Terms and Conditions for the issue and use of Benefit Plus Cards

(„Terms“)

General information

1. The Terms and Conditions set out the binding rules for the issuance and use of Benefit Payment Cards - VISA International (hereinafter referred to as "Benefit Payment Cards" or "BPK") issued under the Cooperation Agreement (hereinafter referred to as the "Agreement") between Československá obchodní banka, a. s., with registered office at Radlická 333/150, 150 57 Prague 5, ID No.: 00001350, registered in the Commercial Register maintained by the Municipal Court in Prague, Section B: XXXVI, Insert 46, (hereinafter referred to as "ČSOB") and Benefit Management s.r.o, No.: 27069770, registered in the Commercial Register maintained by the Municipal Court in Prague, Section C: 93997 (hereinafter referred to as "BM"), in accordance with the provisions of Section 1751 of Act No. 89/2012 Coll., the Civil Code (hereinafter referred to as "CC") and in accordance with Act No. 370/2017 Coll., the Payment Transaction Act, as amended (hereinafter referred to as "PTA").
2. BM is obliged to prepare, within the scope of these Terms and Conditions, similar terms and conditions for its client-employer with whom it agrees to issue BPKs to its employees and to provide them to it no later than when the benefit payment card is handed over. BM shall at all times be fully liable for breaches of the Terms by holders of Benefit Payment Cards issued under the Agreement. BM is obliged to present these Terms and Conditions to ČSOB upon request.
3. BM is obliged to ensure, when providing BPK, the identification of the cardholder. The identification shall be carried out in accordance with the legal regulations and to the extent specified therein. If the cardholder refuses to comply with the required scope of identification, the BPK shall not be requested.
4. BM processes the cardholder's personal data in connection with the negotiation and execution of the contract in accordance with Act No. 101/2000 Coll. on the Protection of Personal Data, as amended (hereinafter referred to as the "PDPA") and Regulation (EU) No. 2016/679 of the European Parliament and of the Council of 27 April 2016 (hereinafter referred to as the "GDPR"). Detailed information related to the processing of personal data is set out in a separate agreement on the processing of personal data concluded between BM and ČSOB.
5. ČSOB issues benefit payment cards to BM and its clients under an agreement between BM and ČSOB.
6. ČSOB shall settle the relevant fees resulting from the performance of the Agreement and all transactions made with benefit payment cards issued at BM's request under the Agreement to BM's designated account, which is maintained in Czech crowns.
7. Benefit payment cards are the property of BM and after the order is placed by BM in accordance with the contract, approved by ČSOB, produced and handed over to the holder of the benefit payment card, only the right to use the card is transferred to the holder. There is no legal right to the issuance of a benefit payment card. ČSOB is entitled to request further information about the cardholder, including from other sources. ČSOB may refuse BM's request to issue a benefit payment card. In such cases, ČSOB will always inform BM in writing or by telephone and provide the reasons for the refusal.

