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Terms and Conditions for the Issuance and Use of Payment Cards

Effective as of 15 May 2017

TERMS AND CONDITIONS FOR THE ISSUANCE AND USE OF PAYMENT CARDS

Effective as of 15 May 2017 Page 01 of 13

providing the Client’s identification. A payment order is authorised if the Client consented to it in a manner agreed with the Bank. A written payment order is authorised if signed according to the specimen signa-ture linked to the relevant Card Account, valid at the time of forwarding the payment order to the Bank. If so agreed, the payment order must also be identified with the agreed security code. The authorisation of a payment order entered electronically through the Direct Banking Products is carried out in accordance with the terms agreed between the Client and the Bank in a special Agreement.

Transactions not authorised through the aforesaid methods may be regarded as unauthorised. It is not possible to reverse a transaction already authorised by the Client.

Bank – Sberbank CZ, a.s., with its registered off ice at U Trezorky 921/2, post code 158 00 Prague 5 - Jinonice, Co. Reg. No.: 25083325, incorporated in the Commercial Reg-ister kept by the Municipal Court in Prague, file No. B 4353.

ATM – a self-service electronic device used for withdraw-als/deposits through cards; the Client may use any other services if provided by the ATM.

Cashless Payment for Goods and Services – cashless payment for goods and services at POS via cash terminals or imprinters, in ATMs, and the payment for goods and services without the presence of the Payment Card (as defined below).

Contactless Card – a Payment Card supporting the con-tactless chip technology of PayPass or PayWave.

Contactless Payment – a transaction using the Contact-less Card, realised by touching the Contactless Card to a payment terminal supporting the contactless technology.

Security Code – CVV2 (Card Verification Value) or CVC2 (Card Verification Code), which means the three digits printed on or next to the Signature Stripe on the back of the Payment Card.

Interest-Free Period – a period during which the Bank does not charge interest on the amount of the respective drawing. The Bank will grant an Interest-Free Period if the conditions under Clause 5 of Part XII of these Terms and Conditions are fulfilled.

Current Account – the account(s) of the Account Holder as specified in the Agreement, to which a Debit Card has been issued.

Cash Back – a service that allows you to withdraw cash simultaneously with cashless payment.

Total Amount Owed – the amount corresponding to the sum of the amounts owed charged to the Card Account as of the date of the Card Account statement (the credit drawn including the charged interest and fees) and reduced by any payments made by the Client to the Card Account. However, the Total Amount Owed does not include any penalty interest with respect to the Card Account. The Total Amount Owed notified by the Bank to the Client in the Card Account statement is decisive for the calculation of the Mandatory Minimum Debt Payment.

Total Transaction Limit – the maximum allowed amount of all Cash Withdrawals and Cashless Payments for Goods and Services for one relevant Calendar Period for the Trans-action Limits agreed in the Agreement, which the Client may draw using the Payment Card. The total limit corre-

Part I/ Introduction(1) These Terms and Conditions for the Issuance and Use of

Payment Cards (the “Terms and Conditions”) set out the mutual rights and obligations under the Agreement be-tween Sberbank CZ, a.s., Co. Reg. No.: 25083325, incorpo-rated in the Commercial Register kept by the Municipal Court in Prague, file No. B 4353 (the “Bank”), and its clients (the “Client”) in the issuance and use of payment cards and in the provision of credit drawn by means of payment instruments.

Part II/ Basic Terms(1) In the event capitalised basic terms not defined in the

Terms and Conditions are used in the text of the Terms and Conditions, such terms are used in the meanings as spec-ified in Part Three of Clause I/ Terms and Definitions in the General Business Terms and Conditions. Unless the context requires otherwise, the terms set out in this paragraph have the following meanings for the purposes of the Agreement:

Acceptance Letter – a letter drawn up by the Bank in the event the Client’s Application for the issuance of a Credit Card / for a decrease or increase in the Total Credit Limit is approved. The Acceptance Letter determines the binding amounts of the Cash Withdrawal Limit, Cashless Trans-action Limit, Card-Not-Present Payment Limit and Total Transaction Limit of the Credit Card. Under the Total Credit Limit, the Client is entitled to change the limits referred to in the previous sentence at any time during the term of the Agreement.

Payment Card Activation – transfer of the Payment Card to an active mode after its takeover by the Card Holder, in the form of making any transaction with the Payment Card in an ATM, whereupon the correct PIN is entered (payment transaction, balance checking etc.).

Association – card associations, in particular VISA and MasterCard.

Transaction Authorisation – the consent to a transaction, which the Client may grant as follows:a) For transactions via ATMs, the Client grants its consent

to the transaction by entering the PIN on the ATM keyboard,

b) For cashless payments for goods and services at the POS via cash terminals or imprinters and when with-drawing cash at bank and currency exchange office branches, the Client grants its consent to the trans-actions by entering the PIN or touching the Payment Card to the contactless payment terminal, unless the PIN is also required in accordance with these Terms and Conditions, or providing the Client’s signature according to the Signature Stripe specimen (or a com-bination of these methods),

c) For payments for goods and services without the presence of the Payment Card, the Client grants its consent to the transaction by entering the Payment Card number, the Payment Card validity, and possibly also the Security Code or the Client’s first name and surname,

d) For payments without the presence of the Credit Card realised through Transfers, Direct Debits and SIPO Payments, the Client grants its consent by entering the payments in question through the Bank’s POS and



transactions to the debit or to the credit of the Client’s Card Account are realised.

Cash Withdrawal Limit, also ATM Limit – the amount determined as the maximum amount of all the Cash With-drawals for one Calendar Period agreed in the Agreement.

Limit for Cashless Payment for Goods and Services, also POS Limit – the amount determined as the maximum amount of all the Cashless Payments for Goods and Services for one Calendar Period agreed in the Agreement.

Card-Not-Present Payment Limit, also CNP Limit – the amount determined as the maximum amount of all the Card-Not-Present Payments for one Calendar Period agreed in the Agreement. The CNP Limit is part of the Cashless Transaction Limit, and its use is therefore also the use of the Cashless Transaction Limit.

Account Holder – a private individual or legal entity for whom/which the Bank maintains a Current Account or Card Account, to which a Payment Card has been issued.

Card Carrier – a written document sent to the Applicant, along with which the card is handed over and which in-cludes practical instructions for the card activation, phone numbers for card blocking etc.

Renewed Card – a card issued upon the lapse of the card’s validity.

PayPass (from the MasterCard Association) / PayWave (from the Visa Association) – a contactless chip technology that enables contactless payments at payment terminals supporting the technology. The transaction and its author-isation take place by touching the card to the required distance from the contactless payment terminal. Entering the PIN is not required for contactless payments lower than the limit set by the Bank. The PayPass/PayWave limit is set at a maximum of CZK 500 for a transaction made in the Czech Republic. For transactions over CZK 500, the Card Holder must enter the PIN. The limit may be different in other countries, according to the rules valid in the re-spective country. The Bank is entitled to unilaterally change the limit, and will inform the Card Holder thereof in an appropriate manner.

PIN (Personal Identification Number) – a personalised security element consisting in a personal identification four-digit code set by the Bank, which is assigned to each Payment Card for the purpose of the Client identification and proof of the Client’s authorisation to make payment transactions when using the Payment Card. The PIN may be changed by the Client via an ATM which enables that service. The change may be made no later than 6 (six) weeks before the end of the validity of the Payment Card.

Card-Not-Present Payment – contactless payment for goods and services without the presence of the Payment Card.

Payment Card – for the purposes of these Terms and Conditions, a credit or debit card, unless the Terms and Conditions explicitly specify otherwise. It is an electronic payment instrument, through which cash and cashless payment transactions are realised on the account to which the card has been issued. The Payment Card contains iden-tification and security data enabling the identification of the Card Holder by the issuer of the Payment Card. The Payment Card has its own number, full name of the Card Holder, validity, a space on the back of the Payment card designed to capture the specimen signature of the Card

sponds to the higher of the amounts agreed as the Cash Withdrawal Limit or the Limit for Cashless Payment for Goods and Services.

Total Credit Limit for the Credit Card – the amount agreed as the maximum amount of the credit under the Agree-ment. For the purposes of achieving the Total Credit Limit by the Client, any drawings using the Credit Card, Trans-fers, Direct Debits, SIPO Payments and any costs charged to the Card Account (especially interest and fees) are in-cluded. The Client may not exceed the Total Credit Limit. The Applicant agrees that the Bank may accept the Appli-cation where the Total Credit Limit approved by the Bank will be lower than the limit specified in the Application – in the case of such an acceptance, the Applicant is always informed by the Bank in advance and may reject such a procedure.

