Merchant Card Terms and Conditions

Current as at 5 August 2021

1. Overview

1.1 Merchant Card Terms and Conditions

These Merchant Card Terms and Conditions govern the use, operation and availability of the Merchant Card. Please read them carefully and keep a copy for your records.

The use of your Zip Pay Account continues to be subject to the Zip Pay Account Terms and Conditions together with these Merchant Card Terms and Conditions, and any other terms and conditions you have accepted in connection with your Zip Pay Account.

1.2 Access method

The Merchant Card enables you to make Transactions using your Available Credit at Participating Merchants.

1.3 Electronic Acceptance

You:

acknowledge that you have read the Merchant Card Terms and Conditions;
acknowledge that the Merchant Card Terms and Conditions are incorporated in, and form part of, the Zip Pay Account Terms and Conditions (which were provided to you at the point of acceptance of the Zip Pay Account);
request that Zip issues you with a Merchant Card; and
consent to receiving correspondence relating to the Merchant Card, these Merchant Card Terms and Conditions, notices and other documents electronically.

By Zip issuing the Merchant Card to you, you accept our offer of the Merchant Card and agree to be bound by these Merchant Card Terms and Conditions.

2. Merchant Card

2.1 General

Your Zip Pay Account must have Available Credit before the Merchant Card can be used.

The Merchant Card is not an account, does not hold deposits and does not store value.

In the Zip App you can view your recent activity and identify Transactions made using the Merchant Card by reference to the applicable descriptor of the Participating Merchant followed by the relevant Transaction. For example, 'Netflix, $10.99'. The Transaction will also appear this way on your Statement.

2.2 Using the Merchant Card

The Merchant Card allows you to initiate Transactions with a Participating Merchant. The Merchant Card cannot be used for any other purpose or with another Merchant.

You must provide a standing authorisation to a Participating Merchant to initiate ongoing Transactions using the Merchant Card (Standing Authorisation). The terms of this Standing Authorisation are agreed between you and the Participating Merchant in accordance with the Sales Agreement and/or any other applicable agreement or authorisation.

Until you cancel this Standing Authorisation, the Participating Merchant is entitled to request Zip to debit your Zip Pay Account for the relevant Transaction amount and Zip is obliged to process any request in accordance with the Zip Pay Account Terms and Conditions.

The value of each Transaction made using the Merchant Card will be debited from the Available Credit in your Zip Pay Account. The Merchant Card can only be used for a Transaction that does not exceed the Available Credit.

You agree not to make or attempt to make a Transaction that exceeds the Available Credit. If there is no Available Credit on your Zip Pay Account, any attempted Transaction using the Merchant Card may be declined. You will be liable for Transactions (even if they exceed the Available Credit).

Zip may restrict or stop the use of the Merchant Card if: (a) suspicious activities are noticed; (b) in accordance with section 2.11; or (c) if it is otherwise prohibited under the Zip Pay Account Terms and Conditions or Contract.

You acknowledge that you cannot “stop payment” on any Transaction after it has been completed. If you have a problem with a Transaction, or a dispute with a Participating Merchant, you must deal directly with the Participating Merchant involved. If you cannot resolve the dispute with the Participating Merchant, you should contact Zip and we will handle your dispute in accordance with our complaints management processes set out in the Zip Pay Account Terms and Conditions.

If you are entitled to a refund for any reason relating to a Transaction, you agree to accept the refund under the policy of that specific Participating Merchant. Refunds will be paid back into your Zip Pay Account only.

Unless required to do so by law, Zip does not accept any liability if a Participating Merchant refuses to accept the Merchant Card.

You must resolve any complaints in relation to the Sales Agreement with the Participating Merchant directly.

2.3 Fees

We do not charge a fee for issuing a Merchant Card. However, you will continue to be liable for all fees described in the Zip Pay Account Terms and Conditions.

2.4 Foreign currency transactions

The Available Credit and payment currency of Merchant Card Transactions is in Australian dollars. Transactions made in a currency other than Australian dollars will be converted to Australian dollars by Visa using the applicable Visa rate on the date that the Merchant Card Transaction is debited to your account, plus a 1% foreign currency conversion fee (Fee) on the converted Australian dollar amount that is debited to your Zip Pay Account.

