Crypto APM Service

Supplemental Terms - Crypto APM Service

These Supplemental Terms for Verifone’s Crypto APM Service supplement and are to be read together with Verifone’s Standard Terms and Conditions and the Supplemental Terms - Verifone’s APM Platform.

Description of the Crypto Payment Solution

The Crypto Payment Solution allows shoppers who hold a supported cryptocurrency in a supported cryptocurrency wallet to make a payment using cryptocurrency as tender. These users are referred to herein as “Shoppers”.

The delivery of the Crypto Payment Solution requires integrations with various third parties in the cryptocurrency industry, including developers, creators, asset issuers, organizations and financial institutions building decentralized protocols, applications, products, or other services necessary for the crypto economy.  Such third parties are referred to herein generally as “Crypto Industry Participants”.  Crypto Industry Participants that perform services necessary for the functioning of the Crypto Payment Solution are third-party beneficiaries of these Terms and Conditions.

Merchant acknowledges and agrees that the cryptocurrency industry, and therefore the Crypto Payment Solution, will change over time.

Digital Cryptocurrency Wallets

Shoppers sending cryptocurrency payments in cryptocurrency need to have a digital wallet.  A digital wallet is a piece of software enabling a user to store encrypted private keys, used to sign transactions to access funds.  A custodial digital wallet constitutes an account where third parties serve as financial intermediaries or custodians of a user’s cryptocurrencies. A custodial wallet provider stores the user’s private keys and thus has control over the user’s funds. A non-custodial digital wallet does not constitute an account where third parties serve as financial intermediaries or custodians of a user’s cryptocurrencies.  A non-custodial wallet provider administers only the technical platform to store a user’s private keys, but has no control over or access to the private keys, and therefore no control over or access to the user’s funds.

Shoppers may use any cryptocurrency wallet to store their funds. The wallet owner is solely responsible for safekeeping passwords and private keys used to access their wallet, as well as maintaining the security protocols and updates on devices used to download and use their wallet. Verifone is not responsible for, and cannot assist with recovery of, a loss of cryptocurrency funds incurred by you or a Shopper if a wallet is compromised, for example due to loss of or unauthorized access to private keys, accidental sharing of a backup, a bug in the user’s device or the wallet software, or a malicious attack on the wallet software.

In the event you have a Shopper whose wallet becomes compromised or inaccessible, it is up to you to decide how to handle any inquiries or potential claims. Verifone does not get involved in such disputes.

Shopper Verification

Shoppers making cryptocurrency purchases or receiving cryptocurrency refunds may be required to complete a verification process at the time of or prior to making a payment or claiming a refund, depending on the amount of the transaction or refund, as part of our compliance and legal obligations.  For the most efficient payment process, it is recommended that you direct Shoppers to complete the verification process prior to checking out. Shoppers can complete the verification at https://bitpay.com/signup/, which is a website from a Crypto Industry Participant who provides portions of the Crypto Payment Solution.

Invoice Generation, Payment Window and Exchange Rate

When a Shopper elects to make a payment using the Crypto Payment Solution, the Crypto Payment Solution will generate an invoice that will be digitally presented to the Shopper at the point of sale as a machine-readable code. The Shopper will scan the machine readable code with their device, which will open the Shopper’s cryptocurrency wallet (or, in certain cases, a Shopper verification page, as set forth in Shopper Verification, above) and then enable the Shopper to select the cryptocurrency in which they intend to pay, present the Shopper with the amount of cryptocurrency to be paid, the fiat currency equivalent value, the Miner Fee (defined below), fiat equivalent value of the Miner Fee, the total payment amount in the selected cryptocurrency, and the fiat equivalent value of the total amount.

The exchange rate for the Shopper is guaranteed for a limited period of time, referred to as the “payment window”, which is established for each individual invoice.  The time remaining in the payment window will be disclosed to the Shopper on the applicable invoice.

Invoice Completion

An invoice will be considered “complete” if it has been fully paid by the Shopper, the corresponding transaction has reached the required number of block confirmations, and the payment has been credited to our account ledger by the applicable Crypto Industry Participants.

The number of confirmations required for a transaction depends on several factors, including the blockchain being used and an internal risk analysis. The Crypto Payment Solution employs risk mitigation techniques to detect fraudulent payments, such as payments that are at risk of never receiving the required number of block confirmations. However, these measures do not completely eliminate the risk associated with unconfirmed payments.

Invoices that are not considered complete will be declined and the Shopper will need to repeat the payment process or use an alternative form of payment to complete the transaction.

Payment Exceptions

In certain situations, an invoice can be underpaid or overpaid.  This will result in a “payment exception”.  Shoppers will automatically receive an email to claim the underpayment or overpayment, as described below.

If a Shopper requests a refund for a payment exception, the Shopper will be responsible for paying all Refund Fees from the refunded amount.

