Electronic Fund Transfer Disclosures (Regulation E)

Electronic Fund Transfer Disclosures (Regulation E)

This page describes your rights and our responsibilities under the Electronic Fund Transfer Act and Regulation E (12 C.F.R. Part 1005) for Kraken products that let you send or receive electronic fund transfers (“EFTs”) using a Kraken account. It applies to you if you use one of the Kraken products listed in Section 1 below. We provide this disclosure before your first EFT on each such product.

Responsible financial institution: Payward Interactive, Inc. (“PWI,” “we,” “us,” or “our”), NMLS ID 1843762, is the financial institution responsible to you under Regulation E for each product listed below, except where a product's own subsection below names a different responsible institution.

These disclosures apply only to U.S. dollar transfers to or from a U.S. account, and only to individual (non-business, non-commercial) accounts, unless the product-specific terms for a given product say otherwise.

1. Transfers you can make

1a. Krak Third Party Payments (US)

With Krak Third Party Payments you can:

• Receive ACH transfers from a third party (such as an employer or an external bank account) to the account number and routing number assigned to your Krak account; and
• Send ACH transfers from your Krak balance to a third party's U.S. bank account.

Funds you receive may be subject to a short hold before they are available to send, based on a risk review of the transfer.

2. Fees

We do not charge a fee for the EFTs described in Section 1, or for the right to make them. If a specific product charges a fee for a particular EFT feature, that fee will be disclosed in that product's own terms and in-product before you confirm the transfer.

3. Your right to documentation

Receipts. You will receive a receipt for each transfer to or from your account, showing the counterparty, date and time, amount, transfer type, and any fees.

Periodic statements. You will receive an account statement every month in which you make an electronic fund transfer. If no transfers occur, you will receive a statement at least quarterly.

4. Preauthorized payments and your right to stop payment

If you arrange to have regular deposits made to your account at least once every 60 days from the same person or company, such as an employer, you can call us at +1 (888) 720-8670 to find out whether the deposit was made. If you arrange in advance to make regular payments out of your account, you can stop any of these payments. Call us at +1 (888) 720-8670 or reach out to us via Kraken Support in time for us to receive your request at least 3 business days before the payment is scheduled. If you call, we may also require you to put your request in writing and get it to us within 14 days after you call.

Recurring transfers. You will receive notice within 2 days of a scheduled recurring deposit, confirming that your recurring scheduled transfer has been received into your account, or that it has not been received, as applicable.

5. Our liability for failing to make or stop transfers

If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for example:

• If, through no fault of ours, you do not have enough available funds in your account to make the transfer;
• If the funds in your account are subject to a hold, legal process, or another restriction;
• If the system was not working properly and you knew about the breakdown when you started the transfer;
• If circumstances beyond our control (such as fire, flood, or system failure) prevent the transfer despite reasonable precautions we have taken; or
• As otherwise stated in our agreement with you for the applicable product.

6. Confidentiality — when we disclose account information

We will disclose information to third parties (including our affiliates) about your account or the transfers you make:

• Where it is necessary for completing transfers;
• To our banking partner in order to provide and operate your account;
• To verify the existence and condition of your account for a third party, such as a credit bureau or merchant;
• To comply with a government agency or court order;
• If you give us your written permission; or
• As otherwise described in our Privacy Policy.

7. Our business days

The Kraken platform is available 24 hours a day, every day, and you can submit a transfer at any time. However, for the purposes of these disclosures, including the timeframes for reporting unauthorized transfers (Section 8) and for error resolution (Section 9), our business days are Monday through Friday, excluding federal holidays. ACH transfers are processed and settled only on business days, generally within 1–2 business days, so a transfer you submit on a weekend or holiday will begin processing on the next business day.

8. Your liability for unauthorized transfers

Tell us at once if you believe your credentials or login have been lost, stolen, or used without your permission, or that an unauthorized transfer has been or may be made. Call or write to us as specified in Section 13 below, or reach out via Kraken Support. Reporting promptly limits your liability:

We may apply these liability limits only if we gave you the required disclosures (the summary of your liability above; the phone number and address to report a suspected unauthorized transfer; and our business days in Section 7). Your carelessness cannot increase your liability beyond these limits.

9. In case of errors or questions about your electronic transfers

Telephone us at +1 (888) 720-8670, write us at Payward Interactive, Inc., 106 E. Lincolnway, 4th Floor, Cheyenne, WY 82001, reach us through the Kraken Support Center, or email us as soon as you can if you think your statement or receipt is wrong, or if you need more information about a transfer listed on the statement or receipt.

We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. When you contact us:

• Tell us your name and account number (if any).
• Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.
• Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days after we hear from you and will correct any error promptly. If we need more time, we may take up to 45 days to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account.

For errors that occurred within 30 days after the first deposit to the account was made, we may take up to 90 days to investigate your complaint or question, and up to 20 business days to credit your account for the amount you think is in error.

We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

10. What counts as an error

An “error” includes an unauthorized transfer from your account; an incorrect transfer to or from your account; the omission of a transfer from your statement; a computational or bookkeeping error by us; your receipt of an incorrect amount; and your request for more information about a transfer. Routine balance inquiries, requests for tax or recordkeeping information, and requests for duplicate documents are not errors.

11. Transfers you did not authorize vs. payments you were deceived into making

If someone other than you initiates a transfer from your account without your authority and you receive no benefit, including where a third party obtained your credentials through fraud or phishing, or by tricking you into sharing them, that transfer is unauthorized, and the rights and liability limits above apply.

If you send a payment yourself, even if you were deceived into doing so, it is generally treated as authorized, and the unauthorized-transfer protections may not apply. We will still investigate any claim you submit. To help protect you, we show a scam warning before you send $500 or more.

12. Returned and reversed payments

A payment made by bank transfer (ACH) can sometimes be returned after it first appears in your account. This can happen in two ways:

A payment credited to you is reversed. Money credited to your Krak balance can be returned to the sending bank, sometimes several days after it first appeared. If this happens, the funds did not finally settle and will be removed from your balance.

A payment you send is returned to you. If a payment you send cannot be delivered, for example, because the recipient's details are wrong or their account is closed, it will be returned and credited back to your Krak balance.

When a payment is returned, we reverse the transaction and update your Krak balance to reflect that the funds did not settle. Because of this, funds shown in your balance are not final until the payment has fully settled, and you should not rely on them until then.

If you believe a payment was returned or reversed in error, or you do not recognize a reversal, contact us as described in Section 9 above (In Case of Errors or Questions About Your Electronic Transfers) and we will investigate.

13. How to contact us

Payward Interactive, Inc.

NMLS ID 1843762

106 E. Lincolnway, 4th Floor, Cheyenne, WY 82001

Telephone: +1 (888) 720-8670

Email: via the Kraken Support Center