PEX Prepaid Expense Program Terms
Last Modified June 8, 2023
These PEX Prepaid Card Program Terms set forth the requirements for your participation in the PEX Prepaid Card Program including the process for obtaining and managing PEX Cards through your PEX Account. The Cardholder Use Guide governs your use of PEX Cards. We may update these PEX Prepaid Card Program terms at any time by delivering notice, and your continued use the Prepaid Card Program will constitute acceptance of the updated terms.
Capitalized terms in this Prepaid Schedule are defined in the Master Services Agreement - General Terms.
1. Prepaid Cards
1.1 General Description - Services
The Prepaid Expense Program will enable Customer to assign a PEX Card to one or more Authorized User(s), who may be employees, or independent contractors of the Customer. The Prepaid Expense Program will not be used by Customer to pay employment or labor wages, consultant or advisory fees, or commissions to any person, including, without limitation, entities and natural persons. In addition, the PEX Card(s) are not a gift card or any other type of consumer prepaid card where personally-owned funds are or may be stored.
Customer also acknowledges that PEX Cards may only be created for individuals whose identity has been validated by Customer through the use of commercially acceptable screening methods, such as employment screening and background checks and from whom Customer retains acceptable documentation on file validating the identity of those individuals. Acceptable documentation includes a copy of a Social Security card, state issued driver’s license, and birth certificate.
The approval of a Customer’s PEX Prepaid Expense Program application does not also approve the Customer for the Disburse or Credit Expense Programs. PEX’s approval of the Customer’s Prepaid Expense Program application will only bind PEX to the terms and conditions of the Prepaid Expense Program Service Schedule and not to terms and conditions of any other PEX Program Service Schedule.
No credit or loans are being extended by PEX or the Bank to Customer through the PEX Prepaid Card Program and PEX Cardholders will not be permitted to spend more than the available balance associated with a PEX Card. As used in this Service Schedule – Prepaid Program, “we,” “us,” and “our” shall mean collectively the Bank and PEX acting as service provider to the Bank.
1.2 Card Funding and Transactions
The PEX Prepaid Card Program will enable Customer to assign a PEX Card to one or more Employees, Contractors of the Customer, or Participants. Due to the nature of prepaid card programs, funds must be available and transferred from the Customer’s PEX Account to a PEX Card before the PEX Card may be used to complete purchase transactions. When a PEX Card is used to pay for goods and services, Customer agrees that we, without prior notice to Customer, will first debit the PEX Card and, if insufficient funds are available, may debit the Customer’s PEX Account or any other PEX Cards, whether such charges have been signed for manually or by legally acceptable form of electronic signature.
If a merchant provides a credit for merchandise returns or adjustments, the merchant may do so by processing a credit adjustment, which will show as a credit to the PEX Card.
1.3 Fund Transfers
Customer’s Administrator User may transfer funds to the PEX Account from the Customer’s External Account, or vice versa, through any of the methods listed below. For security and fraud reasons, we may impose certain limitations on the number or dollar amount of transactions Customer is permitted to make to and from Customer’s PEX Account and/or the maximum balance Customer may maintain in the PEX Account, as described in Section 1.5 “Funding and Transaction Limits.” We may increase or decrease these limits from time to time in our sole discretion and, to the extent permitted by applicable law, without prior notice to Customer. These limits also can be increased upon Customer request based on a legitimate business need, with any approval to be at the discretion of PEX and the Bank.
1.3(a) ACH Transfers
ACH Transfer requests must be made through the bank where Customer’s External Account is maintained. PEX will provide Customer the Bank’s ABA bank routing and PEX Account numbers for the purpose of enabling Customer to initiate ACH transfers from Customer’s External Account.
The Dashboard provides Administrator Users with access to an ACH transfer service whereby Customer may request PEX to instruct the Bank to initiate debit and credit ACH transfers between Customer’s External Account and Customer’s PEX Account. Customer must register its External Account(s) with PEX for validation and verification purposes, including providing relevant ABA bank routing and account number information to PEX; following registration, Customer authorizes PEX and the Bank to initiate debit and credit entries as and when requested by Customer.
Each ACH transfer is subject to applicable terms, conditions, and limits established by the Bank and/or by the bank where Customer’s External Account is maintained. Funds availability for the Services will commence when funds are posted to Customer’s PEX Account, and records of each ACH transfer will be included in the Periodic Statements PEX provides to Customer at the end of every statement period.
1.3(b) Wire Transfers
Customer may initiate wire transfers originating exclusively from a Customer’s External Account to Customer’s PEX Account. Wire transfer requests must be made through the bank where Customer’s External Account is maintained. PEX will provide the Bank’s ABA routing and PEX Account numbers for receiving wire transfers. Wire transfer instructions can be found on the Dashboard. Each wire transfer is subject to applicable terms, conditions, and limits established by the Bank and the bank where Customer’s External Account is maintained.