Issuing a benefit payment card

8. Benefit payment cards are issued without the cardholder's name to benefit accounts held by BM.
9. ČSOB issues the types of BPK for BM agreed by the contract, for fees set by the contract. The fees for the issued benefit payment cards are charged regardless of whether the benefit payment card is currently in a state of temporary restriction of validity or whether the benefit payment card has been accepted, activated or whether it has already been used or not.
10. The issuance of a benefit payment card is entered by BM via a data file in the format specified in the "Sentence description for electronic entry into the payment card system". ČSOB processes these requests every business day within the deadlines specified in Annex 3, item 12. The processed data is then forwarded to SIA, which, after processing, holds to the personalizer, MONET+, a.s., ID 262 17 783, with registered office at Za Dvorem 505, Štípa, 763 14 (hereinafter referred to as "MONET"), which generates custom cards including card number and PIN. BM shall be solely responsible for any and all damages caused by ČSOB's disclosure of false, inaccurate, incomplete or failure to provide the Benefit Cardholder with updated information, which BM shall contractually obligate the Benefit Cardholder, through the contracted employer, to promptly update.
11. The Benefit Payment Card is valid until the date indicated on it, i.e. until the last day of the month indicated inclusive (the so-called expiry date of the payment card), unless ČSOB decides to terminate the validity of the Benefit Payment Card prematurely, e.g. for security reasons, see section 42. ČSOB does not automatically renew the BPK, the BM must apply for a new one with a new number and PIN within the relevant period.
12. The distribution of benefit card and PIN shipments is solely a matter between BM and MONET. ČSOB plays no role in this process and is therefore not liable for any damages that may arise as a result of non-compliance with the security standards applicable in this area. Conversely, BM is responsible for setting up and following all processes with respect to the secure storage and handling of BPK and PIN, and is liable to pay for any damages caused by ČSOB's breach of this obligation.
13. The standard validity period of each type of benefit payment card is determined by the contract. BM bears all risks associated with the misuse of an invalid benefit payment card.
14. BM may request that ČSOB terminate the benefit payment card before its expiry date. In the event of damage to the benefit payment card or its non-functionality, the holder is obliged to return the benefit payment card to BM and, upon request, to ČSOB.
15. Termination of the Benefit Payment Card does not terminate BM's obligation to immediately settle all liabilities arising from the use of the Benefit Payment Card during its validity period, nor does it terminate any liability for damages.

PIN

16. PIN means an automatically generated personalised security feature, a personal secret security number made available only to the holder of the benefit payment card and used exclusively to authorise payment transactions made with the benefit payment card. For the distribution of shipments with PINs, please refer to Clause 14 of the Terms and Conditions.
17. BM is obliged to check the integrity of the benefit card packages including the initial PIN and, after opening the packages, the integrity of the benefit card envelopes and the initial PIN. BM must then immediately take all necessary measures to protect them. In the event of any damage to the parcels, BM's authorised person shall request confirmation of delivery of the damaged parcel from MONET and shall immediately inform ČSOB of this fact, with whom he/she shall agree on further action. In the event of any damage to the envelopes in the consignment, the BM Authorised Person shall be obliged to note this fact in a report, which is also inside the consignment, and shall immediately inform ČSOB of this fact, with whom he/she shall agree further action.
18. The ČSOB system allows the BPK holder to change the initial PIN to the PIN set by the benefit card holder. The PIN change can only be made through any ATM in the Czech Republic that allows this service.
19. BM shall strongly advise the BPK Holder, through the contracted employer, in connection with his/her own successful change of the initial PIN, if enabled by the ATM, to select numerical data for the PIN that would not be easily ascertainable or inferable, e.g. part of the benefit card number, four identical digits or digits immediately following each other, the date of birth of the cardholder or his/her family members, or other easily inferable numerical data.
20. BM shall not disclose the Benefit Payment Card, including the PIN, or a shipment of Benefit Payment Cards or PINs to any person other than the Benefit Payment Cardholder or an authorized person authorized by BM's client, as this is confidential information. For these purposes, BM's client means a legal entity that uses BM's BPC services pursuant to the relevant agreement with BM and that authorises an employee to accept shipments of Benefit Payment Cards and PINs for its employees ("Authorised Person"). BM is obliged to prevent the disclosure of the initial PIN and is further obliged to inform the Benefit Cardholder in a demonstrable manner, or to arrange this through the Authorised Person, that it is obliged to change the initial PIN to its own PIN upon receipt of the Benefit Card, which is prohibited from being marked in an easily recognisable form on the Benefit Card or any other item, in particular, which the Benefit Cardholder keeps or carries with the Benefit Card, including a mobile phone, computer or similar device or to communicate it to other persons, including family members, and that he/she is obliged to take possible measures to prevent the PIN from being detected, for example, when entering it on the keyboard, e.g. by covering the keyboard with the other hand, etc. Violation of this provision by the Benefit Cardholder, whether fraudulent, intentional or negligent, shall be deemed a gross breach of contract and BM shall bear the full extent of any losses and damages arising from any unauthorized payment transactions by the Benefit Cardholder. Furthermore, BM shall pay the amounts of all transactions in which the PIN was used and all damages caused by ČSOB's disclosure of the PIN.
21. A valid PIN for the Benefit Payment Card may be reissued upon BM's request, submitted electronically in the agreed manner via the relevant record in accordance with Schedule 1a of the Agreement.
22. If the PIN is entered incorrectly on three consecutive attempts during a transaction with a benefit payment card, the payment card is automatically temporarily restricted for security reasons for transactions at ATMs and merchants where the PIN is verified. The full functionality of the benefit payment card is automatically restored on the following calendar day. For chip-enabled benefit payment cards, the PIN cannot be unblocked unless there is a direct (on-line) connection of the chip-enabled benefit payment card to the Bank's systems.

