PAYGAMI PAYMENT SERVICES AGREEMENT
This Payment Services Agreement is entered into this ____ day of ___________, 2021 (the “Effective Date”), by and between Accounting Integrators, LLC, a Georgia corporation (dba Paygami) (“Paygami”), and ____________________________ (the “Management Company”). This Payment Services Agreement, together with any exhibits or schedules attached or referenced herein, are referred to collectively as the “Agreement”. WHEREAS, Paygami is in the business of providing integrated software products to partner banks and management companies of Community Associations to process deposited funds of these management companies. The term “Community Association” as defined herein shall mean a group of owners who wish to provide a communal basis for preserving, maintaining, and enhancing their homes and property, with such group having the following characteristics: (i) membership in the Community Association is mandatory and automatic for all members; (ii) certain documents bind all owners to be governed by the Community Association; and (iii) mandatory lien-based economic charges or assessments are levied on each owner in order to operate and maintain the Community Association.
WHEREAS, the Management desires to obtain software and services from Paygami and at its option, pursuant to a CINC Systems License Agreement (the “License Agreement”) between the Management Company and CINC Systems, LLC (“CINC Systems”) that Management Company would accept and agree to in connection with its first use of the CINC Systems’ software, Management Company may have CINC Systems supply accounting, billing, and property management software as well as other services to the Management Company (the “CINC Software and Services”), which would enable the total integration of the Management Company’s deposited funds and cash management through an accounting system;
NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:
1. GENERAL. Paygami and Management Company agree that this Agreement shall govern Management Company’s access to and obligations with respect to the processing of credit card, prepaid card and debit card (each a “Card”) payments, ACH payments, other non-cash payments (each such payment, a “Transaction”) through a third party payment provider. The Transaction processing services and related services are referred to collectively as the “Payment Services”. Management Company acknowledges and agrees that Paygami may provide Management Company with access to Payment Services available through RevoPay (or other third party payment provider designated by Paygami) that facilitates Community Association’s receipt of services pursuant to the terms of this Agreement including Exhibit A attached hereto and hereby made a part hereof. Management Company acknowledges and agrees that Paygami will have access to certain information regarding Transactions, which it may use for purposes related to this Agreement, the Payment Services, or as required by or allowed under Payment Network Rules. Management Company agrees that it and the Community Associations shall only access the Payment Services via the System. Management Company hereby agrees to comply with all applicable Payment Network Rules and the policies and procedures Paygami may provide to Management Company from time to time regarding Management Company’s use of the Payment Services. Management Company acknowledges and agrees that its and Community Associations’ access to and use of the Payment Services shall at all times be subject to the terms of the Agreement. As used herein, “Payment Network” means any private payment network association, such as the National Automated Clearing House Network (“NACHA”) and credit/debit card payment associations used for Transactions and the term “Payment Network Rules” means the rules and regulations established by any Payment Network.
2. DESIGNATED ACCOUNT. Management Company represents and warrants that it has been authorized by its Community Associations that desire to access the Payment Services to access and use such Payment Services in accordance with this Agreement and to provide the authorizations contained herein. Management Company will provide the necessary details via the System for the community association bank accounts at Partner Bank (or other bank acceptable to Paygami in its sole discretion) into which it wishes settlement funds be received and from which fees listed on Exhibit A (“Fees”), Deductions, and other liabilities may be deducted (the “Designated Account”). Management Company will promptly notify Paygami in advance of any change to its Designated Account. Management Company acknowledges that it will take several business days for Paygami to implement the changes to the Designated Account and that Management Company is liable for any costs, losses and liabilities incurred due to Management Company’s failure to so notify Paygami of any Designated Account changes.