Debit Card – an electronic payment instrument issued by the Bank through which cash and cashless payment trans-actions to the debit or to the credit of the Account Holder’s Current Account are realised. Debit transactions may be realised up to the available balance on the Current Account.

Due Date – in the Credit Card Application, the agreed day of the billing period. However, if that day falls on other than the Bank Business Day, the Due Date is the nearest fol-lowing Bank Business Day.

Temporary Blocking – a measure consisting in temporarily disabling the possibility of making payment transactions through the Payment Card in accordance with the terms of the Agreement and these Terms and Conditions.

Additional Services – additional optional services provided to the Payment Card. These Additional Services are gov-erned by separate terms and conditions. The Client can obtain more information about the scope and terms of provision of the Additional Services at any POS, on the Bank’s website www.sberbank.cz, or in the terms and conditions concerning the relevant Additional Service. The Additional Services depend on the Bank’s current offer.

Card Holder – a private individual who uses the Payment Card under the Agreement; it is either the Client or a person authorised by the Client to transact with the Client’s funds using the Payment Card. If the Client is directly the Card Holder, all provisions relating to the Card Holder are bind-ing on the Client.

Dynamic Currency Conversion – a service allowing the Client to choose the currency of the Payment Card trans-action.

Direct Debit / Authorised Direct Debit – direct debit payment authorised by the Client to the debit of the Card Account to the Client’s Credit Card.

Transaction Limit Calendar Period – the Payment Card limits are agreed as daily or weekly depending on the agreed type of Debit or Credit Card. The individual Calendar Periods begin at 8.45 PM Central European Time; the weekly limit begins every Sunday at 8.45 PM Central European Time.

Card Account to the Credit Card – the internal account of the Bank specified in the Acceptance Letter, intended for the recording and repayment of the Client’s debts under the Agreement. The Card Account is not the Client’s Current Account. The Card Account is maintained in CZK.

Client – the Card Holder or Account Holder. Credit Card – an electronic payment instrument issued

by the Bank through which cash and cashless payment



Part III/ Basic Provisions(1) The Debit Card Agreement is concluded as of the moment

of its signing by all parties, i.e. the Bank, the Account Holder and the Card Holder (unless the Account Holder is the same person as the Card Holder). By signing the Agree-ment, the Card Holder authorises the Account Holder to accept all documents sent by the Bank under the Agree-ment.

(2) By entering into the Agreement, the Bank undertakes to issue the Payment Card to the Card Holder under the con-ditions set forth below, and allow the use of the Payment Card, and the Client and the Card Holder undertake to comply with the conditions agreed in the Agreement.

(3) If the provision of Additional Services is required in the Agreement, such Additional Services are also agreed upon entering into the Agreement, in accordance with the rel-evant terms and conditions of the Additional Service, which are provided to the Client and the Card Holder upon enter-ing into the Agreement at the latest.

(4) Upon taking over the Payment Card, the Card Holder is entitled to use the Payment Card throughout its validity; however, the Payment Card is the exclusive property of the Bank and is non-transferable, i.e. only the Client (Card Holder) named on the Payment Card is authorised to use it. Unless stated otherwise, the Card Holder is obliged to return the Payment Card to the Bank within 15 (fifteen) days of the expiry of the Payment Card’s validity. Any return of the Payment Card to the Bank under the Agreement must be made in the form of handover at a POS.

(5) Unless agreed otherwise, the Agreement may be amended only by written agreement of the parties. The Transaction Limits may be changed without the consent of the Card Holder, where different from the Account Holder.

(6) The Payment Card is issued by the Bank for a limited period indicated on the Payment Card. Unless otherwise stated below, the validity of the Payment Card ends:a) Upon the lapse of the last day of the relevant month

and year indicated on the Payment Card,b) Upon the termination of the Agreement,c) Upon the return of the Payment Card to the Bank, ord) By executing the Permanent Blocking of the Payment

Card.(7) The Client declares that the Client is aware of the value

of the performance provided to the Client by the Bank under the Agreement, and expressly waives the right to require the termination of the Agreement and return to the original state.

(8) The Bank is not obliged to accept any payment from any person other than the Client.

(9) The Bank as a personal data controller is entitled to enter into the relevant agreement with the processor (the “Ser-vice Provider”) pursuant to Section 6 of Act No. 101/2000 Sb., on Personal Data Protection, as amended, and forward personal data to third parties that are processors or that provide services forming an integral or optional part of the Payment Card, in accordance with Act No. 21/1992 Sb., on Banks, as amended, and Act No. 101/2000 Sb., on Personal Data Protection, as amended.

Holder (the “Signature Stripe”), and security elements (such as embossing and magnetic record, CVV2 (Card Verifica-tion Value) and CVC2 (Card Verification Code) – security three-digit codes on the Signature Stripe).

Mandatory Minimum Debt Payment – the amount noti-fied to the Client in the Card Account statement to the Credit Card, payable as of the Due Date in the billing period following the billing period for which the statement has been prepared. The Mandatory Minimum Debt Payment corresponds to the percentage of the Total Amount Owed specified in the Application for the calendar month for which the statement is prepared, but at least to the fixed amount which is also specified in the Application. However, if the relevant Total Amount Owed is lower than the amount fixed in the Application, the Mandatory Minimum Debt Payment will correspond to the Total Amount Owed. The amount of the Mandatory Minimum Debt Payment is al-ways rounded up to a whole number in CZK. The amount of the Mandatory Minimum Debt Payment specified by the Bank in the Card Account statement is decisive.

Pre-Contractual Information – information which the Bank is obliged to provide to the Applicant prior to enter-ing into a contractual relationship pursuant to Act No. 257/2016 Sb., on Consumer Credit, as amended.

Transfer – a one-time or standing payment order to trans-fer funds to an account maintained in the Czech Republic to the debit of the Card Account to the Credit Card.

APR – the annual percentage rate of the costs associated with drawing the credit limit set in accordance with Act No. 257/2016 Sb.

SIPO Payment – a direct debit payment authorised by the Client and realised to the debit of the Card Account to the Credit Card through the so-called SIPO – Joint Collection of Utility Payments.

Agreement – the agreement on the issuance and use of an electronic payment instrument, and the Terms and Conditions, the General Business Terms and Conditions, the Payments Terms and Conditions, the List of Fees and any terms and conditions concerning the relevant Addi-tional Service form an integral part thereof. The Credit Card Agreement consists of the Credit Card Application submitted by the Applicant and the Acceptance Letter issued by the Bank.

Transaction – the realisation of a Cash Withdrawal or Cashless Payment for Goods and Services through the Payment Card.

Transaction Limits – the Cash Withdrawal Limit, the Limit for Cashless Payment for Goods and Services, the Card-Not-Present Payment Limit and the Total Limit. The amounts of the Transaction Limits are agreed in the Agree-ment.

Permanent Blocking – a measure consisting in perma-nently disabling the possibility of making payment transac-tions through the Payment Card.

Applicant – a private individual who has submitted the Application for a Credit Card.

Application – an Application for a Credit Card submitted on the Bank’s form.

(2) Where the Agreement uses terms other than those listed in Clause 1 of this Part of the Terms and Conditions, such terms will have the meanings as given to them in the rel-evant provision of the Agreement.



Card Holder, provided that the Bank’s security criteria are met.

(3) Upon the takeover of the Payment Card at the Bank’s POS, the Card Holder will also receive an envelope containing the PIN. The PIN will be given only to the Card Holder; hand-over to any other person including any contractual repre-sentative is ruled out. The Card Holder and the Bank will confirm the takeover of the Payment Card and the enve-lope with the PIN by signing the Payment Card Acceptance Report on the Bank’s form (the “Payment Card Acceptance Report”).

(4) If sending by post is agreed as the form of handover in the Agreement, the Bank will send the Payment Card as ordi-nary mail to the address of the Card Holder specified in the Agreement. The Payment Card Holder is obliged to sign the Payment Card on the Signature Stripe (in a manner different from the specimen signature in the case of the Current Account) in such a way as to ensure stability of the signature. At the same time, the Bank will send the envelope with the PIN to the Card Holder as registered mail intended only for the addressee. If the consignment with the Payment Card or the envelope with the PIN returns to the Bank as undelivered, the consignment will be kept at the POS for 60 (sixty) calendar days. The Bank will inform the Card Holder of the deposit of the consignment by phone or SMS. Unless the Card Holder takes over the consign-ment during that period, the Client’s right to the issuance of the requested Payment Card under the Agreement will terminate (the Payment Card and the envelope with the PIN will be discarded by the Bank).

