Regulation E (“EFTA”) Policy

Overview

Priyo Inc. (“Priyo” or the “Company”) has developed this Regulation E Policy (“Policy”) to comply with the Electronic Fund Transfer Act (“EFTA”), which establishes the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer and remittance transfer services and of financial institutions or other persons that offer these services.
The Electronic Funds Transfer Act and its implementing Regulation E (collectively, “Reg E”) establish the basic rights, liabilities, and responsibilities of consumers who use electronic fund transfer (“EFT”) services and of financial institutions or other persons that offer these services. The primary objective of the act and regulation is the protection of individual consumers engaging in EFTs. Reg E sets forth specific disclosure (initial, periodic statement, change in terms, receipts, etc.) content and timing requirements, issuance of access devices, prepaid card requirements, stop payment rights on Pre-authorized EFTs, and error resolution requirements.
The Dodd-Frank Act granted rule making authority under the EFTA to the Consumer Financial Protection Bureau (“CFPB”) and, with respect to entities under its jurisdiction, granted authority to the CFPB to supervise and enforce compliance with the EFTA and its implementing regulations including Regulation E.

Policy Statement

Priyo recognizes the importance of satisfying the requirements of the EFTA and Regulation E when engaging in processes related to the deposit accounts, debit cards and remittance services the Company offers to consumers through its platform and in partnership with the sponsor bank. It is the policy of Priyo to comply with the requirements of the EFTA and Regulation E that apply
to its business activity, and as amended from time to time. This Policy directs Management to develop appropriate procedures to ensure compliance with the EFTA and Reg E, and controls to prevent any violations of law, regulations, statute, or other requirement.
Reg E Subpart A applies to electronic fund transfers (“EFTs”). Reg E Subpart B applies to remittance transfers, which are applicable to Priyo.
Priyo is committed to protecting the rights of consumers who use the EFT services that the Company offers.

Responsibilities

Chief Compliance Officer

The CCO, or designee (individually and collectively, referred to herein as Compliance) will report directly to the executive team and is responsible for owning, maintaining and enforcing this Policy. The executive team will maintain oversight of this Policy and must be informed of any deficiencies identified through compliance monitoring that require corrective action. At least annually, Compliance will review this Policy and recommend appropriate changes to the executive team. The review will include feedback on the effectiveness of this Policy and will consider the results of any internal or external audits or examinations. Any interim changes to this Policy must be submitted to the executive team to determine if the changes are material enough to require approval from the executive team. Compliance institutes proper controls that ensure the requirements of this Policy are followed and identifies and ensures Company managers and employees who are affected by this Policy are made aware of its requirements. Compliance also ensures all appropriate personnel have access to resources necessary to comply with this Policy.
In conjunction with the Company’s partner, Priyo offers deposit account products to consumers. While the Company’s partner bank is the “financial institution” subject to the requirements of Regulation E, Priyo is responsible for carrying out the operational processes related to complying with the provisions set forth by the Regulation.
Priyo and its partner bank jointly offer prepaid accounts as defined by Subpart A of Regulation E, and remittance transfer services to consumers as defined in Subpart B of the Regulation. Should the Company’s product offerings change to the extent that there is additional Regulation E impact to Priyo, this Policy will be amended accordingly.
Regulation E applies to any electronic fund transfer that authorizes Priyo to debit or credit a consumer’s account. The requirements of the Regulation apply only to covered accounts. Covered accounts, for purposes of the Regulation, are those for which an agreement for EFT services to or from the account have been entered in to between:

• A consumer and Priyo;
• A consumer and a third-party, when the account holding financial institution has received notice of the agreement and the fund transfers have begun.

Regulation E applies to all persons (including offices of foreign financial institutions in the United States) that offer EFT services to residents of any state, and it covers any account located in the United States through which EFTs are offered to a resident of a State, no matter where a particular transfer occurs or where the financial institution is chartered. Regulation E does not apply to a foreign branch of a U.S. financial institution unless the EFT services are offered in a connection with an account in a state.

Key Definitions

A. Electronic Fund Transfer or EFT. Any transfer of funds that is initiated through an electronic terminal (point-of-sale), telephone, computer, magnetic tape or any other electronic means (such as Automated Clearing House (ACH) transactions) for the purpose of ordering, instructing or authorizing a financial institution to debit or credit a consumer’s account. EFT does not include fund transfers by check, draft or similar paper instrument, or a wire or similar transfer.

B. Account. A demand deposit (checking), savings or other consumer asset account (other than an occasional or incidental credit balance in a credit plan) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes and does not include an account held under a bona fide trust agreement.

C. Access Device. A card, code, or other means of access to a consumer’s account, or any combination thereof, that may be used by the consumer to initiate electronic fund transfers.

D. Pre-authorized EFT. An EFT authorized in advance to recur at substantially regular intervals.

E. Business day. Any day on which the offices of the consumer’s financial institution are open to the public for carrying on substantially all business functions.

Deposit and Payment Requirements

Initial Disclosures

Disclosures required under Regulation E are to be clear and readily understandable, in writing, and in a form that the customer may keep.

Initial written disclosures will be made at the time a customer contracts for an EFT service or prior to the time of the first EFT involving the customer’s account. If an EFT service is added to a
customer’s account and is subject to terms and conditions different from those described in the initial disclosures, the Company will provide disclosures for the new service.

