DailyPay Direct

DAILYPAY DIRECT PROGRAM TERMS

(ADDITIONAL TERMS OF THE DAILYPAY TERMS OF SERVICE)

Last updated: August 16, 2023

Welcome to the DailyPay Direct Program!

We want you to completely understand the DailyPay Direct Program. These DailyPay Direct Program Terms (“DailyPay Direct Program Terms”) are a contract and explain important things you should know about the DailyPay Direct Program.

By using the DailyPay Direct Program, you agree to these DailyPay Direct Program Terms and the DailyPay Terms of Service, available at https://www.dailypay.com/legal/terms-of-service/. Please read these DailyPay Direct Program Terms and the DailyPay Terms of Service carefully. Capitalized terms used in these DailyPay Direct Program Terms have the meanings provided in Section 9 below.

Other Languages: We may offer you a version of these DailyPay Direct Program Terms in another language to facilitate your understanding of these DailyPay Direct Program Terms, but in case of disputes or controversies the English version will prevail.

1. The DailyPay Direct Program Provides You with Information at No Cost

DailyPay provides software to individuals that enables the individuals to access unpaid earnings. The DailyPay Direct Program provides you with information, which you can use for free. The information the DailyPay Direct Program provides can help you obtain a better picture of how much money you have earned so you can budget.

2. You Can Also Use the DailyPay Direct Program to Access Your Unpaid Earnings

In addition to the information described in Section 1, you can use the DailyPay Direct Program to access some or all of the money you have already earned (i.e., your Unpaid Earnings, as defined below).

Here is how this feature works:

From time to time, you may log into your DailyPay account and ask us to access some or all of your Unpaid Earnings. To use this feature, you must link your Friday Card to your DailyPay account.

Each time you ask us to access any Unpaid Earnings, we will disclose to you how much of your Unpaid Earnings we are able to provide. We will also present you with one or more delivery options, the fees associated with which, if any, we will disclose to you at the time of the transaction. The fees for each type of transfer are also disclosed below. We will not require you to pay any other charges or fees to access your Daily Earnings. You will have an opportunity to accept or decline the transaction terms. When you accept the transaction terms, you give us all right, title, and interest to the related Daily Earnings, and we will send the Amount Provided to your Friday Card, so that you can use your money whenever, wherever, and however you wish, subject to any restrictions on the usage of your Friday Card imposed by the Issuer.

We do not assume any liabilities or duties related to any Unpaid Earnings: any such liabilities and duties will remain solely with you. By giving us your right, title, and interest in and to your Daily Earnings, you agree that we can stand in your shoes and receive payment for the Daily Earnings from the Hiring Entity. Our right to receive your Daily Earnings is non-recourse and is not intended to create any debt obligation owed by you to us. This means that if the Hiring Entity pays us an amount that is less than the amount of the Daily Earnings—for example, if the Hiring Entity is unable to make payment because its business has slowed down or closed in the ordinary course of business—and if you have not breached these DailyPay Direct Program Terms, then you will owe us nothing. Under such circumstances, we will have no legal or contractual claim or remedy against you based on our inability to collect the full amount of the Daily Earnings, and we will not engage in debt collection activities against you, place the Daily Earnings as a debt or sell them to a third party, or report you to a consumer reporting agency.

We know that having the right to receive your Daily Earnings has associated risks, and we assume these risks based on the representations, warranties, and promises you make in these DailyPay Direct Program Terms. You agree that the provisions of these DailyPay Direct Program Terms are designed to give us a reasonable and fair opportunity to receive the benefit of our transaction with you.

We will not require you to submit a credit report or credit score or to undergo credit underwriting to use this feature. You will be designated a DailyPay Routing and Account Number from us for an account that we establish for your participation in the DailyPay Direct Program. You agree to make direct deposit arrangements with the Hiring Entity using your DailyPay Routing and Account Number as the account of record in the Hiring Entity’s payment system. You agree to instruct the Hiring Entity to direct all of your net pay to that account, and you will authorize the Data Provider to convey such instructions to the Hiring Entity on your behalf. This means that when the Hiring Entity runs payroll or pays fees, all of your net pay or fees will be directly deposited in the account bearing the DailyPay Routing and Account Number. We will verify through the Data Provider that you work for the Hiring Entity and the amount of your Unpaid Earnings. For each pay period, we will keep any Daily Earnings, and you will receive the rest of your Unpaid Earnings to your Friday Card. 

