Card Reader:

Cardnet® merchant agreement

(Merchant Specific Conditions)
Between Lloyds Bank plc, trading as Cardnet® (the Bank), and the business named below (the Merchant)

1 Business details
Same as Business Current Account

2 Business descriptions and volumes

Same as Business Current Account

3 Supplemental facilities - not applicable

This section is not applicable

4 Method of submission - not applicable

This section is not applicable

5 Mail order/telephone order (MOTO) and E-commerce transactions - not applicable

This section is not applicable

6 Card types authorised and service charges

The following are types of Cards which you may accept, the service charges to be paid by you to the Bank (Service Charge) and the Interchange and Scheme fees applicable to Transactions (included in your Service Charge).

Card Type Service Charge Cardnet transparency disclosure items

Is the total fee that you will be charged These are components of your Service Charge, not additional charges
CREDIT CARDS:
Interchange Scheme Fees
Visa Credit *
1.75% 0.30% to 1.50% 0.023% + 0.810p
Mastercard Credit **
1.75% 0.30% to 1.50% 0.029% + 0.983p
Diners/Discover
1.75% 0.30% to 1.75% 0.15%
DEBIT CARDS:

Visa Consumer Debit ***

1.75% 0.20% to 1.15% 0.018% + 0.810p
Mastercard Debit/All Maestro **
1.75% 0.20% to 1.90% 0.029% + 0.983p
COMMERCIAL CARDS:

Visa Corporate, Purchasing, Business Cards

1.75% 1.35% to 1.85% 0.023% + 0.810p
Visa Business Debit
1.75% 0.50% to 1.15% 0.018% + 0.810p
Mastercard Corporate, Purchasing,
Business Cards 1.75% 0.70% to 2.25% 0.029% + 0.983p
Diners/Discover
1.75% 0.30% to 1.75% 0.15%
INTERNATIONAL CARDS:

Visa Consumer
1.75% 0.20% to 1.15% 0.473% + 10.111p
Visa Commercial
1.75% 0.20% to 2.00% 0.473% + 10.111p
Mastercard Consumer
1.75% 0.20% to 1.50% 0.029% + 10.391p
Mastercard/Maestro Commercial
1.75% 0.20% to 2.00% 0.029% + 10.391p
Diners/Discover
1.75% 0.30% to 1.75% 0.15%

* Includes Visa V pay/Electron Credit/Premium. ** Includes World/Premium/Signia. *** Includes Visa Premium Debit.

Interchange and Scheme fees are displayed as a range as the rate of these fees differs dependent on the type of transaction (face to face or card not present) and the card type (personal, business or commercial) as well as factors
such as the country where the card is issued from. Scheme Fees and Interchange Fees are included in your service charge, for the full list of Interchange rates visit lloydsbank.com/assets/cardnet/pdf/interchange-rates.pdf

Scheme Fees are fees paid by us to the Card Schemes on each individual Transaction.

Interchange Fee is a fee paid by us through the Card Schemes to the Card Issuer on each individual Transaction. Interchange rates are set centrally by the Card Schemes on an industry wide basis.

