PEX Prepaid Disburse Program – Special Terms

Last Modified June 8, 2023

These Prepaid Disburse Program Special Terms set forth the requirements for your participation in the Prepaid Disburse Program and the terms that govern your PEX Disburse Account, including the process for obtaining and managing PEX Cards through your PEX Account. The use of PEX Cards is governed by the Cardholder Use Guide. We may update these Prepaid Disburse Program Special Terms at any time by delivering notice, and your continued use of PEX Disburse Account will constitute acceptance of the updated terms.

Capitalized terms in this Disburse Special Terms are defined in the Master Services Agreement - General Terms.

1. General Description

The Prepaid Disburse Program will enable Customer to assign a PEX Card to Participants. Participants shall not be required to pay money or give any other thing of value in exchange for the PEX Card, including a price increase to cover the cost of the PEX Card. In no event may cards be resold or offered for sale to consumers.

Customer shall manage and implement the Program and determine which Participants are eligible to receive a PEX Disburse Card.  Participants must be 18 years of age or older.

The approval of a Customer’s PEX Disburse Expense Program application does not also approve the Customer for the Expense or Credit Expense Programs. PEX’s approval of the Customer's Prepaid Disburse Program application will only bind PEX to the terms and conditions of the Prepaid Disburse Program Service Schedule and not to terms and conditions of any other PEX Program.

As used in this Service Schedule – Disburse Program, “we,” “us,” and “our” shall mean collectively the Bank and PEX acting as service provider to the Bank.

For Disburse Expense Program Only: 1099 contractors may be paid compensation on Disburse Cards.

2. Balance Limits

The aggregate amount loaded on any single PEX Card during its lifetime is limited to $5,000.00. This limit can be increased upon request by Customer based on a legitimate business need, such approval to be at the discretion of PEX and the Bank.

3. Ownership of Card Funds 

The PEX Card expires on the date shown on the PEX Card.

3(a). Customer Owned Funds

The funds are owned by the Customer at all times, even though the funds can be spent by the Participant within the limits set by the Customer. To offset Program expenses, all funds remaining on the Cards after expiration transfer to PEX.

3(b). PEX Card Funds

The funds on the PEX Card do not expire.  PEX will hold the funds until they are spent, reduced by fees, or required to be remitted to the state under applicable law.

4. Closing Cards - Card Funds

In the event Customer elects to close any Card in Customer’s Disburse Account, the Customer must remove all funds from the Card before the Card is closed. Should any funds remain on the Card after the Card is closed by the Customer or by PEX at the request of the Customer, Customer may lose ownership of, and access to, the funds.

5. Participant Fraud

PEX and Customer mutually agree that any fraud represents a risk to the Services and the parties will collaborate on all efforts to minimize fraud.  PEX will not hold Customer responsible for, or seek to collect from Customer, any loss caused by or resulting from any Participant’s fraud, misuse, or negative balance transactions involving the PEX Cards except to the extent such loss was caused by Customer’s breach of a representation, warranty, or covenant of the Agreement, or if Customer’s (or Customer’s employees, agents or representatives) participated in, or had or should have had knowledge of, any deceptive, fraudulent or other illegal activity.  Subject to applicable law, Customer agrees to comply with all reasonable requests made by PEX to investigate, prevent fraud, and recover sums due relating to any actual or suspected loss, fraud, or other improper use of any PEX Card ordered by Customer or on Customer’s behalf.