TERMS & CONDITIONS FOR THE USE OF CO-OPERATIVE BANK OF KENYA CREDIT CARD(S)

1. DEFINITIONS

In these conditions:

• “Agreement” means the agreement between the Bank and the Cardholder or additional or supplementary cardholder including these terms and Conditions of as may be varied from time to time.
• “Cardholder” means any person to whom a Credit Card is issued by the Bank.
• “Principal Cardholder” means person in whose name a Card Account is maintained pursuant to such person’s application for establishment of a Card Account.
• “Additional or supplementary Cardholder” means any person the Principal Cardholder has authorized the Bank to issue with a supplementary card.
• “Due Date” means the date printed on the Cardholder’s monthly statement by which date payment of the amount specified thereon must be made.
• “Bank” means, Co-operative Bank of Kenya Limited including its successors in title and permitted assigns.
• “Card” means the credit card issued by the Bank at the request and in the name of the person named upon it for use in connection with Credit card facilities provided by the Bank.
• “Card Account” means any account maintained by the Bank, which the accountholder(s) is/are entitled to operate, at their request to be able to give transaction instructions.
• “Card Transaction” means any transaction or service obtained by the Cardholder using the Card account.
• “PIN” means any Personal Identification Number issued to a Cardholder.
• “Annual Subscription Fee” means the fee charged by the Bank when opening a Card Account and on each subsequent anniversary of the date the Card Account was opened.
• “Statement” means the record of the monthly transactions of the Card Account sent to the Cardholder by the Bank in accordance with these conditions.
• “Credit limit” means the maximum debit balance permitted on the Card Account as determined by the Bank in its sole discretion and notified to the Principal Cardholder.
• “Charges” means all amounts charged and/or levied on a Card Account including but not limited to the joining fees, Annual Subscriptions fees , cost bills, liquidated damages, together with interest (accrued or accruing)and other Card fees
• ‘‘Kenya’’ means the Republic of Kenya.
• ‘‘Interest’’ means the interest charge applied on the Cardholder’s Card Account as advised by the Bank from time to time.
• “Lost or stolen card” means any card that gets out of possession of the bank recognized legitimate cardholder without their knowledge and or consent.
• ‘‘Application Form’’ means the form filled by the prospective Cardholder when applying to the Bank to be issued with a Card.
• ‘‘Corporate Cardholder’’ means any person to whom a body corporate has authorized the Bank to issue with a Card chargeable on such body Corporate’s main Card Account.
• “FX mark up” means a margin added above the value of the transaction arising from Card transactions done outside Kenya using a Kenya shilling denominated co-op card.
• “One Time Password (OTP)” means a unique verification code that the Bank will send to the card holder’s mobile or email address to complete an online transaction. The card holder should not share this code with third parties.
• “3D Secure Transactions” means transactions carried out on 3D Secure -EMV Three-Domain Secure (3DS) which is a messaging protocol that enables card holders to authenticate themselves with their card issuer when making card-not-present (CNP) e-commerce purchases. The purpose of the 3DS protocol is to facilitate the exchange of data between the e-commerce merchant, cardholder and the Bank. The objective is to benefit each of these parties by providing the ability to authenticate cardholders during a CNP e-commerce purchase, reducing the likelihood of fraudulent usage of payment cards.
• “Corporate card(s)” means a card issued to employees of a corporate entity or businesses subject to approval the corporate entity’s management.
• “Co-brand card(s)” means a card/cards which are jointly branded by the Bank and another independent entity as a result of a partnership or alliance between the Bank and the independent entity.

2. CONDITIONS OF THIS AGREEMENT

• These conditions as varied from time to time constitute the Agreement between the Cardholder and the Bank with respect to the issue and use of the Card.
• The Cardholder shall be deemed to have read, understood and agreed to be bound by these Conditions upon signing of the application form hereof.
• The Cardholder confirms in particular to have considered the rate of interest and all other charges levied by the Bank as specified in Condition 9 & the table of charges in clause 10.10 and found them to be fair, reasonable and necessary for the Card facility granted to him/her/it and agreed to be bound by the same.

