Terms and Conditions on how to use the Payphone app

These Terms and Conditions of Use of the PAYPHONE Application (hereinafter, “Terms of Use”) establish the contractual framework that regulates the relationship between ECUAPAYPHONE C.A. (hereinafter,” PAYPHONE”) and the user who accepts them electronically (hereinafter, “User”).

ECUAPAYPHONE C.A. is a public limited company incorporated under the laws of the Republic of Ecuador, duly authorized and regulated by:

• The Central Bank of Ecuador as a Company Specialized in Electronic Deposits and Payments (SEDPE), in accordance with the Organic Law for the Development, Regulation and Control of Technological Financial Services (Fintech Law) and its Regulations.
• The Superintendency of Banks of Ecuador as a Payment Aggregator, in accordance with the Organic Monetary and Financial Code and the resolutions issued by that entity.

ECUAPAYPHONE C.A. is the only entity responsible to Users for the provision of regulated services in Ecuador, in its capacity as an entity duly authorized and supervised by the Central Bank of Ecuador. In accordance with Article 172 of Resolution No. JPRM-2025-006-M, the authorization granted to ECUAPAYPHONE C.A. is personal and non-transferable and cannot be transferred to third parties under any contractual modality or form. Consequently, ECUAPAYPHONE C.A. assumes full operational and regulatory responsibility for the technological collection and payment processing services provided in Ecuador. Although the platform facilitates the connection between users, ECUAPAYPHONE C.A. guarantees that the service is provided under its direct supervision and control, without transferring its obligations to entities not authorized by the Central Bank of Ecuador.

Social Reason and Nationality: ECUAPAYPHONE C.A. Cuenca Ecuador
RUC: 0190402452001
Contact: +593 984974103 | support@help.payphone.app
Website: https://www.payphone.app

These Terms of Use come into force upon electronic acceptance by the User and are permanently available at the link https://payphone.app/terminos-y-condiciones.

PAYPHONE offers a technological solution designed to facilitate the management of collections and payments between users, acting as an independent technological intermediary. This platform is aimed at users resident in Ecuador, Central America, the United States and, eventually, other regions of Latin America and the world where PAYPHONE extends its operations, always respecting applicable local regulations.

PAYPHONE provides a technological platform for electronic payment processing (hereinafter, the “Platform”) that allows Users to manage digital collections and payments in an efficient, secure manner and in accordance with applicable regulations.

The Platform comprises the following components:

• Mobile application available for iOS and Android operating systems
• Payments button that can be integrated into e-commerce websites
• Transactional API for secure integration through redirection or components that do not capture sensitive data on the User's servers.
• Web portal for businesses with management, reporting and analysis tools

The User declares and guarantees to be fully empowered to enter into legal acts related to the services offered by PAYPHONE. When registering on the platform, the User must identify himself using a username and password and biometric authentication.

The User undertakes to maintain the confidentiality and security of these credentials, being solely responsible for their custody. PAYPHONE will not assume any responsibility for the disclosure, loss or unauthorized use of such credentials, or for transactions carried out under the User's account, which will be considered a free and valid expression of their will.

The User guarantees the veracity, accuracy and integrity of all information provided during the registration process and use of the platform. Any falsehood or inaccuracy in this information will be the sole responsibility of the User, exempting PAYPHONE from any consequences derived therefrom.

PAYPHONE provides a technological platform that allows Users to connect with each other to manage collection or payment processing services in an efficient and secure manner. The platform includes a mobile application, a Payment Button and a transactional API, designed to facilitate commercial transactions. However, PAYPHONE acts only as an independent third party, providing the necessary technology without acquiring responsibility or solidarity in the transactions carried out. This means that PAYPHONE does not guarantee the consideration or delivery of goods or services associated with payments processed through its platform.

The service is mainly aimed at residents of Ecuador, Central America and the United States, with plans to expand to other Latin American countries and other regions of the world where PAYPHONE can legally operate. The User acknowledges that the use of the platform is subject to the laws and regulations applicable in each jurisdiction, and it is their responsibility to ensure compliance with those regulations.

Age Requirements

Access to the Application, the Payment Button and the API is restricted to people over 16 years of age. If a minor uses the platform, PAYPHONE reserves the right to request written authorization from the minor's parents or legal representatives. This authorization must be submitted within 5 business days of the request; otherwise, the minor's account will be deactivated until this requirement is met.