3. CHARGEBACKS, REFUNDS, FINES, NSF, FEES AND LIABILITIES. Management Company acknowledges and agrees that the Community Association may be subject to reversals of previously settled Card transactions (“Chargebacks”), nonsufficient funds fees, and to fees, charges, fines, costs, assessments, damages, liabilities, and amounts imposed as a result of its failure to comply with the terms of this Agreement, any Payment Network Rules, or any state, federal, or local laws, rules, or regulations (“Laws”) (collectively, “Deductions”). Paygami has a right to set-off against any settlement funds owed to Community Association, all Deductions and other amounts owed by Community Association under this Agreement or the Payment Network Rules. If Community Association elects to make refunds of Transactions, Community Association is solely responsible for such amounts and all fees relating thereto. All such refunds, Deductions, Fees and other amounts will be deducted from funds otherwise payable to Community Association in accordance with Exhibit A. If a cardholder or payor disputes a Transaction, if a Transaction is charged back for any reason, or if the processor reasonably believes a Transaction is unauthorized or otherwise unacceptable, the amount of such Transaction may be charged back and debited from the Designated Account. Management Company, on behalf of itself and Community Association, is solely responsible for, and will indemnify, defend and hold harmless Paygami from and against, any and all data privacy incidents and data security breaches it or Community Association experiences from its own systems or processes and resulting in any fraudulent transactions. In the event amounts owed by Community Association to Paygami pursuant to this Agreement exceed funds owed to Community Association in settlement, Community Association must upon notice immediately pay all amounts owed directly to Paygami, and Paygami reserves the right to recover such funds directly from Community Association via ACH from the Designated Account. Community Association’s obligation to pay amounts owed to Paygami will survive the expiration or termination of this Agreement for any reason.
4. CERTIFICATIONS. Management Company represents and warrants that it and each of its Community Associations (a) is legally registered with the Secretary of State of its formation and any other required agency; (b) has a federal tax ID and 501(c) IDs (to the extent applicable), which will be provided to the processor prior to processing any Transactions; (c) only submit Transactions for legitimate fees due to Management Company or its Community Associations (as applicable); and (d) the Community Associations are all known to Management Company and are considered to be in good standing. Management Company agrees that any fees charged to a consumer or customer in connection with the Payment Services will (i) comply with applicable Laws and the Payment Network Rules, and (ii) be clearly disclosed to such consumer or customer in compliance with applicable Laws and Payment Network Rules.
5. TERM, TERMINATION AND SUSPENSION. This Agreement is effective as of the Agreement Effective Date. The term of this Agreement shall be monthly (the “Initial Term”) unless earlier terminated as set forth herein. Upon the expiration of the Initial Term hereof, this Agreement shall be automatically renewed for successive one month periods (each a “Renewal Period” and collectively, the “Renewal Periods”; the Initial Term and the Renewal Periods are together referred to herein as the “Term”) on the same or other mutually agreed upon terms and conditions, unless Paygami or the Management Company elects not to renew, in which case the terminating party shall give written notice to the other party at least ten (10) days prior to the expiration of the Initial Term or the then current Renewal Period, as applicable. Either party may terminate this Agreement if the other party breaches any material provision of this Agreement and fails to cure such breach within thirty (30) days following written notice from the non-breaching party describing such breach. Paygami may (i) terminate this Agreement upon termination of the agreement between the processor and Paygami; or (ii) suspend the Payment Services or terminate this Agreement if: (A) Paygami determines, in its sole discretion, that Management Company’s use (or Community Association’s use) of the Payment Services may pose a threat to the security or performance of the System or may be in violation of Payment Network Rules or may be illegal; or (B) Paygami withdraws such Payment Services or part thereof from all of its management company Upon the expiration or termination of the Agreement, the Payment Services shall automatically terminate and Management Company and Community Association will cease using the Payment Services.