(5) Regardless of the method of takeover of the PIN, the Card Holder is obliged to check the integrity of the envelope and notify the Bank immediately of any damage. If the en-velope is damaged, the Card Holder is entitled to ask the Bank in writing to issue a new PIN and new Payment Card free of charge, using the Bank’s form. Provided that the already issued Payment Card is returned to the Bank, the Bank will prepare a new Payment Card and PIN within a reasonable period and hand them over in the manner agreed in the Agreement, unless agreed otherwise.

(6) Unless expressly agreed otherwise, the Payment Card handed over to the Card Holder is inactive for security reasons; upon the takeover of the Payment Card, the Card Holder is obliged to perform the Payment Card Activation, otherwise the Payment Card cannot be used.

(7) Unless the Client or the Card Holder notifies the Bank in writing no later than 6 (six) weeks before the expiry of the validity of the issued Payment Card that the Client or the Card Holder does not request the issue of a new Payment Card, the Bank will automatically prepare a new Payment Card for issue, no later than as of the date of expiry of the issued Payment Card. The new Payment Card and possibly also the envelope with a new PIN will be prepared at the POS specified in the Agree-ment and will be deposited there for 60 (sixty) calendar days from the expiry of the issued Payment Card, or will be sent to the Card Holder by mail, according to which method of takeover of the Payment Card has been agreed in the Agreement. If the Payment Card is depos-ited at the POS and the Card Holder fails to take over the Payment Card within that period, the Payment Card will be discarded. The fee for maintaining the Payment Card and the associated additional services is charged

(10) The Bank is entitled to unilaterally decide (especially for security, operational, commercial and other serious reasons):a) to discontinue the issuance and usability of a cer-

tain type of Payment Card and Additional Service and their replacement,

b) to change the functionality of the Payment Card and the scope of the Additional Service provided,

c) to make a transition from a certain type of Payment Card and Additional Service to another and the subsequent automatic setting of parameters of the Payment Card,

d) to change the method of distribution of the Payment Cards.

The Client will be informed of these facts by the Bank at least 2 (two) months before the effective date of the planned change in an appropriate manner, indicating the possibility and method of rejecting the change. Unless the Client expresses disagreement with the changes, the Client will be deemed to agree to them and to have in-formed the Card Holder thereof (unless the Client is also the Card Holder). By activating the Payment Card, the Client agrees to the charging of the transactions made to the debit of the Current Account to which the Debit Card has been issued or to the debit of the Card Account to which the Credit Card has been issued.

(11) The Bank is entitled to assign any of its rights and obli-gations arising from or relating to the Agreement to a third party, and the Client grants its explicit consent to the Bank for that purpose. The Client may assign any of its rights and obligations arising from or relating to the Agreement only with the prior consent of the Bank.

Part IV/ Payment Card Issuance(1) The Bank will prepare the Payment Card for issuance

within 14 (fourteen) business days of entering into the Agreement. The Payment Card will be handed over at the Bank’s POS (see Clauses 2 and 3 of this Part) or sent to the Card Holder’s address specified in the Agreement (see Clause 4 of this Part).

(2) In the event the takeover of the Payment Card at the POS is agreed in the Agreement, the Bank will inform the Client, i.e. the Card Holder, that the Payment Card is ready for pickup. The Payment Card will be kept at the POS for 60 (sixty) calendar days. Unless the Card Holder takes over the Payment Card during that period, the Payment Card will be discarded and the Client’s right to the issuance of the requested Payment Card under the Agreement will terminate. The fee for maintaining the Payment Card and the associated additional services is charged according to the List of Fees regardless of whether the Card Holder accepts and activates the prepared Payment Card. Upon the takeover of the Payment Card at the POS, the Card Holder is obliged to sign the Payment Card (in a manner different from the specimen signature in the case of the Current Account) on the Signature Stripe in the presence of an authorised employee of the Bank and in such a way as to ensure stability of the signature. The Payment Card will be given by the Bank only to the Card Holder; handover to any other person including any contractual represent-ative is ruled out. In exceptional cases, it is possible to agree on a different way of handover of the Payment Card to the



the Client is obliged to pay the amount in excess of the limit immediately; this shall be without prejudice to the provisions on penalty interest in these Terms and Con-ditions.

(2) Unless expressly agreed otherwise, the Bank will allow the Client to draw funds under the Agreement upon the ac-ceptance and Activation of the Credit Card by the Client. The credit drawing will not be allowed to the Client if there are circumstances enabling the Bank to discontinue/ter-minate the credit drawing under the Agreement and if the Bank has exercised this right.

(3) The Card Holder may make the following Transactions using the Payment Card:a) Withdraw cash from ATMs and at bank and currency

exchange office branches (the “Cash Withdrawal”),b) Cashless payment for goods and services at POS

marked with the logo of the Association via cash ter-minals or imprinters, cashless payments in ATMs, and the payment for goods and services without the pres-ence of the Payment Card (the “Cashless Transaction”),

c) Cash deposit via ATMs to any Current Account of the Client maintained by the Bank or the Card Account to the Credit Card (the “Cash Deposit Via ATM”),

d) Transfers,e) SIPO payments,f) Direct debits.

(4) Unless otherwise agreed, the Bank is entitled to discon-tinue the execution of Transfers, SIPO Payments and Di-rect Debits to the debit of the Card Account to the Credit Card if the Client has breached the due repayment obliga-tion during the term of the Agreement.

(5) The Card Holder may enter data about the Payment Card only through websites where the SSL (Secure Sockets Layer) protocol or 3D-Secure protocol under the trade-mark of “Verified by Visa” or “MasterCard Secure Code” is listed as the method of securing. Any breach of this provision, regardless of whether committed intention-ally or negligently, is deemed a gross violation of the Agreement. The Account Holder is fully liable for any damage and loss caused by the breach until the Bank is notified of the abuse or unauthorised use of the Pay-ment Card.

(6) In the case of Cashless Transactions at the POS, the POS is obliged to issue a sales receipt, the issuance of which the Card Holder is obliged to request. The Card Holder is obliged to check the sum total and the completeness of the sales receipt. If the Card Holder requests a transaction, the Card Holder must sign the proper sales receipt when prompted according to the specimen signature on the Payment Card, and keep the sales receipt in the event of a complaint. The PIN is required at some POS.

(7) When withdrawing cash from ATMs, it is necessary to enter the PIN on the keyboard and follow the instructions on the screen or on the ATM information panels. After entering three incorrect PINs, the Payment Card is rejected and automatically temporarily blocked for security reasons. The blocking will be automatically cancelled by the next day after blocking. The Client is obliged to prevent the PIN disclosure when entering the PIN, e.g. by covering the keyboard with the other hand etc. Any breach of this ob-ligation, regardless of whether it occurred intentionally or

according to the List of Fees regardless of whether the Card Holder accepts the automatically renewed Pay-ment Card. The Bank will not automatically issue a new Payment Card if the Payment Card already issued has been blocked.

(8) The Client is entitled to ask the Bank for a new Payment Card for the following reasons: a) Loss, theft or suspected abuse of the issued Payment

Card, orb) Non-delivery of the consignment with the Payment

Card and/or the consignment with the PIN within one month of the Application or entering into the Agree-ment/expiry of the Payment Card (if the card is to be renewed automatically)/notification to the Bank under which a replacement Payment Card is to be issued by the Bank.

In the cases referred to in par. (a) and (b) above, the Bank will prepare a new Payment Card and new PIN within 10 (ten) Bank Business Days of the Application and ensure the handover thereof to the Card Holder in the manner agreed in the Agreement.

c) Damage or for any other reasons different from the reasons set out in the previous paragraphs of this Clause – in that case the Bank will prepare a new Payment Card to be issued at the POS within 10 (ten) Bank Business Days of the Application. In such a case, the Payment Card is already active when issued to the Card Holder.

(9) The Card Holder is entitled to ask the Bank for a repetition of the PIN to the issued Payment Card due to a forgotten PIN. If the Card Holder requests the PIN renewal due to loss or suspected abuse, the Bank will also prepare a new Payment Card. Within a reasonable period, the Bank will ensure the handover of the PIN (possibly also the Payment Card) to the Card Holder at the POS specified in the Agree-ment, or the PIN and the Payment Card will be sent to the Card Holder by mail, according to which method of take-over of the Payment Card has been agreed in the Agree-ment.

