4SPEND App: A mobile application, exclusively owned by the 4SPEND that offers immediate payment service, account information service, and payment discounts to the User after installation on a suitable device and registration by the User.

4SPEND service package: service package provided by the Service Provider, which includes the software running on the POS terminal and a Client Administration surface relating to that, Instant payment system via QR code, the services of the 4SPEND mobile application from the second quarter of 2021 and also POS terminals, which together allow the acceptance of electronic payments and the provision of a discount system.

4SPEND: Electronic payment solution. (The project of Ex Machina Kft.) Multifunctional payment application and multichanel mobile payment infrastructure, the aim of which is to facilitate electronic payments for the seller and the buyer, as well as to provide services supporting additional financial transactions.

A

Account Information Services (AIS): An online service, it serves to give aggregated information from the client’s or other’s payment account that the client opened at another payment service provider or providers.

Actual owner: The actual owner defined in the Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing 3.§ point 38.

Admin platform: It helps the user to track the electronic payment transaction on the POS terminal. It provides summary statistics and reports regarding the terminals transactions, and the electronic discount system is also available from his surface.

AISP (Account Information Service Provider): SAn Account Information Service provides account information services as an online service to provide consolidated information on one or more payment accounts held by a payment service user with one or more payment service provider(s).

Alternative Payment Methods: a way of paying for goods or services which are not made via cash or bankcard. ( e.g.: PayPal, Apple Pay, Google Pay, Klarna, premium rate SMS etc.)

AML (Anti Money Laundering): Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. It contains the Customer due diligence (CDD), which consists of KYC (Know Your Client) and authorizing the identity.

API (Application Programming Interface): An API is a set of programming code that enables data transmission between one software product and another. It defines interactions between multiple software applications or mixed hardware-software intermediaries.

Authority acting as a Financial Information Unit: An organizational unit of the National Tax and Customs Administration (FIU).

B

B2B (Business to business): Services provided by firms, enterprises to each other, transactions between economic entities.

B2C (Business to Customer): Companies and businesses sell their services and products to individuals.

Bank card acceptance: providing the possibility to pay with a bank card ( or with other cash money replacement).

Bank card companies: These organizations, which operate payment systems to which they give permission to give out and accept bank cards, for example, Visa International, Visa Europe, and MasterCard Inc.

Bank card details: The card number, the card security code, the card validity date, and the details related to the card owner listed on the card.

Bank card holder: means a company, business, individual or other entity for whose use a card has been issued at any time.

Bank card issuers: The organization which give out the bank cards with the approval of the bank card companies and for them a bank card system has allowed the emit of the bank cards.

Bank card security code: A three-digit verifying code printed on the back of the card.

Bank card system fee: The Bank card companies charge a fee for bank card payment ( system fee).

Bank card: a bank card can be used instead of cash when making purchases. There are two types of this: debit card (usually are attached to the cardholder’s bank account) and credit card (allowing the cardholder to borrow money from the card issuer up to a certain limit).

Bank independent: A contract with any payment service provider is not a disqualifying reason.

Bank statement extraction: determine all transactions of a customer in an account over a given period, cash-ins, and cash-outs ( credit and charging). It can help track the financial developments constantly.

Bank workday: Every workday from Monda.y to Friday, except for the national holidays and public holidays in Hungary.

Bankcard owner’s account: This means the bank account registered to the owner’s name, and from which the bank card acceptor can charge and credit amounts.

Basket value: This index number shows in a specified period the average value of the customer’s payments based on the value and number of the transaction.

Blocked amount: transactions that have already been disbursed to the beneficiary and have taken place. The amount has not yet been spent, so it is still in the payer’s bank account but cannot be spent again.

C

Card acceptance: providing the possibility to pay with a bank card ( or with other cash money replacement).

Card-based payment transaction: It means a service based on a payment card scheme’s infrastructure and business rules to make a payment transaction by means of any card, telecommunication, digital or IT device or software if this results in a debit or a credit card transaction. Card-based payment transactions exclude transactions based on other kinds of payment services;

Card-based payment instrument: It means any payment instrument, including a card, mobile phone, computer or any other technological device containing the appropriate payment application which enables the payer to initiate a card-based payment transaction which is not a credit transfer or a direct debit as defined by Article 2 of Regulation (EU) No 260/2012;

Card company: clears credit card transactions.