6. INFORMATION; REPRESENTATIONS AND WARRANTIES. Management Company represents and warrants that all information provided to Paygami is and will remain throughout the term of this Agreement, true and correct in all Paygami may require Management Company to provide updated information regarding it or Community Association upon Paygami’s request from time to time. Management Company will promptly notify Paygami prior to any change in its or Community Association’s legal name, organizational structure, ownership, principals, a change to the Designated Account, or the filing of a bankruptcy or similar proceeding by or against it, and any failure to so notify Paygami of such event shall constitute grounds for termination of this Agreement. Management Company also hereby authorizes, on behalf of Community Association, Paygami or its designee to obtain, and grants Paygami the limited power of attorney to obtain, information regarding the Designated Account (including, without limitation, account balance and activity at any given time). Management Company further represents and warrants that its execution of and performance under this Agreement (i) in no way breaches, contravenes, violates, or in any manner conflicts with any of its other legal obligations, including its governing documents or any agreement with any third party; (ii) has been duly authorized by all necessary action and does not require any consent or other action by or in respect of any third party; and (iii) that the person signing this Agreement on Management Company’s behalf is duly authorized to do so.
7. COMPLIANCE; DATA SECURITY.
(a) Management Company shall comply (and shall cause its Community Associations, employees, agents, and subcontractors to comply) with all laws, orders, rules and regulations applicable to Management Company’s business (or Community Associations’ business, as applicable) and the payment Transactions to be made using the System in connection with the performance of the Payment Services under this Agreement. Management Company will comply, and will cause Community Associations to comply, with all laws, orders, rules and regulations applicable to Management Company’s request for and Management Company’s and the Community Associations’ receipt and use of the Payment Services. Each party shall also comply (and shall cause its employees, agents, and subcontractors to comply) with the Payment Network applicable to the Payment Services.
(b) Management Company agrees to comply, and to cause Community Associations to comply, with all applicable Laws. Without limiting the foregoing, Management Company agrees that it will fully comply, and will cause Community Associations to fully comply, with any and all anti-money laundering laws and regulations.
(c) Management Company agrees to, and shall cause Community Association to, only complete sales or assessment Transactions produced as the direct result of bona fide sales or approved assessments made or levied by Community Association to payors, and is expressly prohibited from processing, factoring, laundering, offering, and/or presenting sales Transactions which are produced as a result of sales made by any person or entity other than Management Company or Community Associations, or for any purposes related to any illegal or prohibited activity, including but not limited to money-laundering or financing of terrorist activities.
(d) Management Company must report immediately to Paygami all instances of a data security Incident experienced by Management Company or Community Association, and in no case later than twenty-four (24) hours after discovery of the incident.
(e) Pursuant to Section 6050W of the Internal Revenue Code, Paygami, its processor or acquirer is required to file an information return for each calendar year reporting all Transactions with payees occurring in that calendar Accordingly, the Community Association may receive a Form 1099-K report on its gross Transaction amounts for each calendar year. Failure to provide a valid taxpayer identification number will result in termination of the Payment services.
8. WARRANTY. PAYGAMI’S LIABILITY FOR ERRORS OR DISCREPANCIES IN PROCESSING THE MANAGEMENT COMPANY’S DATA AND REPORTS SHALL BE LIMITED TO CORRECTION THEREOF. The Management Company shall be responsible for inspecting the data, information, reports, records and other materials furnished by Paygami to the Management Company and shall notify Paygami of any errors or discrepancies in such data or other information within forty-five (45) days after receipt of such information by the Management Company.
PAYGAMI MAKES NO WARRANTY THAT THE MANAGEMENT COMPANY WILL BE ABLE TO SUCCESSFULLY CONNECT TO PAYGAMI’S SERVER OVER THE INTERNET. The Management Company acknowledges that occasionally such server may be unavailable through internal and/or external circumstances that cannot be controlled by Paygami, and hereby releases Paygami from liability from any resulting damages. The Management Company shall maintain confidentiality of the login information, and assumes all responsibility and liability for harm and damages caused in connection with login.
Paygami shall not be liable to the Management Company for any damages whatsoever resulting from the Management Company’s use of banking products from the Partner Bank, and any such dispute shall be settled solely between the Management Company and the Partner Bank.