• The contents of such disclosures will include, as they may apply:
  A summary of the customer’s liability under Regulation E and under state or other applicable law or agreement for unauthorized EFTs;
• The telephone number and address for reporting a lost or stolen access device or possible unauthorized transfer;
• The Company’s business days;
• The type of EFTs that the customer may make and any limitations on the frequency and dollar amount of transfers;
• Any fees the Company imposes for EFTs or for the right to make transfers;
• A summary of the customer’s right to receipts and periodic statements, including the extent and/or limits of confidentiality;
• A summary of the customer’s right to stop payment of a preauthorized EFT and the procedure for placing a stop-payment order;
• A summary of the Company’s liability to the customer for failure to make or to stop certain transfers;
• The circumstances under which, in the ordinary course of business, the Company may provide information concerning the customer’s account to third parties;
• A notice that is substantially similar to the model form in the regulation concerning error resolution; and
• If applicable, a notice that a fee may be imposed by an ATM operator when the customer initiates an EFT or makes a balance inquiry, and by any network used to complete the transaction.

Change in Terms

If the Company contemplates a change in terms, it will provide consumers a written or electronic notice at least 21 days before the effective date of any change in terms that results in any of the following:

• Increased fees or charges;
• Increased liability for the consumer;
• Fewer types of available EFTs; or
• Stricter limitations on the frequency or dollar amounts of transfers.

At times, the Company may need to implement changes to maintain or restore the security of an EFT system or account. In such instances, the Company is not required to provide consumers with notice prior to the change. However, if the change is to be made permanent, the Company will provide notice to the consumer on or with the next periodic statement or within 30 days, unless the Company determines that any disclosures would jeopardize the security of the system or account.

Error Resolution Notice

For accounts to or from which electronic fund transfers can be made, Priyo will mail or deliver to the consumer, at least once each calendar year, an error resolution notice. It is Priyo’s policy to use the model forms provided under the Regulation.

Periodic Statements

Priyo will provide the customer with a periodic statement for each monthly cycle where an EFT occurred, or at least quarterly if an EFT did not occur. For each EFT made during the statement period, the periodic statement the Company provides will include, as applicable:

• The amount of the transfer;
• The date the transfer was credited or debited to the consumer’s account;
• The type of transfer and type of account to or from which funds were transferred;
• For transfer initiated by the consumer at the electronic terminal, the location of that terminal (except for a deposit of cash or a check, draft, or similar paper instrument);
• The name of any third party to or from whom funds were transferred;
• The number of the account;
• The amount of any fees assessed against the account during the statement period for EFTs, the right to make transfers, or account maintenance;
• The balance in the account at the beginning and at the close of the statement period;
• Address and telephone number to be used by the consumer for inquiries or notice of errors; and
• A telephone number the consumer may call to ascertain whether the preauthorized transfers to the consumer’s account have occurred.

Issuance of Access Devices

An access device is a card, password, username, code, or other means of access to a consumer’s account that may be used for the purpose of initiating electronic fund transfers. The Company may issue an access device to a customer only if it is in response to an oral or written request for the device or if it is a renewal or substitute for an access device.

An access device issued by Priyo becomes an “accepted access device” when the consumer:

• Requests and receives, or signs, or uses (or authorizes another to use) the access device to transfer money between accounts or to obtain money, property, or services;
• In response to the consumer’s verbal (for example a telephone solicitation) or written request;
• Receives an access device in renewal of, or in substitution for, an accepted access device from either the financial institution that initially issued the device or a successor.

Consumer Liability for Unauthorized Transfers

If the consumer notifies Priyo within two business days after learning of the loss or theft of the access device, the consumer’s liability shall not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the Company.

If the consumer fails to notify the Company within two business days after learning of the loss or theft of the access device, the consumer’s liability shall not exceed the lesser of $500 or the sum of:

• $50 or the amount of unauthorized transfers that occur within the two business days, whichever is less; and
• The amount of unauthorized transfers that occur after the close of two business days and before notice to the Company, provided the Company establishes that these transfers would not have occurred had the consumer notified the Company within that two-day period.

If a statement shows unauthorized transfers without an access device, consumers must notify the Company within 60 days of statement delivery.

• If the customer notifies Priyo within 60 days, there is NO customer liability.
• If the customer notifies Priyo after 60 days, there is no customer liability for the first 60 days, but customer liability is unlimited during the time period between 60 days and notification.

Example: A consumer’s account is electronically debited for $200 without the consumer’s authorization. If the consumer notifies the Company within 60 days of the transmittal of the periodic statement that shows the unauthorized transfer, the consumer has no liability. However, if in addition to the $200, the consumer’s account is debited for a $400 unauthorized transfer on the 61st day and the consumer fails to notify the Company of the first unauthorized transfer until the 62nd day, the consumer may be liable for the full $400.

If a periodic statement shows an unauthorized transfer made with a lost or stolen debit card, the consumer must notify the Company within 60 calendar days after the periodic statement was sent; otherwise, the consumer faces unlimited liability for all unauthorized transfers made after the 60-day period. The consumer’s liability for unauthorized transfers before the statement is sent, and up to 60 days following, is determined based on the first two tiers of liability: up to $50 if the consumer notifies the Company within two business days of learning of the loss or theft of the card and up to $500 if the consumer notifies the Company after two business days of learning of the loss or theft.

