requirements of the country-specific policies take precedence. In the event of any conflict between the Agreement and Applicable Law, the requirements of law govern.

The Merchant Regulations follow the flow of the Transaction process—from Card acceptance, to Authorization, to Submission, to Settlement, to Disputed Charges, to Chargebacks. To make it easier for you to locate the information you need quickly, the Merchant Regulations were designed with the following functionality:

• Important information is identified throughout the Merchant Regulations using the information boxes to the left of the main text.

• Point-and-click links to and from chapters are identified by blue underlined text when viewing the Merchant Regulations online.

• A table of contents and comprehensive glossary are provided in the Merchant Regulations.

Information boxes like this one are displayed throughout the Merchant Regulations to highlight important information such as definitions, fraud alerts, helpful tips and further information.

You should read the global policies together with any country-specific policies that follow. The two sections are organized one after the other, making it easier to read and find the information you need.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Introduction :: Changes in the Merchant Regulations

• Capitalized terms used in the Merchant Regulations have the meanings ascribed to them in the Glossary. In addition, certain specialized terms also appear and are defined in the chapter or section in which they are used.

• All amounts referenced herein are stated in U.S. dollars.

1.4 Changes in the Merchant Regulations

We reserve the right to make changes to the Merchant Regulations in scheduled changes and at any time in unscheduled changes as set forth in the General Provisions (see Subsection 1.4.1, "Scheduled Changes" and Subsection 1.4.2, "Unscheduled Changes"). You agree to accept all changes (and further to abide by the changed provisions of the Merchant Regulations) as a condition of your agreement to accept the Card, except where Applicable Law takes precedence.

1.4.1 Scheduled Changes

The Merchant Regulations are published on a scheduled basis, twice each year, in April and October. We have the right to, and hereby notify you that we may, change the provisions of the Merchant Regulations in scheduled releases (sometimes called "Notification of Changes" in our materials) as follows:

• a release of scheduled changes, to be published every April, which changes shall take effect in the following October (or in a later) edition of the Merchant Regulations or during the period between two editions of the Merchant Regulations, and

• a release of scheduled changes, to be published every October, which changes shall take effect in the following April (or in a later) edition of the Merchant Regulations or during the period between two editions of the Merchant Regulations.

Where a change is to take effect during the period between two editions of the Merchant Regulations, we shall also include the change in the edition of the Merchant Regulations covering the period during which the change shall take effect, noting the effective date of the change therein.

1.4.2 Unscheduled Changes

We have the right, and hereby notify you that we may, change the provisions of the Merchant Regulations in separate unscheduled releases.

Provisions changed in unscheduled releases generally take effect ten (10) days after notice to you (unless another effective date is specified in the notice).

Doing Business With American Express 2

2.1 Introduction

2.2 Benefits of Accepting the American Express Card

2.3 The American Express Merchant Number

2.4 Merchant Information

2.5 Use of Third Parties

2.6 Compliance with the Technical Specifications

2.7 Establishment Closing

2.8 Verification and Disclosure of Information

2.9 Call Monitoring

2.10 Permitted Uses of Merchant Information

2.11 Cardmember Offers

2.12 Marketing Programs

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Introduction

2.1 Introduction

At American Express, we feel privileged to do business with Merchants like you and want to help make the process of accepting Cards as simple as possible. The Merchant Regulations explain the policies and procedures related to accepting American Express Cards. It also highlights some of the services and tools that can help your business. This chapter outlines some general concepts that relate to doing business with American Express.

2.2 Benefits of Accepting the American Express Card

The decision you have made to accept the American Express Card demonstrates a commitment to the millions of Cardmembers who carry the Card.

Accepting the Card allows you to:

• offer your customers the convenience of paying with American Express Cards, and

• improve retention by allowing customers with recurring Charges to pay automatically.

Accepting the Card also allows you to:

• access your Merchant Account through our online program, and

• manage your Inquiries, Submissions and payment information online with daily updates.

2.3 The American Express Merchant Number

Your Merchant Number (sometimes called a "Merchant ID", "Establishment number” or “SE number" in our materials) is a unique number we assign to your Establishments.

• If you have more than one Establishment, we may assign a separate Merchant Number for each.