1.4 Deposit Policy
With respect to all transfers of funds to PEX Accounts by Customer (whether through ACH transfer or wire transfer), PEX and the Bank reserve the right to refuse any deposit and any funds transferred to the PEX Account. Transfers of funds from any checking or operating accounts which are not held in the name of Customer will not be accepted (i.e., funds transferred from Customer vendors, clients, or any other agent on behalf of Customer will not be accepted). However, upon prior written request by Customer, PEX and/or the Bank may in their discretion approve a specified third party funding source, provided that such party completes and all statutory and regulatory compliance requirements and agrees to comply with all PEX and/or Bank policies and procedures, and Customer acknowledges and agrees that it is and will remain primarily liable for any act, omission, or failure to act of such third party if any such request is approved.
PEX or the Bank may return or refuse to accept all or any part of a transfer of funds to a PEX Account at any time and for any reason, and neither will be liable to Customer for doing so. Refused transfers of funds will be returned to Customer or the bank account from which such transfer or wire, as applicable, was initiated. PEX and the Bank reserve the right, but have no obligation, to suspend any activity with respect to any PEX Account or PEX Card in the event PEX or the Bank suspects any kind of suspicious or unauthorized activity. Neither PEX nor the Bank will have any liability to Customer for losses and damages incurred by Customer as a result of such suspension. Neither PEX nor the Bank has any obligation to take such actions even if it may take such actions from time to time.
1.5 Funding and Transaction Limits
A PEX Account can have an unlimited amount of funds transferred to the account. There is no limit to the dollar amount that can be transferred to a PEX Account through a Linked External Account.
Card funding and card transaction limits are set by PEX with respect to the PEX Account in the aggregate and for each individual PEX Card. The dollar amount of funds that can be made available on any single PEX Card at any time is limited to $25,000. This limit can be increased upon request by Customer based on a legitimate business need. Approval of a PEX Card limit over $25,000 is at the discretion of PEX and the Bank. There is a transaction limit of $25,000 per card. However, if a cardholder spends $25,000 in one transaction, the cardholder can request additional funding up to $25,000 and continue spending.
1.6 Ownership of PEX Account Funds
PEX claims no property interest in any funds Customer chooses to place into its PEX Account, and such funds will be the sole and exclusive property of Customer until such time as such amounts are due and payable in order to fund settlement, pay fees, fines, or meet any other obligations of Customer under this Agreement. The PEX Card expires on the date shown on the Card. If the Card is not renewed, the remaining funds on the Card transfer to the PEX Account and such funds will be the sole and exclusive property of Customer. Funds placed into a PEX Account are FDIC insured through the Bank up to the maximum coverage available under applicable law.
A PEX Account that is inactive for a period of time may be considered dormant and may be subject to escheatment. Each state has varying laws as to when an account is subject to escheatment and the Bank may be required to send the funds to the state of the last known address of Customer. PEX will make all reasonable efforts to contact Customer through all reasonable channels available to PEX before PEX Account(s) balances are transferred to a State.
1.7 Requesting and Replacing Cards
Administrators may request a Card (physical and/or virtual) for any User through the PEX Dashboard. We may require Administrators to provide the User’s full legal name, personal address, and date of birth, and such other information as we may specify from time to time. A requested Card may be denied or canceled by us due to Bank policies, as required by law, or for any other reasonable business consideration
Administrators may request that Users be issued PEX Cards with specific restrictions made available by PEX. For example, we may allow Users to be issued vendor cards, which can only be used at specific merchants, or we may allow Users to be issued cards with expiration dates set by Administrator.
Customer agrees to adopt reasonable policies and procedures and take reasonable steps to safeguard the confidentiality and security of PEX Cards, Card numbers, and PIN, if any. You will immediately notify us and take appropriate measures if you know or suspect that a Card or Card number is lost, stolen, compromised, has been misused, or otherwise needs to be replaced. In such cases, Administrators may also request replacement cards by contacting 1-866-685-0898. If a replacement Card has a new Card number, you are responsible for updating Card information as and where necessary.
Additional details are available on the Prepaid Cardholder Use Guide.
1.8 Using PEX Cards and Unauthorized Use
Users may only use PEX Cards for business-related purchases and transactions on behalf of Customer, and PEX Cards and the Services may not be: (a) used for any purpose that is unlawful or prohibited by this Agreement; (b) used for any personal, family, or household use; (c) used for any transaction involving any Prohibited Activities; or (d) used for any purpose not related to the business of Customer.
All Card use is subject to the terms and conditions of the Master Services Agreement, these PEX Prepaid Card Program Terms, the Prepaid Cardholder Use Guide, and such other terms, agreements, and policies as are referenced in or incorporated by reference into any of the foregoing. Customer is responsible for ensuring that Users are aware of and comply with all such requirements, as the same may be updated from time to time.
You must notify us immediately by emailing us at [email protected] and assist us in our investigation if your Card is lost or stolen or you believe someone is using your Card without your permission.
1.9 Liability for Transactions
Customer acknowledges that factors beyond our control may on rare occasions result in transactions being processed without spending controls being applied. We will use commercially reasonable efforts to assure that spending controls designated by Customer are applied to each transaction, but we are not responsible for any unauthorized spending or unauthorized PEX Card transactions as a result of factors beyond its control, including but not limited to Card Network, merchant, and internet issues. We will not have any obligation to refund to Customer funds as a result of any such unauthorized spending.