Free and Voluntary Access

General access to the Application and the Website for merchants is free and free of charge, except for the costs associated with specific transactions, which are detailed below. The User acknowledges that they use the platform freely and consciously, assuming all responsibility derived from such use. PAYPHONE will not be responsible for the use that the User or third parties make of the platform, nor for any damages that may result from such use.

User Obligations

The User undertakes to use the Application, the Payment Button, the API and the Website in an appropriate and lawful manner, in accordance with applicable legislation, these Terms of Use, morality, good manners and public order. By way of example, but not limited to, the User must refrain from:

• Store, in any medium or format, cardholder information or other sensitive data entered in the PAYPHONE system.
• Make unauthorized or fraudulent uses of the platform.
• Access or attempt to access restricted or protected resources of the Application or Website.
• Use the platform for purposes that are unlawful, illegal or contrary to these Terms, good faith or public order, or that may harm the rights of third parties.
• Cause damage to the platform, the Website or the systems of suppliers or third parties.
• Introduce viruses, malware or other elements that may damage, disable or overload the platform or prevent its normal use.
• It is strictly forbidden to capture, transmit or store sensitive card data (PAN, CVV2, expiration date) in the User's own systems. The use of the API or Payment Button must ensure that PAYPHONE is the only one that processes such information.

Exclusive Use for Business Purposes

PAYPHONE offers its technology (Application, Payment Button and API) only for legitimate business purposes, in accordance with the purposes for which it was created. It is strictly prohibited to use the platform for purposes other than those specified, including, but not limited to, illegal, fraudulent or speculative activities. Any manipulation, modification, impersonation or abuse of the platform, without the prior written consent of PAYPHONE, will be considered a serious violation, resulting in the immediate deactivation of the User's account and giving rise to civil and criminal legal action in accordance with applicable legislation. PAYPHONE is limited to providing software license services and does not process, offset or settle transactions or payments directly.

Liability for Inappropriate Use

Inappropriate use of the platform, including the system, the API, the Payment Button or the enabled libraries, will be the sole responsibility of the User. From the moment of acceptance of these Terms, the User expressly waives filing any claim against PAYPHONE for the misuse of the platform or the credit card information of Payphone users or customers. All information handled by the User will be considered confidential and must be managed under technical parameters that guarantee its security and financial secrecy. If the User stores such information, they must be PCI-DSS certified; otherwise, they must permanently delete it without keeping records.

PAYPHONE reserves the exclusive right to cancel access to the system of any User who violates these Terms or violates the rights of third parties, after verifying the violation. In addition, PAYPHONE may take legal action to stop any unauthorized or illegal use of the platform, as well as to protect the confidential information of the company and its users. In case of deactivation, the User will be notified electronically and will have a period of 5 business days to withdraw any outstanding balance through established regular channels.

Description of the Service

The PAYPHONE service consists of a technological application that allows Users to connect to manage collections and payments efficiently. The User acknowledges that payments made through PAYPHONE do not guarantee the delivery of associated goods or services, since PAYPHONE acts only as an independent third party that provides the technological platform. Any transaction between parties (User and their peers or suppliers) is carried out under their own responsibility, exempting PAYPHONE from any direct relationship with such parties.

Integration with Third Parties

The PAYPHONE platform integrates services provided by third parties. The User, depending on the balance recorded in their digital wallet, can decide whether to use such funds to make payments or withdrawals, according to their convenience. PAYPHONE does not intervene in the execution of these operations nor does it assume responsibility for their outcome.

User Responsibility for Transactions

The User accepts that all actions of payment or withdrawal of money are their full responsibility. In addition, you are committed to maintaining the confidentiality of your access codes, which should not be shared with unauthorized third parties. PAYPHONE will not be responsible for the misuse of these keys or for the consequences derived from such use.

Legality of the Funds

The User declares that the origin and destination of the funds used through the platform are legal and comply with current Ecuadorian regulations. Any responsibility for payment to the bank that issued a registered credit or debit card lies exclusively with the User, exempting PAYPHONE from any obligation related to the use of the allocated quotas

Card Registration

The User declares and accepts that the registration of a credit or debit card on the platform, and its subsequent verification, ensures that they are the cardholder, an additional authorized cardholder or that they have the express authorization of the holder to register it. Any misuse of a registered card will be the sole responsibility of the User.

