PIS terms and conditions
1.1 The terms of Schedule 4 shall apply where the PIS is included within the Modulr Products provided to you.
1.2 These PIS Terms and Conditions, alongside the Modulr Account Terms and Conditions form the agreement between Modulr FS and you and sets out the terms that apply to your use of PIS as defined below.
1.3 We are authorised by the Financial Conduct Authority (FRN 900573) for the issuance of electronic money and providing payment services, including payment initiation services.
1.4 Unless expressly stated in this Schedule 4, the definitions contained in this Agreement shall apply to this Schedule 4
Account Servicing Payment Service Provider or ASPSP – the third party payment service provider, such as a bank, with whom you or the End User holds an online payment account (Source Account) which we will access when you use PIS;
End User – means your customer who wishes to purchase your goods and/or services using PIS, and who holds a Source Account;
Information – in relation to PIS, means any information related to you, and any personal information related to the End User;
Payment Initiation – means either (i) a payment order initiated at your request from your Source Account to your Modulr Account ; or (ii) a payment order initiated at the request of an End User from their Source Account to your Account;
Payment Initiation Service or PIS – means a service to initiate a payment from a Source Account, as more particularly described in clause 3.
Source Account – a payment account accessible online which you or an End User holds with an ASPSP;
Standing Order – a regular, recurring Payment Initiation as instructed by an End User.
3. Our services
3.1 You can only use PIS if you have an Account. You can continue to use PIS as long as you continue to hold an Account.
3.2 You will be able to use our API to:
— 3.2.1 add funds to your Modulr Account from a Source Account;
— 3.2.2 allow an End User to initiate a payment from a Source Account to your Account; and
— 3.2.3 allow an End User to set up a Standing Order from their Source Account to your Account.
3.3 When using PIS to add funds to your Modulr Account, we will provide you with a redirection URL which will redirect you to your ASPSP, where you can log in using you ASPSP credentials and consent to the Payment Initiation from your Source Account.
3.4 For End Users, we will provide you with a redirection URL to provide to the End User to redirect them to their ASPSP, where they can log in using their ASPSP credentials and consent to the Payment Initiation from their Source Account.
3.5 We are not responsible for the services or provided by the ASPSP. The services provided in relation to the Source Account are subject to a separate agreement between you and your ASPSP, or the End User and their ASPSP.
4. End users
4.1 You will only allow End Users to request Payment Initiations and Standing Orders in accordance with these PIS Terms and Conditions and the End User Terms and Conditions (contained at Annex 1 to this Schedule 4).
4.2 You will ensure that End Users have read and accepted the End User Terms and Conditions prior to the End User using PIS.
4.3 You will keep a record of each End User’s confirmation given in accordance with clause 4.2 above and shall promptly make such records available to Modulr on request.
4.4 You acknowledge that an End User may revoke their consent to process Payment Initiations or Standing Orders at any time, and Modulr shall not be liable to you for failing to provide the Information requested by you.
4.5 We will not be able to revoke a transfer from a Source Account once it has been confirmed by an End User.
4.6 Once an End User requests us to initiate a payment from a Source Account, Modulr will make the following information available to you and you must provide it immediately to the End User:
— 4.6.1 a confirmation that the payment has been successfully initiated with the End User’s ASPSP;
— 4.6.2 a reference to identify the payment transaction and any information transferred with the payment order; and
— 4.6.3 the amount of payment.
4.7 Where applicable, you will comply with Modulr’s PIS Customer Requirement Guidelines as provided to you by Partner Platform and as may be amended from time to time.
5. Account top up
5.1 You may use PIS to make a payment initiation for the purpose of adding funds to your Modulr Account.
5.2 When you request us to initiate a payment from your Source Account, Modulr will make the following information available to you:
— 5.2.1 a confirmation that the payment has been successfully initiated with your ASPSP;
— 5.2.2 a reference to identify the payment transaction and any information transferred with the payment order; and
— 5.2.3 the amount of payment.
6.1 You must not allow another person to use security information necessary to use PIS;
6.2 We can restrict or suspend your ability to use PIS, including refusing to initiate the payment from a Source Account, if we are concerned about the security of your access to the Online Portal or the API, using PIS is causing or could cause a breach of these Terms and Conditions or if we have reasonable grounds for suspecting that you or a third party has committed or is about to commit a crime or other abuse in connection with your use of our API or Online Portal.
6.3 If we restrict or suspend your use of PIS or refuse to initiate the payment from a Source Account, we will, without undue delay and provided we are legally permitted to do so, notify you. If possible, we will provide the reasons for this and where it is possible will provide reasons for the restriction or suspension and where those reasons relate to factual matters, the procedure of rectifying any factual errors that led to the restriction or suspension. Where we need to contact you, we will use the contact details associated with your Account, such as email, or telephone. You should inform us without delay if your contact details change.
7. Disputes and incorrect transactions
7.1 If you or the End User have a reason to believe that a payment from a Source Account initiated by us was unauthorised or was made incorrectly, , the owner of the Source Account (i.e. you or the End User, as the context allows) should contact their ASPSP to resolve their query and we will cooperate with the ASPSP’s investigation in to such payment. Where we believe that the incorrect payment was due to our error in respect of the part of the Payment Initiation we were responsible for, we will refund the incorrectly initiated payment back to the original Source Account.
7.2. You will be liable for all payments initiated through our API or Online Portal if you have acted fraudulently or with gross negligence (for example failed to keep your security information such as but not limited to the Online Portal log in details and API security details or Source Account credentials safe).
8. Your liability
8.1 You are responsible for understanding and complying with these PIS Terms and Conditions.
8.2 You agree to indemnify and hold harmless, us, Modulr and our distributors, partners, agents, sponsors, and service providers and their group companies from and against the costs of any legal action (including any loss arising from action taken by a Regulator) taken to enforce these PIS Terms and Conditions and/or any breach of these PIS Terms and Conditions by you, including in respect of any non-compliance with clauses 4.2 and 4.3 of these PIS Terms and Conditions.
9. Our liability
9.1 In addition to our liability set out in the Modulr Account Terms and Conditions (whether arising in contract, tort (including negligence), breach of statutory duty or otherwise), where a Payment Initiation is incorrectly made from a Source Account due to our default, our liability shall be limited as appropriate (i) to refund to you an equivalent amount to which was incorrectly deducted from your Source Account; or (ii) to refund to the End User of an equivalent amount to that which was incorrectly deducted from their Source Account.
10.1 These PIS Terms and Conditions will apply each time you use PIS in relation to your Account.
10.2 We can terminate your access to PIS at any time if we give you two months’ notice.
10.3. We can terminate your access to PIS at any time with immediate effect (and until your default has been remedied or these Terms and Conditions terminated) without any prior notice to you if:
— 10.3.1 we discover any of the Information that we hold for you is incorrect; or
— 10.3.2 if we have reason to believe that you or a third party has committed or is about to commit a crime or other abuse (including fraud) in connection with your use of PIS; or
— 10.3.3 you have breached these Terms and Conditions.