If the consumer’s delay in notifying Priyo was due to extenuating circumstances (such as extended travel or hospitalization), Priyo is required to extend the times specified above to a reasonable period.
Notice to Priyo is given when a consumer takes steps reasonably necessary to provide Priyo with the pertinent information, whether or not a particular employee or agent of the Company actually receives the information. Even if the consumer is unable to provide the account number or the card number, the notice effectively limits the consumer’s liability if the consumer sufficiently identifies the account in question, for example, by giving the name of the account and the type of account.

At the consumer’s option, the consumer may notify Priyo by telephone or in writing.

Written notice is considered given at the time the consumer mails the notice or delivers it for transmission to Priyo by any other usual means. Notice may be considered constructively given when Priyo becomes aware of circumstances leading to the reasonable belief that an unauthorized transfer to or from the consumer’s account has been or may be made.

If State law or an agreement between the consumer and Priyo imposes less liability than is provided by this section of the Act, the consumer’s liability must not exceed the amount imposed under the state law or agreement.

Preauthorized Transfers

A preauthorized transfer is an EFT authorized in advance to recur at substantially regular intervals. Preauthorized electronic transfers from a consumer’s account may be authorized only by a writing signed or similarly authenticated by the consumer. When Priyo obtains the authorization, Priyo will provide a copy of the authorization to the consumer.

When an account is scheduled to be credited by a preauthorized EFT from the same payor at least once every 60 days, Priyo must provide some form of notice to the consumer so that the consumer can find out whether the transfer occurred. Priyo must either:

• Provide the consumer oral or written notice within two business days after preauthorized transfer occurs;
• Provide the consumer oral or written notice, within two business days after the preauthorized transfer was scheduled to occur, if the transfer did not occur; or
• Provide a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclose the telephone number on the initial disclosure of account terms and on each periodic statement.

Priyo is not required to provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.

When Priyo receives a preauthorized transfer, the Company must credit the amount of the transfer as of the date the funds for the transfer are received.

Priyo must honor an oral stop-payment order made at least three business days before a scheduled debit. If the debit item is resubmitted, the Company must continue to honor the stop-
payment order (for example, by suspending all subsequent payments to the payee-originator until the consumer notifies the institution that payment should resume).

Once Priyo has been notified that the consumer’s authorization is no longer valid, the Company must block all future payments for the particular debit transmitted by the designated payee-originator. Priyo may not wait for the payee-originator to terminate the automatic debits. Priyo may confirm that the consumer has informed the payee-originator of the revocation (for example, by requiring a copy of the consumer’s revocation as written confirmation to be provided within 14 days of an oral notification). If Priyo does not receive the required written confirmation within the 14-day period, it may honor subsequent debits to the account.

If Priyo does not have the capability to block a preauthorized debit from being posted to the consumer’s account (ex., a preauthorized debit made through a debit card network or other system) the Company may instead comply with the stop-payment requirements by using a third party to block the transfer(s), as long as the consumer’s account is not debited for the payment.

A consumer may not stop payment of a preauthorized EFT from the consumer’s account by notifying Priyo orally or in writing at least three business days before the scheduled date of the transfer.

Priyo may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. If Priyo requires written confirmation from the consumer, the Company must inform the consumer of the requirement and provide the address where confirmation must be sent with the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.

Notice of Transfers Varying in Amount

If a preauthorized electronic fund transfer from the consumer’s account will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, Priyo will send the consumer a written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.

Procedures for Resolving Errors

If a consumer identifies a potential error related to an electronic fund transfer (e.g. ACH or preauthorized transfer), Priyo’s Operations team will review the circumstances of the request and notify Compliance of the dispute. Priyo will respond to the consumer within 10 business days unless notice is provided to the consumer within 10 business days that additional time is needed to research the dispute. In any event, disputes must be resolved no later than 45 days after receipt. The response to the customer will include all applicable information that supports the Company’s conclusion such as the end result of the research, whether an error was made, and any remediation associated with the error. Please see below for additional details related to timing, provisional credits, and notifications.

Applicability / Definitions

These requirements only apply if Priyo is notified not later than 60 days after delivering a periodic statement that first reflects the error. The term “error” includes but is not limited to:

• An unauthorized electronic fund transfer;
• An incorrect electronic fund transfer to or from the consumer’s account;
• The omission of an electronic fund transfer from a periodic statement;
• A computational or bookkeeping error made by Priyo relating to an electronic fund transfer;
• The consumer’s receipt of an incorrect amount of money from an electronic terminal;
• An electronic fund transfer that is not properly identified;
• A consumer’s request for information required by Regulation E or for additional information or clarification so that the consumer can determine whether an error exists.

The term “error” does not include:

• A routine inquiry about the consumer’s account balance;
• A request for information for tax or other recordkeeping purposes; or
• A request for duplicate copies of documentation.

Timeline / Process

Priyo must promptly investigate any notice from a customer by phone, in writing, or through the mobile application of an error that:

• Is received not later than 60 days after sending a periodic statement, or other documentation that first reflected the error;
• Allows the Company to properly identify the member’s name and account number; and
• Indicates why the member believes the error exists and the type, date, and amount of error (to the extent possible the member can provide those details.

Upon receipt of the notice of the error, Priyo must:

If able to finish investigation within 10 business days

If NOT able to finish investigation within 10 business days

If our investigation reveals no error occurred or different error than claimed (applicable to both 10 and 45 day timelines).