(10) If a Payment Card or envelope with the PIN is handed over to the Card Holder during the term of the Agreement (in the case of an automatic renewal of the Payment Card or application for a new Payment Card under Clause 8 of this Part etc.), all the procedures and conditions as set out in Clauses 4-6 of this Part shall apply, unless explicitly stated otherwise.

(11) The Card Holder is entitled to change the PIN via an ATM (at ATMs which enable that service). The change may be made no later than 6 (six) weeks before the end of the validity of the Payment Card. For security reasons, the Bank strongly recommends to the Card Holder not to choose easily identifiable and deducible PIN codes, for instance a part of the Payment Card number, four identical numbers, a numerical sequence, dates of birth etc.

Part V/ Payment Card Use(1) The Client is entitled to draw the credit under the Agree-

ment via the Credit Card in accordance with Clause 3 of Part V of the Terms and Conditions up to the Total Credit Limit and up to the limit of the transaction type made. If the Client exceeds the Total Credit Limit when drawing,



tional association (MasterCard or Visa).(12) If an unauthorised overdraft occurs on the Current Account

due to the use of the Debit Card, the Bank is entitled to charge interest on the unauthorised overdraft on the Cur-rent Account using the penalty interest rate determined in accordance with the General Business Terms and Con-ditions. The Account Holder is obliged to pay the amount immediately. Making a Transaction in line with the author-isation balance, where, however, there are not enough funds on the relevant Current Account as of the date of charging the Transaction to cover the Transaction, is also deemed an unauthorised overdraft.

(13) If, during the term of the Agreement:a) the Account Holder commits a material breach thereof,

for example due to an unauthorised overdraft on the Current Account or exceeding the Total Credit Limit with respect to the Credit Card, or

b) the Bank finds evidence which in its opinion may jeop-ardise the Account Holder’s obligations towards the Bank (in particular a significant deterioration in the Account Holder’s financial position, initiated insolvency or enforcement proceedings against the Account Holder etc.),

the Bank is entitled to reduce the agreed Transaction Limits to as low as CZK 1,000 (one thousand) with imme-diate effect. The Bank will inform the Account Holder about the limit reduction by a written notification sent to the Account Holder no later than the business day following the reduction. In the event the reasons for the limit reduc-tion pass, the Bank may agree with the Account Holder on an increase.

(14) If the Client so requested in the Agreement, the Client is entitled to learn the current balance on the Current Account to which the Debit Card has been issued or the balance on the Card Account to the Credit Card after entering the PIN at an ATM (which enables that service).

(15) Using the Payment Card, the Card Holder is entitled to make Cash Deposits Via ATM if the ATM belongs in the Bank’s network and if the ATM enables that service. Only cash in CZK may be deposited in this way, where the maximum deposit amount of one payment transaction may be limited by the technical parameters of the ATM. If the Debit Card Holder is different from the Account Holder, cash deposits are made by the Card Holder on behalf of the Account Hold-er. The Bank informs the Card Holder of the cash deposit through the ATM screen and printed receipt.

(16) If an incorrect or non-existent account number is entered in the Cash Deposit Via ATM, the Bank will not make the transaction and will refund the funds to the Client by crediting them to the Current Account to which the Pay-ment Card has been issued (if the Payment Card has been issued for two accounts, the Bank will credit the amount to the account designated by the Client as the account for domestic Transactions) or to the Card Account to which the Credit Card has been issued. The Bank informs the Client of the cash deposit through the ATM screen or printed re-ceipt. The Bank informs the Account Holder of any non-de-posit via the electronic banking service agreed with the Bank under a special agreement, or by written notification if the Client has not agreed on that service. If possible, the Bank also provides information about the reasons for re-jection and possibilities for remedy.

negligently, is deemed a gross violation of the Agreement, and the Client is fully liable for any loss caused due to any subsequent unauthorised transactions until they are no-tified to the Bank.

(8) The Card Holder realises cash and cashless transactions using the Debit Card to the debit of the Current Account. Where two Current Accounts are provided for in the Agree-ment, the Bank will charge any Transactions made in Czech crowns to the debit of the account designated for Trans-actions in Czech crowns, and any other payments to the debit of the account designated for Transactions made in other currencies. All costs and debts associated with the Transaction are always charged to the debit of the same Current Account to the debit of which the relevant Trans-action to which the costs and debts relate was charged. In the case of the transition of the Czech Republic to another currency, or where there are not enough funds on the rel-evant Current Account, or where the costs and debts can-not be charged clearly to the debit of one of the Current Accounts, the Bank is entitled to charge the Transaction or costs to the debit of either of the Current Accounts.

(9) The Card Holder is entitled to make Transactions using the Debit Card only up to the amount of the authorisation balance on the Current Account and at the same time up to such an amount as to ensure that the sum of the Trans-actions for the individual Calendar Period does not exceed the amounts of the agreed Transaction Limits. The Card Holder is entitled to repeatedly change the Transaction Limits during the term of the Agreement (however, only the Account Holder is entitled to increase the Transaction Limits compared to their amounts agreed in the Agree-ment). The Transaction Limits can also be changed at the POS through the electronic banking service if the Account Holder has agreed on such a service with the Bank and if the service enables that change.

(10) The authorisation balance means the available balance on the Current Account, possibly reduced by the amount agreed as the reduction of the authorisation balance in the Agreement. If the Debit Card is issued for two Current Accounts, the authorisation balance will mean the available balance according to the Transaction currency, i.e. the balance on the Current Account designated for domestic Transactions will be used for Transactions in CZK, and the balance on the Current Account designated by the Account Holder for foreign currency Transactions will be used for foreign currency Transactions. If the Card Holder is empow-ered to do so in the Agreement, the Card Holder is entitled to learn the current amount of the authorisation balance at ATMs after entering the PIN (ATMs which enable that service).

(11) The Bank is entitled to reduce the available balance of the Current or Card Account by the amount corresponding to the Transaction made with the Payment Card immediately after the Bank receives information about making the Transaction from the authorisation centre. Where the Trans-action is made in a foreign currency or currency other than the currency of the Current Account, the amount by which the available balance is reduced is not definitive, and the final amount of the Transaction may differ depend-ing on the exchange rate as of the date of billing the Transaction or due to changes in the Transaction amount by the POS. The available balance on the Current or Card Account will be reduced until the Bank receives the docu-ments necessary for charging from the relevant interna-



Client is familiar with and agrees to the applied exchange rate, any fees and the final amount in the agreed currency.

(7) The Client acknowledges that in the case of charging Transactions made in a foreign currency, it is not possible to claim any amounts resulting from the exchange rate difference between the date of the Transaction and the date of billing thereof. The exchange rate difference may also arise in the case of these Transactions as a result of converting the Transaction into the “billing currency” and then into the Current or Card Account currency.

Part VII/ Statements and Complaints(1) The Bank informs the Client of any fees and individual

transactions made by the Client using the Payment Card for the relevant billing period in the Current Account or Card Account statement. Transactions are charged indi-cating a truncated Payment Card number and a detailed transaction identification (transaction date, date of billing, truncated identification of the place of the transaction, exchange rate where used by the Bank, transaction amount and currency, transaction amount in CZK and any fee). The Client is obliged to regularly check the accuracy of the data on Transactions made using the Payment Card, also using the electronic information channels, including, but not limited to, for the purposes of a timely complaint.

(2) The Card Account statement with respect to the Credit Card is prepared monthly as of the last Bank Business Day of the respective billing period, and sent by the Bank as ordinary mail to the address specified in the Application. If there was no movement on the Card Account in the billing period for which the statement is to be prepared, the Bank will not prepare any statement. Transfers and Direct Debits are billed and designated in the Card Account statement using a uniform name. The statement also includes infor-mation about the Total Amount Owed, the Mandatory Minimum Debt Payment, the Due Date, the interest rate applied etc.

(3) The Bank shall not be held liable for non-delivery of the Card Account statement with respect to the Credit Card. The Client is entitled and obliged to obtain information about the amount of the Mandatory Minimum Debt Payment via the Infoline: 800 133 444 (the “Bank Call Centre”) or at any POS. If the Client has a current account maintained by the Bank for which the Client and the Bank have agreed a password for phone communication, the Bank Call Centre will inform the Client about the amount of the Mandatory Minimum Debt Payment. If no such agreement has been made, the Bank will send to the Client a copy of the Card Account statement on the basis of the request communicated to the Bank Call Centre for a fee according to the List of Fees.