3. THE CREDIT CARDS

• Use of Card
  • The Cardholder must sign his/her Card immediately on receipt and follow any instructions given by the Bank in relation to the use of the Card and keeping it safe.
  • A Card is not transferable and may not be used other than by the authorized Cardholder and shall remain the property of the Bank and must be returned to the Bank upon demand or cancellation.
  • The card is available for use subject to the terms of this Agreement to obtain credit card services at any card acceptor.
  • The cardholder will be expected to use his/her PIN to authorize any transactions requiring a PIN verification.
  • The card holder will be required to provide a current email address and mobile phone number to which the Bank will send a One Time Password (OTP) for every 3D secure transaction undertaken at a participating merchant using the card.
  • The Card is only valid for use during the validity period embossed on the Card. Until and unless this Agreement is terminated, the Bank shall renew the Card from time to time at the Cardholder’s cost without reference to the Cardholder.
  • The Bank may in its absolute discretion and without prior notice, at any time withdraw the right of a card holder to use the Card for, or to refuse any request for authorization of, any particular card transaction. The Bank will thereafter notify the card holder of any such withdrawal or refusal. The Banks decision shall be governed by its authorization parameters as may be determined from time to time at the banks sole discretion .
  • The Principal Cardholder and the additional or supplementary Cardholder(s) shall be jointly and severally liable for all charges incurred by the holder of the Card or levied by the Bank in connection with the use of the Card.
  • In case of corporate Cards, the respective corporate cardholder(s) and the main card account holder (body corporate) shall be jointly and severally liable for all the charges incurred by the cardholder or levied by the bank in connection with the use of the Card.
  • The card must not be used for any unlawful purpose, including the purchase of goods or services prohibited by local and international law.
• Corporate cards
  • In instances where the cardholder has a corporate card, the cardholder shall be jointly and severally liable with their employer for any balances owing on the corporate card.
  • The cardholder’s employer may give instructions in connection with, ask the Bank to terminate or ask the Bank to change the credit limit of a corporate card without reference to the card holder.
• Co-brand cards
  • The Bank may convert a co-brand card to another type of card
  • The Bank shall not be liable for any representations, promotions or obligations made by a business alliance partner in relation to co-brand cards.
• Cards issued by special arrangement
  • In instances where the credit card is issued as part of a special arrangement with an association, the Bank may:
    • Disclose information in connection with its Banking agreement with the association; and
    • The cardholder’s relationship with the association ends when the aforesaid banking agreement is terminated

4. ADDITIONAL OR SUPPLEMENTARY CARDHOLDER(S)

• The Bank may on the application of the principal card holder issue an additional or supplementary or supplementary Card for use by any person nominated by the Principal Cardholder in writing as an authorized user on the Principal Cardholder’s Card Account. Any additional or supplementary Card holder shall be bound by the terms and conditions herein.
• The Bank shall cancel any additional or supplementary Card at any time upon request in writing by the Principal Cardholder and the Principal Cardholder shall surrender the additional or supplementary Card to the Bank for destruction.

5. CREDIT LIMIT AND STATEMENT OF ACCOUNT

• The Bank shall advise the Cardholder of the Credit Limit when issuing him/her with a Card and each month the Bank shall prepare and send to the Cardholder a Statement showing the status of the Card Account and all the transactions on the credit account.
• The card holder shall be required to notify the Bank in case he/she is travelling outside Kenya and intends to use the card outside the country.
• The Card holder will take out a life insurance policy at their own cost up to a maximum of the Credit Limit issued to the Cardholder except in cases where the Bank expressly communicates its intention to take out such insurance policy on behalf of the card holder. In either case, the Bank’s interests shall be noted on the cardholder’s life insurance policy.
• The card holder shall not be permitted to exceed the set credit limit under any circumstances and any amounts incurred in the excess of the credit limit shall be immediately due and payable to the Bank, inclusive of over-limit charges, whether or not demanded by the Bank.
• The Cardholder may, at any time however, apply for an increase of the Credit Limit and the Bank shall be under no obligation to accept the application. Any increase in the credit limit shall take effect upon that the Bank notifying the Cardholder of the same.
• The Bank may, from time to time and at its own discretion, offer to increase the cardholder’s credit limit permanently or temporarily via the email address or telephone contact provided by the cardholder. The cardholder’s acceptance of such offer from the Bank either through email or telephone shall be deemed as a valid acceptance and the Bank shall increase the Credit Card limit as proposed in its offer.