Acceptance of a benefit payment card

23. BM itself, or through an Authorised Person, is obliged to ensure that the holder of the benefit payment card signs the benefit payment card with an alcohol microfix or a blue or black ballpoint pen in the signature strip in the presence of an authorised BM employee or Authorised Person. ČSOB shall not be liable for any damages that may arise from the failure of the Authorised Holder to sign and accept the Benefit Payment Card.
24. BM acknowledges that by accepting a Benefit Payment Card, the holder acquires the right to use it for the entire duration of its validity, unless the Benefit Payment Card is terminated early.

25. BM shall ensure that the holder of the benefit payment card is informed that he/she is obliged to store the benefit payment card in a safe place, i.e. in a place that is not freely accessible to third parties and that is secured against interference by third parties, to protect it against loss, theft, misuse by unauthorised persons, mechanical and thermal damage, etc. Furthermore, the holder of the benefit payment card is obliged to regularly, after each use of the benefit payment card, but at least once a day, check its possession and take such individual security measures to prevent its misuse, loss or theft. If, despite the foregoing, the Benefit Payment Card is lost, stolen, misused or used in an unauthorised manner, the Benefit Payment Cardholder shall notify BM immediately (as soon as it is discovered).

    Any breach of the obligations under this provision by the Benefit Cardholder, whether fraudulent, intentional or negligent, shall be deemed a gross breach of contract and BM shall be liable for all losses and damages incurred as a result of the loss, theft, misuse or unauthorized use of the BPK.

26. BM is responsible for all transactions made with benefit payment cards issued under the contract and is obliged to pay for any damages caused by ČSOB's improper use of the benefit payment card.
27. ČSOB shall be liable for the BPK sculptures produced during the period of storage and transport from the manufacturer until the moment of their acceptance by a person authorised by BM.

Using a credit card

28. a) In order to increase security, benefit payment cards issued by BM are handed over in an inactive state. The holder is obliged to activate the inactive benefit payment card in one of the following ways:

    • via a PIN transaction at a POS terminal (hereinafter referred to as "POS")
    • via a non-financial transaction using a PIN at an automated teller machine (ATM)

    BM acknowledges that by activating the card, the holder of the benefit card also acknowledges physical receipt of the card, and under no circumstances is it permitted to activate a card that is not in the possession of the authorized holder. ČSOB shall not be liable for any damages that may be incurred by BM by activating a card that is not in the physical possession of the cardholder.

    Furthermore, ČSOB recommends BM to familiarize itself with the content of the brochure on the website www.csob.cz/karty, which contains detailed information on the functions, security, settings and control of the payment card, to select the information applicable to the terms of cooperation with ČSOB and to transfer this information in an appropriate manner, through the contracted employer, to the holder of the benefit payment card before its activation.