•    Underpayments

Underpayments occur when a Shopper sends less than the full amount of cryptocurrency required to mark the invoice as complete.  The Shopper will receive an email allowing them to request a refund for the partial payment.

Underpayments will result in a declined transaction and the Shopper will need to repeat the payment process or use an alternative form of payment to complete the transaction.

•    Overpayments

Overpayments occur when an invoice receives cryptocurrency in excess of the amount needed to complete the payment.  In such cases, the invoice is considered complete and the excess funds are marked as an overpayment.  The funds associated with the complete invoice are applied to Verifone’s account.

Excess funds are not applied to Verifone’s account but are retained by the Crypto Payment Solution.  The Shopper will receive an email allowing them to request a refund for the excess funds.

•    Orphan Payments

“Orphan payments” can occur when payment is received outside the payment window or when a Shopper sends cryptocurrency to a wallet address associated with the Crypto Payment Solution, but without a connection to an invoice.

Orphan payments cannot complete an invoice and will result in a declined transaction.  The Shopper will be responsible for reclaiming the amount of any Orphan payment via the Crypto Payments Platform.

The Shopper will need to repeat the payment process or use an alternate payment method in order to complete the transaction.

•   Unsupported Payments

The Crypto Payment Solution does not support or process payments for unsupported coins, tokens, or blockchain forks, which are referred to herein as “Unsupported Payments”.  The Crypto Payment Solution will generally prevent a Shopper from completing a payment transaction with an Unsupported Payment.  However, should a Shopper transmit an Unsupported Payment via the Crypto Payment Solution, the Shopper may lose the Unsupported Payment.  Additionally, Verifone assumes no responsibility whatsoever with respect to Unsupported Payments and Shoppers will not be able to recover Unsupported Payments.

Refunds Associated with Payment Exceptions

If a payment exception is refunded within 30 days after the invoice creation date, the exact amount of cryptocurrency originally received will be returned to the Shopper.

If a payment exception is not refunded within 30 days after the invoice creation date, the applicable exchange rate exactly 30 days after the date and time of invoice creation will be locked, and this exchange rate will be used to determine the amount of cryptocurrency that will be refunded to the Shopper.

To manage cryptocurrency price fluctuations, any amounts refunded to a Shopper after the 30th day will be the lesser of (i) the cryptocurrency amount sent by the Shopper or (ii) the value in local currency at the exchange rate that was locked on the 30th day.

Example for BTC (same applies to other supported cryptocurrencies) if BTC price is lower after the 30th day:

Example for BTC (same applies to other supported cryptocurrencies) if BTC price is higher after the 30th day:

The Refund Fees on Payment Exceptions will be deducted from the amount of the Payment Exception refunded to the Shopper.

Refunds Associated with Successful Payments; Refund Fees

Note: Given that the volume and frequency of payments made using the Crypto Payment Solution is unknown and may initially be limited, refunds of successful payments will not initially be supported via the Crypto Payment Solution; you must facilitate any refunds via other methods (including by returning the purchase price in cash, store credit, or other methodologies). Verifone will notify merchants when and if refunds via the Crypto Payment Solution become supported, at which time the terms described herein as applied to refunds will apply.

You are responsible for establishing your refund policies, including, if applicable, that “no refunds are allowed as all sales are final”.

The Crypto Payment Solution can facilitate cryptocurrency refunds to Shoppers on your behalf.  You can decide to issue a partial refund or refund the full amount of the initial purchase.  You can also decide whether to issue the refund denominated in the invoice currency or in the cryptocurrency used to pay the invoice. If refunds are permitted, the APM Service Provider recommends that you refund the value of the initial purchase as determined in the currency in which the item was priced (generally a fiat currency). Any currency conversion required during the refund process will be calculated at a spot rate determined by the Crypto Payment Solution at the time the refund is processed.

The Shopper will bear the Refund Fees for any refund of a successful transaction.

Fees Associated with the Crypto Payment Solution

•    “Miner Fees” means the fees created by cryptocurrency wallets to broadcast a transaction on a given blockchain network.  These fees are paid to cryptocurrency miners that process transactions and maintain the applicable blockchain network.
  
•    “Network Fees” means the fees that are incurred when a Shopper pays an invoice using bitcoin (BTC) or bitcoin cash (BCH) or similar networks and Miner Fees are incurred to combine the cryptocurrency amounts paid by the Shopper so that the funds can be sent to cryptocurrency exchange platforms to convert to the fiat currency necessary to settle the transactions.  Because Network Fees are based on Miner Fees, if Miner Fees rise, network costs also rise.
  
•    “Refund Fees” means the Miner Fees incurred to return the cryptocurrency to the shopper for a full or partial refund of a successful payment.  Refund Fees will be added as a separate line entry in the applicable account ledger.
  
•    “Refund Fees on Payment Exceptions” means the Miner Fees incurred to refund Payment Exceptions to Shoppers.  Refund Fees on Payment Exceptions will be deducted from the amount of the refund paid to the Shopper for a Payment Exception.