Interchange and Scheme Fees are correct as of April 2022 printing but may vary.
 7 Multi-Currency - Card types authorised and service charges - not applicable
This section is not applicable
8 Fees
The following further fees, charges and surcharges will be payable by you to the Bank (crossed box(es) only apply).
Chargeback Fee Refund Fee (per refund)
(per chargeback) £15.00
We may charge additional fees for costs incurred by the Bank in managing, monitoring or carrying out investigations in relation to your account, or taking other action, as a result of any unusual or unauthorised activities on, or
operation of, your account (including any breach of the Merchant Agreement). (See Section B1 of the Merchant Agreement).
All fees and charges, unless indicated, are currently zero rated for VAT. If they become subject to VAT at any time, the Bank will charge VAT at the appropriate rate on all fees and charges.
8.1 Fees - Lloyds Bank Online Payments - not applicable
This section is not applicable
9 Personal and Business Information and Lloyds Banking Group
9.1 Use of Business Information
When businesses apply for, or hold, products or services provided by us, we may acquire and process
information relating to the business as well as personal data of individuals associated with the business.
9.2 Privacy Notice
Who looks after your personal information
Your personal information will be held by Lloyds Bank plc which trades as Cardnet, part of the Lloyds Banking
Group. It will be shared with Cardnet Merchant Services Limited which is the joint venture company operated by
Lloyds Bank plc and FDR Limited, LLC in the provision of acquiring payments.
More information on the Group can be found at www.lloydsbankinggroup.com
How we use your personal information
We will use your personal information:
• to provide products and services, manage your relationship with us and comply with any laws or
regulations we are subject to (for example the laws that prevent financial crime or the regulatory
requirements governing the products we offer).
• for other purposes including improving our services, exercising our rights in relation to agreements and
contracts and identifying products and services that may be of interest.
To support us with the above we analyse information we know about you and how you use our products and
services, including some automated decision making. You can find out more about how we do this, and in what
circumstances you can ask us to stop, in our full privacy notice.
Who we share your personal information with
Your personal information will be shared within Lloyds Banking Group and other companies that provide
services to you or us, so that we and any other companies in our Group can look after your relationship with us.
By sharing this information it enables us to better understand our customers’ needs, run accounts and policies,
and provide products and services efficiently. This processing may include activities which take place outside
of the European Economic Area. If this is the case we will ensure appropriate safeguards are in place to protect
your personal information. You can find out more about how we share your personal information with credit
reference agencies below and can access more information about how else we share your information in our
full privacy notice.
Where we collect your personal information from
We will collect personal information about you from a number of sources including:
• information given to us on application forms, when you talk to us in branch, over the phone or through
the device you use and when new services are requested.
• from analysis of how you operate our products and services, including the frequency, nature, location,
origin and recipients of any payments.
• from or through other organisations (for example card associations, credit reference agencies, insurance
companies, retailers, comparison websites, social media and fraud prevention agencies).
• in certain circumstances we may also use information about health or criminal convictions but we will
only do this where allowed by law or if you give us your consent.
You can find out more about where we collect personal information about you from in our full privacy notice.
Do you have to give us your personal information
We may be required by law, or as a consequence of any contractual relationship we have, to collect certain
personal information. Failure to provide this information may prevent or delay us fulfilling these obligations or
performing services.
What rights you have over your personal information
The law gives you a number of rights in relation to your personal information including:
• the right to access the personal information we have about you. This includes information from
application forms, statements, correspondence and call recordings.
£0.50
More information about how we use business information is available at lloydsbank.com/business/privacy
• the right to get us to correct personal information that is wrong or incomplete.
• in certain circumstances, the right to ask us to stop using or delete your personal information.
• the right to receive any personal information we have collected from you in an easily re-usable format
when it’s processed on certain grounds, such as consent or for contractual reasons. You can also ask us to
pass this information on to another organisation.
You can find out more about these rights and how you can exercise them in our full privacy notice.
Other individuals you have financial links with
We may also collect personal information about other individuals who you have a financial link with. This
may include people who you have joint accounts or policies with such as your partner/spouse, dependents,
beneficiaries or people you have commercial links to, for example other directors or officers of your company.
We will collect this information to assess any applications, provide the services requested and to carry out credit