You must notify us immediately if your DailyPay Routing and Account Number ceases to be the account of record in the Hiring Entity’s payment system. If you do not, your DailyPay account and your participation in the DailyPay Direct Program, including your payments or Daily Earnings and Unpaid Earnings, could be adversely impacted. We are not liable for any of these adverse impacts. We also do not control when the Issuer posts incoming payments to your Friday Card, so there may be delays which are beyond DailyPay’s control. If you have questions about the posting of incoming payments to your Friday Card, you may contact customer service for the Friday Card by calling (833) 998-2449, which is toll-free from within the United States. If you have questions about the DailyPay Direct Program or any difficulty changing your DailyPay account settings, you may email us a request for assistance at: support@dailypay.com. We may use third-party service providers to interact with your Friday Card, including obtaining and exercising your authority to manage and initiate debit and credit transactions involving your Friday Card. You agree that such transactions are subject to the terms of the third-party service providers. You authorize us and these third-party service providers to interact with your Friday Card to the extent necessary to provide you the DailyPay Direct Program.

We reserve the right, in our sole discretion, to delay, suspend, or terminate your access to your DailyPay account, your participation in the DailyPay Direct Program, and payments: (a) if we believe there has been fraudulent or suspicious activity related to your DailyPay account, (b) if you have been terminated as an employee or service provider by the Hiring Entity, (c) if the information the Data Provider obtains or attempts to obtain from the Hiring Entity and shares with us is temporarily or permanently delayed or disrupted, (d) if we learn that your DailyPay Routing and Account Number ceases to be the account of record in the Hiring Entity’s payment system, (e) if we learn your Friday Card has been suspended or closed, (f) if we learn that you are expected to receive a payment of Unpaid Earnings directly from the Hiring Entity or someone other than DailyPay, or (g) if you violate or breach any of your agreements with us. 

3. You Consent to the Data Provider Sharing Data with Us and Receiving Data from Us

Before you can use the feature described in Section 2, you will need to enter into an agreement with the Data Provider and direct the Data Provider to obtain your information from the Hiring Entity and to share it with us, so that we can calculate your Daily Earnings. The Data Provider’s registration interface is embedded within the Friday by DailyPay™ app. If the information the Data Provider obtains from the Hiring Entity is incompatible with our systems, or if the Data Provider is unable to obtain the information required to calculate your Daily Earnings, we will be unable to provide you this feature. 

The DailyPay Direct Program relies upon information about you the Data Provider obtains from the Hiring Entity and shares with us. You consent to the Data Provider obtaining such information about you from the Hiring Entity and sharing it with us to provide the DailyPay Direct Program. This includes:

• Your name;
• Your employee identification number, if applicable;
• Your contact information (including your email and your mobile phone number);
• Your earnings and timecard information, if applicable;
• Your gross and net pay; 
• The account of record in the Hiring Entity’s payment system; and
• Any other related data obtained by the Data Provider from the Hiring Entity and shared with us.

DailyPay only requests information from the Data Provider that is required to provide the DailyPay Direct Program, and such information is not shared outside of DailyPay, other than with regulators, the Data Provider, and DailyPay’s service providers that are necessary to provide the DailyPay Direct Program, or as otherwise required by law.

DailyPay cannot provide retroactive access to Unpaid Earnings that arose before you established your DailyPay account.

If your DailyPay account is closed, you will provide the Hiring Entity for payment purposes the routing and account number for the bank account to which you would like your pay to be sent. 