This Fee is determined by Visa in consideration of providing the foreign currency conversion service. You will assume the potential currency risk between the time of purchase until the Transaction has been received by Visa. Changes in the exchange rates take effect immediately. You can view online conversion rate calculators set by Visa on Visa’s website.

If you elect to use the Merchant Card to process a Transaction in a currency other than Australian dollars, you:

acknowledge that the Fee is payable for the foreign currency conversion service;
authorise us to debit the Fee to your Zip Pay Account; and
acknowledge that the Fee will appear on your Statement.

Participating Merchants may charge an additional fee for a Merchant Card Transaction. This fee is determined and charged by the Participating Merchant and is not retained by us.

2.5 Limitations on the use of the Merchant Card

The Merchant Card can only be used to process a Transaction with the applicable Participating Merchant. You cannot use the Merchant Card for any other purpose.

This limitation means the Merchant Card cannot be used:

to make a cash advance Transaction, withdraw cash, or to receive a balance transfer from a credit card issued by another credit provider.
as a payment method on a Zip Pay Account or a Zip Money Account or any other Zip account.
for a Transaction that exceeds your Available Credit.
for the following Transactions:
- any illegal transactions;
- wire transfers;
- betting/casino gambling;
- any other Transactions reasonably determined by Zip from time to time; and
- any other transactions declined by Zip in accordance with the Zip Pay Account Terms and Conditions or Contract.

2.6 Security

You must keep the Merchant Card secure. The precautions we require you to take are set out below.

You must:

when using the Merchant Card:
- always lock your Device;
- assign a Device Passcode to unlock your Device;
- remove any other registered Biometric Identifier which is not your own from your Device;
ensure that any security details to access your Device is not easily guessed;
immediately report the loss, theft or unauthorised use of your Device, to Zip;
examine your Zip Pay Account to identify and report, as soon as possible, any instances of suspect activity; and
keep information about the Merchant Card (including any CVC) private and never store or communicate the information to anyone other than the Participating Merchant.

You must not:

lend your Device to anyone or share your Device Passcode with anyone;
leave your Device unattended e.g. your phone unlocked at work; or
store anyone else’s Biometric Identifier within your Device.

If you do, any Transactions initiated by a person with access to your Device will be authorised by you and section 2.8 (Liability for Unauthorised Transactions) will not apply.

2.7 Loss, Theft and Misuse of Devices

If you know or suspect that your Device is lost, stolen or damaged, or is likely to be misused, that there has been unauthorised use of the Merchant Card, you must immediately notify us. We may then cancel the Merchant Card to restrict its use.

You may be required to confirm details of the loss, theft or misuse in writing (and to provide particular information in the confirmation) and you must comply with that requirement.

2.8 Liability for Unauthorised Transactions

You are liable to us in respect of an Unauthorised Transaction when:

you have failed to advise us of any suspected or unauthorised use of the Merchant Card; or
you have provided information regarding your Merchant Card to someone whether knowingly or not; or
you have committed fraud.

You are not liable to us in respect of an Unauthorised Transaction when:

the Unauthorised Transaction occurred after you had advised us of suspected unauthorised use of the Merchant Card; or
it is clear that you have not contributed to the loss; or
it is determined by us, acting reasonably, that you were not directly or indirectly responsible for the relevant Unauthorised Transaction
it was caused by the fraudulent or negligent conduct of employees or agents of:
- us;
- any organisation involved in the provision of the electronic funds transfer system; or
- any Participating Merchant.

If you are concerned about any suspect activity on your Zip Pay Account, please contact our customer service team immediately.

If you report an Unauthorised Transaction, we will not hold you liable for losses arising from the Unauthorised Transaction for an amount greater than your liability if we exercised any rights under the rules of the Visa Scheme, at the time of the report, against other parties to the Visa Scheme (for example, chargeback rights).