Paygami shall not be liable to the Management Company for any damages whatsoever resulting from the Management Company’s use or receipt of the CINC Software and Services, and any such dispute shall be settled solely between the Management Company and CINC Systems.
EXCEPT AS PROVIDED ABOVE, PAYGAMI DISCLAIMS ANY WARRANTY FOR ANY PORTION OF THE SYSTEM MODIFIED BY THE MANAGEMENT COMPANY. THE SYSTEM IS DELIVERED “AS IS” AND PAYGAMI MAKES NO WARRANTIES, EITHER EXPRESS OR IMPLIED, AND THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY EXPRESSLY DISCLAIMED.
PAYGAMI NEITHER WARRANTS NOR GUARANTEES THAT ANY CONTENT IS SAFE FROM INTERCEPTION, ALTERATION, CORRUPTION, OR DELETION BY USERS WHETHER AUTHORIZED OR NOT.
9. INTELLECTUAL PROPERTY OWNERSHIP. All current, and any future rights, titles, patents, copyrights, trademarks and interests in and to the System and any copies thereof are owned by and will remain at all times with Paygami or its suppliers, successors or assigns. Paygami holds the right to grant the license granted herein to the Management Company. Paygami represents that it has the full right and authority to license the System to the Management Company and that such license does not infringe any third party copyright or other proprietary or intellectual property right. The Management Company may not copy the documentation accompanying the System. At no time shall the Management Company assign, sell or license the System or any portion thereof or any rights and/or obligations obtained under this Agreement. The Management Company shall utilize security and controls to protect the System which are no less stringent than it uses to protect its own proprietary trade secret rights, but in no case less than a commercially reasonable standard of care. Failure to adequately protect the System will provide Paygami cause to immediately terminate this Agreement.
10. CONFIDENTIALITY. By virtue of this Agreement, each of the parties hereto may have access to all information and data furnished by the other party hereunder (the “Disclosing Party”), whether oral, written, graphic or machine readable form, in connection with the System, including, but not limited to: (a) object code, source code, source listings, computer programs, screen shots, documentation, programming techniques or systems, specifications, screen display format and design, charts, diagrams, graphs, models, sketches, writings or other data related to the System, (b) other technical data, research or information, and (c) all trade secrets and other proprietary ideas, concepts, know-how, methodologies and information relating to the System (“Confidential Information”). The party hereto receiving such Confidential Information (the “Receiving Party”) agrees that it: (x) shall hold the Confidential Information in confidence and shall not disclose the Confidential Information to any third party; and (y) shall not use, duplicate, reproduce, distribute, disclose or otherwise disseminate the Confidential Information except consistent with the terms hereunder. Confidential Information shall not include information which: (i) was known to the Receiving Party prior to its disclosure by the Disclosing Party as evidenced by the written records of the Receiving Party, (ii) has become generally available to the public (other than by virtue of disclosure by the Receiving Party), (iii) is independently developed by the Receiving Party, or (iv) is required by law to be disclosed, provided in such case, the Receiving Party shall give the Disclosing Party prior notice (to the extent permitted by law and reasonably feasible) of such requirement and shall reasonably cooperate, at the Receiving Party’s sole cost, in any attempts to limit or protect the Confidential Information disclosed. The covenants set forth in this Section shall survive for a period of five (5) years following the termination or expiration of this Agreement, provided with respect to Confidential Information that constitutes a trade secret under Georgia law, the covenants set forth in this Section shall survive for so long as such information remains a trade secret (excluding failure to remain a trade secret as a result of breach of the Receiving Party’s obligations hereunder). If either party hereunder shall breach or threaten to breach any of the provisions of this Section, such non-breaching party, in addition to any other remedies it may have at law or in equity, shall be entitled to a restraining order, injunction, or other similar remedy in order to specifically enforce the provisions of this Section. The breaching party under this Section specifically acknowledges that money damages alone would be an inadequate remedy for the injuries and damage that would be incurred by such non-breaching party as a result of a breach of any of the provisions of this Section. Upon termination of the Agreement, each party hereunder shall return all Confidential Information to the other party. The Management Company acknowledges that the data entered into the System by the Management Company will be accessed, viewed, and processed by Partner Bank, CINC Systems or such other provider of an accounting system utilized by the Management Company. Non-public data proprietary to the Partner Bank may not be utilized by the Management Company for solicitation of business. Further, such proprietary data must be confidentially maintained by the Management Company and may not be used or disclosed for any purpose not expressly disclosed herein. Paygami reserves the right to use the Management Company’s name and logo on any website hosted or utilized by Paygami. By execution of this agreement, the Management Company acknowledges and gives its permission to access such data by these other organizations.
