Terms and conditions for:
‍Mastercard Payphone

The promotion is organized by ECUAPAYPHONE C.A., a company incorporated in accordance with Ecuadorian laws, with these Terms and Conditions (hereinafter, the “Terms”) regulate the use of the Recharge/Debit Card issued by PAYPHONE through agreements established with its associated companies in different countries, in collaboration with an authorized issuing bank (the “Issuing Bank”). The Card, which can be issued under networks such as Mastercard, Visa or other recognized brands, is a financial debit instrument that allows the holder to access pre-loaded funds for making payments, electronic transactions and recharges, without the possibility of overdraft or access to credit. By requesting, activating, recharging or using the Card, the holder accepts these Terms in an express and binding manner, forming a legal contract between the holder, PAYPHONE and the Issuing Bank. Main address in Ecuador, hereinafter “Payphone”.

The Card is not a savings account nor does it generate interest on positive balances. PAYPHONE acts as a technological intermediary for the issuance and management of the Card, while the Issuing Bank manages funds and transactions in each country. It is the sole responsibility of the holder to read, understand and comply with these Terms before any use, as well as with the additional terms specific to the card network (e.g., Mastercard or Visa), available on the official sites of those networks. The Terms may be updated periodically; the owner must consult the current version on the PAYPHONE website (https://www.payphone.app/productos/mastercard-payphone/terminos-y-condiciones) or in the mobile app. Continued use of the Card after an update implies acceptance of the changes. If you do not agree to these Terms, do not request or use the Card. PAYPHONE operates with strict security and regulatory compliance protocols, aligned with international standards such as PCI DSS for card data protection.

For purposes of these Terms, the following definitions apply:

• Recharge/Debit Card (or “Card”): The physical or virtual instrument issued by PAYPHONE, through agreements with the Issuing Bank and through networks such as Mastercard, Visa or others, which allows transactions with pre-loaded funds.
• Owner: The natural or legal person who requests, activates and uses the Card, assuming all the responsibilities derived from its use.
• Issuing Bank: The financial institution authorized in each country that, under agreement with PAYPHONE, issues the Card, manages the funds and processes the transactions.
• PIN: Secret personal identification code assigned to the holder to authorize transactions and recharges.
• Recharge: Process of adding funds to the Card from authorized sources, such as bank accounts, points of sale or the PAYPHONE app.
• Transaction: Any transaction performed with the Card, including payments, recharges, balance inquiries or transfers.
• Balance: The amount of funds available on the Card after deductions for transactions or commissions.
• Prohibited Uses: Activities not allowed with the Card, detailed in Section 9.
• Fraud: Unauthorized use of the Card, including identity theft or transactions not approved by the cardholder.
• Private Mediation: Dispute resolution process facilitated by a neutral mediator, before resorting to legal instances.
• Force Majeure: Unpredictable or unavoidable events (e.g., natural disasters, network outages) that prevent the normal operation of the service.

The Card must be requested exclusively through the PAYPHONE app or the website (www.payphone.app), where the holder will complete an identity verification (KYC) process, provide personal data (e.g., identity document, address, email, telephone number) and accept these Terms. The issue is subject to approval by the Issuing Bank in the corresponding country, considering factors such as financial history, regulatory compliance and fraud risks. There is no issue fee. PAYPHONE and the Issuing Bank reserve the right to reject requests for non-compliance with requirements, suspicion of illegal activity or regulatory limitations.

Once issued, the Card must be activated within 30 days of receiving it, through the PAYPHONE app or the website, following the instructions provided (e.g., entering the initial PIN, validation with biometrics or SMS code). Activation confirms acceptance of these Terms and the terms specific to the card network (e.g., Mastercard, Visa). If the Card is not activated within the established period, it will be automatically blocked and you may require a new request. The Card is personal and non-transferable; its delivery does not imply immediate approval of transactions, which depend on the available balance and on real-time security checks.

For legal entities, the request must include corporate documentation (e.g., business registration, powers of attorney) and explicit authorization for use by designated employees, who will be jointly and severally liable for any misuse.

