Direct Express® – How it works

Definitions:

Agency. The Federal Government Agency that pays your
Benefits.

ATM. Automatic Teller Machine displaying the Mastercard®
logo or Mastercard® ATM Alliance Logo.

Benefits. The Federal Government payments you receive
electronically from the Agency.

Business Day. Monday through Friday, excluding federal
holidays.

Card. The Direct Express® Debit
Mastercard® Card or its card number issued by Comerica Bank
that
is used to access funds in your Card Account. Access in some cases requires
the use of your PIN.

Card Account. The account held at Comerica Bank to which
your Benefits are electronically transmitted by the Agency and which you
access by using your Card. You are the owner of the funds in the Card
Account. The funds are FDIC insured to the maximum amount permitted by law.

PIN. The Personal Identification Number that you select.

Transaction. A purchase, cash withdrawal, cash back, cash
advance, merchant credit, Benefit deposit or other transaction made with
your Card.

Getting Started

1. A. Activating Your Card & Selecting a
   PIN

   1. By accepting this Card, you agree to call Customer Service at
      the number below to select your PIN and activate your Card. See
      the enclosed Direct Express® Debit
      Mastercard® Card brochure for more
      information.
   2. Keep your PIN in a safe place. Do not write it on your Card or
      keep it near your Card.

2. B. When Your Funds are Available

   1. Once you have activated your Card and selected your PIN and we
      have received and credited funds from the Agency to the Card
      Account, you can begin using your Card. These funds are usually
      available the same Business Day we receive them.
   2. If the Card Account is credited with an amount you are not
      entitled to receive, the amount may be deducted from the Card
      Account without prior notice to you. If the incorrect amount is
      from the Agency and you used those funds, the Agency can reclaim
      those funds. If we incur a loss as a result of either of these
      situations, we may recover those funds from you or your estate.
      (See Section XI, “Adjustments to Your Card Account”)
   3. You may not deposit funds to your Card Account. Except for
      credits from merchants (for returns or adjustments), only the
      Agency may add funds to the Card Account.

Using your Card

1. A. General Use of your Card

   1. You can use your Card to pay for merchandise or services from
      any merchant that accepts Mastercard® debit
      cards. You can also use your Card at ATMs that display a
      Mastercard® logo. There are no Card fees
      for
      many of these Transactions. (See Section X, “Fees”)
   2. To use your Card at ATMs or to get cash back when using your
      Card to make purchases, you must use your PIN. For other
      transactions, you should select “credit” and you may be asked to
      sign the sales receipt. Selecting “credit” does not mean that we
      or the Agency are lending you money.

   3. The amount of each Transaction will be deducted from your
      available Card Account balance along with any applicable
      fees (See Section X, “Fees”) You should ensure that you have
      enough available funds in the Card Account to cover the
      Transaction and prior Transactions. You may not overdraw
      your Card Account.

      Funds that are subject to a Transaction Hold (see Paragraph
      B.1 of this Section III “Transaction Holds”) or security
      freeze (see Paragraph 3 of Section V) are not available for
      other Transactions.

   4. If you make a purchase through a Point of Sale (“POS”) terminal,
      a cash refund or adjustment will not be given to you if you
      return the merchandise. Instead, the merchant will process a
      credit transaction, and we will apply the credit to your Card
      Account balance.
   5. You can instruct us through our automated telephone Funds Transfer service, Mobile App, or Website to transfer funds from your card account to your personal United States bank account. If we cannot authenticate or verify your personal bank account information, we may limit your initial transfer to $200.00 or not allow the transfer to proceed. There is a fee for each transfer (See Section X, “Fees”). Transfers generally take three (3) Business Days.
   6. Instructions to make a telephone transfer or bill payment that
      are received after our cutoff hour or on a non-Business Day will
      be considered received as of the next Business Day. Once a
      transfer or payment instruction has been confirmed by us, you
      cannot cancel the Transaction.