11. LIMITATION OF LIABILITY. IN NO EVENT WILL PAYGAMI, THE PROCESSOR, THE ACQUIRER, OR ANY PAYMENT NETWORK, OR THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR AFFILIATES, BE LIABLE TO MANAGEMENT COMPANY OR COMMUNITY ASSOCIATION FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES IN CONNECTION WITH THE PAYMENT SERVICES OR ANY DAMAGES WHATSOEVER RESULTING FROM THE MANAGEMENT COMPANY’S OR COMMUNITY ASSOCIATIONS’ MISUSE OF THE PAYMENT SERVICES. THE MANAGEMENT COMPANY AGREES THAT PAYGAMI’S TOTAL LIABILITY UNDER THIS AGREEMENT FOR ANY AND ALL CLAIMS FOR DAMAGES, REGARDLESS OF THE FORM OF ACTION, SHALL NOT EXCEED the amount paid by THE Management Company FOR THE SERVICES PERFORMED BY Paygami during the ONe-month period preceding the event that gave rise to the claim. THIS SECTION 7 SHALL SURVIVE TERMINATION OR EXPIRATION OF THIS AGREEMENT.
12. INDEMNIFICATION. The Management Company shall indemnify, defend and hold Paygami, together with Paygami’s agents, officers, directors and employees, harmless from and against all claims, costs, liabilities, damages and expenses, including, without limitation, reasonable attorneys’ fees, resulting from (i) a breach by the Management Company of this Agreement; (ii) any claim or liability related to obligations between the Partner Bank and the Management Company; or (iii) any claim or liability related to obligations between CINC Systems and the Management Company. The Management Company shall promptly notify Paygami of any claim giving rise to indemnification hereunder. Paygami shall indemnify, defend and hold the Management Company, together with Management Company’s agents, officers, directors and employees, harmless from and against all claims, costs, liabilities, damages and expenses, including, without limitation, reasonable attorneys’ fees, resulting from a breach by Paygami of this Agreement. Paygami shall promptly notify the Management Company of any claim giving rise to indemnification hereunder.
13. AUTHORITY TO EXECUTE DOCUMENTS AND BIND COMMUNITY ASSOCIATION. Management Company agrees that: (a) it has a written agreement with the Community Association whereby it is authorized to execute agreements on Community Association’s behalf pursuant to a validly existing and in-force authorization; (b) the Community Association has given Management Company the right to execute this agreement and bind the Community Association to any terms and conditions provided by the Partner Bank; (c) Management Company is authorized, pursuant to a written agreement, to arrange for third party payment processors and banks to process payments and collect funds owed to the Community Association in the name of the Community Association; (d) Management Company will immediately notify Paygami of any termination of its agreement with a Community Association; and (e) Management Company, by executing this Agreement will bind both Management Company and Community Associations to the terms of this Agreement and any agreements with the Partner Bank.
Management Company, on behalf of itself and the underlying Community Associations agrees that: (a) all amounts submitted pursuant to this Agreement represent amounts owed to the Community Association or the Management Company for goods or services provided by such party, and (b) the receipt of funds by Bank on behalf of the Community Association will be deemed receipt of the funds by the Community Association.
