Cash Advance Payment General Conditions

These general conditions of use apply to the service of advance payment of receivables arising from payment transactions (“Cash Advance Payment”) performed through the platform of Mercado Pago Instituição de Pagamento Ltda, available on the website www.mercadopago.com.br (hereinafter referred to as “Mercado Pago”), which is offered to anyone who meets all requirements offset in these terms of use (hereinafter referred to as a “user” and, in the plural, “users”).

Accepting this instrument and the Terms and Conditions of Use of Mercado Pago and any other documents related to them are absolutely indispensable for performing the Cash Advance Payment.

The user must read, understand and accept all the conditions established in these rules of use, as well as in the other documents incorporated by reference.

1. Purpose

• Mercado Pago provides users the possibility of receiving funds arising from the payment transactions carried out through the Mercado Pago platform in advance, enabling them to receive the payments of their sales prior to the scheduled payment date, upon disbursement by Mercado Pago to the user's payment account.
• The advanced amounts represent mere settlements of own obligations already acknowledged by Mercado Pago, arising from legitimate legal business conducted under the Mercado Pago Payment Arrangement by the user, after deduction of fees and charges.
• The user acknowledges that requesting, accepting or obtaining the cash advance payment service constitutes an acceptance of these general conditions and any other documents incorporated herein by reference. The user agrees that their rights and obligations regarding advance payments are additionally regulated by any other information specifically indicated upon request and acceptance of the advance payment.

 

2. Conditions for requesting cash advance payment

• The user shall have a  payment account in Mercado Pago, whereby any funds paid in advance shall be disbursed.
• The user must have a balance of sales pending release in their payment account, resulting from legitimate legal business conducted on the Mercado Pago platform and that are duly accepted or recognized by Mercado Pago. The anticipation may be requested through the Mercado Pago platform at any time of the day and, once the transaction is effected, the amounts will be available in the user's payment account within 2 (two) minutes after the transaction is approved. Mercado Pago may, at its sole discretion, offer the possibility for the funds to be automatically transferred to the bank account indicated by the user. In this case, the amounts will be credited to such bank account by the end of the banking hours of the business day following the request for the cash advance, unless there is a systemic problem.
• The user may request to advance the funds that the money that may be potentially advanced for part or all of the amounts expected to be available in their payment account. The total possible amount to be advanced will be indicated in their account as "Amount Available for Anticipation".
• The user can also request that the anticipation of the money occurs automatically, by programming this functionality on the Mercado Pago platform. To do this, they must indicate the periodicity (frequency and day of the week) they want the anticipation to occur. If there are available amounts to be advanced in the chosen periodicity, the money will be released in the user's account, discounting fees and charges for each advance made, even if automatically. The automatic function can be disabled at any time on the Mercado Pago platform by the user.
• Even if Mercado Pago authorizes the cash advance payment, it may perform the transaction for only a part of the request, in accordance with its evaluation criteria. Any money not paid in advance shall be released to the user within the timeframe originally agreed upon for availability.
• For formalization and effectiveness of the cash advance payment, the user must meet, at Mercado Pago’s sole discretion, all requirements assessed by Mercado Pago, and shall comply with this instrument, the Mercado Pago Terms and Conditions of Use and any other related documents, among other things.
• Mercado Pago may also require any documents and/or take any other measures required to formalize the advance payment. For that reason, the user expressly authorizes and acknowledges, as a condition precedent to the advance payment of the user’s funds, that Mercado Pago may adopt any of the measures above and any other measures deemed to be required regarding risk analysis for performing the advance payments, including consulting third party information.
• At any time, Mercado Pago may terminate the provision of the cash advance service set forth herein.
  
  

3. Fees and charges

• As a result of the cash advance of funds and the services provided by Mercado Pago to the user, the user agrees to pay the advance fee that remunerates the services provided by Mercado Pago ("Advanced Payment fee").
• Mercado Pago is authorized to deduct the following from the advance payment amount: (i) the advance payment fee (ii) any costs arising out of the advance payment, as expressly identified to the user upon simulation of the advance payment and upon acceptance; and (iii) any amount due to Mercado Pago and/or to the companies of the same economic group of Mercado Pago.
• Mercado Pago will disburse the advance payment amount exclusively by crediting the amount (after the deduction of the advance payment fee and any other costs) to the user's payment account. The user expressly authorizes the use of their payment account as the sole payment account for the disbursement of the respective advance payment. In the event that, at the time of the cash advance payment, the user chooses to transfer such amount to the bank account indicated by them, the amount will be debited from their payment account minus an additional transfer fee, as per the Terms and Conditions of Use of Mercado Pago.
• The user agrees that Mercado Pago may update these general conditions, as well as the fees and costs applied to the user and any other documents unilaterally referred to herein, upon prior communication on the Mercado Pago website. The user is liable for reviewing such terms of use from time to time, provided that the continued use of the advance payment services by the user after such changes shall be regarded as confirmation of the user’s acceptance of the changes in the fees.

