This Addendum describes the Card Pricing Program (the "Program") through which Ridge provides card acceptance to Merchant without charging Merchant processing fees. Capitalized terms not defined here have the meanings in the Merchant Agreement.
1. How the Program works
1.1 Two prices. Every item Merchant sells through the Service has a Cash Price and a Card Price. The Cash Price is the amount Merchant enters for the item and the amount Merchant receives on every sale. The Card Price is the Cash Price plus the Program Rate, calculated and displayed by the Service.
1.2 Posted price. The Card Price is Merchant's posted price. It is the price shown on the register, on Merchant's online ordering page, on receipts and, where Merchant posts prices, on menus, shelves and signage.
1.3 Cash Discount. A Customer who pays with cash receives the Cash Discount, which reduces the Card Price to the Cash Price. The Cash Discount is shown as a line on the receipt.
1.4 Program Rate. At the Effective Date the Program Rate is 3.5% of the Cash Price, subject to a minimum of $0.40 per order, which makes the Cash Discount approximately 3.4% of the Card Price. Tips are never included in the Program Rate. Ridge sets the Program Rate and may change it with at least 30 days' notice; Merchant may terminate the Merchant Agreement without penalty before a change takes effect.
1.5 Sales tax. The Service calculates sales tax on the price actually charged to the Customer: the Card Price for card payments and the discounted price for cash payments.
1.6 All cards alike. The Card Price is the same for every card brand and type, including credit, debit, prepaid and digital wallets. The Program does not add any amount at checkout that is not part of the posted Card Price.
2. Ridge's compensation
2.1 On each card sale, Stripe settles the Card Price to Merchant's connected account. Ridge collects from the connected account an amount equal to the Card Price minus the Cash Price (the "Program Amount") as its compensation for providing card acceptance and paying all processing costs. Merchant receives the Cash Price.
2.2 Ridge, not Merchant, pays Stripe's processing fees. Merchant does not pay Ridge or Stripe any per-transaction, percentage, per-device or monthly fee for card acceptance.
2.3 On a refund, Ridge returns the Program Amount for the refunded portion to the Customer with the refund. On a chargeback, Merchant is responsible for the Card Price charged back, as set out in the Payment Services Addendum.
3. Merchant's obligations
3.1 Display both prices. Where Merchant posts prices to Customers, Merchant will post the Card Price and either the Cash Price or a clear statement of the Cash Discount. Ridge provides printable signage and menu language in the Service; Merchant will display at least one Program notice visible before the point of sale, in substantially this form: "Prices shown are card prices. Pay with cash and save [3.4]%."
3.2 Receipts. Merchant will give Customers the receipts the Service generates and will not alter the price, discount or tax lines.
3.3 No other charges. Merchant will not add any surcharge, convenience fee, service fee, minimum purchase requirement for cards, or other charge for paying by card, and will not describe the Program to Customers as a fee for using a card.
3.4 No manual override. Merchant will not manually change the Card Price, Cash Price or Cash Discount on an order except through the discount and price-edit tools the Service provides, and will not use those tools to charge card Customers more than the posted Card Price.
3.5 Honor the Cash Discount. Merchant will give the Cash Discount to every Customer who pays with cash.
3.6 Keep prices current. Merchant is responsible for the Cash Prices it enters and for keeping posted prices consistent with the Service.
4. Compliance
4.1 Merchant represents that operating the Program is lawful at each of its locations and agrees to comply with federal and state law, the card network rules, and Ridge's Program instructions as updated from time to time. At the Effective Date, Ridge offers the Program only to Merchants located in Ohio.
4.2 If a law, card network rule or Stripe requirement changes so that the Program cannot lawfully operate at a Merchant location, Ridge may suspend the Program at that location and will offer Merchant alternative terms or the right to terminate without penalty.
4.3 Ridge may audit Merchant's Program display and receipts, including by site visit or Customer feedback, and may suspend card acceptance if Merchant fails to comply after notice and a 10-day opportunity to cure.
5. Changes and term
This Addendum continues as long as the Merchant Agreement is in effect. Ridge may update this Addendum under Section 17.1 of the Merchant Agreement, except that changes to the Program Rate follow Section 1.4.