(a) Independent Contractors. No agency, employment, partnership or joint venture relationship is created between the parties under this Agreement, and the relationship of the parties shall be that of an independent contractor.
(b) Force Majeure. Paygami shall not be liable for failure to fulfill its obligations hereunder if such failure is due to flood, extreme weather, fire or other natural calamity or other cause beyond its control. However, Paygami shall promptly give notice of such condition to the Management Company and shall only be excused from performance for so long as such condition exists.
(c) Entire Agreement. This Agreement constitutes the complete and exclusive statement between the parties with respect to the subject matter of this Agreement and supersedes all prior proposals, memoranda, letter of intent, discussions, negotiations and agreements, oral or written, relating to the subject matter of this Agreement.
(d) Modification. No representation or promise made by a party shall be binding upon either party, nor shall the Agreement be modified or changed, unless such representation, promise, modification or change is evidenced by a writing signed by an authorized representative of both parties.
(e) Governing Law. This Agreement shall be governed by and construed under the laws of the State of Georgia. In any legal action relating to this Agreement, the Management Company agrees (a) to the exercise of jurisdiction over it by a state or federal court in Atlanta, Georgia or Gwinnett County, Georgia, and (b) that if the Management Company brings the action, it shall be instituted in one of the courts specified above.
(f) Survival. Sections 2, 4, 5, 6, 7, 8 and 9 shall survive any termination or expiration of this Agreement.
(g) Notice. To be effective, all notices to a party required by this Agreement must be mailed by certified U.S. Mail, return receipt requested, or by an overnight delivery service which requires confirmation of delivery, and addressed as set forth below such party’s signature below, or to such other address as either party may from time to time designate upon written notice given in accordance with this paragraph.
(h) Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original.
(i) Severability. If any provision or portion of this Agreement is held invalid under any applicable law, that provision or portion shall be deemed omitted from this Agreement and the balance of the Agreement shall remain in full force and effect as if such invalid provision did not exist.
(j) Assignment; Binding. The Management Company may not transfer or assign this Agreement by operation of law or otherwise (including any purported transfer of its rights hereunder) without Paygami’s prior written consent. Any attempt by the Management Company to assign, or transfer any of the rights, duties and obligations in violation of this Agreement shall be void. Paygami may assign this Agreement without the Management Company’s consent. This Agreement shall be binding upon and inure to the benefit of the permitted assigns and successors of the parties.
(k) Waiver. Failure of either party to require the performance of any term of this Agreement shall not prevent a subsequent enforcement of such term, and the waiver by either party of any breach of this Agreement shall not be deemed a waiver of any subsequent breach. Any waiver or consent required by this Agreement must be in writing, signed by an authorized representative of the consenting party.
(l) Export. The Management Company may not export or re-export the System in any form without the appropriate United States and foreign governmental licenses or approvals, if any. The Management Company will not directly or indirectly export or transfer the System, or any direct product thereof, to any country to which transmission is restricted by applicable statute, including but not limited to the U.S. Export Administration Regulations.
14. MISCELLANEOUS. This Agreement, including all exhibits and attachments hereto and thereto, and documents incorporated herein or therein constitute the sole agreements between the parties with respect to the provision of the Payment Services, and supersede all prior oral or written agreements for the Payment Services. This Agreement may be signed in counterparts, all of which taken together shall constitute one instrument. Except as specifically set forth herein or such changes as are required by the processor, acquirer or the Payment Network Rules, with respect to which Paygami will use commercially reasonable efforts to provide Management Company advance written notice, this Addendum may be amended only by the written agreement of the parties. In the event of a conflict between the terms of this Agreement, the terms of this Addendum will control. In the event of any inconsistency between this Agreement and Payment Network Rules, the Payment Network Rules shall control.