You may also provide information or content directly to us through the DailyPay Direct Program. You grant and will grant to DailyPay and its affiliated companies a nonexclusive, worldwide, royalty-free, fully paid up, transferable, sublicensable, perpetual, irrevocable license to: (A) copy, display, upload, perform, distribute, store, modify, and otherwise use your User Content in connection with the operation of the DailyPay Direct Program; and (B) use your User Content in aggregated and/or anonymized format in connection with (i) the promotion, advertising, or marketing of the DailyPay Direct Program or (ii) other services we provide to our customers and business partners. You represent and warrant that you have the rights to upload, input, or submit the User Content to the DailyPay Direct Program and grant the foregoing license. DailyPay is not obligated to pre-screen or review User Content, but DailyPay reserves the right to do so to ensure your compliance with these DailyPay Direct Program Terms. DailyPay will also have the right (but not the obligation) in its sole discretion to disable access to or delete any User Content that it considers in violation of these DailyPay Direct Program Terms or be otherwise illegal. DailyPay may share User Content with the Hiring Entity, and any third-party service providers, as well as otherwise described in the Privacy Policy.

4 You Authorize Electronic Payments to Your Friday Card

By using the DailyPay Direct Program, you authorize DailyPay to initiate Automated Clearing House (“ACH”) payments to your Friday Card. You agree that ACH transactions you authorize comply with law. These electronic payments will be, as applicable, in the amount of the Amount Provided and at the time disclosed to you when you choose your delivery method, or in the amount of the rest of your Unpaid Earnings and at the time the Hiring Entity runs payroll. We may reverse erroneous transactions in accordance with National Automated Clearing House Association (NACHA) rules. We will provide the Services in accordance with any applicable provisions of the federal Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et. seq., and any applicable regulations thereunder.

The availability of funds in your Friday Card will depend on the funds availability policy of the Issuer, which may limit the availability of such funds, including through use of “cut-off times” by which items must be deposited to be processed on a given day. 

 The authorizations in this Section 4 will remain in full force and effect until you close your DailyPay account, as provided in Section 2 of the Terms of Service.

5. Rules of the Road

You promise us that:

• You will take all actions, including the execution of documents requested by us, to preserve and protect our right, title, and interest in and to any Daily Earnings;
• You will not take any action or make any omission (including redirecting payments, or placing or allowing placement of a lien or security interest on any Daily Earnings) that has, individually or in the aggregate, an adverse effect on our ability to collect on or retain any Daily Earnings; and
• You will not use the DailyPay Direct Program to obtain more Unpaid Earnings than you have earned, including receiving payments on the Daily Earnings from both DailyPay and another person for the same work. If you receive a payment on the Daily Earnings from the Hiring Entity or someone other than DailyPay, you must notify us immediately and hold the amount in trust for our benefit.

6. You Make Certain Representations and Warranties to Us

You represent and warrant to us on a continuing basis that:

• These DailyPay Direct Program Terms constitute a legal and valid contract that is binding on you and enforceable against you as written;
• The execution, delivery, and performance of these DailyPay Direct Program Terms by you does not violate any law or the provisions of any agreement to which you are bound;
• There are no claims, actions, suits, audits, inquiries, proceedings, or governmental investigations pending or threatened involving you or the transactions contemplated by these DailyPay Direct Program Terms that, if adversely determined, would be reasonably expected to have an adverse effect on our ability to collect on or retain any Daily Earnings; and
• You have not used any name with us or with the Hiring Entity other than the name you used or verified to establish your DailyPay account.

And each time you ask us to access any of your Unpaid Earnings, you also represent and warrant to DailyPay that at the time of your request:

• You hold all legal right, title, and interest to and in the Unpaid Earnings, free and clear of any liens, encumbrances, judgments, or garnishments; and you have not sold, pledged, assigned, or encumbered the Unpaid Earnings to any third party;
• The Unpaid Earnings are presently and unconditionally owed and have not been modified, dismissed, settled, or paid; are not currently past due; and represent the amount owed by the Hiring Entity arising solely from your actual and timely provision to the Hiring Entity in the ordinary course of business of lawful services, which you have accurately recorded and described to the Hiring Entity;
• The Unpaid Earnings are not subject to any Dispute, claim, offset, deduction, discount, defense, or counterclaim of any kind; and
• There has been no error, misrepresentation, negligence, fraud, omission, or violation of law on the part of you with respect to the Unpaid Earnings or their underlying services. 