Collection of Usage Data

The User expressly authorizes PAYPHONE to collect information on the use and usage trends of the platform, for the purpose of analyzing these trends, ensuring the operation, operating and improving the products, platforms and services offered. In addition, PAYPHONE may use this information, without any recognition or compensation, to measure the quality of the service and, if necessary, implement improvements that provide greater and better functionality to the User.

Device Liability

The use of the device registered by the User to manage payments or collections through the Application is their full responsibility. This includes any device changes that the User decides to make while using the platform.

Compatibility and Updates

It is the User's responsibility to ensure that they have downloaded the correct version of the Application on their device, that they have properly installed the Payment Button and that they use the transactional API correctly. PAYPHONE will not be responsible if the User uses an incompatible device or downloads a version of the Application that is not compatible with their device. PAYPHONE reserves the right to require the installation or update of any support or version of the platform to ensure its proper functioning. The User is also responsible for obtaining the consent of their own users or customers for the use of the PAYPHONE platform, if applicable.

Standard Rates

The User accepts the following fees for the use of the platform, as detailed in the link below: How much does Payphone cost? — Payphone

Payment Mechanics

The balance reflected in the User's digital wallet will be the amount paid less the applicable commission. PAYPHONE will give the User the total amount reflected in the digital wallet at the time of withdrawal (cash-out), without applying additional discounts.

Erroneous Accreditations

In the event of erroneous accreditations, the User authorizes PAYPHONE to carry out the necessary processes to carry out the corresponding reverses, ensuring that the funds are returned to their source.

Payment Frequency

The final amount available for cash-out will be paid on a weekly basis. However, the User acknowledges and accepts that PAYPHONE will have an additional period of seven (7) business days to make the payment in case of operational or technical complications. In such cases, PAYPHONE will notify the User in advance of the need to use this additional period.

Delivery Costs and Receiving Banks

Any amount charged by the receiving bank during a withdrawal or cashout (such as bank fees or transfer costs) will be the sole responsibility of the depositary bank of the receiving account. PAYPHONE assumes no responsibility for such costs.

Taxes and Sales Price

It is the sole responsibility of the User to determine the sale price of their goods or services, as well as the collection and declaration of the corresponding taxes. PAYPHONE will not be responsible for declaring or paying taxes generated by the sale of goods or services managed through the platform. Each party will bear its own operating costs and expenses.

Transfer Management

In the event that the User requests the transfer of funds abroad, and unless otherwise expressly agreed in writing, PAYPHONE will manage the necessary transactions with foreign exchange market intermediaries for the purchase of foreign currency, in accordance with applicable legislation. PAYPHONE will inform the User about the exchange rate applicable to the transactions made.

Risks and Costs

The User agrees to assume exclusively the tax and exchange risk, as well as all costs associated with the transaction, including, but not limited to, the Financial Movements Tax (GMF) and the Foreign Exchange Tax (ISD), when applicable. PAYPHONE will provide the User with copies of the documents supporting the operation for control and registration.

PCI-DSS standards

PAYPHONE is certified under Payment Card Industry Data Security (PCI-DSS) standards, which guarantees the protection of cardholders' data. Any User, related third party, technological ally or supplier that stores, processes or transmits cardholder data must comply with these standards. The User undertakes not to store CVV2 information at any time. More information on PCI-DSS is available on the PCI Council website.

Certification Support

In the event that a regulation or participant requires the User or a related third party to be certified under PCI-DSS, the User authorizes PAYPHONE to provide support through its current Declaration of Compliance (AoC) and to comply with the matrix of responsibilities established for technical certification. In addition, third parties grant their consent for PAYPHONE to carry out the necessary activities to validate compliance with PCI-DSS standards, if the certification process requires it.

Secure Data Transmission

The User is responsible for taking all necessary measures to protect the confidentiality and integrity of card transaction data, especially between their points of sale and their systems. Such data must be transmitted over secure lines and will be considered strictly confidential, and will be used only for the purposes authorized by the cardholder and in the relationship with PAYPHONE in accordance with these Terms.