2.9 Important Information about Chargebacks

In some circumstances, you may be able to request a chargeback of a Transaction when you have a dispute with a Participating Merchant, such as the Participating Merchant’s failure to supply the goods or services you paid for.

A chargeback is a right under the Visa Rules by which a Transaction can effectively be reversed by us debiting an amount to the Participating Merchant’s financial institution and crediting back to your Available Credit in your Zip Pay Account. We can only process chargebacks if the Visa Rules allow us to.

If you believe that you are entitled to a chargeback, you must notify us as soon as possible.

The Visa Rules impose time limits for initiating chargebacks. The time limit is generally 120 days from the date of the disputed Transaction.

If you request a chargeback, we may need you to provide additional information. If we do ask you for additional information and you do not provide it within 10 days, then you may lose any rights to the chargeback and if it has already been processed, we may reverse it.

Please note that if we process a chargeback, the Participating Merchant may have rights under Visa Rules to have the Transaction investigated further, and this can in some circumstances result in the chargeback being reversed (which means the original Transaction might be reinstated by being debited to your Available Credit).

2.10 Expiry

The Merchant Card is valid until the expiry date shown on it, unless it is cancelled before then.

2.11 Cancellation of the Merchant Card

You may cancel the Merchant Card:
1. in the App, by clicking on the Merchant Card you wish to cancel and follow the prompts; or
2. by calling us on (02) 8294 2345.

Cancelling the Merchant Card does not close your Zip Pay Account. You may ask us to close your Zip Pay Account by following the process in the Zip Pay Terms and Conditions.

We may cancel the Merchant Card at any time without giving you prior notice if:

we reasonably believe that the use of the Merchant Card may cause loss to you or to us;
we reasonably believe that cancellation of the Merchant Card is required for security purposes;
we have blocked access to, suspended, or closed your Zip Pay Account;
we are directed to do so by Visa;
you breach any material term or condition of these Merchant Card Terms and Conditions or the Zip Pay Account Terms and Conditions;
we suspect that the Merchant Card or your Zip Pay Account has been used illegally or fraudulently;
we terminate our Merchant Card program;
where we have reasonable grounds to believe that there is a breach of the law of Australia or any other country or we are required to by a regulatory body; or
in our reasonable opinion it is necessary.

Once the Merchant Card is cancelled:

you must cancel the Standing Authorisation and provide the Participating Merchant with another payment method for a Transaction. Until you cancel this Standing Authorisation, the Participating Merchant is entitled to request Zip to debit the Zip Pay Account for a Transaction and Zip is obliged to process this request.
you remain responsible for any Transaction debited to the Zip Pay Account in accordance with a Standing Authorisation until it is cancelled.
you must continue to comply with your repayment obligations under the Zip Pay Account Terms and Conditions.
we will give you notice of the cancellation as soon as reasonably practicable afterwards.

3. Liabilities and Disclaimers

Zip does not make or give any express or implied warranty or representation in connection with the Merchant Card (including quality or standard or fitness for any purpose), other than as set out in these Merchant Card Terms and Conditions and the Zip Pay Terms and Conditions or when the warranty or representation is imposed or required by law and cannot be excluded.

Any failure or delay enforcing a term of these Merchant Card Terms and Conditions or the Zip Pay Terms and Conditions does not mean a waiver of them.

4. Changes to the Merchant Card Terms and Conditions

The Merchant Card Terms and Conditions are subject to change from time to time and are correct and current as at the date stated.

Information regarding your Zip Pay Account or the Merchant Card may need to be updated from time to time. Any updated information on your Zip Pay Account or the Merchant Card will be made available on the Zip App, Zip Wallet, Zip Website or provided to you via email or other electronic communication (as we determine from time to time). We may vary these Merchant Card Terms and Conditions by providing you with at least 40 days’ notice when:

imposing a new fee or charge; or
increasing an existing fee or charge

We will provide notice as soon as reasonably possible (and at least 30 business days' notice) when:

changing the amount, frequency, time for repayment or method of calculating any repayments;
changing the amount (except for increasing), frequency or time for payment of any fee or charge;
making any material change to the Merchant Card Terms and Conditions;
we impose, remove or adjust daily or periodic transaction limits.