Sponsor Bank Reporting and Review

Priyo’s partner bank may periodically request documentation of Regulation E errors and disputes for testing purposes. Priyo will provide requested documentation timely and completely and facilitate the partner bank’s testing processes. The partner bank may also require Priyo to provide periodic reports of Regulation E errors and disputes to determine the volume and nature of issues related to the Company’s deposit account and debit card products and services, and Priyo’s associated resolution and/or remediation.

The Remittance Rule Requirements

Coverage and Scope

Regulation E identifies remittance transfer providers (“providers”) as those financial institutions that consistently conduct over 500 remittance transfers per year. For purposes of the Rule, a remittance transfer is an electronic transfer of funds requested by a consumer to a designated recipient that is sent by a remittance transfer provider and that is more than $15. The consumer must be located in the United States and the funds transfer is sent to a person or business in a
foreign country. These transfers may include different types of international transfers such as cash-to-cash money transfers, international wire transfers, international ACH transactions, and certain prepaid card transfers.

For transfers sent to an account, funds are considered to be physically received at a location outside of any state if the designated recipient’s account is located outside of any state in the U.S (foreign country). Transfers to U.S. military bases located in other countries are treated as “states”, and are therefore considered domestic transfers, and not under the purview of the Remittance Rule.

Only consumer-to-consumer transfers and consumer-to-business transfers are covered under the Rule (Regulation E defines a “consumer” as a natural person). The following transactions are NOT covered under the Rule:

• Business-to-consumer transfers
• Business-to-business transfers
• Transfers where the consumer provides a checking account number directly to a foreign merchant, and the merchant subsequently initiates an ACH payment request from the consumer’s bank
• Transfers of $15 or less
• Certain transfers in connection with the purchase or sale of securities
• Domestic transfers within the U.S. territory
• Transfers involving cryptocurrency

Disclosure Requirements

It is the policy of Priyo to comply with the disclosure requirements set forth by Regulation E. All disclosures provided to consumers will conform to the following standards.

Clear and Conspicuous

Disclosures are clear and conspicuous if they are readily understandable and, in the case of written and electronic disclosures, the location and type size are readily noticeable to senders.

Disclosures may contain commonly accepted or readily understandable abbreviations or symbols, such as “USD” to indicate currency in U.S. dollars or “MXN” to indicate currency in Mexican pesos.

Written and Electronic Disclosures

Priyo will ensure that disclosures are provided to the sender in writing. Priyo may provide disclosures electronically, if the sender electronically requests Priyo to send the remittance transfer. Priyo will ensure that written and electronic disclosures generally are made in a retainable form. However, for any disclosures Priyo provides to consumers via mobile application or text message, as permitted by Regulation E, records need not be retainable.

Disclosures for Mobile Application or Text Message Transaction

Pre-payment disclosures, as defined by Regulation E, may be provided orally or via mobile application or text message if:

• The transaction is conducted entirely by telephone via mobile application or text message
• The disclosure is made in the language primarily used by the sender with Priyo to conduct the transaction
• Priyo discloses via mobile application or text message a statement about the sender’s rights regarding cancellation, including timing requirements, and
• Priyo discloses via mobile application or text message the following, as applicable:
  • For any remittance transfer scheduled at least three business days before the date of transfer, the date Priyo will make or made the remittance transfer using the term “Transfer Date” or a substantially similar term
  • For any subsequent transfer in a series of preauthorized remittance transfers, the date Priyo will make the subsequent transfer, using the term “Future Transfer Date,” or a substantially similar term, or/or
  • For any subsequent preauthorized remittance transfer for which the date of transfer is four or fewer business days after the date payment is made for that transfer, the information is provided in accordance with the timing requirements set forth by Regulation E

Disclosure Content Requirements

Pre-payment Disclosure

Before a sender pays for a remittance transfer, Priyo will provide a “pre-payment disclosure” that includes the following information, as applicable:

• The amount that will be transferred to the designated recipient, in the currency in which the remittance transfer is funded, using the term “Transfer Amount” or a substantially similar term
• Any fees imposed and any taxes collected on the remittance transfer by Priyo, in the currency in which the remittance transfer is funded, using the terms “Transfer Fees” for fees and “Transfer Taxes” for taxes, or substantially similar terms
• The total amount of the transaction, which is the sum of the transfer amount and the transfer fees, in the currency in which the remittance transfer is funded, using the term “Total” or a substantially similar term
• The exchange rate used by Priyo for the remittance transfer, rounded consistently for each currency to no fewer than two decimal places and no more than four decimal places, using the term “Exchange Rate” or a substantially similar term
• The transfer amount, in the currency in which the funds will be received by the designated recipient, but only if covered third-party fees are imposed using the term “Transfer Amount” or a substantially similar term
  • The exchange rate used to calculate this amount is the exchange rate as noted above, including an estimated exchange rate, prior to any rounding of the exchange rate
• Any covered third-party fees, in the currency in which the funds will be received by the designated recipient, using the term “Other Fees,” or a substantially similar term.
  • The exchange rate used to calculate any covered third-party fees is the exchange rate as noted above, including an estimated exchange rate, prior to any rounding of the exchange rate
• The amount that will be received by the designated recipient, in the currency in which the funds will be received, using the term “Total to Recipient” or a substantially similar term except that this amount will not include non-covered third-party fees or taxes collected on the remittance transfer by a person other than Priyo, regardless of whether such fees or taxes are disclosed
  • The exchange rate used to calculate any covered third-party fees is the exchange rate as noted above, including an estimated exchange rate, prior to any rounding of the exchange rate
• A statement indicating that non-covered third-party fees or taxes collected on the remittance transfer by a person other than Priyo may apply to the remittance transfer and result in the designated recipient receiving less than the “Total to Recipient” amount
  • Priyo may only include this statement to the extent that such fees or taxes do or may apply to the transfer, using the language set forth in the model forms provided under Regulation E, as appropriate, or substantially similar language
  • In this statement, Priyo also may, but is not required, to disclose any applicable non-covered third-party fees or taxes collected by a person other than the provider.
    • Any such figure must be disclosed in the currency in which the funds will be received, using the language set forth in model forms provided under Regulation E, as appropriate, or substantially similar language
  • The exchange rate used to calculate any covered third-party fees is the exchange rate as noted above, including an estimated exchange rate, prior to any rounding of the exchange rate