User Obligations

The User undertakes to provide accurate, sufficient and timely information about their entity, partners, executives, business activity and number of transactions, in accordance with the rules of Brand Owners (Visa, Mastercard, etc.). In the case of reports that indicate breaches or observations, the User must develop a plan to remedy such irregularities, in accordance with the requirements of the Brand Owners.

Security Scan

If the User's web servers participate in the transactional flow of cards, the User must perform a quarterly security scan using an ASV (Approved Scan Vendor) tool certified by an external entity. Each report must result in an approval status (” PASS”).

PAYPHONE Audits

The User authorizes PAYPHONE to examine, review and audit, at the User's expense, compliance with PCI-DSS standards. These audits may include periodic reviews of documentation, visits to the User's premises, inspection of equipment and answers to questionnaires. Revisions will be carried out on business days and hours, with at least 48 hours' notice, and may be executed by PAYPHONE personnel or designated third parties.

Notification of Breach

If the User detects that he or his related third parties do not comply with the PCI-DSS standards, or if the security of card data is compromised (or there is a risk of it), he must immediately notify PAYPHONE in writing, detailing the non-compliance, the risk and the proposed remedy measures, including specific deadlines for their correction.

Consequences of Non-Compliance

Failure to comply with the provisions of PCI-DSS empowers PAYPHONE to:

(i) suspend services until the breach is corrected;

(ii) unilaterally terminate the contract without liability for PAYPHONE.

In addition, the User must reimburse PAYPHONE and the cardholders for any expenses, damages or losses derived from the non-compliance, including fines or additional costs that PAYPHONE must assume before authorities or participants.

Linked Third Parties

The User will be responsible for ensuring that their related third parties comply with these provisions, assuming the consequences of any breach by such third parties. If the User hires a third party to store, process or transmit card data, they must ensure that the third party complies with the same security controls required by PAYPHONE and the PCI-DSS standards, informing PAYPHONE of such compliance.

Regulatory Compliance

PAYPHONE is committed to complying with the Organic Law on Data Protection of Ecuador and the General Data Protection Regulation (GDPR) of the European Union. You will not use Users' data without their unequivocal, free, specific and informed consent, obtained through a written statement or affirmative action, such as the electronic signature recommended by GT29.

User Consent

By accepting these Terms, the User grants express authorization for the processing of their personal data, in accordance with Article 29 of the Regulations to the LOPDP and the PAYPHONE internal data protection manual. Consent is considered free, specific and informed, and the User has been informed of the purposes of the treatment.

Purpose of the Treatment

User data will be used only for market analysis, improvement of the operation of the platform and compliance with legal obligations. PAYPHONE will keep this information confidentially for a period of 10 years, after which it will be securely destroyed and disposed of.

User Responsibility

The User is responsible for the custody of their keys, passwords and users, as well as for ensuring the security of the software and hardware of the devices from which they access the platform. PAYPHONE will not be responsible for security flaws resulting from the User's negligence in this regard.

Specific Purposes of the Treatment

PAYPHONE may process the User's personal data for the following purposes:

• Identify the User in the Application and in remote services using electronic communication means.
• Validate and verify data when the User accesses from other applications, mobile devices or digital channels.
• Comply with the contractual relationship derived from the request and use of PAYPHONE products and services.
• Apply measures to prevent, detect and eradicate crimes such as money laundering and terrorist financing, and report to competent authorities.
• Perform statistical analysis on the use of the Application and remote services, including SMS, internet, television, websites and other channels.
• Maximize the security of channels and applications, analyzing possible fraud or impersonation.

Data Retention

The data collected by PAYPHONE will be kept for the period provided for by the applicable regulations, ensuring their confidentiality and security through appropriate technical and organizational measures.

Third-Party Data Processing

The personal data of third parties that PAYPHONE receives from the User will be processed only for the purposes of accessing and using the Application, and will not be communicated to third parties unless strictly necessary for the provision of the service or at the request of a legally authorized authority. PAYPHONE will keep such data confidential and will apply the security measures required by law.

User Data

The User, as the owner of their data, has the right to know, update and rectify their information, request proof of the authorization granted, be informed about the use of their data, file complaints with the authorities, revoke their authorization or request the deletion of their data when appropriate, and access them free of charge.