    BM undertakes to ensure that cardholders with a newly activated benefit account number and cardholders with an already activated benefit account number confirm their acceptance of the current terms and conditions on its website by other appropriate means.

    b) Depending on its type, the BPK can only be used for non-cash payments in establishments of entities operating trade and services (hereinafter referred to as "merchant" or "merchant establishment") made via electronic cash terminals, including POS, and only at merchants whose business activities meet the legislative requirements for the use of benefit schemes and who have also concluded an agreement with BM on the acceptance of benefit payment cards. BM shall be fully responsible for BPK's failure to pay for goods and services that do not comply with the rules for the operation of benefit schemes, and shall be liable for any damages caused by ČSOB's breach of this obligation.

    c) BPK, can be used for cashless payment transactions in selected merchant establishments without entering a PIN, just by attaching the payment card to a payment terminal supporting contactless payments with VISA PayWave specifications. The limit for contactless payment without authentication of the benefit card holder (e.g. by entering a PIN) is currently set at CZK 500 in the Czech Republic and may be changed at any time. A contactless payment may be rejected by the payment terminal at any time and a regular payment with a benefit payment card with PIN entry may be requested instead.

29. Places where the benefit payment card can be used are marked with the logo of the VISA and BM card association, provided that the merchant's character of selling goods and services meets the legislative requirements for the operation of benefit schemes and has an agreement with BM on the acceptance of benefit payment cards.
30. Benefit payment cards can also be used for payments via the internet and smart devices such as tablets, smartphones, smartwatches, etc., as well as through apple pay or google pay. The cardholder is aware of this fact and acknowledges it. At the same time, the cardholder acknowledges that verification via his/her phone number may be required for this type of payment. For the purpose of payments via apple pay or google pay, a limit of CZK 5,000 is set.
31. BM, or the holder of the benefit payment card, is obliged to prevent the disclosure of the benefit payment card data, which may occur, for example, through unsecured channels, in particular unsecured email communication. Failure to comply with this obligation, whether caused by BM or the benefit cardholder, whether fraudulently, intentionally or negligently, shall be considered a gross breach of contract and BM shall bear the full extent of any loss and damage caused by the failure to comply with this obligation.
32. BM is obliged, through the contracted employer, to oblige the holder of the benefit payment card to be obliged, in case of any doubt or suspicion of misuse of the benefit payment card or the payment terminal or ATM (e.g. In such case, BM shall immediately inform ČSOB and the Police of any suspicion of tampering with the payment transaction or any other suspicion that the payment card or the ATM may have been tampered with, or that a scanning device has been installed on the ATM, etc.
33. Only the following methods are agreed between ČSOB and BM as the only possible methods of consent of the benefit card holder (payer) to the execution of a payment transaction or its authorisation:
    • PIN entry for non-cash payment transactions in commercial establishments,
    • contactless payment transactions by attaching the benefit payment card to the payment terminal without entering the PIN or with entering the PIN,
34. BM acknowledges that a transaction that has been authorised by the cardholder (e.g. by entering a PIN, etc.) cannot be reversed. A transaction that has already been posted cannot be reversed. In justified cases (e.g. due to a duplicate transaction), the cardholder may file a claim with BM
35. BPK may not be used for transactions that would be contrary to the law in force at the place of the transaction. The cardholder or BM shall be fully liable for any breach of this obligation, including liability for any damages and penalties.