Receipt

Once payment is made for the transfer, Priyo must provide the sender with a “receipt” that includes the following information, as applicable:

• The pre-payment disclosure
• The date in the foreign country on which funds will be available to the designated recipient, using the term “Date Available” or a substantially similar term
  • Priyo may provide a statement that funds may be available to the designated recipient earlier than the date disclosed, using the term “may be available sooner” or a substantially similar term
• The name and, if provided by the sender, the telephone number and/or address of the designated recipient, using the term “Recipient” or a substantially similar term
• A statement about the sender’s right regarding the resolution of errors and cancellation, using language set forth in the model form provided under Regulation E or substantially similar language
  • For any remittance transfer scheduled by the sender at least three business days before the date of the transfer, the statement about the sender’s rights regarding cancellation must instead reflect the requirements for such transfers
  • Priyo’s name, telephone number(s), and website
  • A statement that the sender can contact the State agency that licenses or charters Priyo with respect to the remittance transfer and the CFPB for questions or complaints about
  • Priyo, using language set forth in the model form provided under Regulation E or substantially similar language
    • The disclosure must provide the name, telephone number(s), and website of the State agency that licenses or charters Priyo with respect to the remittance transfer and the name, toll-free telephone number(s), and website of the Consumer Financial Protection Bureau
  • For any remittance transfer scheduled by the sender at least three business days before the date of the transfer, or the first transfer in a series of preauthorized remittance transfers, the date Priyo will make or made the remittance transfer, using the term “Transfer Date,” or a substantially similar term

Combined Disclosures

General Requirements

As an alternative to providing the pre-payment disclosure and receipt separately, Priyo may provide the receipt, as applicable, at the same time as the pre-payment disclosure and in accordance with the timing requirement for the pre-payment disclosure.

If Priyo provides the combined disclosure and the sender completes the transfer, Priyo must provide the sender with proof of payment when payment is made for the remittance transfer. The proof of payment must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form.

Transfers Schedule Before the Date of Transfer

If the combined disclosure for a transfer scheduled before the date of transfer, and payment is not processed by Priyo at the time the remittance transfer is scheduled, Priyo may provide confirmation that the transaction has been scheduled in lieu of the proof of payment as described above. The confirmation of scheduling must be clear and conspicuous, provided in writing or electronically, and provided in a retainable form.

Estimates

Estimated disclosures may be provided to extent permitted under Regulation E. Estimated disclosures must be described using the term “Estimated” or a substantially similar term in close proximity to the estimated terms or terms. Refer to the section on Estimates within this Policy for more information.

Specific Format Requirements

Regulation E sets specific formatting requirements for the pre-payment disclosures, receipts, and combined disclosure, and other notices that must be provided under the Remittance Rule. This includes standards to for the grouping and proximity of information, prominence and size of text, and the segregation of the disclosures from other information.
Regulation E provides model forms for the pre-payment disclosure, receipt, combined disclosure, and other notices that meet the content requirements and formatting standards set forth above. It is Priyo’s policy to use the model forms.

Disclosure Timing

Except for a one-time transfer scheduled five or more business days before the date of transfer, or the first in a series of preauthorized remittance transfers, Regulation E requires Priyo to provide to the sender:

• Any pre-payment disclosure or combined disclosure when the sender requests the remittance transfer, but prior to payment for the transfer
• Any receipt when payment is made for the remittance transfer:
  • If a transaction is conducted entirely by telephone, a receipt may be mailed or delivered to the sender no later than one business day after the date on which payment is made for the remittance transfer
  • If a transaction is conducted entirely by telephone and involves the transfer of funds from the sender’s account held by Priyo, the receipt may be provided on or with the next regularly scheduled periodic statement for that account or within 30 days after payment is made for the remittance transfer if a periodic statement is not provided
  • The statement about the sender’s rights to cancellation may, but need not, be disclosed pursuant to the timing requirements of this paragraph if a provider discloses this information in accordance with the requirements for oral disclosures over the phone

Disclosure Accuracy When Payment is Made

Except for a one-time transfer scheduled five or more business days before the date of transfer, or the first in a series of preauthorized remittance transfers, Regulation E requires Priyo to provide disclosures that are accurate when a sender makes payment for the remittance transfer, except to the extent estimates are permitted. Refer to the Estimated Disclosures section of this Policy for more information.