The Card operates exclusively with pre-loaded funds; it does not allow overdrafts or cash advances. The holder can recharge funds from:

• Linked bank accounts (electronic transfers or local systems depending on the country).

• Points of sale authorized by PAYPHONE (e.g., affiliated businesses).

• The PAYPHONE app or the website, using secure digital methods.

There is no charge for refills, regardless of the method used. Refills are processed instantly or within a maximum period of 24 hours, depending on the channel and the availability of the Issuing Bank. The holder must check the balance after each recharge to confirm correct accreditation through the app or website. In the event of an error in the recharge (e.g., uncredited amount due to technical failure or error on the part of the owner), the owner must immediately report it to PAYPHONE through official channels for investigation. The resolution may take 5 to 10 business days, but PAYPHONE does not guarantee correction if the error comes from an unauthorized method or the owner's negligence (e.g., incorrect bank details).

If the cardholder attempts to recharge from unverified sources or exceeds established limits, the transaction will be rejected, and PAYPHONE may temporarily block the Card to prevent fraud. In cases of high demand, systemic problems (e.g., failures in the banking network) or government restrictions, refills may be delayed. PAYPHONE will not be responsible for indirect losses resulting from such delays, such as lost buying opportunities, except in cases of demonstrated negligence.

The Recharge/Debit Card does not generate interest on positive balances, since it is not a savings or investment product. The funds are for immediate use and do not accrue returns. The applicable fees are as follows (subject to change with 30-day notification via the PAYPHONE app or website):

- Activation: Free.

- Check your balance on the app or website: Free.

- Balance check: Free

- Retail payments: Free (except for merchant fees, if applicable).

- Card Replacement (for loss, theft or damage): $10 (includes standard shipping; express $15).

- International transactions: Additional charges for taxes or fees depending on the country and card network (e.g., currency conversion), determined by the Issuing Bank and applied at the time of the transaction.

Card Limits (adjustable by PAYPHONE for security or regulatory reasons, with prior notification):

- Maximum daily recharge: $1,000.

- Maximum monthly recharge: $2,000.

- Maximum daily transactions: $500 or 10 transactions.

- Maximum balance allowed: $2,000.

These limits comply with AML/KYC regulations and may vary depending on the country of issue. If the cardholder exceeds the limits (e.g., multiple attempts to recharge), the Card may be temporarily blocked. PAYPHONE does not charge interest fees for overdrafts, since the Card does not allow transactions without sufficient funds; any attempt will be automatically rejected. All fees are directly deducted from the available balance. For updated or personalized details, see the PAYPHONE app or website.

The Card allows secure transactions at merchants affiliated to the card network (e.g., Mastercard, Visa), both domestic and international, including online payments, physical points of sale and P2P transfers through the PAYPHONE app. The holder can check the balance, transaction history and recharge funds in real time via the app or website. All transactions require authorization with PIN, biometry (fingerprint or facial) or CVV code for online payments, depending on the Card's capabilities.

Before traveling, the holder must notify PAYPHONE through the app or website to avoid being blocked due to transactions in unusual locations. In international transactions, additional charges may apply for taxes, conversion fees or local regulations, depending on the country and the card network, which will be reported by the Issuing Bank at the time of the transaction. PAYPHONE monitors transactions in real time to detect suspicious patterns (e.g., quick purchases in multiple countries), and may temporarily reject or block the Card for verification. The cardholder cannot use the Card for cash advances, as collateral for loans, or at sites not authorized by the card's network.

In the event of technical failures (e.g., network interruption), pending transactions are processed when the service is restored, but PAYPHONE will not be responsible for indirect losses (e.g., refusals of payments in stores). If the Card is rejected by a merchant due to an error by the Issuing Bank or the network, the holder must report it to PAYPHONE to escalate the complaint to the Issuing Bank, which will be resolved within 5 to 15 business days.