The following table outlines the responsibility for the fees.

Prohibited Uses

You may not use the Crypto Payment Solution for any of the following Prohibited Uses.  This list is non-exhaustive and may be modified at any time.  It is within our sole discretion to determine whether an activity falls into one of these categories.

• Unlawful Activity:  Actions which violate, or would assist in violation of, any law, statute, ordinance, or regulation, including applicable sanctions programs including but not limited to the U.S. Department of Treasury's Office of Foreign Assets Control (“OFAC”), or which would involve proceeds of any unlawful activity; activity which would publish, distribute or disseminate any unlawful material or information.
  
• Abusive Activity: Actions which impose an unreasonable or disproportionately large load on the Crypto Payment Solution’s infrastructure, or detrimentally interfere with, intercept, or expropriate any system, data, or information used by us or Crypto Industry Participants to provide the Crypto Payment Solution; transmit or upload any material to computer systems, networks or sites that contain viruses, trojan horses, worms, or any other harmful or deleterious programs; attempt to gain unauthorized access to computer systems, networks or sites or other customers’ accounts, computer systems or networks connected to the Crypto Payment Solution, through any means; interfere with another individual's or entity's access to or use of the Crypto Payment Solution; use information of another party to access or use computer systems, networks or sites; or harvest or otherwise collect information from computer systems, networks or sites about others, including without limitation email addresses, without proper consent.
  
• Abusive Actions Against Others: Actions which defame, abuse, extort, harass, stalk, threaten or otherwise violate or infringe the legal rights (such as, but not limited to, rights of privacy, publicity and intellectual property) of others; incite, threaten, facilitate, promote, or encourage hateful or violent acts against others.
  
• Fraud: Actions which operate to defraud Verifone or any Crypto Industry Participant, other users, or any other person; provide any false, inaccurate, or misleading information to Verifone or any Crypto Industry Participant in connection with your use of the Crypto Payment Solution.
  
• Intellectual property infringement: Transactions involving items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the law, including but not limited to sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder; use of the APM Service Provider's intellectual property, name, or logo, including use of its trade or service marks, without express consent from the APM Service Provider or in a manner that otherwise harms the APM Service Provider or the APM Service Provider's brand; any action that implies an untrue endorsement by or affiliation with the APM Service Provider.

Prohibited Businesses

The following categories of businesses, business practices, and items for sale are prohibited from the Crypto Payment Solution.  Most Prohibited Business categories are imposed by the requirements of our banking providers or regulators or those of other Crypto Industry Participants.  This list is non-exhaustive and may be modified at any time.

•    Drugs and drug paraphernalia (e.g., narcotics, controlled substances, and any equipment designed for making or using drugs);
  
•    Marijuana/cannabis dispensaries and related products and businesses;
  
•    Weapons, munitions, gunpowder and other explosives (including fireworks);
  
•    Toxic, flammable, and radioactive materials;
  
•    Pseudo-pharmaceuticals;
  
•    Substances designed to mimic illegal drugs;
  
•    Sexually explicit content;
  
•    Sexually-related services;
  
•    Pyramid and investment schemes, multi-level marketing schemes, and other unfair, predatory or deceptive practices;
  
•    Items used for speculation or hedging purposes (such as derivatives);
  
•    Credit and collection services;
  
•    Items that infringe or violate any intellectual property rights such as copyrights, trademarks, trade secrets, or patents, including counterfeit or unauthorized goods;
  
•    Products and services with varying legal status from state to state;
  
•    Transactions that disclose the personal information of third parties in violation of applicable law; and
  
•    Transactions related to cloud-mining.

Restricted Business:

The following business categories are restricted and only permitted as expressly authorized and may be subject to your agreement to additional conditions, supplemental representations and warranties, enhanced onboarding procedures, and operational restrictions. This list is non-exhaustive and may be modified at any time.

•    Charitable organizations;
  
•    Religious/spiritual organizations;
  
•    Money Services Business as defined by FinCen of the United States Department of the Treasury;
  
•    e-Wallets;
  
•    Foreign and currency exchange services;
  
•    Sale or trade of cryptocurrencies;
  
•    Transactions associated with purchases of annuities or lottery contracts, lay-away systems, banking, offshore banking, transactions to finance, investing, investment related products; and
•    Transactions involving gambling or any activity requiring an entry fee and a prize, including but not limited to casino games, sports betting, horse or greyhound racing, lottery tickets, other ventures that facilitate gambling, and sweepstakes, subject to you and your Shoppers being located exclusively in jurisdictions where such activities are permitted by law.

Representations and Warranties:

You represent, warranty, and covenant that your use of the Crypto Payments Solution will not violate any applicable law or regulation, including, without limitation, the sanctions program administered by OFAC or any other applicable sanctions program; and that all information that you provide in connection with the Crypto Payments Solution is true and correct.