6. SAFEGUARDING THE CARD/PIN

• A Cardholder(s) must exercise all due care and attention to ensure the safety of the Card and the secrecy of the PIN at all times and to prevent the loss of and/or use of his/her Card or PIN by any third party.
• If a Card is lost or stolen, or a Card is for any other reason liable to be misused or the Cardholder has any reason to suspect that the PIN may have been discovered by unauthorized persons, he/she must IMMEDIATELY notify the Bank by Telephone on 020-2776000, 0703 027000, 0736 690101,020-2854000(or any other number as may be notified to by the Bank) the card holder shall be required to request in writing for a replacement card within (7) seven days through the Manager, Co-op Card P. O. Box 21831-00400, Nairobi, Email: cardcentre@co-opbank.co.ke quoting his/her Card Account number.
• The Cardholder(s) shall be liable in respect of any transaction instruction given prior to receipt by the Bank of notification of such loss, theft or disclosure.
• The Cardholder shall provide the Bank with all the information in his/her possession about the loss, theft or misuse of a Card or the PIN, and any other information the Bank may require to facilitate investigations into such loss theft or misuse. The Bank may give the police any information it thinks will be useful in their investigations. If the Cardholder finds the Card(s) which he/she had reported as lost, stolen or at risk of misuse, he/she must not use them. The Cardholder shall be required to cut the card in half and return them to the Bank immediately at the address shown in condition 6(ii).
• The Bank will, as soon as is practicable, replace any lost or stolen Card subject to payment of the applicable replacement charge and any over limit and overdue amounts as at the time of collection. All replacement Cards will be issued with new Card which will be a continuation of the old Card Account number so replaced and the conditions applicable to the old Card Account number shall apply thereof.

7. STATEMENT OF ACCOUNT

• The Bank shall send monthly statements to the Cardholder account. The Bank will debit the Card Account with the amounts of all Card Transactions and charges and any other liabilities of the Cardholder arising from the use of the Card. This includes charges made in connection with Additional or Supplementary Cards.
• The contents of any statements of account or statement of any other nature which has been sent by the Bank to the cardholder, and to which the Cardholder has not objected within Thirty (30) days of receipt thereof, shall be deemed approved by the Cardholder and shall not thereafter be challenged by the Cardholder on any ground whatsoever whether on account of lack of mandate, forgery or inadequate signature of endorsement of cheque, forged alteration thereof or otherwise.
• The Cardholder is required to check all the entries in the statement against his/her Card transactions vouchers or receipts to confirm the correctness of those entries. If the Cardholder notices any charge that he/she does not recognize or which does not tally with his/her Card transactions vouchers or receipts, he/she should contact the Card Centre immediately and seek clarification or correction.
• No queries or complaints relating to entries in a statement shall be entertained by the Bank after the expiry of 30 days from the date of delivery of the statement.
• For purposes of statement delivery, the same shall be delivered to the postal or e-mail address as indicated on the Cardholder’s application form. The Cardholder shall notify the Card Centre in writing of any change of name or address. Until such notice is received by the Bank the Cardholder’s names and address shall be deemed to be those stated in the application form.
• Non-receipt of a statement shall not discharge the Cardholder from obligations to pay any amounts due including interest and late payment charges, it being understood that the Cardholder shall at all times be aware and maintain an accurate record of all his/her Card transactions.

8. RIGHT OF SET-OFF

• The bank may at any time and without notice or demand and notwithstanding any settlement of account or other matter whatsoever ,combine or consolidate all or any other existing accounts including accounts in the bank (whether current, deposit, loan or of any other nature whatsoever subject to notice or not and in whatever currency denominated )in the name of the Cardholder alone or jointly with others wherever situated and set-off or transfer any sum standing to the credit of any one or more accounts in or towards satisfaction of any obligations or liabilities to the bank of the Cardholder whether such liabilities be present, future, actual, contingent, primary, collateral, several or joint.
• The bank shall have a lien on all property and assets of the Cardholder from time to time in the possession of the bank, whether registered in the name of the bank or its nominees or otherwise and whether the same is being held for safe custody or otherwise.