(4) In the case of a complaint concerning a disputed Transac-tion, with a suspected abuse of the Payment Card, the Client is obliged to submit to the Bank the Payment Card to which the disputed Transaction relates; if the Payment Card is not submitted, this fact will be taken into account in the complaint procedure. This does not apply in cases where the Bank was duly notified of the loss or theft of the rele-vant Payment Card. The Bank is entitled to ask the Client to submit further documentation relating to the Transac-tion under complaint. The Client is obliged to provide the Bank with assistance necessary to ensure a proper course and settlement of the complaint procedure.

(17) If the Cash Deposit Via ATM is made after 3.00 PM, the beginning of the following opening hours of the Bank will be deemed the moment of receipt of the payment order, and the Cash Deposit Via ATM will be billed by the Bank on the following Bank Business Day. When accepting deposits through ATMs, the Bank proceeds in accordance with Act No. 136/2011 Sb., on the Circulation of Banknotes and Coins, as amended. If the ATM evaluates the inserted banknote as invalid, the banknote will be detained and forwarded by the Bank to the Czech National Bank for expert examina-tion. If the invalidity of the banknote is not confirmed, the Bank will credit the value of the banknote to the requested account. If the banknote is deemed invalid and the Bank has already credited the amount to the Client’s account or the Card Account, the Bank is entitled to debit the amount corresponding to the value of the invalid banknote from the account.

Part VI/ Costs and Payments(1) Any debts of the Client under the Agreement (drawn credit

facilities in the case of the Credit Card, fees, normal or penalty interest etc.) will be debited by the Bank from the Card Account to which the Credit Card has been agreed or from the Current Account to which the Debit Card has been issued.

(2) The Bank is entitled to charge fees for services associated with the issuance and use of the Payment Card and for any other services under the Agreement and for the provision of the Additional Services to the Payment Card, according to the List of Fees effective at the time of the service or Transaction.

(3) Unless stated otherwise, the fees associated with a certain circumstance are debited from the Current Account to which the Debit Card has been agreed or from the Card Account to which the Credit Card has been agreed as of the date of the circumstance; otherwise, all other fees under the Agreement are charged as of the last Bank Business Day of the billing period.

(4) The Bank is entitled to debit the fee for the Debit Card from the Current Account monthly, under the standard conditions on the last business day in the month, regardless of whether the Card Holder accepts or activates the Pay-ment Card. The Bank is entitled to debit the fee for the Credit Card from the Card Account even where the Appli-cant fails to activate or accept the Credit Card (in such a case, the fee is charged only for the period in which the Credit Card is prepared at the POS for collection in accord-ance with these Terms and Conditions). The Bank may also apply this provision in the case of failure to take over the automatically renewed Credit Card.

(5) The Transactions made are debited from the relevant Current or Card Account after the receipt of the docu-ments necessary for billing from the beneficiary’s/payer’s bank immediately after the processing of the Transaction by the MasterCard or Visa international association, no later than the value day of the Transaction processing by the Bank. Where a transaction using the Debit or Credit Card was made in a currency other than CZK, it is trans-lated using the exchange rate applied by Československá obchodní banka, a.s., Co. Reg. No. 00001350, or the Asso-ciation; the exchange rate risk is borne by the Client.

(6) When using the Dynamic Currency Conversion service, the Client confirms in the Transaction Authorisation that the



Part VIII/ Obligation to Notify and Other Obligations of the Client(1) The Client is obliged to inform the Bank without delay of

any change to the data specified in the Agreement and of any facts that might significantly affect the Client’s ability to meet the obligations arising from the Agree-ment. At the Bank’s request, the Client is obliged to sub-mit additional or current information about the Client’s financial position.

(2) The Card Holder is obliged to keep the Payment Card at a safe place, separate from personal documents, and pre-vent its abuse by third parties, check the Payment Card daily, and in the case of any loss, theft or other suspected abuse of the Payment Card proceed in accordance with Clause 6 of Part IX of the Terms and Conditions.

(3) The Card Holder is not entitled to lend the Payment Card to anyone or communicate any information about the Pay-ment Card used to authorise Transactions or transact with the Payment Card to any third party. If the Card Holder does so, the Card Holder will be obliged to pay any related costs and damages.

(4) The Card Holder agrees to prevent the PIN disclosure to a third party, and to keep the PIN separate from the Pay-ment Card. In the event the Card Holder has concerns about the PIN safety, we recommend to change the PIN at an ATM without delay.

Part IX/ Blocking(1) The Bank reserves the right to make a Temporary or

Permanent Blocking of the Payment Card or withhold its consent to some types of transactions made using the Payment Card without prior notice, and communi-cate this decision to third parties, in particular POS, fi-nancial institutions, Associations etc. The Bank is enti-tled to this procedure especially in the cases set forth below. The Bank will inform the Card Holder about the blocking and its reasons prior to blocking the Payment Card or, if not possible, immediately afterwards (this does not apply in cases where the provision of this informa-tion could thwart the purpose of blocking the Payment Card or where it is in conflict with other legislation). The Bank is entitled to make the notification by phone and subsequently confirm it in writing. The Bank will unblock the Payment Card or replace it with a new Payment Card once the reasons for blocking pass.

(2) The Bank is entitled to make a Permanent Blocking of the Payment Card for reasons of the Payment Card’s security, in particular:a) In the case of a suspected unauthorised or fraudulent

use, b) If a phone report is made under Clause 6 of this Part of

the Terms and Conditions,c) If the Bank suspects an abuse of the Payment Card

as part of the safety and protection of the Account Holder (including the case where an application for the issue of a new Payment Card is submitted due to non- delivery of the consignment under Clause 8b) of Part IV of the Terms and Conditions),

d) Where there is a significant increase in the risk that the Account Holder will not be able to repay the over-draft loan provided by the Bank on the Current Account

(5) If the Client finds an item in the Current Account state-ment in the case of the Debit Card or the Card Account statement in the case of the Credit Card which does not correspond to any card transaction made by the Client, or if an incorrect transaction amount is provided, the Client may file a complaint according to the Complaint Procedure of the Bank. The Client will fill in the complaint report using the Bank’s form and submit to the Bank all available doc-uments concerning the Client’s claim. The Bank will confirm the receipt of the complaint report. When handling a com-plaint, the Bank will assess whether the Client, i.e. the Card Holder fulfilled all conditions, i.e. especially whether the Client (Card Holder) complied with the complaint report-ing deadlines and obligations arising from the Agreement including these Terms and Conditions (e.g. material breach of the protection of the Payment Card’s security and iden-tification elements). If the Bank finds that the complaint is unjustified during the complaint procedure, the Bank will reject the complaint. The Bank will inform the Client of the result of the complaint procedure.

(6) The Client, i.e. the Card Holder is obliged to notify the Bank of any unauthorised Transaction without undue delay, in the case of a suspected abuse of the Payment Card within 2 (two) months, in justified cases 13 (thirteen) months from the day of debiting the funds from the Current Account in the case of the Debit Card or the day of charging a trans-action to the Card Account in the case of the Credit Card. The Client makes the notification at the POS. If, when as-sessing the allegedly unauthorised Transaction, the Bank finds that the Transaction was authorised, the Bank will reject the complaint.

(7) The Client may request the refund of an authorised trans-action made with the Payment Card at the initiative of the beneficiary within 8 (eight) weeks of debiting the funds from the Current Account in the case of the Debit Card or the day of charging a transaction to the Card Account in the case of the Credit Card, provided that the exact amount of the Transaction was not determined at the time of the Transaction Authorisation and the amount exceeds the amount which the Client could have reasonably expected with regard to all circumstances (e.g. payments at car rental agencies, hotels etc.). Detailed conditions for the refund of an authorised Transaction are set forth in the Payments Terms and Conditions.

(8) If it is apparent that the statutory time limit for assessing the complaint may be exceeded given the circumstances and the complexity of the case, the Bank will refund to the Client an amount corresponding to the transaction reduced by the amount equal to the loss borne by the Client by law. After the completion of the complaint procedure, the Bank debits the amount from the account in the case of an un-justified complaint.