reference and fraud prevention checks. You can find out more about how we process personal information
about individuals with whom you have a financial link in our full privacy notice.
How we use credit reference agencies
In order to process your application we may supply your personal information to credit reference agencies
(CRAs) including how you use our products and services and they will give us information about you, such as
about your financial history. We do this to assess creditworthiness and product suitability, check your identity,
manage your account, trace and recover debts and prevent criminal activity.
We may also continue to exchange information about you with CRAs on an ongoing basis, including about
your settled accounts and any debts not fully repaid on time, information on funds going into the account, the
balance on the account and, if you borrow, details of your repayments or whether you repay in full and on time.
CRAs will share your information with other organisations, for example other organisations you ask to provide
you with products and services. Your data will also be linked to the data of any joint applicants or other financial
associates as explained above.
You can find out more about the identities of the CRAs, and the ways in which they use and share personal
information, in our full privacy notice.
How we use fraud prevention agencies
The personal information we have collected from you and anyone you have a financial link with may be shared
with fraud prevention agencies who will use it to prevent fraud and money laundering and to verify your identity.
If fraud is detected, you could be refused certain services, finance or employment. Further details of how your
information will be used by us and these fraud prevention agencies, and your data protection rights, can be
found in our full privacy notice.
Our full privacy notice
It is important that you understand how the personal information you give us will be used. Therefore, we
strongly advise that you read our full privacy notice, which you can find at lloydsbank.com/business/privacy or
you can ask us for a copy.
How you can contact us
If you have any questions or require more information about how we use your personal information please
contact us using lloydsbank.com/business/take-payments-with-cardnet/forms/contact-us. You can also call us
on 01268 567100.
If you feel we have not answered your question Lloyds Banking Group has a Group Data Privacy Officer, who you
can contact on 01268 567100 and tell us you want to speak to our Data Privacy Officer.
Version Control
This notice was last updated in April 2020.
 10 Merchant’s Card Reader Terms and declaration
1 Card Reader Terms
(a) You will be required to agree to these Card Reader Terms by submitting your application as part of the
Business Current Account with Lloyds Bank or Bank of Scotland.
(b) For the avoidance of doubt, this Agreement only relates to this Card Reader product. This should be read
in conjunction with the Merchant Agreement which sets out additional terms. If you wish to receive any
other additional services from us, then you must sign another agreement with us that relates to those
services. Signing another agreement may also have the effect of terminating the Agreement.
(c) We may ask you to complete surveys in order for us to identify improvements to the Services we provide
to you.
2 What is the duration of this Agreement? How will it come to an end?
(a) We (Cardnet) may terminate this Agreement at any time on giving you 2 months’ notice (in accordance
with clause 31.3.1 of the Merchant Agreement). Your Card Reader will cease to operate upon termination.
Please contact us (using the details provided in the Card Reader guidance) for information regarding
the disposal of your Card Reader. You can terminate this Agreement at any time on giving us 1 month’s
notice. Without prejudice to clause 24 of the Merchant Agreement our limit of liability to you under these
Terms shall be limited to the replacement cost of a Card Reader.
(b) All other termination rights are as set out in the Merchant Agreement. Any termination will not affect your
obligations set out in Clause 31.5 of the Merchant Agreement which shall remain in full force and effect,
following any termination.
3 What is the cost of the Card Reader?
(a) You will pay a Transaction fee across all Card types of 1.75%. Please see Section 6 of these Merchant
Specific Conditions for further details and a breakdown of pricing.
(b) There will be no minimum monthly service charge for the duration of this Agreement and you shall be
charged for any replacement Card Reader during the Term outside of the 12 month warranty period
which is effective at the point of shipping.
(c) You will be settled your Transaction amounts less any fees and charges due to Cardnet to the Bank
account opened as part of your Business Current Account application. You also give us permission to debit
from this account any sums owed under your Agreement from time to time e.g. chargebacks or refunds.
4 What do I get?
(a) In consideration for the charges and subject to all other terms of this Agreement, we will supply you with
one Card Reader. For the avoidance of doubt: (a) it will only process payments via Cardnet.
(b) Your Card Reader will operate in accordance with the product guidance, provided in your welcome email.
(c) The Card Reader will only have the functionality as set out in the product guidance. Certain functionality
set out in the Merchant Agreement and the Merchant Operating Manual will not exist on your Card
Reader, this includes (non-exhaustive list): Pre-Authorisation (including Final Authorisation); Purchase
with Cashback; Mail/Telephone Transactions and E-Commerce Transactions (including any Cardholder
Not Present Transaction); Multi-Currency Transactions; Recurring Transactions; Partial Refunds; Faster
Settlement; PCI DSS Portal; any Supplemental Facilities; and any services referred to in Part B of the