Cash-out report: Daily, weekly, monthly and yearly data on payment transactions and transaction fees.

Client Administrator: The Client’s legal representative or a duly authorized natural person belonging to the Client’s organization. As of he/she will get registered as an Administrator, and so he/she get authorized to use the 4SPEND services provided by the Service Provider and to manage the client’s administrative interface.

Client business-premises: A commercial unit operated by the Customer in relation to which the Customer uses the 4SPEND service.

Client due diligence measures: Client identification, identity verification, risk classification, knowledge of the nature and purpose of the business relationship or transaction order, continuous monitoring of clients who regularly submit transaction orders, continuous monitoring of the business relationship, client or legal entity or a statement made by a client representative of an organization without legal personality, a key public statement and verification of the identity of the beneficial owner.

Commission: The amount the client (the 4SPEND’s client) has to pay to the service provider (4SPEND).

Consumer: It means a natural person who, in payment service contracts covered by this Regulation, is acting for purposes other than the trade, business or profession of that person;

Contactless bank card: The data for an electronic payment can be read without a physical contact.

Control influence: Influence or contact according to the 6.§, (1) section’s 18. point of Act CXII of 1996 on Credit Institutions and Financial Enterprises.

Coverage: The data for an electronic payment can be read without a physical contact.

Co-branding: It means the inclusion of at least one payment brand and at least one non-payment brand on the same card-based payment instrument;

Co-badging: It means the inclusion of two or more payment brands or payment applications of the same brand on the same card-based payment instrument;

Commercial card: It means any card-based payment instrument issued to undertakings or public sector entities or self-employed natural persons which is limited in use for business expenses where the payments made with such cards are charged directly to the account of the undertaking or public sector entity or self-employed natural person;

Credit card authorisation: The data for an electronic payment can be read without a physical contact.

Cross-border payment transaction: It means a card-based payment transaction where the issuer and the acquirer are located in different Member States or where the card-based payment instrument is issued by an issuer located in a Member State different from that of the point of sale;

Credit card: A special bank card where the transactions are covered by a credit line provided to the cardholder by the issuing financial institution. A credit card can be used to make a purchase even if the balance is negative.

Credit card transaction: It means a card-based payment transaction where the amount of the transaction is debited in full or in part at a pre agreed specific calendar month date to the payer, in line with a prearranged credit facility, with or without interest”;

Customer support / Client assistance: Chatbot, IVR (automated answering machine) system, e-mail contact, call-center, social media interfaces provide communication interfaces for our customers.

Customer/Client: A legal entity or sole proprietor who orders a 4SPEND service package and uses it to accept instant payment by bank card or mobile banking application in the business premises maintained by him/her.

cvv2/cvc2 code: security code, a 3-digit number located on the back of the card under the magnetic stripe to prove the card’s authenticity.

D

Domestic payment transaction: It means any card-based payment transaction which is not a cross-border payment transaction;

Debit card: It means a category of payment instrument that enables the payer to initiate a debit card transaction excluding those with prepaid cards;

Debit card transaction: It means a card-based payment transaction, including those with prepaid cards that is not a credit card transaction;

Data controller: The data controller determines the purposes for which and the means by which personal data is processed.

Data processor: The data processor processes personal data only on behalf of the controller.

Digital bill/receipts: An electronic bill/receipt which alternates the printed bill’s during a bank card payment, and it can be sent to the user by e-mail on demand.

Discount system usage fee: If the customer violates the provisions of the contract, according to which “during the term of the Service Framework Agreement, he/she does not use the services of another service provider considered to be a competitor which engaged in the advertising of payment discounts ” in which case he/she shall be liable to pay that fee for the period of infringement.

Discount system: An opportunity for the 4SPEND terminal owners to define discounts and coupons for its customers, and those can be requisited only by using instant payment via QR code.

E

Electronic customer identification system: This is a personalized electronic procedure, which allows the unequivocal identification of the declaration taker persona and the date of the declaration and it enables law statements in a form that is competent to unchanging recalling the substance of the law statements.

Electronic payment: The payment method when the transaction happens with the help of an electronic device. For example the interbank transfers, direct debits, and paying with a bank card on a POS terminal.

EMV: EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards and IC card capable point of sale terminals and automated teller machines, for authenticating credit and debit card transactions.