We may provide shorter notice, including on the date of the change taking effect, of:

any changes that do not impact (or otherwise reduce) your obligations; or
changes that are necessary to immediately protect the security of the Merchant Card, a Zip Pay Account, to avoid or minimise a material increase in our credit risk or to comply with legal or regulatory requirements.

We will provide you with notice on the Zip App, Zip Wallet, Zip Website or provided to you via email or other electronic communication (as we determine from time to time).

We may impose, remove or adjust daily or periodic Transaction limits or the maximum number of Transactions you may make per day using the Merchant Card at our discretion.

If you are unhappy with the any of the changes to the Merchant Card Terms and Conditions, you can:

terminate your Zip Pay Account by paying the outstanding balance, plus any accrued fees and charges; or
cancel the Merchant Card.

We are not obliged to give you any advance notice if an immediate change to the Merchant Card Terms and Conditions is deemed reasonably necessary for the security of your Zip Pay Account or Merchant Card or as required by law.

5. General

If any provision in the Merchant Card Terms and Conditions is illegal or unenforceable, it will be severed from these terms and the remaining provisions will continue in full force and effect.

Zip is the issuer of the Merchant Card. Zip can be contacted via:

Email: hello@care.zip.co
Phone: (02) 8294 2345

6. Definitions

Available Credit means the credit in your Zip Pay Account which is available for Transactions, less any purchases, authorisations, fees and charges or other amounts debited under the Contract (including other amounts authorised but not yet posted to your Zip Pay Account).

Biometric Identifier means a fingerprint, faceprint or any other similar biometric identifier.

Contract means the contract between you and Zip comprising the Zip Pay Terms and Conditions (and any applicable schedule), these Merchant Card Terms and Conditions, and any other terms and conditions you have accepted in connection with your Zip Pay Account.

Device means a smartphone, tablet or wearable device using an Apple or Android operating system and that Zip determines is eligible for the provisioning of a Merchant Card.

Device Passcode means anything used to unlock and access a Device including, but not limited to, a password, numerical code, pattern or Biometric Identifier.

Merchant Card Terms and Conditions means this document.

Merchant Card means a virtual Visa credit card that enables you to process Transactions with a Participating Merchant.

Participating Merchant means a merchant who provides a goods and/or services and accepts the Merchant Card as a payment method for a Transaction.

Sales Agreement means an agreement between you and a Participating Merchant for purchase of goods and/or services.

Statement means a statement of account issued by us in respect of your Zip Pay Account.

Transaction means a transaction for any amount payable by you under the a Sales Agreement, requested by you under the Standing Authorisation or applicable authority, and authorised by us under the Contract.

Unauthorised Transaction means a transaction not authorised by you, but does not include any transaction carried out by you or by anyone performing the transaction with your knowledge and consent.

Visa means Visa Worldwide Pte. Limited.

Visa Rules means all documents, rules and other applicable requirements for participation in the Visa system.

we, us, our and Zip means Zip Money Payments Pty Ltd ABN 58 164 440 993, Australian Credit Licence 441878.

you means a person who has been approved by Zip to open a Zip Pay Account and has been issued with the Merchant Card. Any other grammatical form of the word “you” has a corresponding meaning.

Zip App means the mobile application we make available to use your Zip Pay Account.

Zip Pay Account means the account Zip set up to record Transactions under the Zip Pay Terms and Conditions.

Zip Pay Account Terms and Conditions means the Zip Pay terms and conditions and Zip Pay Schedule issued and administered by Zip and under which the Zip Pay Account is set up.

Zip Wallet means a secure online service where Zip customers may log in to access their Zip Pay Account to obtain current or historical Account information, Transaction information, or provide Zip with new personal information, or change banking and repayment details.

Zip Website means www.zip.co or any other website operated by Zip.

Capitalised terms in these Merchant Card Terms and Conditions that are undefined take their meaning from the Zip Pay Terms and Conditions.

VISA is a trademark owned by Visa International Service Association and used under license.