Merchant Agreement.
10.1 Your declaration
By submitting your Business Current Account Application and applying for the PAX A50 Card Reader product
you declare that:
1 You agree to be bound by and comply with this Agreement (which includes the Merchant Agreement,
these Merchant Specific Conditions, the Merchant Operating Manual) (copies of which have been made
available to you).
2 You have disclosed to the Bank any adverse information relating to its business including any County
Court Judgments or any kind of insolvency proceedings affecting you.
3 You acknowledge that in certain circumstances, as set out in the Agreement, that an authorisation of these
Transactions is not a guarantee of payment, and hereby accept the risk that such Transactions may be subject
to a Chargeback.
4 If you accept Commercial Cards (Corporate, Business and Purchasing cards, see Section 6 and 7) the
Bank may pass details of your business, including name, address, telephone number and nature of
business (merchant category code), to the Card Schemes for inclusion on their website as a merchant
accepting Purchasing Cards.
10.2 Data sharing
We may share your data with third parties who provide services on our behalf and there may be commission
arrangements with them. Some examples of how we share your data include:
Cardnet® is a registered trademark of Lloyds Bank plc.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Lloyds Bank plc is covered by the Financial Ombudsman Service. (Please note that due to the eligibility criteria of this scheme not all Lloyds Bank Commercial Banking customers will be covered.)
(d) If your Card Reader does not operate in accordance with product guidance and this is not as a result
of any gross negligence or any wilful or deliberate act, please contact us and we shall replace the Card
Reader (this will be free under the 12 month warranty (effective from the date of shipment) and will be
chargeable outside of that period). Without prejudice to clause 24 of the Merchant Agreement, this shall
be the limit of our liability to you in respect of any Card Reader failure.
(e) For the avoidance of doubt we shall not provide any replacement Card Reader if the Card Reader’s failure
to operate in accordance with the product guidance is as a result of any gross negligence or any wilful or
deliberate act.
5 What are your responsibilities in respect of the Card Reader?
(a) You may only use the Card Reader for the purpose of processing Transactions in accordance with the
product guidance and any other term of this Agreement.
(b) Ownership of the Card Reader shall pass to you on delivery of the Card Reader to you. However, you may
not sell, assign, sub-let charge or otherwise deal with the Card Reader.
(c) Your Card Reader can only accept UK GBP Transactions, and you will only use the Card Reader in the UK.
(d) You shall take all reasonable steps to maintain the Card Reader in good working order and operate and
use it at all times in accordance with the product guidance.
(e) You are responsible for the services provided to you by third parties that enable you to use the Card
Reader, such as internet connectivity and network services. If you are unable to use the Card Reader as
a result of any failure by such third parties we are not responsible for this. Such third parties may charge
fees (such as connectivity fees) for these services which you are solely responsible for paying.
(f) You are required to comply with the Payment Card Industry Data Security Standard (PCI DSS).
You agree to undertake and fulfil all the requirements and obligations for accepting payment cards using
the Card Reader as detailed in the ‘Security Guide’ document – a copy of which has been made available
to you, and which forms part of this Agreement. By accepting the terms detailed on the Business Current
Account application, you accept to comply with the related PCI DSS.
(g) Any breach of this clause 5 shall give rise to an immediate right to terminate this Agreement as if
these circumstances were included within the circumstances set out in clause 31.3.2 of the Merchant
Agreement.
(h) If you were to change your bank account, we would require a Direct Debit mandate with your new bank
in favour of us (with at least 20 days notice before you close your old account). We may request more
information from you if you do change your bank account to allow us to continue providing services to you.
Defined terms used in these Merchant Specific Conditions not defined elsewhere in this Agreement:
Card Reader means the card reader we supply to you in accordance with the terms of this Agreement as
described in clause 3(a) of these Card Reader Terms. The term, ‘Terminals’ in the Merchant Agreement at
clause 14 of Part A of the Merchant Agreement shall have the same meaning as Card Reader as set out here. All
other references to ‘Terminal’ in the Merchant Agreement are not relevant to this Agreement.
Card Reader Terms means the terms and conditions set out in this section which form part of the Merchant
Specific Conditions and in turn part of the Agreement. These Card Reader Terms shall take precedence over all
other terms and conditions contained within this Agreement.
5 The Agreement becomes valid and legally binding once you have submitted your Business Current
Account Application and applied for the Card Reader product.
6 You will be informed by the Bank if your applications have been successful.
You confirm that:
(i) you have read Section 9 above which explains how we use personal and business information,
(ii) you have read and noted the Merchant Agreement,
(iii) you have read, accepted the Card Reader Terms (section 10 of this document),
(iv) you have read, accepted the PCI DSS declaration during the application process.
• where we introduce you to a Card Reader provider and you hire a Card Reader from them,
• where you have been introduced to us by a third party.
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