36. When using the benefit payment card in the facilities of entities operating trade and services, these facilities are authorised to verify (authorise) the payment transaction and to carry it out only if they receive the consent of ČSOB or BM. In order to protect the benefit cardholder, the employee of the merchant establishment is entitled to request proof of the benefit cardholder's identity and, if necessary, to withhold the benefit card on the basis of the authorisation result. In such a case, he/she is obliged to devalue the benefit payment card in front of the benefit payment card holder and issue him/her with a confirmation of the detention of the benefit payment card.
37. ČSOB is not liable for refusal of payment transactions, setting a minimum limit for payment transactions with a benefit payment card or failure to provide services by a merchant facility and for any damages caused to benefit payment card holders directly or indirectly by circumstances beyond the control of ČSOB or its partners (e.g. force majeure, interruption of power supply, failure of machinery and equipment of data processing systems, transmission lines, strike, etc.).
38. BM is responsible for all transactions made with benefit payment cards issued to BM clients under the contract, regardless of the benefit payment card limit. BM is obliged to pay for damages caused by ČSOB's improper use of the benefit payment card. In no event shall ČSOB be liable for any overdraft of the available balance. BM is obliged to inform the benefit cardholder that he/she is entitled to make benefit card transactions only within the specified limit, up to the maximum amount of the benefit account balance, and that BM is obliged to continuously monitor and control the amounts of transactions made with the benefit card and to prevent overdraft of the available account balance, unless otherwise agreed with the relevant BM partner. The amount of the limit of each payment card is set by BM in accordance with the applicable legislation of the Czech Republic or Slovakia.
39. ČSOB shall be entitled to charge the BM jumbo account with the amounts of all payments and liabilities arising from the use of the benefit payment cards issued to it and for all costs and losses incurred by ČSOB as a result of non-compliance with the Terms and Conditions.
40. Non-cash payments for goods and services are charged according to the contract.
41. ČSOB may revoke the right to use the benefit payment card or temporarily or permanently limit its validity without prior notice (in particular for breach of contractual terms and conditions or for reasons of payment device security, in particular in case of suspected unauthorised transactions or fraudulent use of the payment device, etc.). At the same time as the permanent restriction of the validity of the benefit payment card, it may be withheld. ČSOB shall inform BM of such measures in an appropriate manner without undue delay. ČSOB shall not be liable for any damages incurred by the holder of the benefit payment card as a result of temporary or permanent restriction of the validity of the benefit payment card or as a result of the cancellation of the right to use the benefit payment card.
42. BM is obliged to require the holder of the benefit payment card to protect the benefit payment card from mechanical damage and from any influence (e.g. magnetic field) which could result in the record on the magnetic stripe or chip of the benefit payment card being damaged.
43. BM, through the contracted employer, informs the benefit cardholder in its terms and conditions that if the benefit card is intercepted by an ATM, the benefit cardholder must immediately notify BM of the interception and subsequently apply for a new benefit card from his/her employer. BM is obliged to immediately inform ČSOB of this fact by means of the data file in accordance with Annex 1b of the Agreement.
44. The Benefit Payment Card is BM's property pursuant to Clause 9 of these Terms and Conditions. ČSOB provides for the limitation of the validity of the Benefit Payment Card upon BM's request for a fee in accordance with the Agreement, in particular in cases where the valid payment card has not been returned to BM. In standard cases, such as, in particular, original benefit payment cards with expiring validity do not have to be returned to BM by their cardholders. The above does not apply to benefit payment cards with suspected misuse. BM is responsible for all benefit payment cards issued to it under the contract and not returned to ČSOB. BM shall dispose of and change the status, if any, in accordance with Appendix 1b of the Agreement for the cards returned to him in accordance with the relevant clauses of the Agreement.