Recognition of Rights

The User acknowledges that the brands, software and other materials used by PAYPHONE (hereinafter, “PAYPHONE Intellectual Property”) are the exclusive property of PAYPHONE or its licensors, and are protected by intellectual property laws, including copyrights, trademarks and trade secrets. This includes, but is not limited to, the Application, the Payments Button, the API, logos and associated graphics.

User Rights

PAYPHONE recognizes that any content, data or information provided by the User (hereinafter, “Intellectual Property of the User”) are its exclusive property. This includes transaction data, personal information and any material uploaded by the User to the platform.

Mutual Commitment

Both parties are committed to respecting each other's intellectual property rights. The User may not copy, modify, reproduce, distribute, sell, license or exploit in any way the Intellectual Property of PAYPHONE without written authorization. PAYPHONE, in turn, will not use or modify the User's Intellectual Property without their consent, except as necessary to provide the services in accordance with these Terms.

Protection and Notification

Both parties will take reasonable steps to protect each other's intellectual property, including implementing security measures to prevent unauthorized access. If a violation is detected, the affected party will be notified immediately, and both will cooperate to remedy the situation.

Consequences of Violations

The violation of this clause constitutes a material breach of these Terms, granting the affected party the right to immediately terminate the agreement and seek available legal or equitable relief. The User undertakes not to modify, alter, transfer, distribute or perform actions that seek to obtain personal benefits or commit illegal acts through the misuse of PAYPHONE's Intellectual Property.

PAYPHONE role

ECUAPAYPHONE C.A., as an intermediary between the payer and the receiver of goods or services, does not assume direct responsibility for chargebacks, bank alerts, complaints or suspicion of fraud. In the event of a chargeback, the User or merchant must provide, within 2 business days, sufficient evidence to demonstrate the legitimacy of the transaction.

Consequences of Lack of Evidence

If the User does not submit the required evidence within the stipulated period, the amount of the chargeback will be debited from future transactions processed through the platform. The costs of infrastructure, connectivity or any other necessary to ensure the operability of the software will be the sole responsibility of the User or business.

Additional Information

The PAYPHONE Chargeback Policies, available on the website and the application, form an integral part of service contracts with all Users, businesses and customers. These policies detail the procedures for managing chargebacks and claims, and should be reviewed by the User for a full understanding.

Exemption from Liability

ECUAPAYPHONE C.A. will not be responsible for chargebacks or claims resulting from fraudulent transactions, errors in the delivery of products or services, or misuse of the platform. Registered Users and merchants assume all responsibility for controversies related to their transactions, including chargebacks, fraud or disputes that arise up to 365 days after the original transaction.

ECUAPAYPHONE C.A. is the only entity legally responsible to control entities and Users in Ecuador. Any limitation of liability described in these terms applies exclusively to technical operational management, but does not exempt ECUAPAYPHONE C.A. from its regulatory obligations as a Specialized Company for Electronic Deposits and Payments (SEDPE) and a duly authorized Payment Aggregator.

Limitation of Liability

PAYPHONE does not guarantee the availability or continuity of the operation of the Application or the Website, subject to the provisions of its Service Level Agreement (SLA). Consequently, PAYPHONE will not be responsible for damages resulting from:

• Lack of availability or accessibility to the Application or Website.
• Interruptions, computer failures, telephone breakdowns, disconnections, delays or blockages caused by deficiencies in telephone lines, data centers, Internet systems or other electronic systems.
• Damages caused by unauthorized intrusions by third parties, beyond the control of PAYPHONE.

Indemnity

By accepting these Terms, the User declares that they will hold PAYPHONE, its parent company, directors, partners, employees, lawyers and agents harmless from any claim arising from:

• Breach of these Terms or any applicable law.
• Unpermitted use of the Application or Website.
• Damages suffered by the User or third parties as a result of direct or indirect use of the platform.

Indirect Damages

PAYPHONE will not be responsible for indirect or consequential damages, including, but not limited to, loss of profits, loss of data, business interruption, or any other business loss resulting from the use or inability to use the platform or services remotely, regardless of the cause.