(9) Where the Client unsuccessfully f iled a complaint with respect to an erroneous Transaction or demanded other remedy from the Bank in accordance with the Terms and Conditions, the Client has the right to appeal to the Finan-cial Arbitrator that 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 Sb., on Financial Arbitrator, as amended, with its registered office at Legerova 1581/69, 110 00 Prague 1, www.finarbitr.cz. This shall be without prejudice to the Client’s right to go to court.



(7) The Client is entitled to ask the Bank for a Temporary or Permanent Blocking of the Payment Card for other reasons than those specified in Clause 6 of this Part (only for online authorised transactions). The blocking will be performed no later than the first Bank Business Day following the day of submitting the request for blocking the Payment Card at the POS. The Temporary Blocking initiated by the Client may be cancelled by the Bank at the Client’s request.

(8) In the case of the phone report under Clause 2, the Report-ing Person is obliged to disclose all information according to which it is possible to identify the Payment Card in question (the Payment Card number, the full name of the Client etc.). It is also necessary to disclose any circumstanc-es known to the Reporting Person about the loss/theft or suspected abuse of the Payment Card (whether the PIN has been compromised etc.).

Part X/ Liabilities of the Bank and the Client(1) The Bank is obliged to compensate the Client for any dam-

age caused due to a failure of the Bank to fulfil the Agree-ment. However, the Bank is not obliged to pay damages to the Client in the following cases:a) The damage was incurred in connection with an invalid

Payment Card,b) The Client breached the obligations under the Agree-

ment in a gross manner, especially where the Client breached the obligation to keep the PIN secret, or breached the obligation to immediately instruct the Bank to block the Payment Card where the circum-stances suggested the possibility of an unauthorised use.

(2) Neither is the Bank obliged to pay damage incurred by the Client due to the failure to make the required trans-actions, caused directly or indirectly by reasons beyond the control of the Bank or its partners (e.g. interruption of electricity supply, ATM issues, strike etc.), or where the relevant transactions were made on devices not approved for use with Payment Cards. The Bank is not liable for any non-acceptance of the Payment Card by the POS for payment or for any damage incurred in con-nection with the use of an invalid Payment Card or due to the damage or detention of the Payment Card at the POS or Bank branch.

(3) The Client bears full responsibility for any Transactions made with the Payment Card. The Client is obliged to ensure compliance with the contractual terms by the Card Holder even where the Card Holder acts as a person authorised by the Client to transact with the Client’s funds using the Payment Card, and the Client is also fully liable for any breach of the contractual terms and the consequences thereof.

(4) The Client is fully liable for any transactions made using a lost, stolen or abused Payment Card until the phone re-port is made under Clause 6 of Part IX of the Terms and Conditions. Immediately after the phone report under Clause 6 of Part IX of the Terms and Conditions, the Client ceases to be liable for any transactions made using a lost, stolen or abused Payment Card. However, the Bank has no obligation whatsoever to reimburse any damage incurred due to transactions made with a lost or stolen Payment Card using the correct PIN or where the Client acted fraud-ulently.

with respect to which the Payment Card has been issued.

(3) The Bank is also entitled to make a Permanent Blocking of the Credit Card especially if:a) The Client repeatedly exceeds the Total Credit Limit

or any of the other limits under the Agreement,b) The Client fails to immediately repay any amount drawn

in excess of the Total Credit Limit or any of the other limits under the Agreement,

c) The respective Mandatory Minimum Debt Payment is not made as of the Due Date of the following Manda-tory Minimum Debt Payment.

(4) The Bank is entitled to make a Temporary Blocking of the Payment Card for security reasons, in cases where the con-ditions for the Permanent Blocking of the Payment Card under the Agreement are met, or in cases where an incor-rect PIN has been entered three times. In such a case, the card blocking will be automatically cancelled no later than the following day.

(5) The Bank is also entitled to make a Temporary Blocking of the Credit Card in the following cases:a) In the credit process, the Client failed to inform the

Bank of facts that might result in an increase in the risk concerning the credit return, or the Client provided false, misleading or incomplete information to the Bank.

b) The Bank discovers facts that might jeopardise the re-payment of the credit under the Agreement (espe-cially a significant worsening of the Client’s financial position, initiated insolvency proceedings, prosecution, imprisonment, distraint order etc.).

c) The Client breaches the obligations under Part VIII of the Terms and Conditions.

d) The Client exceeds the Total Credit Limit or other limit under the Agreement.

e) The Client fails to pay the Mandatory Minimum Debt Payment as of the relevant Due Date.

f) In the credit process, the Client failed to inform the Bank of facts that might result in an increase in the risk concerning the credit return, or the Client provided false, misleading or incomplete information to the Bank.

g) The Bank discovers facts that might jeopardise the repayment of the credit under the Agreement (espe-cially a significant worsening of the Client’s financial position, initiated insolvency proceedings, prosecu-tion, imprisonment, distraint order etc.).

(6) In the event the Payment Card is lost or stolen, the Payment Card has been detained in an ATM, or there is a risk of the Payment Card’s abuse for any reason, the Client is obliged to make a phone report immediately to the Call Centre of Československá obchodní banka, a.s. at: +420 495 800 111 (the “ČSOB Call Centre“). A third party may also make the report (the Client or such a third party shall be referred to as the “Reporting Person”). If the Client cannot report the aforementioned facts to the ČSOB Call Centre for any reason, the Client is obliged to do so immediately at any POS. The Bank will ensure that the report is made to the ČSOB Call Centre. Following the phone report under this Clause, the Permanent Blocking of the Payment Card will be made.



c) By withdrawal from the Agreement by the Bank under Clause 3 of this Part,

d) By withdrawal from the Agreement by the Client under Clause 6 of this Part,

e) As of the first business day after the day on which the Bank received the notice of termination of the agree-ment on the Current Account to which the Debit Card had been issued,

f) Upon expiry of the Payment Card, unless a new Pay-ment Card is to be issued for the next period in ac-cordance with Clause 7 of Part IV of the Terms and Conditions,

g) Upon expiry of the deadline for the collection of the new Payment Card in accordance with Clause 4 or Clause 7 of Part IV of the Terms and Conditions,

h) As of the moment when the Client’s death is proven to the Bank,

i) In another manner anticipated by law (such as agree-ment of the Parties etc.).

(2) The Bank and the Client are entitled to terminate the Agree-ment at any time without giving a reason by written notice sent to the other Party. In the case of notice by the Client, the Agreement on the Debit Card shall terminate on the business day following the delivery of the notice to the Bank, unless the notice specifies a later effective date. In the case of termination of the Agreement on the Credit Card by the Client, the notice period is 1 (one) month. In the case of termination by the Bank, the notice period is 2 (two) months. The notice period with respect to the Debit Card Agreement commences on the first day of the calen-dar month following the month in which the written notice was delivered to the other party. The notice period with respect to the Credit Card Agreement commences on the day following the delivery of the written notice to the other party.

(3) In the event of a material breach of the Agreement by the Client, the Bank is entitled to withdraw from the Agree-ment immediately. Material breaches by the Client are in particular as follows:a) In the manner laid down in the Agreement,b) Providing false or misleading information by the Client,c) Failure to pay the amount by which the Total Credit

Limit under the Credit Card Agreement was exceeded immediately after that unauthorised drawing,

d) Failure to pay the Mandatory Minimum Debt Payment or other due amount under the Credit Card Agreement within 30 (thirty) days of the due date,

e) Where the Transaction Limits under the Agreement are exceeded,

f) Where an unauthorised overdraft occurs on the Cur-rent Account with respect to which the Debit Card has been agreed,

g) Breach of the obligation to keep the PIN secret,h) Breach of the provisions of Clause 4 of Part III of the

Terms and Conditions, i) Breach of the obligation to notify the Bank of the loss

or abuse of the Payment Card or of any circumstances indicating the risk of an unauthorised use of the Pay-ment Card.

(5) The Client bears the loss from an unauthorised transaction made with the Payment Card up to the amount corre-sponding to EUR 150 where the loss was caused due to the use of a lost or stolen Payment Card or the abuse of the Payment Card if the Client failed to protect the secu-rity elements of the Payment Card. The Client bears the loss from an unauthorised transaction made with the Payment Card in full where the Client caused the loss by the Client’s fraudulent actions or by intentionally or neg-ligently failing to comply with the security measures set out in these Terms and Conditions, or by failing to notify the Bank of any loss, theft, abuse or unauthorised use of the Payment Card without undue delay (under Clause 6 of Part IX of the Terms and Conditions). The Client does not bear the loss where the Client did not act fraudulently and the loss arose after the Client notified the Bank of the loss, theft, abuse or unauthorised use of the Payment Card.