Foreign Language Disclosures

General

Priyo will provide all disclosures in English, and if applicable, either in:

• Each of the foreign languages principally used by Priyo to advertise, solicit, or market remittance transfer services, either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, or
• The foreign language primarily used by the sender with the remittance transfer provider to conduct the transaction (or for written or electronic disclosures, in the foreign language primarily used by the sender with the remittance transfer provider to assert the error), provided that such foreign language is principally used by Priyo to advertise, solicit, or market remittance transfer services, either orally, in writing, or electronically, at the office in which a sender conducts a transaction or asserts an error, respectively

Oral, Mobile Application, or Text Message Disclosures

For transactions conducted orally and entirely by telephone under, or orally or via mobile application or text message for transactions conducted via mobile application or text message, Priyo will ensure that disclosures are made in the language primarily used by the sender with the Company to conduct the transaction.

Priyo will ensure disclosures provided orally for error resolution purposes are made in the language primarily used by the sender with the remittance transfer provider to assert the error.

Estimated Disclosures

Transfers to Certain Countries

For transfers to certain countries, Priyo may provide estimated disclosures if the Company cannot determine the amounts when the disclosure is required because:

• The laws of the recipient country do not permit such a determination, or
• The method by which transaction are made in the recipient country does not permit such a determination

Priyo may rely on the list of countries published by the CFPB to determine if estimates may be provided, unless the Company has information that a country’s laws or the method by which transactions are conducted in that country permits a determination of the exact disclosure amount.

Transfers Schedule Before the Date of Transfer

Under Regulation E, Priyo may provide estimates if the remittance transfer is schedule by a sender five or more business days before the date of transfer. In addition, if at the time the sender schedules such a transfer, Priyo agrees to a sender’s request to fix the amount to be transferred in the currency in which the remittance transfer will be received and not the currency in which it is funded, estimates may also be provided for the amounts to be disclosed.
Covered third-party fees may be estimated only if the exchange rate is also estimated and the estimated exchange rate affects the amount of such fees.

Fees and taxes may be estimated only if the amount that will be transferred in the currency in which it is funded is also estimated and the estimated amount affects the amount of such fees and taxes.

Optional Disclosure of Non-Covered Third-Party Fees and Taxes Collected by a Person Other Than the Provider

Priyo may provide estimates for applicable non-covered third-party fees and taxes collected on the remittance transfer by a person other than Priyo provided such estimates are based on reasonable sources of information.

Basis for Estimates

Estimates must be based on the below-listed approach or approaches, except as otherwise permitted by Regulation E. If Priyo bases an estimate on an approach that is not listed below, the Company is deemed to be in compliance with Regulation E so long as the designated recipient receives the same, or greater, amount of funds than Priyo disclosed.

Exchange Rate

In disclosing the Exchange Rate, Priyo will ensure an estimate will be based on one of the following:

• For remittance transfers sent via international ACH, the most recent exchange rate set by the recipient country’s central bank or other governmental authority and reported by a Federal Reserve Bank
• The most recent publicly available wholesale exchange rate and, if applicable, any spread that Priyo or its correspondent typically applies to such a wholesale rate for remittance transfers for that currency, or
• The most recent exchange rate offered or used by the person making funds available directly to the designated recipient or by the person setting the exchange rate

Transfer Amount in the Currency in Which the Funds Will be Received by the Designated Recipient

In disclosing the transfer amount in the currency in which the funds will be received by the designated recipient, Priyo will ensure the estimate is based on the estimated exchange rate prior to any rounding of the estimated exchange rate.

Covered Third-party Fees

In disclosing covered third-party fees that are a percentage of the amount transferred to the designated recipient, Priyo will ensure the estimated exchange is based on the estimated exchange rate prior to any rounding of the estimated exchange rate.

In disclosing covered third-party fees, Priyo will ensure the estimate must be based on one of the following:

• The Company’s most recent remittance transfer to the designated recipient’s institution, or
• A representative transmittal route identified by Priyo

In disclosing the amount of currency that will be received by the designated recipient, Priyo will ensure the estimate is based on the information provided in accordance with the requirements for the exchange rate, currency in which the funds will be received by the designated recipient, and covered third-party fees as described above.

Bases for Estimates for Transfers Scheduled Before the Date of Transfer

Estimates provided must be based on the exchange rate or, where applicable, the estimated exchange rate based on an estimation methodology that Priyo would have used or did use that day in providing disclosures to a sender requesting such a remittance transfer to be made on the same day.

If Priyo uses one of the above-described bases for estimates, the Company is deemed to be in compliance with Regulation E regardless of the amount received by the designated recipient, so long as the estimation methodology is the same that Priyo would have used or did use in providing disclosures to a sender requesting such a remittance transfer to be made on the same day.

Procedures for Cancellation and Refund of Remittance Transfers

Sender’s Right of Cancellation and Refund

Except for transfers scheduled before the date of transfer, Priyo will comply with the requirements set forth by Regulation E with respect to any oral or written request to cancel a remittance transfer from the sender that is received by the Company no later than 30 minutes after the sender makes payment in connection with the remittance transfer if:

• The request to cancel enables Priyo to identify the sender’s name and address or telephone number and the particular transfer to be cancelled, and
• The transferred funds have not been picked up by the designated recipient or deposited into an account of the designated recipient

Time Limits and Refund Requirements

Priyo will refund, at no additional cost to the sender, the total amount of funds provided by the sender in connection with a remittance transfer, including any fees and, to the extent not prohibited by law, taxes imposed in connection with the remittance transfer, within three business days of receiving a sender’s request to cancel the remittance transfer.