7. You Are Responsible for All Disputes Between You and the Hiring Entity

The DailyPay Direct Program relies upon information about you that the Data Provider obtains from the Hiring Entity and shares with us. Sometimes the Hiring Entity might disagree with you about the amount of Unpaid Earnings you earned or the amount that it owes you. We do not resolve or otherwise become involved in Disputes between you and the Hiring Entity. Instead, resolving such Disputes is your sole responsibility. You must notify us of any Dispute immediately but in no event more than five days of becoming aware of it, and you must work directly with the Hiring Entity to resolve the Dispute. A Dispute is resolved when the Hiring Entity pays the full amount of the disputed Daily Earnings. You will provide DailyPay periodic updates, as requested by DailyPay, regarding the status of the Dispute.

You must resolve any Dispute related to the Daily Earnings within 30 days of becoming aware of it. If you are unable to resolve a Dispute related to the Daily Earnings within 30 days of becoming aware of it, then you must immediately send us payment in the amount of the Amount Provided within three additional days.

8. We Will Work with You to Resolve Excessive or Duplicative Amounts

If the following error events occur, you may receive amounts from us in excess of or in duplication of your Daily Earnings or the Amount Provided:

• We pay you an amount you did not request or more than the Amount Provided due to an operational error;
• You directly receive any payment on the Daily Earnings from the Hiring Entity or someone other than DailyPay pursuant to Section 5, or if we learn that you are expected to receive such a payment from the Hiring Entity or someone other than DailyPay; or
• You otherwise receive or retain an Amount Provided that was determined with respect to Daily Earnings in excess of those to which you were legally entitled to receive from the Hiring Entity, misdirect funds from DailyPay, or commit any other act (or omit any other act) that is a breach of the representations, warranties, or promises of Sections 5, 6, or 7 (including if you are unable to resolve a Dispute related to the Daily Earnings and did not send us payment).

If any of these error events occur, we may give you the option to resolve such amounts by (i) authorizing us to settle such amount against your next paycheck(s), (ii) authorizing us to initiate an ACH account debit from your Friday Card, or (iii) in another manner mutually agreed to by you and us. If none of these options are selected by you, we may default to settling such amount against your next paycheck. This paragraph is not an authorization to debit your Friday Card, and we will not debit your Friday Card without obtaining your prior written consent. 

If any of these error events occur and are not resolved, or if we reasonably and in good faith believe that you have defrauded or intend to defraud us, we may delay, suspend, or terminate your access to your DailyPay account, your participation in the DailyPay Direct Program, and payments, and we may pursue any other remedy permitted by law or equity, which will be cumulative.

9. Definitions Used in These DailyPay Direct Program Terms

The following terms used in these DailyPay Direct Program Terms have the following meanings:

• “Amount Provided” means the amount of the Daily Earnings, minus our transaction fee, if any. Our transaction fee, if any, is netted from the payments to you that we facilitate. 
• “Daily Earnings” means the Unpaid Earnings we make available to you before the Hiring Entity runs payroll.
• “DailyPay,” “our,” “us,” and “we” mean DailyPay, Inc.
• “DailyPay Direct Program” has the meaning set forth in the opening paragraphs of the DailyPay Terms of Service.
• “DailyPay Direct Program Terms” means these DailyPay Direct Program Terms. 
• “DailyPay Routing and Account Number” means an account and routing number (which account and routing number DailyPay may change from time to time) that DailyPay establishes for your participation in the DailyPay Direct Program.
• “Data Provider” means a third-party service provider that you direct to obtain information about you from the Hiring Entity and to share it with us.
• “Dispute” means a situation in which the Hiring Entity questions, objects, denies, challenges, or contradicts the quality, quantity, or other aspect of any of your services that are related to the Unpaid Earnings, and is unwilling to pay or claims a right to recover any portion of the Unpaid Earnings.
• “Friday Card” means the Friday by DailyPay™ Visa® Prepaid Card
• “Hiring Entity” means the entity to which you provide services.
• “Issuer” means The Bancorp Bank, N.A., Member FDIC, issuer of the Friday Card.
• “Services” has the meaning set forth at the top of the DailyPay Terms of Service.
• “Unpaid Earnings” means the right to payment for pay owed to you by the Hiring Entity arising out of services you have provided to the Hiring Entity or its customers and any other related rights. 
• “User Content” means, in addition to information that is made available to DailyPay through your use of the DailyPay Direct Program, information about you that you provide DailyPay, including information about your financial, personal, or professional activities.