(6) The Bank does not examine the legitimacy of any Trans-actions made by the Card Holder, nor is it responsible for them.

(7) The Bank does not automatically assume liability for any financial loss of the Client, especially where the Payment Card was used without its physical presentation or with-out the Payment Card electronic identification.

(8) The Bank is not obliged to compensate the Client for any damage that may be incurred:a) In connection with exceeding the Payment Card Trans-

action Limits by the Client,b) Due to the abuse of the Payment Card that is not duly

returned by the Client under the Agreement,c) Due to the termination of the Agreement,d) Due to a Temporary or Permanent Blocking of the

Payment Card, performed in accordance with the Agreement.

(9) Neither is the Bank obliged to compensate the Client for any damage that may be incurred:a) In connection with exceeding the Total Credit Limit in

relation to the Credit Card by the Client,b) Due to a failure to pay the Direct Debits.

(10) In the event of damage caused by an abuse of the Pay-ment Card temporarily or permanently blocked for reasons under Clause 7 of Part IX of the Terms and Conditions, the Bank has no obligation to compensate for any damage incurred before the second Bank Busi-ness Day following the day of submitting the request for blocking the Payment Card at the POS.

Part XI/ Termination of the Contractual Relationship(1) Upon the termination of the Agreement, (i) the Client’s

right to use the Debit Card issued to the terminated Current Account and to draw credit using the Credit Card termi-nates, (ii) the Payment Card ceases to be valid, and (iii) the Additional Service (if any) ceases to exist, unless the Agree-ment stipulates otherwise. The Agreement shall terminate in the following cases:a) In the manner laid down in the Agreement, b) By notice under Clause 2 of this Part or Clause 3 of

Part XII of the Terms and Conditions,



Clause 5 and the last sentence of Clause 6 of this Part of the Terms and Conditions), and

b) Within 15 (fifteen) days of the termination of the Agree-ment, return the Credit Card to the POS where the Credit Card was accepted (this is without prejudice to the provisions of the last sentence of Clause 2 of this Part).

The Bank is entitled to debit any transactions arising from the use of the Credit Card, received even after the termi-nation of the Agreement, from the Card Account. The Client is obliged to pay that drawing immediately after its charging to the Card Account.

Part XII/ Interest Rate for the Credit Card(1) The Bank charges interest on the credit facilities drawn

under the Agreement depending on the method of drawing – separate interest rates are set:a) For drawing through Cash Withdrawals and Transfers,b) For drawing through Cashless Transactions, Direct

Debits and SIPO Payments. The interest rates are agreed in the Application, which does

not affect the provisions of the following clauses.(2) Following a change in the current situation in the financial

markets or in the market of banking services, develop-ments of the trade policy or a change in legislation, the Bank is entitled to change the interest rate. The Bank announces the current rate in the Interest Terms of Deposits and Loans. The Bank sends to the Client a notification of the new interest rate no later than 2 (two) months before the date on which the change is to take effect. The notification is given by the Bank along with the Card Account statement or by a separate notification sent to one of the contact details provided in the Application. The Bank also publishes the new rate on its website.

(3) If the Client disagrees with the new rate, the Client may terminate the Agreement free of charge and with imme-diate effect. The notice must be made in writing and deliv-ered to the Bank no later than the last day before the effective date of the notified change.

(4) Interest under the Agreement (interest on the credit facil-ities drawn as well as penalty interest) is determined on the basis of the annual interest rate using the method of “actual number of days/360”. The credit funds bear interest from the day of drawing (inclusive) until the day preceding the date of repayment.

(5) In the event the Total Amount Owed is paid by the Client in full as of the Due Date at the latest, the Interest-Free Period with respect to the Credit Card drawing in the pre-vious billing period will apply. If the Client fails to pay the Total Amount Owed as of the Due Date, the relevant draw-ing will bear interest from the date of the transaction us-ing the agreed interest rate. The Bank is entitled to charge interest on the Cash Withdrawals immediately from the date of their billing.

(6) Unless stated otherwise below, interest will be charged to the Client for each billing period and debited from the Card Account on the last Bank Business Day of the billing period in which the Due Date, which was decisive for the provision of the Interest-Free Period under the previous clause, oc-curred.

The withdrawal from the Agreement does not affect the Bank’s right to charge the already made Transactions to the debit of the Current Account or Card Account, and the obligation of the Client or the Card Holder to return the Payment Card to the Bank.

(4) The termination of the Agreement does not release the Client from the obligation to settle any debts arising from the use of the Payment Card issued under the Agreement. The Bank is entitled to debit any Transactions arising from the use of the Payment Card, received even after the ter-mination of the Agreement, from the Current Account or Card Account.

(5) Regardless of the agreed repayment schedule, the Bank is entitled to make the entire drawn amount of the credit drawn through the Credit Card including any interest and fees immediately due (the loss of the individual debt pay-ment/instalment advantage) if at least one of the following occurs:a) The conditions for a Temporary or Permanent Block-

ing of the Credit Card by the Bank are fulfilled (except the cases referred to in Clause 5d) of Part IX of the Terms and Conditions),

b) The Client breaches any other agreement with the Bank and that breach may, in the Bank’s opinion, negatively affect the Client’s ability to pay the debts under the Agreement.

The Client is obliged to pay any amounts owed under the Agreement including interest and fees within 15 (fifteen) days of the receipt of the declaration that such amounts are immediately due.

(6) The Client is entitled to withdraw from the Credit Card Agreement without giving a reason within 14 (fourteen) days of its conclusion. In the event the Agreement does not contain the information laid down in Section 6(1) of Act No. 257/2016 Sb., on Consumer Credit, as amended, the withdrawal period will not end earlier than 14 (fourteen) days after the Bank provides the Client with the missing information. The withdrawal must be made in writing, and the withdrawal period is deemed complied with if the withdrawal is sent to the Bank in printed form or on other durable medium no later than the last day of that period. If a withdrawal was made under this Clause, the Client is obliged to pay the principal of the credit drawn to the Bank without undue delay, no later than 30 (thirty) days of sending the withdrawal to the Bank, and also pay to the Bank interest in the amount to which the Bank would have become entitled if the Agreement had not been with-drawn from, for the period from the day on which the credit was drawn until the day on which the principal is repaid by the Client.

(7) Where the Bank or the Client withdraws from the Credit Card Agreement, the commitment expires as of the effec-tive date of the withdrawal. The withdrawal from the Agreement does not affect the obligation of the Client to pay penalty interest under the Credit Card Agreement and the Terms and Conditions.

(8) If the Credit Card Agreement terminates, the Client is obliged to:a) Pay any amounts owed to the Bank under the Agree-

ment including interest and fees within 1 (one) month of the termination of the Agreement (this is without prejudice to the provisions of the last sentence of



nearest Due Date following the closing of the original Direct Debit Account. The Client is also obliged to inform the Bank of the change in the Direct Debit Account in writing within the aforesaid period.

(4) The Client is obliged to provide enough funds on the Direct Debit Account as of the Direct Debit date to cover the Direct Debit. The Direct Debit date is set as follows: the Bank will make the Direct Debit as of the Due Date if the Direct Debit Account is maintained by the Bank, otherwise the Direct Debit will be requested from the bank which maintains the Direct Debit Account as of the Due Date.

(5) The Client agrees that the Bank may make the Direct Debit up to the amount of the Mandatory Minimum Debt Pay-ment determined for the relevant billing period from the Direct Debit Account, provided that at least the amount of the Mandatory Minimum Debt Payment was not paid otherwise in the period from the beginning of the billing period until the Due Date of the relevant Mandatory Min-imum Debt Payment.

(6) If the Client made a payment to the Card Account for the relevant time period from the beginning of the billing pe-riod until the date of the Direct Debit or until the date of requesting the Direct Debit under the previous Clause, but in an amount lower than the relevant Mandatory Mini-mum Debt Payment, the Direct Debit will be made in the amount of the difference between the Mandatory Mini-mum Debt Payment and the amount of the partial pay-ment credited to the Card Account.

(7) If the Client breaches its obligations under the Agreement, the Bank is entitled to make the Direct Debit up to the due and unpaid amount owed by the Client under the Agree-ment. The provisions of these Terms and Conditions are without prejudice to the Bank’s entitlement to set off the funds on the Client’s Current Account maintained by the Bank, if any, against the Bank’s claims against the Client, under the General Business Terms and Conditions.