Form of Refund

At the Company’s discretion, Priyo generally may issue a refund either in cash or in the same form of payment that was initially provided by the sender for the remittance transfer. For example, if the sender originally provided a credit card as payment for the transfer, Priyo may issue a credit to the sender’s credit card account in the amount of the payment. However, if a sender initially provided cash for the remittance transfer, a provider may issue a refund by check. For example, if the sender originally provided cash as payment for the transfer, the provider may mail a check to the sender in the amount of the payment.

Fees and Taxes Refunded

If a sender provides a timely request to cancel a remittance transfer, Priyo will refund all funds provided by the sender in connection with the remittance transfer, including any fees and, to the extent not prohibited by law, taxes that have been imposed for the transfer, whether the fee or tax was assessed by the Priyo or a third party, such as an intermediary institution, the agent or bank in the recipient country, or a State or other governmental body.

Procedures for Resolving Errors

Definition of Error

For purposes of the Remittance Rule, the term error means:

• An incorrect amount paid by a sender in connection with a remittance transfer unless the disclosure stated an estimate of the amount paid by a sender in and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amount
• A computational or bookkeeping error made by Priyo relating to a remittance transfer
• The failure to make available to a designated recipient the amount of currency disclosed and stated in the disclosure provided to the sender for the remittance transfer, unless:
  • The disclosure stated an estimate of the amount to be received (and complies with the estimated disclosure requirements of Regulation E), and the difference results from application of the actual exchange rate, fees, and taxes, rather than any estimated amounts, or
  • The failure resulted from extraordinary circumstances outside Priyo’s control that could not have been reasonably anticipated, or
  • The difference results from the application of non-covered third-party fees or taxes collected on the remittance transfer by a person other than Priyo and Priyo provided a pre-payment disclosure that included a statement indicating that non-covered third-party fees or taxes collected on the remittance transfer by a person other than Priyo may apply to the remittance transfer and may result in the designated recipient receiving less than the “Total to Recipient” amount
• The failure to make funds available to a designated recipient by the date of availability stated in the disclosure provided to the sender for the remittance transfer, unless the failure to make the funds available resulted from:
  • Extraordinary circumstances outside Priyo’s control that could not have been reasonably anticipated
  • Delays related to a necessary investigation or other special action by Priyo or a third party as required by the Company’s fraud screening procedures or in accordance with the Bank Secrecy Act (31 U.S.C. 5311 et seq.), Office of Foreign Assets Control requirements, or similar laws or requirements
  • The remittance transfer being made with fraudulent intent by the sender or any person acting in concert with the sender, or
  • The sender having provided Priyo an incorrect account number or recipient institution identifier for the designated recipient’s account or institution, provided that Priyo establishes that the sender provided the wrong recipient information (account number or institutions identifier)
• The sender’s request for documentation for additional information or clarification concerning a remittance transfer, including a request a sender makes to determine whether an error exists

The term error does not include:

• An inquiry about the status of a remittance transfer, except where the funds from the transfer were not made available to a designated recipient by the disclosed date of availability
• A request for information for tax or other recordkeeping purposes
• A change requested by the designated recipient, or
• A change in the amount or type of currency received by the designated recipient from the amount or type of currency stated in the disclosure provided to the sender if the remittance transfer provider relied on information provided by the sender as in making such disclosure

Notice of Error from Sender

Priyo will comply with the following requirements of Regulation E with respect to any oral or written notice of error from a sender that:

• Is received by Priyo no later than 180 days after the disclosed date of availability of the remittance transfer
• Enables Priyo to identify:
  • The sender’s name and telephone number or address
  • The recipient’s name, and if known, the telephone number or address of the recipient, and
  • The remittance transfer to which the notice of error applies, and
• Indicates why the sender believes an error exists and includes to the extent possible the type, date, and amount of the error, except for requests for documentation, additional information, or clarification described above

When a notice of error is based on documentation, additional information, or clarification that the sender previously requested, the sender’s notice of error is timely if received by Priyo the later of 180 days after the disclosed date of availability of the remittance transfer or 60 days after Priyo sent the documentation, information, or clarification that had been requested.

Time Limits and Extent of Investigation

Time Limits for Investigation and Report to Consumer of Error

Priyo will promptly investigate and determine whether an error occurred within 90 days of receiving a notice of error. The Company will report the results to the sender, including notice of any remedies available for correcting any error that Priyo determines has occurred, within three business days after completing its investigation.

Remedies

If following an assertion of an error by a sender, Priyo determines an error occurred, the Company will, within one business day of or as soon as reasonably practicable after receiving the sender’s instructions regarding the appropriate remedy, correct the error as required by Regulation E.