The owner undertakes to:

a) Safeguard the Card and PIN securely, not sharing them with third parties or storing them in accessible places (e.g., not writing down the PIN on the Card or on the phone).

b) Immediately notify PAYPHONE through the app or website through official channels in the event of loss, theft, damage or unauthorized use, within 24 hours following the incident to limit your liability. Delays in notification may result in total liability for fraudulent transactions.

c) Use the Card exclusively for lawful and personal transactions, avoiding illegal activities such as money laundering, terrorist financing or purchases on prohibited sites (e.g., unregulated gambling).

d) Regularly check the balance and transaction history on the app or website, reporting any discrepancies or unrecognized transactions within 60 days of their occurrence. Transactions not reported within this time frame are considered approved.

e) Comply with KYC requirements when applying for or recharging the Card, providing true and updated data; false data may lead to permanent blocking.

f) Pay all applicable fees and do not attempt to circumvent limits or restrictions (e.g., using multiple cards).

g) Immediately update any changes in personal data (e.g., address, telephone, email) through the app or website, within 30 days of the change.

h) Do not lend the Card to third parties or use it for commercial purposes without express authorization from PAYPHONE.

i) Respond for all authorized transactions with the PIN or biometry, even in cases of subsequent dispute (e.g., if a family member uses the Card with the cardholder's knowledge).

The cardholder assumes responsibility for any loss resulting from their negligence, such as leaving the Card unattended, using unprotected public Wi-Fi networks, or not reporting a theft in time.

PAYPHONE and the Issuing Bank are committed to:

a) Issue and activate the Card in accordance with applicable regulations in each country, including PCI DSS security standards for data protection.

b) Process transactions in a secure, timely and efficient manner, monitoring in real time to prevent fraud.

c) Provide free access to the app and the website for card management, including balance inquiries, blocking and transaction reports.

d) Notify the owner of any changes to the Terms, commissions or limits at least 30 days in advance via the app or website.

e) Maintain the confidentiality of the owner's data, processing them only for the purpose of the service, in accordance with the data protection laws of each country.

f) Block the Card immediately upon a report of loss/theft and escalate the case to the Issuing Bank for investigation and possible reimbursement of fraudulent post-notification transactions (period of 7-30 business days, with a maximum refund of $500 per incident, less fees, according to the Issuing Bank's policy).

g) Collaborate with authorities in investigations of fraud or illegal activities, sharing data when legally required.

h) Not be responsible for losses resulting from the owner's negligence, failures in the owner's devices or force majeure events (e.g., network outages).

i) Provide support through the app or website for emergencies (e.g., card blocking) and resolve complaints within reasonable time (mediation within 15 days).

In case of scheduled maintenance, PAYPHONE will notify 48 hours in advance via app or website, and will not be responsible for temporary interruptions. PAYPHONE will not process refunds directly; these will be managed exclusively by the Issuing Bank according to its policies and deadlines.

The cardholder should not use the Card to:

• Get cash at ATMs or points of sale, as it is a reload/debit card without a withdrawal function.

• Make illegal purchases or transactions, including prohibited goods (e.g., drugs, weapons), unregulated gambling, child pornography or any activity that violates criminal laws in each country.

• Financing terrorism, money laundering or activities in sanctioned entities (e.g., OFAC lists or local equivalents).

• Give it to third parties or use it for commercial purposes without express authorization from PAYPHONE (e.g., as a means of payment in a business).

• Attempt fraud, such as duplication of transactions, use of stolen data, or manipulation of refills.

• Transactions on unsecure websites or with a high risk of fraud (e.g., phishing sites).

• Overdraft the available balance or attempt transactions without sufficient funds, which will result in automatic rejection.

• Use the Card in countries or regions restricted by international sanctions or local regulations.

Violations of these prohibited uses may result in the immediate and permanent blocking of the Card, confiscation of the remaining balance, termination of the service, and reporting to competent authorities, without reimbursement or liability on the part of PAYPHONE or the Issuing Bank. PAYPHONE reserves the right to monitor and reject suspicious transactions without prior notification.

In case of loss, theft, damage or suspicion of unauthorized use of the Card:

• The owner must immediately notify PAYPHONE through the app or website through official channels, within 24 hours of the incident. Late notifications may result in total liability for fraudulent transactions.

• PAYPHONE will immediately block the Card and will escalate the case to the Issuing Bank, which will issue a new Card (with a $10 replacement fee) and transfer the remaining balance within 5 business days.