 

4. Payment

• Any taxes levied on the cash advance payment shall be the user’s liability, even if they are withheld by Mercado Pago as required by law.
• The user acknowledges that Mercado Pago may pass on to the user the amount of any new taxes and charges that may be created and become enforceable by the applicable authorities due to this contract.

 

5. Timeframe

• This instrument is valid and binding upon the user until full compliance with the user’s obligations, accrued by any fees, costs and other amounts due to Mercado Pago as agreed upon herein.

 

6. User’s obligations

• Upon acceptance and execution of the cash advance payment, the user automatically, irrevocably and irreversibly authorizes Mercado Pago to use such cash amounts of which the user is the creditor (and which are hereby paid in advance) for settlement of the cash advance payment transaction performed.
• The user shall not assign the rights and obligations arising herefrom. Any assignment made in infringement of this rule shall be invalid and not enforceable against Mercado Pago.
• Regarding amounts that may be paid in advance arising from sale transactions, the user hereby acknowledges and agrees that is liable for the legitimacy of the funds, as well as for any reversals, debits and cancellations occurred in relation to such funds, and the user shall reimburse Mercado Pago in case of any reversals, debts, CHARGEBACK or cancellation of the funds paid in advance.
• The delay or non-payment of amounts owed by the user to Mercado Pago due to this instrument, for any reason whatsoever, shall subject the user to payment of: (i) monetary restatement of the amounts due, based on the National Price Consumer Index of the Brazilian Institute of Geography and Statistics (INPC/IBGE) or, in the absence thereof, on any other index that may legally replace it; (ii) default interest of 1% per month; (iii) fine of 2%, (iv) delivery of the user’s debt to outside collection agencies for negotiation and/or judicial or extrajudicial collection; and (v) communication of the user’s default to credit protection bodies and entities, including the collection of all expenses and fees incurred with judicial or extrajudicial collection.
• It is hereby agreed that the amounts due, including but not limited to the amount of any reversals, debits and cancellations, accrued by the corresponding monetary restatement, fines and interests, may be automatically debited from the user's payment account, as well as that any compensation may be made by Mercado Pago using future credits made from the payment account, without prejudice to Mercado Pago’s right to collect such debts by any judicial or extrajudicial means available.

 

7. Limitation of liability

• Mercado Pago shall not be liable for any conflicts, errors, system unavailabilities and losses relating to the cash advance payment. Mercado Pago is not and shall not be liable for any exclusion, loss, error, interruption or failure in the performance of the advance payment. The user exempts Mercado Pago, its controlled, controlling or associated companies, as well as its respective managers, agents, employees and advisors, from any liabilities, lawsuits, judicial or extrajudicial actions, claims or requests from third parties arising out of the cash advance payment of Mercado Pago, including court costs and attorney's fees. The user agrees with the deduction from the user’s payment account to redress any losses or damages that may be caused to Mercado Pago and/or third parties.
• With due regard for the limitation of liability provisions established herein, which the user agrees to accept, Mercado Pago’s liability for any other acts or facts causing damages shall be limited to any direct damages provenly suffered by the users due to Mercado Pago’s exclusive wrongdoing. Mercado Pago shall not be held liable for indirect damages, loss of profits, loss of data or loss of revenues arising out of any failures in the cash advance payment.
• The user shall indemnify Mercado Pago for all damages  caused as a result of providing false information or failure to comply with any of the obligations hereunder, including all expenses and fees incurred, whether judicial or extrajudicial collection.
• Mercado Pago does not guarantee continuous or uninterrupted access and use of the Mercado Pago platform, which eventually may not be available due to technical difficulties or internet failures or any other circumstance, beyond the reach of Mercado Pago. Users shall not attribute liability to Mercado Pago or demand any indemnity, under damages resulting from such difficulties, even if such failures affect the amounts that should be credited or debited from their Mercado Pago account as a result of the advance payment.

 

8. General provisions

• Validity: the invalidity of any section hereof shall not affect the validity of the remainder hereof or this instrument as a whole.
• Defined terms: capitalized terms used but not expressly defined herein shall have the same meanings attributed to them in the Mercado Pago Terms and conditions of use and any other documents incorporated herein by reference.
• Notifications: the user declares that all notifications made by Mercado Pago to the main email address registered by them on the Mercado Pago platform are valid.
• Tolerance: The tolerance by any of the parties in relation to the other party’s failure to comply with any obligations shall not be construed as a waiver of the right to demand compliance with such obligation or as a forgiveness of or amendment to the provisions hereof.
• The provisions of this instrument shall be immediately valid and enforceable.
• This instrument shall be governed by and construed pursuant to Brazilian law, and the parties elect the Courts of the Judicial District of São Paulo, State of São Paulo, to resolve any issues relating thereto, expressly waiving any other courts.