Statements and claims

45. BM is obliged to inform the benefit cardholder in a verifiable manner about the transactions charged. This report may be created on the basis of files received from ČSOB or on the basis of its own data. BM acknowledges that the settlement of transactions made with the benefit payment card is carried out in accordance with with card association rules with a time delay from the transaction date. All payment transactions will be cleared by ČSOB (i.e. debited from BM's account) no later than the end of the next business day following receipt of the payment order, which is the receipt of the billing report of the payment transaction from the payment processor. If the moment of receipt of the payment order falls at a time that is not ČSOB's business hours, the payment order shall be deemed to have been received at the beginning of the next ČSOB's business hours. ČSOB shall keep, in accordance with Act No. 21/1992 Coll., on Banks, as amended, internal records for a period of 10 years to enable traceability of transactions and errors. BM is obliged to require the holder of the benefit payment card to check the correctness of the billing of benefit payment card transactions without undue delay, possibly using electronic channels, inter alia, for the possibility of timely filing a claim.
46. Settlement of payment transactions takes place on business days, based on data from transaction processors. When posting a payment card transaction made in a foreign currency, ČSOB's exchange rates are used to convert the currency of the payment transaction into CZK. The exchange rate used for conversion is the rate valid on the previous business day before the day of posting to the BM account. The BM or the cardholder can obtain the history of the ČSOB exchange rate on the website www.csob.cz.
47. The BM notes the method of settlement of foreign currency transactions (e.g. settlement of transactions made in the Slovak Republic) with benefit payment cards. When settling foreign currency transactions made with benefit cards, no claims can be made for amounts arising from the exchange rate difference between the date of the transaction and the date of settlement. In the event that a credit transaction is made in addition to a debit transaction already made and this is made by a point of sale processed by a bank other than ČSOB, ČSOB shall not be liable for any difference in the amount of amounts converted resulting from the time lag between the presentation of the debit and credit transaction. If the cardholder selects the option of settlement in CZK when making a foreign currency payment transaction, the conversion is made directly by the merchant using its exchange rate (the exchange rate and the amount converted into CZK are indicated on the receipt). Any exchange rate difference from the ČSOB rate cannot be claimed. In some cases, the cardholder may choose to be charged in another currency different from the currency of the transaction/Merchant, then the conversion into the other currency is performed by the Merchant at its own rate.
48. In the event of irregularities in the settlement of a payment transaction with a benefit payment card, the benefit cardholder has the right to file a claim with BM for the disputed transaction, in writing on the appropriate form, with copies of the account statement, copies of receipts, any proof of cancellation of the payment transaction, the original or a copy of the confirmation of the transaction certified by an employee of the Merchant, received by the cardholder at the merchant after the completion of the transaction, a statement from the benefit cardholder, etc. BM resolves claims of disputed transactions against the holder in accordance with the BPCS and checks whether the benefit card issuance agreement and the relevant terms and conditions have been complied with. For the resolution of transaction claims at the merchant's bank or at ČSOB's side, BM shall forward the claim of the disputed transaction to ČSOB in an agreed manner, but no later than 2 months from the date of settlement of the transaction. ČSOB shall inform BM of the resolution of the complaint within 35 business days after receipt of the complaint, or in particularly complex cases within 180 calendar days at the latest. Upon successful completion of the complaint procedure, ČSOB shall transfer the financial settlement of the disputed transaction to BM's account. BM shall be responsible for the settlement of the transaction to the benefit cardholder and shall inform the benefit cardholder of the progress and outcome of the claim. ČSOB is entitled to request BM to provide additional documentation related to the claimed transaction. If the documentation is not duly delivered within the agreed timeframe or if ČSOB determines that the complaint is unjustified, ČSOB has the right to stop the complaint procedure and dismiss the entire case. The Cardholder and BM shall furthermore provide the necessary cooperation in the proper conduct and settlement of the complaint procedure.
49. The benefit cardholder must notify BM of the unauthorised payment transaction without undue delay, but no later than 13 months from the date of the transaction. BM is responsible for settling the transaction against the cardholder in accordance with the ZOPS. If BM determines that a payment transaction has been authorized during the review of an allegedly unauthorized payment transaction, BM will deny the claim.
50. The holder of a benefit payment card through BM is obliged to inform ČSOB of the fact if he/she has already received the claimed amount back from the respective merchant. The settlement of the claimed benefit payment card transactions with the benefit payment card holder is handled and is the responsibility of BM in accordance with the ZOPS (deductibles, settlement dates).
51. The BM or the holder of a benefit payment card may claim an authorised payment transaction within a maximum of 8 weeks from its occurrence, provided that the exact amount was not determined at the time of authorisation or the amount exceeds the amount that the cardholder could reasonably expect. In other cases of authorised transactions, the claim must be submitted without undue delay, but no later than two months from the date of settlement of the transaction in question on the designated BM account.
52. BM is obliged to ensure that in the event of a claim of a disputed payment transaction with suspicion of misuse of the benefit payment card (e.g. counterfeit), the benefit card holder always surrenders to BM and subsequently to ČSOB the benefit payment card to which the disputed payment transaction relates, and in the event of failure to surrender the card, this fact will be taken into account during the claim procedure.
53. Neither BM nor ČSOB shall be liable for defects in goods or services paid for by the cardholder using the benefit payment card. The cardholder shall file such claims and complaints at the relevant point of sale where the purchases were made. For an unjustified complaint of a transaction made with a benefit payment card, ČSOB BM charges the agreed fee according to the contract.
54. If the holder of a BM Benefit Payment Card has, in accordance with the Terms and Conditions, complained to BM about a payment transaction that is incorrect in his/her view or has sought other remedies unsuccessfully, he/she has the right to apply to the court of local and substantive jurisdiction or to the Financial Arbitrator of the Czech Republic, who decides disputes between payment card issuers and payment card holders in the issuance and use of electronic payment instruments pursuant to Act No. 229/2002 Coll., on the Financial Arbitrator, as amended. However, the party to this proceeding is in no way ČSOB, but BM, as the administrator of the benefit account of the holder of the benefit payment card to which it was issued.