Encryption: information is transformed in such a way that it becomes unreadable/uninterpretable to those who do not have the necessary knowledge, called a key, to decipher the original meaning.

Ex Machina Kft.: The owner of the 4SPEND brand and an emerging payment intermediation company in the FinTech sector. It offers bank card acceptance, instant payment, mobile banking and m-commerce solutions, and services to both retail and business partners. It provides mutually beneficial connections between the X, Y, Z generations and store retailers through innovative solutions.

F

Fintech (Financial Technology): Digital financial solutions, technological innovation in the financial sector. Emerging, mostly start-up enterprises, which provide financial solutions for the financial sector’s participants and for other users.

Framework service contract: That means the contract created among the service provider and the client regarding some of the service packs, which is an inseparable part from the Terms and Conditions and all the documentation related to the requisition of the service.

Four party payment card scheme: It means a payment card scheme in which card-based payment transactions are made from the payment account of a payer to the payment account of a payee through the intermediation of the scheme, an issuer (on the payer’s side) and an acquirer (on the payee’s side);

Fszt. (PSP): Fszt. (PSP): Act CCXXXV of 2013 on Payment Service Providers

G

Gambling transactions: The transaction that the merchant submits to the acquirer for authorization and reckoning by using the Merchant Category Code (“MCC”) 7995 or by other defined accessory Merchant Category Code that is defined from time to time by one of the card companies in relation to gambling or gambling transactions.

GDPR: The General Data Protection Regulation, which is phrasing strict rules for the sake of personal data protection. It orders thereof how the service providers have to ask for our permission to gather, handle and store our personal data. It also tightens the rules for cookies. Furthermore, it gives the possibility to request our collected personal data at the services provider and hand it to another services provider. The rules of GDPR apply to every European country from 25.05.2018..

GIRO: Electronic system for accounting interbank settlements and transfers.

Global advertisement: Ads that only 4SPEND is authorized to determine and display. These ads appear on all terminals running 4SPEND software in circulation.

H

Hpt.: Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises.

I

IBAN (International Bank Account Number): An uniformly structured, international bank account number that has been introduced in the European Union ( and other member states of the European Union).

Identification: The recording of the data of the customer or his / her representative, the person acting as an authorized person, and the beneficial owners (as defined in the Civil Code) so that it can be retrieved.

Instant Payment acceptance: It’s an electronic payment infrastructure, which allows settling the purchase price by instant payment.

Instant Payment System: It’s an electronic payment system launched by the MNB (Hungarian National Bank) and its purpose is to realize domestic transfers in 5 seconds, all day (0-24) on every day of the year up to 10 million HUF total limits. Instead of the bank account number can be set a secondary identification which with there is an opportunity to form a simpler system.

Instant payment via QR code: It’s a simply accomplishable, fast, domestic transfer type, which can be completed in 5 seconds on every day of the year up to 10 million total limits. Instant payment is the comfortable and competitive alternative to cash money payment.

Interchange fee: In case of bank card payment the merchant’s bank pays this to the bank card owner’s bank. This fee covers the bank card payment expenses to the bank card issuer bank. The bank card companies or an inter-banking agreement determines it.

K

KYC – Know Your Customer: The identification of the customers. The banks have to gather data and information which based on can verify the transactions on the client’s account.

L

Legal representative: The person who is allowed to act in the name of a company due to law provision and not because of having credentials.

Loyalty period: The period of time stated in the contract for the service providing or the device’s lending for which the buyer has undertaken not to cancel the service.

M

Maestro: Maestro is a brand of MasterCard. It is a debit card with a chip, not embossed, personalised with the Cardholder’s details, suitable for both domestic and international use.

MasterCard: credit card issuing company.

Merchant account: This means the account appointed by you, for which we can charge or credit regarding the bank card transactions.

Mobile banking: A mobile application provided by any financial institution that can runed by using a smart device.

Merchant account: This means the account appointed by you, for which we can charge or credit regarding the card transactions.

Mobile payments: all transactions made by phone.

Money laundering: An act determined in the Criminal Code’s 399-400 paragraph and in the old Criminal Code 303-303/A paragraph.

Monitoring: The constant observation of the business connection.

MOTO (Mail Order/Telephone Order): A shortening of ordering by letter or by telephone. A payment method when the bank card owner is not present during the payment but he/she gives his/her bank card data by phone, fax, or e-mail.

mPOS: POS device which provides electronic data transfer through a mobile communicating network, and by this, it’s capable of arranging electronic payments.