9. REPAYMENT AND APPROPRIATION

• All payments are due and payable on a monthly basis not later than twenty (20) days from the date of the statement.
• Payments on any account will take effect when received by the Bank and credited to the Cardholder’s account. Where the payment is made by cheque(s) such payment will be received only after being cleared by the respective paying bank(s).
• All payment received to the account shall be applied first in repayment of all accrued interest secondly in payment of all charges and thirdly towards repayment of all amounts due from the account respectively;
• The account being a credit card account shall not operate as a savings account and should the account contain any funds standing in credit such funds shall not earn any interest.
• The Cardholder shall make all payment directly to the Bank. The Bank shall not be liable for any funds that have been paid to any other third party.

10. CHARGES

The Bank is entitled to be paid by the Cardholder and at its own discretion and may debit the cardholder with all the charges payable in respect of the use of the Cards may be amended by the Bank from time to time at the banks own discretion and notified to the Cardholder without limitation to the following:

• A non-refundable Annual Subscription Fee on the opening of the Card Account and thereafter on each subscription anniversary dates. The subscription fees shall be as per the Banks Tariffs published by the bank from time to time.
• A monthly interest rate or such other rate as the bank may in its sole discretion determine shall be applicable on the outstanding credit amount due where the Cardholder pays the minimum monthly payment. The interest shall accrue daily on the daily outstanding balance until payment in full.
• A Late Payment Fee of the minimum payment amount due will be levied for any amount not received by the Due Date as shown on the Cardholder’s statement.
• An Over the Limit Fee of the amount determined by the Bank and notified to the Cardholder shall be levied should he/she exceed the credit limit. The Bank reserves the right to withdraw a Card which goes in excess of the credit limit so allocated.
• If the Cardholder obtains cash at any of the Bank’s cash points, a cash advance fee, which will be a percentage of the amount of cash obtained subject to an advised minimum will be levied. The card holder will however be liable for any additional or supplementary charges that may be imposed for withdrawal of cash from other visa Branded outlets.
• A Card Replacement Fee of a minimum of Kshs. 500.00 per Classic or Gold Card and Kshs. 1,000.00 per Platinum card will be levied on the Card Account for any card replaced.
• An annual Cardholder’s Limit Insurance policy premium as determined by the Bank’s authorized insurance provider and notified to the Card Holder against death of the Cardholder up to the credit limit assigned to the Cardholder.
• Transactions carried out in foreign currency shall attract an FX mark up on of the value of transaction.
• Platinum card holders are entitled to Airport VIP Lounge Access and will be expected to pay for their Airport VIP lounge visits and as well as their guests’ visits.
• The Charges are more specifically outlined below:

Note: The above charges are subject to excise duty fees where applicable

11. CARD RENEWAL

• The Cardholder’s Card shall automatically be renewed and a Card produced before the expiry of the term of the current Card. The Bank shall also continue to renew the Cardholders Card in this manner until the account is terminated or upon written request to stop by the Cardholder or in the case of additional or Supplementary Card by the Cardholder or the Principal Cardholder.
• If the Card holder does not wish to renew his card he/she shall be required to notify the Bank one month before expiry of the card.

12. REFUNDS & CARDHOLDER CLAIMS

• The Cardholder’s Card Account shall only be credited with a refund in respect of a Card transaction if the Bank receives a refund voucher or other refund verification acceptable to the Bank.
• The Bank is not responsible for any matter or dispute unless the Cardholder has made a written request delivered to the Bank as soon as reasonably possible.
• The contents of any statements of account or statement of any other nature which has been sent by the Bank to the Cardholder, and to which the Cardholder has not objected within twenty eight (28) days of receipt thereof, shall be deemed approved by the Cardholder and shall not thereafter be challenged by the Cardholder on any ground whatsoever whether on account of lack of mandate forgery or inadequate signature of endorsement of transaction, forged alteration thereof or otherwise.
• No claim by the Cardholder against a third party may be subject of a defense or counterclaim against the Bank.
• The Cardholder may not assign or otherwise dispose of his/her rights and obligations under this Agreement.
• The Cardholder cannot use a claim against the Bank to refuse to discharge his/her obligations under this Agreement unless he/she has a legal right to do so.
• The Cardholder shall not be entitled to any interest on any credit balance in the Card Account.
• The Cardholder shall not return for cash refund any goods or tickets obtained with the use of the Card.