Customer assumes full responsibility for monitoring use of PEX Cards and detecting any unauthorized or improper use, including but not limited to maintaining the accuracy of its records. Customer will be solely responsible for monitoring and reviewing the Periodic Statements provided through the Dashboard. If Customer believes an unauthorized transaction has been or potentially will be made from a PEX Card, you will alert us immediately in writing by emailing us at [email protected]. In the event of any such alleged unauthorized use, we will initiate an attempt to recover funds on behalf of Customer, and Customer agrees to cooperate with us, including without limitation providing an affidavit signed by the PEX Cardholder that the transaction(s) were not authorized by them. PEX reserves the right to block or cancel any PEX Card and/or refuse to authorize any transaction at its discretion to mitigate the risk of loss from fraud or unauthorized activity.
If Customer does not notify PEX within sixty (60) days of becoming aware of an alleged unauthorized transaction and/or after any monthly or other Periodic Statement was made available, we may lose our ability to recover funds on behalf of the Customer and Customer may not be entitled to a credit for any value lost. If a Card has been reported lost or stolen, we will promptly close the PEX Card after we have been notified in an attempt to minimize potential loss to Customer.
In the event of any dispute with respect to funds owed to us, Customer is obligated to pay until the matter has been fully resolved. We may provide a provisional credit (or any temporary redeposit of funds) during the pendency of any dispute process at our discretion. If Customer is successful with respect to any such dispute, we will credit the funds back to the Customer upon final resolution of the dispute and the charge will be credited to Customer’s PEX Account on either the current month’s, or following month’s, Periodic Statement. If Customer is not successful with respect to such dispute, then we will have no obligation to refund any disputed amounts, and Customer will be required to bear the loss.
Customer acknowledges and agrees that unauthorized use as defined in this Agreement does not include prohibited purchases or similar as defined in any agreement(s) between the Customer and any PEX Cardholder. Neither PEX nor the Bank will have any obligation to refund to Customer any funds as a result of any such unauthorized spending by a Cardholder.
1.10 Merchant Charge Disputes
In the event of any dispute with respect to any charges from a merchant on Customer’s Periodic Statement, Customer should attempt to resolve the dispute with the merchant directly. In the event that Customer is unsuccessful in resolving a dispute with a merchant, Customer may initiate a chargeback through your PEX Account, subject to Card Network rules, and will promptly provide PEX with all requested information and documentation to support Customer’s chargeback claim.
Customer is obligated to pay any disputed amount until the matter has been fully resolved. If Customer is successful with respect to any such dispute, we will credit the funds back to the Customer upon final resolution of the dispute and the charge will be credited to Customer’s PEX Account on either the current month’s, or following month’s, Periodic Statement. If Customer is not successful with respect to such dispute, then we will have no obligation to refund any disputed amounts, and Customer will be required to bear the loss.
2.1 Periodic Statements
We will provide you Periodic Statements identifying the following: a) transactions that posted to Customer’s PEX Account and each PEX Card since the last periodic statement; b) deposits received to the PEX Account and transfers in and out of the PEX Account and PEX Cards; c) fees charged to the Customer’s PEX Account or the PEX Card(s); d) refunds; and e) any other Card transactions, or other amounts owed or credited to your PEX Account. After the close of each statement cycle (generally defined as a calendar month), PEX will make available to Customer a periodic statement on the Dashboard. You are responsible for reconciling the Period Statement against your records and receipts. If you believe there are any discrepancies or errors on your Periodic Statement, you must report any such discrepancies or errors to us within sixty (60) days in accordance with these PEX Prepaid Card Program Terms.
2.2 Overdrafts, Order of Payments, Negative Balances
It is the responsibility of Customer to ensure that enough funds are available in each PEX Account and/or PEX Card from which Customer or one of its Administrator Users instructs us to make a payment or transfer. If the PEX Account or PEX Card contains insufficient funds to enable all payments and transfers, the payment and transfers will be made in the order determined by us, in our sole discretion, or in the order in which such transactions are processed. Customer is obligated to provide us sufficient funds for any payments or transfers Customer or an Administrator User authorizes or that Customer or any User or Cardholder makes. If we complete a payment or transfer that Customer or Administrator User makes or authorizes, or that a Cardholder makes, and PEX or the Bank subsequently determine there are insufficient funds for the transaction, or there is a negative balance in the PEX Account or any PEX Cards for any reason, including without limitation unauthorized spending, Customer agrees to reimburse us for the full amount of the difference immediately upon request, and in all events when payment is due for the applicable Periodic Statement.
In consideration for the Services provided under this Agreement, Customer will pay PEX the fees in the amounts, on the timing, and in the manner as provided in the standard pricing plan selected by Customer, as more fully set forth in the pricing schedule located at https://www.pexcard.com/spend-expense-pricing/ or https://www.pexcard.com/spend-expense-pricing/complete-pricing-details/, as may be updated by PEX from time to time, and as may be modified or supplemented in a Service Schedule or by mutual written agreement by PEX and Customer (collectively, the “Applicable Fees”). The Applicable Fees are earned in full at the time Services are provided and are not subject to refunds or credits.