Loss/theft/misuse of a payment card

55. The loss, theft of the Card, disclosure of the PIN or misuse of the Benefit Payment Card shall be reported by the BPK Holder or a third party (hereinafter referred to as the "Reporting Person") immediately after the fact has been discovered in an agreed manner directly to BM, who shall be responsible for taking immediate steps to prevent further damage. In the event of suspected misuse of the benefit payment card, the BM shall also report the said facts to the Police of the Czech Republic. If the misuse of the benefit payment card number has been reported, the BM shall immediately ensure that the benefit payment card is handed over to the BM contact point and subsequently handed over to ČSOB. Furthermore, BM shall provide ČSOB with all available information on the circumstances of the loss, theft, misuse of the benefit payment card or disclosure of the PIN, and shall provide other information on the basis of which the holder of the benefit payment card and the benefit payment card itself can be identified in the systems of ČSOB or its suppliers (e.g. benefit account number, etc.). ČSOB may, in accordance with the applicable wording of the Banking Act, disclose this information to the public prosecutor and the police or other competent authorities. Immediately after notification of any of the above, BM shall, for security reasons, always permanently and irrevocably restrict the validity of the benefit payment card and subsequently send a request to block the card in question (electronically as a record in accordance with Annex 1b) in an agreed manner to ČSOB. ČSOB shall not be liable for any damages incurred by the benefit payment cardholder as a result of the permanent restriction of the validity of the benefit payment card.
56. The permanent restriction on the validity period of the benefit payment card cannot be cancelled. If BM or the Holder recovers the Benefit Payment Card after the Benefit Payment Card has been reported lost, stolen, PIN disclosed or misused, the Benefit Payment Card must be devalued and disposed of without further use by BM in accordance with the relevant clauses of the Agreement. For measures related to the request for permanent limitation of the validity of the benefit payment card, ČSOB charges a fee according to the contract.
57. If any of the facts mentioned in the preceding paragraphs are reported to ČSOB by telephone, ČSOB is entitled to record these calls.
58. BM is unconditionally liable for transactions made with a lost, stolen or misused benefit payment card (i.e. under-limit transactions, off-line transactions, etc.), including those where a PIN has been used or where the cardholder has acted fraudulently. The records in the ČSOB systems are decisive for the identification of these transaction parameters.
59. BM cannot apply to ČSOB for a replacement benefit payment card for a card with a permanently limited validity period, but must always apply for a new benefit payment card.

Restriction of the validity of the benefit payment card at the request of the benefit payment card holder or BM for reasons other than loss, theft, PIN disclosure or suspected misuse of the benefit payment card

60. The holder of the benefit payment card may request ČSOB to permanently limit the validity of the benefit payment card electronically using the file defined in Appendix 1b of the agreement (e.g. for reasons of payment device security, especially in case of suspected unauthorised transactions, etc.). ČSOB shall not be liable for any damages incurred by the benefit cardholder as a result of permanent limitation of the validity of the benefit card.
61. BM cannot request a temporary restriction on the validity of the payment card that will prevent transactions. ČSOB may, in particular for security reasons, temporarily restrict the validity.
62. BM itself can electronically request ČSOB, see the contract, to permanently limit the validity of the payment card (including the chip card), which, however, cannot be subsequently revoked.
63. ČSOB shall not be liable for any damages caused by any misuse of a benefit payment card for which a permanent validity limitation has been requested on the basis of a sent file in accordance with the relevant provisions of the contract. BM is liable for all transactions whose authorisation was not carried out without fault on the part of ČSOB (under-limit transactions, off-line transactions, etc.). The records in ČSOB's systems are decisive for identifying these transaction parameters.