13. LIABILITY

• The Bank shall not be liable in any way if a third party does not honor a transaction on a Card.
• The Cardholder shall be liable for any loss or cost suffered by the Bank as a result of any breach of this Agreement.
• The Bank shall not be liable if it is unable to perform its obligations under this Agreement due a force majeure including the failure of any machine, data process system, transmission link, industrial dispute, strikes, lock outs, acts of any public enemy, wars, blockades, insurrections, riots, fires, civil disturbances, government regulations and directions, fraudulent activity, terrorist action or anything outside its direct control or that of its agents or subcontractors.
• The failure or delay by the Bank to produce or send a statement in respect of the Card Account shall not be construed as a waiver of the Cardholder‘s liability for the late payment.
• For credit cards that give the cardholder access to services provided by third parties, the card holder shall be liable for any costs incurred for services provided by the third parties unless the Bank expressly communicates to the cardholder its intention to assume such costs.
• In instances where a cardholder holds a credit card with access to Emergency Cash withdrawal, the Bank shall not be liable for any loss incurred by the card holder as a result of failure to give immediate effect to an Emergency Cash Withdrawal, card replacement or any other facilities offered by the Bank in connection with the credit card.

14. DEATH OR BANKRUPTCY

In the event of the Cardholder’s death, bankruptcy or insolvency:

• The Cardholder’s obligations under this Agreement shall remain in full force and effect until such time as they shall be duly satisfied.
• In case of death, the Bank shall institute a claim for compensation from the insurance Company. Any amounts in excess of the insured credit limit shall be payable in total from the Cardholder’s estate.
• Any Additional or supplementary and/or supplementary Cardholder shall cease immediately to be entitled to use the Card and shall return the Card to the Card Centre or the nearest branch of the Bank. The deceased Cardholder’s Card shall be returned to the Card Centre or the nearest branch of the Bank immediately.
• In case of insolvency of a body corporate the Bank shall be entitled to demand and recover any outstanding liabilities under this Agreement due from the corporate body shall be recoverable from the individual corporate Cardholders, it being understood that the body corporate and the individual corporate Cardholders are jointly and severally liable for any liabilities incurred on the corporate Card(s).

15. WITHDRAWAL

• The Principal Cardholder and any Supplementary Cardholder shall indemnify the Bank against all costs, charges and expenses inclusive of any legal costs and disbursements incurred by the Bank in obtaining or attempting to obtain payment of any monies due and owing on any Card Account to the intent that the Bank shall suffer no loss by reason of it affording or continuing to afford the Card holder any services offered by use of the Card.
• The Bank reserves the right to set off all outstanding amounts plus interest thereof from any account(s) held by the Cardholder with the Bank.
• Where the Bank has appointed agents to collect debts on its behalf, such payments shall be made directly to the Bank or by way of a Bank cheque payable to the Bank or to its order.

16. DISCLOSURE OF INFORMATION

• The Cardholder agrees that the Bank may disclose details relating to the Card Account to any third party (including credit agencies) if in the Bank’s opinion such disclosure is necessary for the purpose of evaluating any application made to the Bank or such third party, maintaining the Cardholder’s Account with the Bank or other purpose as the Bank shall deem appropriate.
• The Cardholder agrees that the Bank may disclose details relating to the Card Account including details of any default in servicing the Card Account to any third party (including credit agencies) for the purpose of evaluating the Cardholder’s credit worthiness or for any other lawful purpose.

17. AMENDMENT OF CONDITIONS OF USE

• The Bank reserves the right to vary, amend or replace all or any of these conditions at any time subject to the Bank issuing a 30 day prior notice of its intentions to do so to the Card holder.

18. VISA INTERNATIONAL REGULATIONS

• The use of the Card is governed by the terms of International card payment solution service providers and the Cardholder by agreeing to the use of the card shall be deemed to have agreed to abide by those terms of the International card payment solution providers as may be communicated to the Cardholder by the Bank from time to time.
• Any charges made by Visa International in respect of the Cardholder’s foreign currency transactions shall be debited to the Cardholder’s Card Account. The amount of Card transactions and charges involving foreign currency shall be converted into Kenya Shillings at the Visa International exchange rate applicable on the date payment is received and any exchange rate risk shall be debited to the Cardholder’s Card Account.
• To ensure acceptability, information about the Cardholder’s Card Account may be transferred confidentially      within the VISA Network and the Card Holder hereby agrees and consent to such transfer of information.