• If you accept Card Present Charges and also accept Card Not Present Charges, you must notify us so that we may assign a separate Merchant Number for each.

• Your Merchant Number is assigned to you based on our classification of your industry.

Certain Establishments may operate in more than one industry classification (e.g., a gasoline station with both in-store and Customer Activated Terminal (CAT) Transactions).

In these instances, you must obtain a separate Merchant Number for each industry classification.

• Each Merchant Number is designated for a single currency.

• We may refuse to assign a Merchant Number or grant Card acceptance privileges to an Establishment.

If you require an additional Merchant Number, call Merchant Services.

You must use your Merchant Number to identify your business any time you contact us. This is the easiest and fastest way for us to access your Merchant Account information.

A Merchant Number is the sole property of American Express and you shall only use it for operating your Card acceptance relationship with us. You shall not assign or otherwise transfer any Merchant Number to any other party. You are responsible for safeguarding Merchant Numbers.

Sign up to manage your Merchant Account online and you can access easy-to-use account management features (terms apply). You can:

• find out how much you’re getting paid

• manage cash flow

• get access to detailed

Transaction features

• learn about and review new

Disputed Charges

To enroll or learn more, go to www.americanexpress.com/ merchant.

If you do not know your Merchant Number, refer to your current statement—either paper or electronic (by accessing your Merchant Account online (terms apply))—or contact the representative from your corporate office that works with American Express.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Merchant Information

2.4 Merchant Information

Having current information about you enables us to serve you better.

You and any person signing the application to accept Cards must have provided all required information. We will obtain, verify, record, and analyze information (including your telephone calls) that identifies each person or Entity (which may, in our sole discretion, include information about its owners) applying to accept the Card and open a Merchant Account, as well as information that may be provided in subsequent calls or interactions with us. We will use such information to improve our services, prevent fraud, or for other business purposes.

When you apply to accept the Card and open a Merchant Account, we will ask for your business name, a business street address and a business tax identification number. If you provide us with your personal name, street address, or tax identification number to be used as your business name, business street address, or business tax identification number, we will use this information as your business information for purposes of our relationship with you.

Additionally, we may request or require that you provide information about your significant owners, including name, street address, date of birth, an identification number, such as a social security number, and other Merchant information, which may include additional contact information for your significant owners, personnel (e.g., authorized signers), and Establishments. This information may include telephone numbers, email addresses, and facsimile numbers. We may also ask to see identifying documents such as a business license, driver's license or similar documentation that will allow us to identify you. If you provide us with your personal contact number(s) to be used as your business contact number(s), we will use this information as your business information for purposes of our relationship with you.

Information that you include when you apply to accept the Card and open a Merchant Account will be collected and retained by us. We share this information with Affiliates and other business lines of American Express in order to conduct analytics and make the information available to certain third-parties, including for tax reconciliation or expense management services and their users. By applying to accept the Card and open a Merchant Account, you consent to our disclosure of the information therein for these purposes.

You agree that, upon providing contact information to us, we may send you messages, including important information about your Merchant Account as well as information on products, services, and resources available to your business. These messages may be sent to the phone numbers, email addresses or fax numbers you provide. If you provide a wireless phone number to us, you agree that we may contact you at that number and the communications we send may include autodialed short message service (SMS or "text") messages or automated or prerecorded calls. If you provide a fax number to us, you agree that we may send you fax communications. We may otherwise use and share Merchant information for business purposes and as permitted by law. We use reasonable administrative, technical and physical security measures to protect Merchant information consistent with the sensitivity of the information.

You may opt out of newsletters or messages about products, services and resources for different forms of communications by contacting us at 1-800-528-5200 or by logging onto americanexpress.com/merchant and selecting “update your email address” from the list of account options and then selecting “marketing communications”, or by exercising any opt-out options that we may describe or offer in emails, SMS messages, faxes or other communications. If you have opted-out, we may still send you servicing messages related to information about your account.

Incorrect information may result in servicing issues. For example, if your business name changes and American Express is not notified, your customers may not recognize the Charge on their statements. This could result in Disputed Charges.

As a result of IRS rules governing "merchant acquiring entities," American Express is required to withhold 24% of Submission from any Merchant whose tax identification number (TIN) and/or legal name are missing or do not match what is on file with the IRS. To avoid potential backup withholdings, you must notify us any time there is a change to your TIN, legal name, and/or business address, and ensure you respond to any requests for verification and record updates from us.

http://americanexpress.com/merchant

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Merchant Regulations - U.S.