N

NFC payment: payment at NFC-compatible (POS) terminals using a bank card fixed on the phone.

NFC: technology that enables secure data exchange, quickly, within 4 cm. (short-range communication).

O

Online payment by credit card: payment by credit card on the internet.

Open banking: Open banking is a technological,business-related, and controlling approach regarding the opening, reaching, and using of bank data, which aims to enable users to manage their finances consciously, with full control over their banking details.

P

Parent company: A parent company is a company that has a controlling interest in another company, giving it control of its operations.

Payment Institution: Businesses determined by the Fszt. (PSP) which are authorized to provide certain financial services by the law without being financial undertakings.

Payment instrument: It means any personalised device(s) and/or set of procedures agreed between the payment service user and the payment service provider and used in order to initiate a payment order;

Payment request: It is basically a transfer order where the party requesting the money submits the request (even by providing the secondary identifier of the paying party) then the sending party only needs to approve it in order to be fulfilled. The request is sent through the instant payment infrastructure.

PCI DSS standard: Payment Card Industry Data Security Standards defined by credit card companies. It means the standards established by the Card Systems and published by the Payment Card Industry Data Security Standard Council and its successors to minimize the potential risk of fraud and fraudulent use of Card and Cardholder Data, as well as any changes to these standards.

Personal data: Personal data is any information that relates to an identified or identifiable living individual.

Personally identifiable official authority card: Identification card, passport, and drivers licence of card format.

PIN: A personal identification number given by the bank card issuer to the bank card owner.

PISP (Payment Initiation Service Provider): It involves the service providers which behalf of their client, arrange they payment assignments from their bank account ( with their client’s authorization).

Pmt.: Act LIII of 2017 on the Prevention and Combating of Money Laundering and Terrorist Financing.

Point of sale (POS): The physical place where You accept bank card transactions.

POS terminal: Point of Sale terminal. A cashless payment terminal that provides cashless payment. The device can be place bounded or portable (so-called mobile terminal).

Pre Authorisation: the necessary data for the transaction (card details of the customer) are already available but the amount has not yet been blocked.

Privacy Policy: Describes how Personal Data have to be handled fairly and lawfully, as well as the obligations and the rights of the person whose Personal Data been handled, under the Data Protection Act 1998.

Product return: A product return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund on the same bank card he/she used before.

PSD2 (Revised Payment Services Directive): It is the EU’s Payment Services Directive, that came into force in 2019.It obligates every European money institution to create an openly accessible API (Application Programming Interface), and with its help, different third parties can get access to the data of the bank clients and they can initiate payment service transactions.

Prepaid card: It means a category of payment instrument on which electronic money, as defined in point 2 of Article 2 of Directive 2009/110/EC, is stored.

Point of sale: It means the address of the physical premises of the merchant at which the payment transaction is initiated. However:

(a)
in the case of distance sales or distance contracts (i.e. e-commerce) as defined in point 7 of Article 2 of Directive 2011/83/EU, the point of sale shall be the address of the fixed place of business at which the merchant conducts its business regardless of website or server locations through which the payment transaction is initiated;

(b)
in the event that the merchant does not have a fixed place of business, the point of sale shall be the address for which the merchant holds a valid business licence through which the payment transaction is initiated;

(c)
in the event that the merchant does not have a fixed place of business nor a valid business licence, the point of sale shall be the address for correspondence for the payment of its taxes relating to its sales activity through which the payment transaction is initiated;

Prepaid card: It means a category of payment instrument on which electronic money, as defined in point 2 of Article 2 of Directive 2009/110/EC, is stored.