Proper Use

The User undertakes to make appropriate and lawful use of the PAYPHONE platform, including, but not limited to, the following prohibitions:

• Do not make acts of provision, free or expensive, of the platform to third parties without written authorization from PAYPHONE.
• Do not use the platform for illegal purposes or illegal activities.
• Do not manipulate, scan, or test system vulnerabilities, or circumvent security or authentication measures.
• Do not falsify, manipulate or alter information in emails, publications or any other medium, or use the platform to send misleading or false information.
• Do not interrupt the access of other users through viruses, spam, malicious encryption or other means that interfere with the normal use of the platform.
• Do not use the platform contrary to good faith or current legislation.

Consequences of Non-Compliance

Failure to comply with these prohibitions will be considered a serious violation, empowering PAYPHONE to deactivate the User's account and take appropriate legal action to protect its interests and those of other users.

Scope of the Audit

PAYPHONE reserves the right to audit the User, either directly with its staff, through independent auditors or at the request of a competent authority. These audits may include access to the User's facilities, personnel, information and relevant records, with the purpose of verifying compliance with these Terms, the rules of Brand Owners and applicable legislation, especially with regard to the prevention of money laundering and terrorist financing (PLA/FT).

Audit Procedures

Audits may include:

• Review of information related to the service contract and applicable regulations.
• Evaluation of the Know Your Customer (KYC) procedures implemented by the User and their related third parties.
• Analysis of the User's risk and fraud prevention processes.

Notification and Access

Audits will take place on business days and hours, with at least 48 hours' notice. The User undertakes to provide access to the information and resources necessary to carry out the audit, fully cooperating with PAYPHONE or the designated auditors.

Credit Information Inquiry

The User expressly and irrevocably authorizes PAYPHONE to consult and report to any credit information office, information source or risk center all information regarding their credit behavior, management of bank accounts, credit cards and, in general, any data related to the fulfillment of their obligations, assets, liabilities, overdue debts or misuse of the services. This information will be reflected in the corresponding databases, in accordance with the expiration periods established by law.

Use of Information

PAYPHONE, its administrators, representatives and employees are authorized to use this information to analyze credit risks and, if necessary, transfer it to the competent authorities. The User's compliance or non-compliance with their financial obligations will be recorded and updated as they make the corresponding payments.

Use of Data for Services

The User also authorizes PAYPHONE to collect, store and use their data for purposes related to the provision of services, including communications, training, monitoring, inspections, audits, complaint management and onboarding processes, as well as to share information with participants when necessary.

Rights of the Data Subject

The User, as the owner of their information, has the right to know, update and rectify their data, request proof of the authorization granted, be informed about their use, file complaints with the authorities, revoke the authorization or request the deletion of their data when appropriate, and access them free of charge.

Use of User Identity

The User authorizes PAYPHONE to identify him as a customer by any means, including the use of his trademark, domain name, name or company name in advertising, promotional or marketing materials.

Success Stories

The User authorizes the use of their company information and logo in successful cases developed jointly with PAYPHONE. Such use will be notified in advance to the User's communications team, who may express their approval or suggestions before publication.

Labor Dependency

The User declares that the persons assigned to comply with this instrument are under their employment dependency, assuming all the responsibilities established by the Labor Code and other applicable regulations regarding employment obligations, social security, and occupational safety and health. PAYPHONE does not assume any labor or social security responsibility with these people.

Compensation for Workers' Claims

The parties agree that the responsibility for work, social security and compliance with occupational safety and health regulations lies exclusively with the User. In the event that a labor claim is filed that directly or indirectly affects PAYPHONE, the User will assume the full defense of said claim at his own expense, reimbursing PAYPHONE for any expenses incurred in his defense if the User does not act in a timely manner. The User will also be responsible for paying any compensation or sanction ordered by judgment, settlement agreement or other mechanism.

PAYPHONE Commitment

PAYPHONE is committed to preventing the use of its platform for illegal activities, including money laundering and terrorist financing. To do this, it implements a comprehensive plan that includes Know Your Customer (KYC) procedures and strict security protocols.

KYC Policy

PAYPHONE employs exhaustive KYC procedures to verify the identity of its users, collecting information such as name, address, date of birth, official identification documents and other data necessary to comply with applicable regulations.

Security Protocols

PAYPHONE uses advanced encryption technologies, continuous monitoring systems and regular audits to protect user information and ensure the integrity of transactions, mitigating money laundering risks.