Doing Business With American Express :: Use of Third Parties

You must also notify us of any additions, deletions, and/or modifications to your Merchant information, particularly changes related to:

• banking information (e.g., routing number, Bank Account, bank name),

• legal name of business or corporate owner registered with the IRS,

• federal tax identification number as registered with the IRS,

• full physical address/location,

• telephone number at which we can contact you (e.g., your business telephone number),

• telephone number at which your customers may contact you (e.g., your customer service telephone number),

• email address at which we can contact you (e.g., your business email address),

• email address at which your customers may contact you (e.g., your customer service email address),

• website URL,

• goods/services offered (type of business),

• method of doing business (e.g., mail order, internet, storefront),

• form of organization (e.g., sole proprietorship, partnership, limited liability company, corporation, non profit, government),

• publicly traded or privately held organization,

• ownership/control (e.g., sale of business, change in control of business),

• significant owners that control 25% or more of your business. If you do not have a single significant owner that controls 25% or more, you still must provide one owner. For each significant owner or owner, provide:

name, full home physical address/location, Social Security Number or date of birth,

• authorized signer information, name and title, Social Security Number,

• other critical business information that helps us contact or do business with you (e.g., change of Processor).

This list is not exhaustive and we may, at our sole discretion, require additional information.

2.5 Use of Third Parties

As a Merchant, you make decisions and choices on behalf of your business each and every day.

Some Merchants choose to deal directly with us for all aspects of the Transaction process;

others enlist the assistance of various third parties to provide them with services. These third parties are your Covered Parties and may include:

• service providers/Processors,

• Terminal Providers,

• vendors, and

• Other agents contracted to operate on your behalf.

You may retain, at your expense, such third parties, provided that we may deny or reject your use of a third party to perform services and/or your obligations under the Agreement at any time in our sole discretion. You remain financially and otherwise liable for all obligations (including confidentiality obligations and compliance with the Technical Specifications), services, and functions they perform under the Agreement for you, such as the technical

Generally we require information about the third parties you work with such as their company name, address, and telephone number; the name, address, and telephone number of an individual whom we may contact about your Merchant Account; and the types of Merchant processing services offered by such third party.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Use of Third Parties requirements of authorizing and submitting Transactions to us, as if you performed such obligations, services, and functions. Any omission or failure to perform by your third party does not relieve you of your obligations under the Agreement. We need not alter our conduct of business in respect of your third parties' performance and may rely upon that performance as if done by you.

Any listing or certification by us of third parties does not constitute a guarantee or warranty by us of their performance and does not relieve you of your responsibility and liability for any such third party that you elect to use.

You are responsible and liable for all problems and expenses caused by your third parties, including any Settlement payments misdirected to other parties because of the mis-programming of your Point of Sale (POS) System by your third parties, and for any fees your third parties charge us or that we incur as a result of your third parties. We may bill you for any fees or deduct them from our payments to you.

You must ensure that these third parties cooperate with us to enable your Card acceptance.

You must notify us if you intend for these third parties to deal directly with us and notify us promptly in writing if you change such third parties. You must provide us, on request, all relevant non-confidential information about your third parties. We generally use this information to help in servicing your Merchant Account, including troubleshooting issues affecting the processing of your Transactions, and ensuring compliance with the Technical Specifications (see Section 2.6, "Compliance with the Technical Specifications").

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Compliance with the Technical Specifications

2.6 Compliance with the Technical Specifications

A vast number of Transactions traverse, and are processed by, the American Express Network.

Merchants, Processors, Terminal Providers, and others must conform to the Technical Specifications in order to connect to and transact on the Network.

Each Authorization request and Transaction, including data contained therein, must comply with the Technical Specifications, any other (or different) requirements of our local operating centers and Applicable Law. We reserve the right to modify the Technical Specifications or requirements of our local operating centers.

You must ensure that you and any third parties you enlist to facilitate Transaction processing with us comply with the Technical Specifications (see Section 2.5, "Use of Third Parties"). Valid and accurate data must be provided for all data elements in accordance with the Technical Specifications. Failure to comply with the Technical Specifications may impact your ability to successfully process Transactions and lead to your placement into our POS System non-compliance program. See Subsection 2.6.2, "POS System Non-Compliance Program".