Processing: It means the performance of payment transaction processing services in terms of the actions required for the handling of a payment instruction between the acquirer and the issuer;

Processing entity: It means any natural or legal person providing payment transaction processing services;

Payment application: It means computer software or equivalent loaded on a device enabling card-based payment transactions to be initiated and allowing the payer to issue payment orders;

Payment card: It means a category of payment instrument that enables the payer to initiate a debit or credit card transaction;

Payment card scheme: It means a single set of rules, practices, standards and/or implementation guidelines for the execution of card-based payment transactions and which is separated from any infrastructure or payment system that supports its operation, and includes any specific decision-making body, organisation or entity accountable for the functioning of the scheme;

Payment brand: It means any material or digital name, term, sign, symbol or combination thereof, capable of denoting under which payment card scheme card-based payment transactions are carried out;

Payment order: It means any instruction by a payer to its payment service provider requesting the execution of a payment transaction;
Payment transaction:it means an action, initiated by the payer or on its behalf or by the payee of transferring funds, irrespective of any underlying obligations between the payer and the payee;

Payment service user: It means a natural or legal person making use of a payment service in the capacity of either payer or payee, or both;

Payment service provider: It means any natural or legal person authorised to provide the payment services listed in the Annex to Directive 2007/64/EC or recognised as an electronic money issuer in accordance with Article 1(1) of Directive 2009/110/EC. A payment service provider can be an issuer or an acquirer or both;

Payment account: It means an account held in the name of one or more payment service users which is used for the execution of payment transactions, including through a specific account for electronic money as defined in point 2 of Article 2 of Directive 2009/110/EC of the European Parliament and of the Council (8);

Q

QR Code: A two-dimensional, high-density barcode that can be read by the cameras of certain devices with appropriate software, thereby offering users the ability to perform various operations. Code for storing information.

R

Risk analysis: During risk analysis, the chances of occurring risky transactions will be minimized.

Renunciation fee: the amount to be paid in the case of a resigned contract before the appointed duration in the Privacy Policy.

Risk factor: Variable factors, which themselves or combined with others can increase or decrease by a business connection or assignment the risk of terrorism funding and money laundering caused.

Risk level: It shows what kind of customer due diligence actions needed in case a specific client, it’s most often used for the classification of permanent business connections.

S

Sample signature: This is a notary document to authorize the signature’s image. Its purpose is to identify the signature of the organization’s representative.

Secondary identification: Currently considered secondary identification: phone number, e-mail address, or tax number which are then assigned to a bank account by a central database. After introducing the instant payment, there is a possibility to pay not only with a bank card or by giving the bank account number but with a secondary identification.

SIA: SIA Central Europe a.s. (registered office: Röntgenova 1 851 01 Bratislava, Slovakia, the company is registered in the Register of Companies of the 1st District Court of Bratislava, Section Sro, Deposit 7007 / B, BIN 31 372 074, TIN 2020319928, VAT ID: SK2020319928), a payment service provider acts as the primary point of contact for the provision of card acceptance services to be provided by the Merchant. Both the Service Provider and the Customer have a business relationship with SIA regarding the provision of card acceptance services.

Specimen signature: A specimen signature ( which is only can be registered by a lawyer) is proofing that the chief executive officer (CEO) has signed the document in front of a lawyer, and the given signature belongs to him/her and he/she can act on behalf of the company.

Strong Costumer Authentication: The service providers have to use this method of identification above a certain amount.According to the European Union PSD2 directive, a two-factor authentication is necessary for most of bank card and electronic payments.

Subsidiary company: A subsidiary company is a business that is owned, either partially or completely, by another company.

SWIFT code: consists of 8-11 characters used to identify a specific bank.

T

Terrorism financing: The criminal act or the financial helping of the committing of the criminal act or other specified behaviors defined in the Criminal Code’s §318 and in the §261’s (1) and (2) section.

Transaction fee: It is split as follows: a) Interchange fee, b) Bank card system fees and c) Bank card processing fees.

Transaction: A cashless payment procedure performed electronically in the Client’s interest, where the transaction data is processed by the Service Provider’s electronic system.

Three party payment card scheme: It means a payment card scheme in which the scheme itself provides acquiring and issuing services and card-based payment transactions are made from the payment account of a payer to the payment account of a payee within the scheme. When a three party payment card scheme licenses other payment service providers for the issuance of card-based payment instruments or the acquiring of card-based payment transactions, or both, or issues card-based payment instruments with a co-branding partner or through an agent, it is considered to be a four party payment card scheme;

Trustee: A notary validated warrant needed for the administration in the name of a company.

Two-factor authentication: A person-identifying protocol for the sake of secured payments. Need to choose two factors, which can be: PIN code, SMS, or biometric data ( fingerprint, face recognition, retina scanner).

U

User: The natural person who installs the 4SPEND app and wants to use the instant payment service, account information service, and shopping discounts by using the application.

V

Visa: credit card issuing company.