Monitoring and Reporting

PAYPHONE continuously monitors transactions for suspicious activity. Any activity identified as suspicious will be investigated and, if necessary, reported to competent authorities in accordance with applicable laws.

Collaboration with Authorities

PAYPHONE will fully collaborate with regulatory and compliance authorities in the fight against money laundering, providing information and documents required as part of investigations.

Staff Training

PAYPHONE provides ongoing training to its employees on money laundering prevention, KYC policies and security protocols, ensuring that staff are prepared to identify and manage risks.

Consequences of Non-Compliance

Any user involved in activities related to money laundering will be suspended or expelled from the platform, and PAYPHONE will take the necessary legal measures to protect their integrity and comply with regulations.

User Commitment

By accepting these Terms, the User undertakes to comply with the requests for information and documentation that PAYPHONE requires for the prevention of money laundering, ensuring that its operations are lawful and transparent.

User Statements

The User, by accepting these Terms, declares that:

• Its legal representatives, administrators and employees comply with current regulations on anti-corruption, illicit enrichment and the prevention of money laundering.
• Their legal representatives, administrators and employees do not incur or accept bribes or bribes, either for their benefit or for the benefit of third parties.
• It has an accounting system that makes it possible to clearly identify all payments, contributions, gifts, representation expenses, hospitality, donations and contributions to non-profit, public, private or guild entities, with the corresponding documentary support.

User Commitments

The User undertakes to:

• Ensure that your legal representatives, administrators and employees comply with current anti-corruption regulations.
• Keep a transparent and verifiable record of all your financial transactions, avoiding any practice that could be considered corrupt or illegal.

Consequences of Non-Compliance

Failure to comply with these provisions will be considered a serious violation, empowering PAYPHONE to take legal action and terminate the agreement with the User, without prejudice to any sanctions imposed by the competent authorities.

Guarantees for Sports Forecasts and Pay Aggregators

Given the high risk and volume associated with certain market segments, the following special conditions are established:

• Sports Forecasting Segment: Customers operating in this segment must provide a guarantee equivalent to 10% of their average monthly transaction volume, as a security deposit. This deposit will be held in an account designated by PAYPHONE and will be refundable at the end of the contract, after deduction of any outstanding amount.
• Payment Aggregators: Payment aggregators must provide an additional guarantee of 5% of their average monthly transaction volume, to cover risks associated with managing multiple businesses. This warranty will also be refundable at the end of the contract, subject to the same conditions.

Warranty Review

The guarantees will be reviewed quarterly to adjust them to the User's transactional volume. PAYPHONE will notify the User 15 days in advance if an adjustment is required in the amount of the guarantee, allowing the User to comply with the new requirement within 10 business days.

Use of Warranties

The guarantees may be used by PAYPHONE to cover chargebacks, fines, or any other amount owed by the User resulting from breaches or fraudulent transactions. The User will be notified of the use of the guarantee and must replace the amount used within 15 business days.

Validity

These Terms of Use are valid indefinitely, starting from the date of electronic acceptance by the User and PAYPHONE. Any update to the Terms will be notified to the User electronically 2 days in advance and will be available at the link mentioned above.

Termination

The agreement may be terminated early by either party, at any time and without any liability, by written notification. In case of termination, the User must withdraw any outstanding balance through established regular channels within 10 business days. PAYPHONE will not be responsible for balances not withdrawn after this deadline.

By clicking “Accept”, the User declares to have read, understood and fully accepted these Terms of Use in all their parts. It also guarantees that the information provided during the registration and authentication process is true and lawful, exempting PAYPHONE from any responsibility in this regard. The User undertakes to comply with all legal regulations of the Republic of Ecuador and the jurisdictions applicable to the use of the PAYPHONE platform.

Notifications

Any notification related to these Terms will be made electronically through the official PAYPHONE channels, using the contact information provided by the User during registration.

Applicable Law and Jurisdiction

These Terms are governed by the laws of the Republic of Ecuador. Any dispute arising from its interpretation or execution will be submitted to the competent courts of the city of Quito, Ecuador, the parties waiving any other jurisdiction that may apply to them.

Contact

For questions or additional information, the User can contact PAYPHONE customer service at +593 984974103, or through the official channels available on Google Play and the App Store.

IF YOU DO NOT AGREE WITH THESE TERMS AND CONDITIONS DO NOT USE PAYPHONE