To ensure your compliance with the Technical Specifications, work with your Processor, Terminal Provider, or if you have a direct link with us, your American Express representative.

You may be charged non-compliance fees if you fail to comply with the Technical Specifications.

See Subsection 14.2.3, " Submission and Settlement Fees" and Subsection 14.2.2, "Authorization Fees".

If commercially reasonable for you, and not prohibited by any of your other agreements, you must work with us to configure your Authorization, Submission and POS Systems to communicate directly with our systems for Authorization and Submission of Charge Data.

Merchants who connect to the Network directly may elect to receive email notifications when updates are made to the Technical Specifications. To receive such email notifications, contact your American Express representative or send an email to SpecQuestions@aexp.com.

2.6.1 Merchant Category Codes

You must provide us with an accurate and complete description of your industry classification so we can assign a Merchant Category Code (MCC) to your Merchant Number. If you have multiple, distinct businesses, those businesses will be assigned appropriate MCCs and Merchant Numbers. If you have multiple businesses, but a distinction between them is unclear, then we will use the MCC most closely representing your business’s primary industry classification.

You must use the most accurate MCCs in all Authorizations and Submissions.

2.6.2 POS System Non-Compliance Program

American Express monitors for conformance to our Technical Specifications including our requirements for POS Systems (available at americanexpress.com/merchantspecs under “technical mandates”). Failure to conform may lead to your placement in this non-compliance program.

If you are placed into our POS System non-compliance program, you will be notified with further details about the program. We may assess a POS System non-compliance assessment for failure to comply (see Subsection 14.2.2, "Authorization Fees").

You may be required to comply with conditional and/or optional requirements in the Technical Specifications depending on:

• your industry,

• type of connectivity to the

Network,

• method of Transaction processing, and/or,

• use of certain fraud mitigation tools.

Information regarding requirements for your Point of Sale devices is available at americanexpress.com/ merchantspecs, under Technical Mandates.

If you are unsure of the MCC assigned to you, please contact Merchant Services. We also recommend that you review your Authorization and Submission data periodically to ensure it accurately represents your industry classification.

http://americanexpress.com/merchantspecs http://www.americanexpress.com/merchantspecs mailto:SpecQuestions@aexp.com http://www.americanexpress.com/merchantspecs

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Merchant Regulations - U.S.

Doing Business With American Express :: Establishment Closing

2.6.3 Compliance with Payment Product Terms and Conditions

We offer various payment processing solutions and products. If you choose to utilize one or more such products, you and any third parties you enlist must comply with the corresponding terms and conditions, which we may update from time to time, and which are available at www.americanexpress.com/merchantspecs. In the event of any conflict between the terms and conditions of the payment processing product and the Merchant Regulations, the terms and conditions of the payment processing product will prevail.

2.7 Establishment Closing

If you close any of your Establishments, you must follow these guidelines:

• Notify American Express' Merchant Services immediately.

• Your policies must be conveyed to the Cardmember prior to completion of the Charge and printed on the copy of a receipt or Charge Record the Cardmember signs. See Section 4.11, "Return and Cancellation Policies" for additional information.

• If you are not providing refunds or exchanges, post notices indicating that all sales are final (e.g., at the front doors, by the cash registers, on the Charge Record and on your website and catalog).

• Your return and cancellation policies must be clearly disclosed at the time of sale.

• For Advance Payment Charges or Delayed Delivery Charges, you must either deliver the goods or services for which you have already charged the Cardmember or issue Credit for any portion of the Charge for which you have not delivered the goods or services.

2.8 Verification and Disclosure of Information

We obtain information about you from your application to accept the Card and from other sources (e.g., credit reporting agencies and providers of business information).

We may request from consumer or commercial credit reporting agencies or other investigative agencies an investigative or consumer report about the commercial or personal finances of you, any person signing your application to accept the Card (or any other application/setup page used in applying for Card acceptance), and any person providing us with permission to obtain such information in connection with the Agreement. You authorize and direct us to inform such persons directly, or through you, of reports about such persons that we have requested from such agencies.