• The owner is responsible for all transactions made prior to notification if they are due to negligence (e.g., PIN shared or not reported in time). After notification, the Issuing Bank will limit liability to $50 per fraudulent transaction, subject to investigation.

• In case of confirmed fraud (e.g., unauthorized use), the Issuing Bank will investigate within 7 to 30 business days and will reimburse the affected amount (up to $500 per incident), deducting applicable fees according to its policy. If the fraud is due to the owner's negligence, there will be no refund.

• PAYPHONE will collaborate with the Issuing Bank and authorities in investigations, providing transaction records. The incumbent must fully cooperate, providing evidence (e.g., police report) to expedite the process.

• If the Card is blocked by mistake (e.g., false fraud detection), PAYPHONE will reactivate it within 48 hours after verification, at no additional cost.

In situations such as temporary blocks due to suspicious transactions (e.g., failed PIN attempts), the owner must contact PAYPHONE through the app or website for identity verification, which can take up to 24 hours. PAYPHONE is not responsible for consequential inconveniences, such as declined payments during the blockade.

The Card contract ends with:

• Request from the holder, with notification through the app or website and reimbursement of the remaining balance by the Issuing Bank within 10 business days, minus outstanding fees.

• Decision of PAYPHONE or the Issuing Bank for violation of these Terms, prohibited use or prolonged inactivity (180 days), with immediate notification and reimbursement of the balance by the Issuing Bank within 10 days.

• Force majeure events or regulatory changes that prevent the continuity of the service.

• Card expiration (generally 5 years from issue), with 60-day notification to recharge or transfer balance.

Upon completion, the balance is refunded to the holder's linked bank account by the Issuing Bank, minus debts or fees. PAYPHONE will not process refunds directly. The cardholder must return the physical card if requested. Unclaimed balances after 6 months of termination may be transferred to unclaimed funds under the local laws of the issuing country.

PAYPHONE and the Issuing Bank process the owner's personal data (e.g., name, identity document, transactions, biometrics) in accordance with the data protection laws of each issuing country. The data is used for: issuance/activation of the Card, transaction processing, fraud prevention, marketing (with consent) and legal compliance.

The owner consents to the processing of their data by accepting these Terms. PAYPHONE implements security measures such as AES-256 encryption, PCI DSS and 24/7 monitoring. Data can be shared with the card network (e.g., Mastercard, Visa) to process transactions, or with authorities in cases of fraud. The owner has the right to access, rectify, update, oppose or delete data through the app or website, with a response within 15 days. For more details, see the PAYPHONE Privacy Policy at www.payphone.app/privacy and the card's network terms. In the event of a data breach, PAYPHONE will notify the holder within 72 hours and will call on the Issuing Bank for corrective action.

PAYPHONE may modify these Terms for regulatory, security or improvement reasons, with 30-day notification to the owner via the app or website. Material modifications (e.g., new commissions) require explicit consent from the owner (e.g., clicking “Accept” in the app). Continued use of the Card after the deadline implies acceptance. If the cardholder rejects the changes, the service can be terminated with a refund from the Issuing Bank. PAYPHONE is not responsible for losses resulting from refusals to modifications.

These Terms are governed by the laws of the country where the Card was issued, as applicable to the Issuing Bank. Any dispute, claim or controversy arising from the Card or these Terms will initially be resolved through private mediation before a neutral mediation center accredited in the country of issue, based at the principal address of the Issuing Bank. If mediation fails within 30 days, the parties may appeal to the competent courts of the issuing country. The owner renounces any other forum. PAYPHONE reserves the right to take legal action to protect your rights or recover debts. For complaints, contact PAYPHONE through the app or website through official channels; answers within 15 days.

By applying for, activating or using the Card, the cardholder confirms that they have read, understood and accepted these Terms in their entirety, together with the specific terms of the card network (e.g., Mastercard, Visa). These Terms prevail over any previous agreement. For questions or support, contact PAYPHONE exclusively through the app or website (www.payphone.app) through official channels.

This document is the entire agreement between the parties. It is recommended to check back periodically for updates. Responsible use of the Card ensures your continued benefit.