Remedies for Errors Resulting in an Incorrect Amount Paid

In the case of any error resulting in an incorrect amount paid, a computational or bookkeeping error, or failure to make available the amount of currency disclosed to the designated recipient, Priyo will, as applicable, either:

• Refund to the sender the amount of funds provided by the sender in connection with a remittance transfer which was not properly transmitted, or the amount appropriate to resolve the error, or
• Make available to the designated recipient, without additional cost to the sender or to the designated recipient, the amount appropriate to resolve the error

Remedies for Errors Resulting in a Failure to Make Funds Available on Time

In the case of an error resulting in a failure to make funds available to a designated recipient by the date of availability stated in the disclosure, Priyo will:

• As applicable, either:
  • Refund to the sender the amount of funds provided by the sender in connection with a remittance transfer which was not properly transmitted, or the amount appropriate to resolve the error, or
  • Make available to the designated recipient the amount appropriate to resolve the error (Such amount must be made available to the designated recipient without additional cost to the sender or to the designated recipient), and
• Refund to the sender any fees imposed and, to the extent not prohibited by law, taxes collected on the remittance transfer

Remedies for Errors Resulting from Incorrect Information Provided by the Sender

In the case of an error resulting in a failure to make funds available to a designated recipient by the date of availability stated in the disclosure occurred because the sender provided incorrect or insufficient information in connection with the remittance transfer, Priyo will provide the above remedies within three business days of providing the report except that Priyo may agree to the sender’s request, upon receiving the results of the error investigation, that the funds be applied towards a new remittance transfer, rather than be refunded, if Priyo has not yet processed a refund.

• Priyo may deduct from the amount refunded or applied towards a new transfer any fees actually imposed on or, to the extent not prohibited by law, taxes actually collected on the remittance transfer as part of the first unsuccessful remittance transfer attempt except that the Company will not deduct its own fee

Remedies for Errors Related to Requests for Information

In the case of a request by a sender for more information about the remittance transfer, providing the requested documentation, information, or clarification.

Procedures for When No Error or a Different Error Occurred

Priyo will follow the below procedures set forth by Regulation E if the Company determines that no error occurred or that an error occurred in a manner or amount different from that described by the sender.

Explanation of Results of Investigation

Priyo’s report of the results of the investigation will include a written explanation of the Company’s findings and will note the sender’s right to request the documents on which Priyo relied in making its determination. The explanation will also address the specific complaint of the sender.

Copies of Documentation

Upon the sender’s request, Priyo will promptly provide copies of the documents on which the Company relied in making its error determination.

Reassertion of Error

In the event a sender submits a duplicate notice of error (“reasserts error”), Priyo has no further responsibilities to investigate an error if the Company has fully complied with the error resolution requirements of Regulation E as described above, except in the case of an error asserted where the sender is requesting for additional information or clarification concerning a remittance transfer.

Relation to Other Laws

Notices of error related to remittance transfers, including those involving unauthorized transfers, may involve consumer accounts where the notice of error requirements of Subpart A of Regulation E would apply, rather than those described above. The requirements to comply with notice of error requirements of Subpart A of Regulation E only apply to the account-holding institution. Since Priyo does not offer accounts covered under Subpart A, the Company is not subject to the notice of error requirements of Subpart A.

Similarly, notices of error related to remittance transfers, including those involving unauthorized transfers, may involve extensions of credit covered by the Truth in Lending Act and Regulation Z. When such notices of errors occur, the creditor is responsible for satisfying any error resolution requirements under Regulation Z. Since Priyo does not offer such extensions of credit, the Company is not subject to Regulation Z requirements.

Error Resolution Standards and Recordkeeping Requirements

Compliance Program

Priyo will develop and maintain written policies and procedures that are designed to ensure compliance with the error resolution requirements applicable to remittance transfers set forth by Regulation E.

Retention of Error-related Documentation

Priyo’s policies and procedures will include policies and procedures regarding the retention of documentation related to error investigations. Such policies and procedures must ensure, at a minimum, the retention of any notices of error submitted by a sender, documentation provided by the sender to Priyo with respect to the alleged error, and the Company’s findings regarding the investigation of the alleged error.

Error Exception Due to Incorrect Information Provided by the Sender

Priyo is excepted from the notice of error requirements set forth by Regulation E if the sender provides an incorrect account number or recipient identifier for the designated recipient’s account or institution, and provided:

• Priyo can demonstrate that the sender provided an incorrect account number or recipient institution identifier to the Company in connection with the remittance transfer
• For any instance in which the sender provided the incorrect recipient institution identifier, prior to or when sending the transfer, Priyo used reasonably available means to verify that the recipient institution identifier provided by the sender corresponded to the recipient institution name provided by the sender
• Priyo provided notice to the sender before the sender made payment for the remittance transfer that, in the event the sender provided an incorrect account number or recipient institution identifier, the sender could lose the transfer amount
  • This notice must be provided in writing, unless the notice is given at the same time as other disclosures required by the Remittance Rule for which information is permitted to be disclosed orally or via mobile application or text message, in which case this disclosure may be given in the same medium as those other disclosures
• The incorrect account number or recipient institution identifier resulted in the deposit of the remittance transfer into a customer’s account that is not the designated recipient’s account, and
• Priyo promptly used reasonable efforts to recover the amount that was to be received by the designated recipient

Training

The Company will train all employees involved in customer interaction or customer service on EFTA each calendar year, and monitor and track completion of this training. Other periodic or ad hoc trainings may be added as required.

Record Retention

Regulation E requires institutions to retain all documentation, such as disclosures, consumer disputes, reports, and other miscellaneous documents mentioned in this Policy. Priyo will retain evidence of compliance with these requirements imposed by Reg E for a period of not less than two years from the date disclosures are required to be made or action is required to be taken. Regulation E also requires institutions to retain the records that pertain to an investigation, action, or proceeding until final disposition of the matter unless an earlier time is allowed by court or agency order. It is Priyo’s policy to retain all records, related to Regulation E for a minimum of two years, and in accordance with any other applicable law, regulation, or statue.