Authorisation of ČSOB to limit the validity of a benefit payment card on its own initiative

64. ČSOB is entitled to limit the validity of the benefit payment card temporarily or permanently for the following reasons:

    • the security of the benefit payment card, in particular in case of suspicion of its unauthorised or fraudulent use (if ČSOB receives information from the card association or from another bank or other trustworthy source about a possible compromise of the benefit payment card).

      In this case, ČSOB will restrict the validity of the benefit payment card temporarily, notify BM in writing, who is obliged to immediately contact the benefit payment card holder or his/her employer, notify him/her of the general reasons for the temporary restriction of the validity of his/her benefit payment card and agree with him/her on further action, e.g. a change to a permanent restriction of validity. BM shall immediately communicate the outcome of the agreement to ČSOB, which shall take appropriate action depending on the situation. The obligation to notify ČSOB shall not apply if the provision of this information would defeat the purpose of the restriction of the benefit payment card or would be contrary to other legal provisions. For security reasons, ČSOB BM does not disclose further details of the reason for the restriction. Once the reasons for the restriction on the validity of the Benefit Payment Card no longer apply, ČSOB undertakes to cancel the restriction on the Benefit Payment Card without delay or, as a substitute for the Benefit Payment Card, to issue the Cardholder with a "new" Benefit Payment Card of the same type, with a different number and a new initial PIN, in agreement with BM, for a fee as specified in the Agreement.

    • a significant increase in the risk of BM defaulting on its obligations, provided that the relevant steps are described in the contract.
65. BM acknowledges that any permanent restriction on the validity of the Benefit Payment Card may result in its retention in the event of an attempt to use it and shall inform the cardholder accordingly in an appropriate manner without undue delay. ČSOB shall not be liable for any damages incurred by BM or the cardholder as a result of temporary or permanent restriction of the validity of the benefit payment card or as a result of cancellation of the right to use the benefit payment card.

Final provisions

66. BM may at any time request ČSOB to cancel the right to use the benefit payment card by its holder in an agreed manner. Submission of a request to cancel the right of the holder of the benefit payment card to use the benefit payment card does not relieve BM of liability for transactions made with this payment card.
67. In the event of the BPK holder's death, the Benefit Card must be permanently restricted and this will be arranged by the BM and electronically in an agreed manner (via the relevant record as per Schedule 1b of the Agreement). The settlement of the remaining funds in this case is the responsibility of BM, which is obliged to fulfil its legal obligations in this respect.
68. ČSOB shall not be liable within the meaning of legal regulations for damages caused by circumstances which have arisen independently of ČSOB's will, which it cannot avert or overcome and which prevent it from fulfilling its obligation. If any of the circumstances precluding liability arise, ČSOB shall take such measures to mitigate the adverse effects on BM as may reasonably be expected of it.
69. ČSOB reserves the right to unilaterally amend, supplement or cancel these Terms and Conditions by issuing new Terms and Conditions, e.g. in relation to changes in the relevant legal standards, security of the services provided and in relation to the requirement of the VISA Card Association. ČSOB shall inform BM of the change in the terms and conditions in accordance with the relevant provisions of the agreement. Such notified changes are binding on BM.
70. BM shall at all times be fully liable for any breach of the Terms and Conditions by eligible Benefit Cardholders to whom Benefit Cards have been issued at BM's request.
71. The contractual relations of which these Terms and Conditions are a part are governed by Act No. 89/2012 Coll., the Civil Code.
72. These Terms and Conditions shall take effect on January 1, 2021.