(8) If the Client’s account for the credit repayment is main-tained by the Bank, the Client is entitled to negotiate an automatic full payment in the amount of 100 % of the credit drawn (the “Automatic Full Payment”) instead of the Mandatory Minimum Debt Payment at any time during the course of the contractual relationship. In the event the Client has negotiated the Automatic Full Payment, the Direct Debit corresponding to the Total Amount Owed in full will be made on the Due Date. If the Client has paid only a portion of the Total Amount Owed as of the Due Date, the Direct Debit will be made in the amount of the difference between the Total Amount Owed and the amount of the partial payment credited to the Card Ac-count. If there are not enough funds to cover the Total Amount Owed on the Client’s account on the Direct Debit date and the Client has not paid the Mandatory Minimum Debt Payment or has paid only a portion thereof, the Direct Debit will be paid in the amount of the Mandatory Minimum Debt Payment or in the amount of the differ-ence between the Mandatory Minimum Debt Payment and the amount of the partial payment credited to the Card Account. The Automatic Full Payment is realised by the Bank in the relevant billing period if the Client makes a request for the Automatic Full Payment on the last but one business day of the previous billing period at the lat-est. The same time mode applies to the termination of the Automatic Full Payment.

(7) The Bank is entitled to charge penalty interest with respect to the Credit Card according to the List of Fees (the “Pen-alty Interest Rate”) on:a) Amounts exceeding the Total Credit Limit,b) Amounts of the Mandatory Minimum Debt Payment

not paid as of the relevant Due Date,c) Amounts drawn by the Client under the Agreement if

the Bank makes the drawn amount of credit including interest and fees immediately due in accordance with Clause 5 of Part XI of the Terms and Conditions, and that amount is not duly and timely paid,

d) Amounts drawn by the Client under the Agreement, even where the Client withdraws from the Agreement under Clause 6 of Part XI of the Terms and Conditions, and the Client fails to repay the amount drawn to the Bank within the specified period,

e) The Total Amount Owed under the Agreement in any other cases of the termination of the Agreement under Part XI of the Terms and Conditions, unless the Total Amount Owed is duly and timely paid after the termi-nation of the Agreement.

(8) Penalty interest is due at the moment of its charging to the Card Account. After the termination of the Agree-ment, any penalty interest is payable monthly, on the last Bank Business Day in the respective calendar month. If the penalty interest billed after the termination of the Agreement is not paid by the Client, it becomes part of the debt principal. The Client is obliged to pay penalty inter-est until the repayment of the amount owed under the Agreement in full.

Part XIII/ Repayment of the Credit Card(1) The Client is obliged to repay the drawn credit funds and

other amounts owed under the Agreement to the Card Account. Any of the Bank’s claims under the Agreement is deemed paid only after it has been credited to the Card Account.

(2) The Client may make the payment to the Card Account by cashless transfer to the Card Account, the Cash Deposit Via ATM, regular repayment of the credit funds from the direct debit account specified in the Application (the “Direct Debit Account”), or at the POS, and the Client is entitled to repay the credit funds or other amounts owed under the Agreement at any time, in part or in full, without any fee for early repayment. In the period from the beginning of the billing period until the Due Date in the given billing period, however, the Client must pay an amount at least corresponding to the Mandatory Minimum Debt Payment as determined according to the Total Amount Owed for the previous billing period.

(3) If the Direct Debit Account is maintained by the Bank, the Client agrees that the Bank will collect its claims arising from the Agreement from that account under the condi-tions of the Agreement. If the Direct Debit Account is main-tained by another bank, the Client is obliged to set up the direct debit with the relevant bank without undue delay (the Client will get the necessary parameters for ensuring that bank’s consent to the direct debit at the Bank’s POS). If the Direct Debit Account is closed during the term of the Agreement, the Client is obliged to set up direct debit with respect to another current account in favour of the Bank no later than 5 (five) Bank Business Days before the



Part XV/ Final Provisions(1) The Agreement shall be governed by the laws of the Czech

Republic. The consumer is entitled to resolve any disputes arising from the Agreement out of court through the Finan-cial Arbitrator with its registered office at Legerova 1581/69, 110 00 Prague 1, www.finarbitr.cz.

(2) In the event any provision of the Agreement is in conflict with a provision of the Terms and Conditions, the Payments Terms and Conditions or the General Business Terms and Conditions, the provision of the Agreement shall prevail. In the event of a conflict between the Terms and Condi-tions and the General Business Terms and Conditions or the Payments Terms and Conditions, the provisions of the Terms and Conditions shall prevail. The provisions of the Terms and Conditions relating to payment transactions with the Card Account to the Credit Card shall be governed by the relevant provisions of the Payments Terms and Con-ditions.

(3) The Bank is entitled to amend these Terms and Conditions in accordance with Part Three, Clause III of the General Business Terms and Conditions.

(4) These Terms and Conditions have been executed in the Czech, English and Russian languages, and the Czech ver-sion shall prevail.

(5) The limitation period in relation to the Bank’s claims against the Client and in relation to the Client’s claims against the Bank, including any future claims of the Bank or the Client, is extended for a period of 10 (ten) years.

(6) If any provision of the Terms and Conditions or the Agree-ment or a part thereof is or becomes invalid or unen-forceable, the remaining provisions shall remain valid and enforceable.

(7) Agreements made before the effective date of these Terms and Conditions continue to be governed by the existing wording of the Terms and Conditions until the amended Terms and Conditions apply to such Agreements on the basis of a proposal by the Bank (within the meaning of Part Three, Clause II of the General Business Terms and Condi-tions). Therefore, where these Terms and Conditions refer to the provisions stipulated in the Agreement, this shall mean in the case of the aforesaid Agreements the provi-sions agreed in the Application or contained in the Pay-ment Card Acceptance Report.

(8) These Terms and Conditions enter into effect on 15 May 2017 and replace the wording of the Terms and Conditions for the Issuance and Use of Payment Cards dated 6 July 2016, the Terms and Conditions for the Issuance and Use of Credit Cards dated 6 July 2016, and the Business Terms and Conditions for the Issuance and Use of Credit Cards dated 1 December 2016.

Part XVI/ Important Agreements(1) The Client has properly understood the Agreement and

the Terms and Conditions and in particular explicitly accepts the arrangements marked in bold.

(9) When fulfilling a monetary debt of the Client to the Bank under the Agreement, the Client’s payment will be used to cover the following (in the following preferential or-der):a) Penalty interest,b) Interest on the credit drawn,c) Fees, d) Principal drawn (transactions made).

The principal drawn will be redeemed according to the date of posting, from the oldest transaction of the Client. If the date of posting is the same, the rank of redemption will be determined according to the transaction type as follows:a) Transaction fees,b) Direct Debits,c) Cashless transactions made with Credit Card,d) Transfers,e) Cash withdrawals made with Credit Card.

The Client is obliged to pay any debts under the Agree-ment exclusively in CZK.

(10) The Client is entitled to pay to the Card Account only an amount up to the amount owed under the Agreement as of the date of payment. In the event more than the amount owed under the Agreement is paid to the Card Account, such funds will not bear interest and the Bank is not obliged to refund such funds to the Client during the term of the Agreement otherwise than by setting them off against any debt incurred as a result of the subsequent credit draw-ing using the Credit Card.

Part XIV/ Consequences of Delayed Repayment of the Credit Card (1) If the Mandatory Minimum Debt Payment is not paid duly

and timely as of the relevant Due Date, the Client will be asked to pay it by phone or SMS. The Bank is also entitled to make the Direct Debit (or request it) from the Direct Debit Account for the purpose of the payment of the out-standing Mandatory Minimum Debt Payment (in the case of an unsuccessful direct debit even repeatedly). In the event of a further delay, the Bank is entitled to send to the Client a written reminder, which is without prejudice to the Bank’s right to temporarily block the Credit Card. The Bank is entitled to charge interest on the unpaid portion of interest on the credit drawn and fees (but no more than in the amount of the outstanding Mandatory Minimum Debt Payment) from the Due Date using the penalty inter-est with respect to the Credit Card according to the List of Fees.

(2) In the event the relevant Mandatory Minimum Debt Pay-ment is not made as of the Due Date in the following billing period, the Bank is entitled to perform the Permanent Blocking of the Credit Card and make the credit immedi-ately due in accordance with these Terms and Conditions and the Agreement.

(3) The Direct Debits, reminders and blocking under this Part are charged according to the List of Fees.

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