19. TERMINATION & CANCELLATION

• Action by the Bank

The Bank may at any time, if in the Bank’s opinion the circumstances require it to do so and without giving the cardholder prior notice, choose to:

• • Cancel or suspend the cardholder’s right to use the credit card or close the account linked to the credit card
  • Refuse to authorize a credit card transaction; or
  • Refuse to re-issue, renew or replace the credit card.

• Termination by the cardholder
  • The cardholder may at any time close the account linked to a credit card by notifying the Bank of such intentions in writing.
  • The cardholder may terminate use of card by an additional or supplementary cardholder at any time by notifying the Bank of such intentions in writing.
• Consequences of termination

Upon termination by either the Bank or the cardholder:

• • The cardholder and any supplementary or additional cardholder shall not use and shall not be entitled to use of the credit card or any benefits in connection with the credit card;
  • The cardholder and any supplementary or additional cardholder shall surrender the credit card(s) to the nearest branch of the Bank.
  • The cardholder and any supplementary or additional cardholder shall immediately pay all amounts owing to the Bank in connection with the credit card (including any additional or supplementary card) together with any interest accrued.
  • The cardholder and any supplementary or additional cardholder shall remain liable for any transaction carried out using the credit card or supplementary or additional card that is not surrendered to the Bank after termination.

20. GOVERNING LAW AND JURISDICTION

• The Cardholder shall not use the Card for any unlawful purpose, including the purchase of goods or services prohibited by the Laws of Kenya, or in contravention of any Rule of Law in force, nor as an aid towards any such contravention.
• This Agreement and all matters arising out of the issue or use of the Card are subject to the laws of the Republic of Kenya and the parties submit to the exclusive jurisdiction of the Kenya courts of law.

21. GENERAL

• Any other facilities or benefits made available to Cardholders as such and not forming part of this Agreement may be withdrawn at any time without prior notice.
• The Cardholder warrants the complete accuracy of the information given upon the application for establishing the Card Account and any subsequent communication exchanged with the Bank.
• The Cardholder may terminate this Agreement by a thirty (30) days’ written notice to the Bank but such termination shall only be effective on the return to the Bank of all the Cards issued for use on the Card Account and the payment of all the liabilities on the Card Account under this Agreement.
• Each of the Terms and Conditions contained herein is distinct and separate from all other terms and conditions, so that if one term is found to be invalid or unenforceable this will not affect the validity of any of the other Terms and Conditions.
• The failure or delay by the Bank does not enforce any of its rights under these Terms and Conditions, does not stop the Bank from taking any action to enforce its rights in the future.
• Headings used in these Terms and Conditions are for ease of reference only and shall not affect the meaning of these Terms and Conditions.
• The Bank may send promotional material and advisory information to the cardholder from time to time and the cardholder hereby consents to receipt of such promotional materials & advisory information.

22. NOTICES

• All notices statements letters and other communications from the Bank may be sent to the Cardholders last known postal, email, facsimile address, and the date on the Bank’s copy of any such communication is taken to be the date of such dispatch in the absence of proof of the contrary. It shall be the duty of the Cardholder to notify the bank of any changes in his/her address.
• Any written communication from the Bank to the cardholder including but not limited to any notice given pursuant to these Terms and Conditions shall be deemed to have been received by the Cardholder, if delivered then at the date and time of delivery, and if sent by post it shall be sufficient to prove that the letter containing the communication was properly stamped and addressed.
• The Cardholder has no claim on the Bank for damages resulting from losses, delays, misunderstandings, mutilations, duplications or any other irregularities due to transmission of any communication whether to or from the Cardholder, the Bank or any third party, by delivery, post, fax, telegraph, telephone, telex or any other means of communication.
• Notices/communications sent by post shall be deemed to have been received seven (7) days from the date of posting. If sent by Email or facsimile they shall be deemed delivered by the next working day.