Such information will include the name and address of the agency furnishing the report. You also authorize American Express to use the reports from consumer reporting agencies for marketing and administrative purposes.

The information we obtain about you from your application to accept the Card will include your taxpayer identification number.

We may, at our sole discretion, disclose information about you and/or any person signing the application/setup page of the Agreement, if applicable, and/or any person providing us with permission to obtain or disclose information in connection with the Agreement, including information about your Merchant Account, to our agents, subcontractors, Affiliates, and other parties, including industry organizations and reporting agencies, for any purpose permitted by law, including debt collection, fraud prevention, and risk reduction.

You and/or any person signing the application/setup page of the Agreement, if applicable, and/ or any person providing us with permission to obtain or disclose information in connection with the Agreement, hereby release and waive any right or Claim arising out of or related to such disclosure, including defamation Claims, even if the information that we disclose is incorrect or

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Call Monitoring incomplete. You acknowledge that we may report your business name and the name of your principals to the MATCH™ (Member Alert to Control High Risk Merchants) listing maintained by MasterCard. You and they hereby specifically consent to the reporting, and you and they hereby waive and hold us harmless from all Claims and liabilities you and they may have as a result of such reporting.

2.9 Call Monitoring

We will monitor or record (or both) and analyze telephone calls with you to improve our services, prevent fraud, or for other business purposes.

2.10 Permitted Uses of Merchant Information

Further to the terms of the Agreement, we may use your name, address (including your website addresses or URLs), customer service telephone numbers, and/or industry classification in any media at any time.

2.11 Cardmember Offers

We want to help encourage Cardmembers to seek out and shop at small Merchants that accept the American Express Card. From time to time, we may include small Merchants in Cardmember offers. There is no additional cost to your business to be included in these offers.

For more information, visit www.americanexpress.com/us/small-business/shop-small and click on the Cardmember Offers tab. There you can view offer terms and conditions, determine if your business is an eligible small Merchant that is included in any offers, and access any available signage to promote Cardmember offers, that you are included in, to your customers.

2.12 Marketing Programs

As a Merchant, you may be eligible to participate in American Express Marketing Programs that we conduct from time to time. We have the right, in our sole discretion, whether or not to approve you as an eligible Merchant for a Marketing Program. Not all Merchants are eligible for Marketing Programs. If we determine that you are eligible for a Marketing Program, you have the right, in your sole discretion, to decide whether you will elect to participate in such a Marketing Program. If you do elect to participate in such Marketing Program, you must complete and sign an Insertion Order, which we will provide to you. The Insertion Order will contain the specific details of the Marketing Program (e.g., promotion of the Offer, applicable marketing channels). The provisions of this Chapter 2, "Doing Business With American Express", along with the Insertion Order, will govern your participation in such programs.

During your participation in a Marketing Program as set forth in an Insertion Order, you must indicate your acceptance of the Card by displaying our Marks at the point of sale (including online or mobile services) or at the store entry in conformance with Subsection 3.2.1, "Treatment of the American Express Marks". If you do not display the marks of any other payment form at the point of sale (including online or mobile services) or at store entry, the foregoing sentence shall not apply.

2.12.1 Honoring the Offer

You must not impose any restrictions on the Offer other than those specifically described in the copy approved by you and us. If you become aware of any issues with the Offer, you shall give us prompt written notice thereof, which notice will not relieve you of your obligations pursuant to the Marketing Program IO.

https://www.americanexpress.com/us/small-business/shop-small

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third April 2021 parties without the express prior written consent of American Express Travel Related Services Company, Inc.

Merchant Regulations - U.S.

Doing Business With American Express :: Marketing Programs

2.12.2 License

You hereby grant us a non-exclusive, non-transferable, royalty-free license to use those of your Marks, as set forth in the Marketing Program IO or as otherwise necessary to promote the Offer, and any copy you submit hereunder in any communications media (e.g., television, radio, print or online promotions), in connection with and solely to identify and promote the Marketing Program in the manner set forth in the Marketing Program IO, subject to Subsection 2.12.4, "Copy Requirements; Approval of Marketing Materials". We shall not alter or modify those Marks in any way.

In the case of Merchant-Provided Creative, we hereby grant to you a non-exclusive, non-transferable, royalty-free license to use those of our…