2. B. Transaction Holds, Preauthorized Payments, and Preauthorized Credits

   1. Transaction Holds. For some Card purchases,
      such as car rentals and hotel accommodations, the merchant may
      request authorization in advance for an estimated amount. If the
      authorization is approved, we place a temporary hold
      (“Transaction Hold”) on your funds for the estimated amount of
      the purchase so that we can ensure that sufficient funds are
      available when the purchase is completed. Until the Transaction
      finally settles, or we determine that it is unlikely to be
      processed, the held funds will not be available for other
      Transactions. Once the preauthorized Transaction finally
      settles, we will charge your Card for the correct amount of the
      final transaction and will release any excess amount. If we
      determine that it is not likely the preauthorized Transaction
      will be processed, we will release the hold and those funds will
      be available for your use.
   2. Preauthorized Payments. You may use your Card
      to make regular, pre-authorized payments to merchants by giving
      your Card Account information to the merchant. If these payments
      may vary in amount, the person you are going to pay will tell
      you 10 days before each payment, when it will be made and how
      much it will be. You may choose instead to get this notice only
      when the payment would differ by more than a certain amount from
      the previous payment, or when the amount would fall outside
      certain limits that you set.You have the right to stop a pre-authorized
      payment from your Card Account if you call us at the Customer Service
      number below, or write to us at Direct Express®,
      Payment Processing Services, PO Box 540190, Omaha, NE 68154-0190.
      We must receive your request at least three (3) Business Days before the payment is
      scheduled to be made. (Note: If we do not receive your request at least three (3)
      Business Days before the scheduled payment, we may attempt,
      at our sole discretion, to stop the payment. However, we
      assume no responsibility for our failure or refusal to do
      so, even if we accept your stop payment request). If you
      call, we may require you to put your request in writing to
      us and to provide us with a copy of your notice to the
      payee, revoking the payee’s authority to originate debits to
      your Card Account, within 14 days after you call. If we do
      not receive the written confirmation within 14 days, we may
      honor subsequent debits to your Card Account. For individual
      payments, your request should specify the exact amount
      (dollars and cents) of the transfer you want to stop, the
      date of the transfer, and the identity of the payee. Unless
      you tell us that all future transfers to a specific
      recipient are to be stopped, we may treat your stop payment
      order as a request concerning the one transfer only. If you
      order us to stop one of these payments at least three (3)
      Business Days before the transfer is scheduled and we do not
      do so, we will be liable for your losses or damages.
   3. Preauthorized Credits. If you have arranged to have direct
      deposits made to your account at least once every 60 days from the same person
      or company, you can call us at 866-606-3311 to find out whether or not the
      deposit has been made. Only federal benefit payments can be applied
      to your Card Account.

Transactions We May Refuse to Process

A Transaction may not be processed if: (a) the amount of the Transaction
exceeds your available balance, (b) the Card has been reported lost or
stolen, (c) we are uncertain whether you have authorized the Transaction, or
(d) there is a dispute involving your available balance. If you believe you
were entitled to receive Benefits in an amount different than what was
credited to your Card Account, you should contact the Agency.

Problems Using Your Card

1. If you experience a problem using your Card at the self-service pump of
   a gas station, you may have to go inside to pay.
2. If you have problems using your Card and you believe you have sufficient
   available funds for the Transaction, call us at the Customer Service
   number below.
3. If we notice Transactions that are unusual or suspicious, we may place a
   temporary security “freeze” on your Card while we attempt to contact
   you.

Record of Your Transactions, Card Account Balance & Know Your
Balance

You should check your Card Account balance and Transaction history on a
regular basis. The information is available to you free of charge through
our Customer Service number and at our web site, www.usdirectexpress.com.
For a fee, you can also receive written statements each month.

1. Keep track of your Transactions, including Transaction Holds, so you
   know your Card Account balance.
2. When you withdraw cash or make a purchase, you can get a receipt for the
   Transaction. In some cases, the receipt will indicate your Card Account
   balance. You also can get information about your Card Account balance
   and a record of your Transactions by calling the Customer Service number
   below or by visiting www.usdirectexpress.com.

   [Note: Balance information may not include Transactions or fees that are still in process and have not yet settled. The balance also may include payments subject to a hold (See Section III, Paragraph B “Transaction Holds”) or a security freeze (See Section V, Paragraph 3)]

3. From the website, you can select and print transaction history for up to
   12 months for tracking the transactions posted to your Card account. The
   amount of your available funds is also available on the receipt you get
   when you make a withdrawal or balance inquiry at certain ATMs. You also
   have the right to obtain at least 24 months of written history of Card
   Account transactions by calling us at the number on the back of your
   card or writing us at Direct Express®, Payment Processing Services, PO Box 540190, Omaha, NE
   68154-0190. You will not be charged a fee for this information unless
   you request it more than once a month.

Card and PIN Security–REPORT LOST OR STOLEN CARD

You agree not to give or otherwise make your Card or PIN available to others.
If you do, you will be responsible for any Transactions they conduct, even
if they exceed your authorization. For security reasons you agree not to
write your PIN on your Card or keep it in the same place as your Card.

If you believe your Card or PIN has been lost or stolen or that someone has
or may transfer or take money from your Card Account without your
permission, report it by calling the Customer Service number below as soon
as possible. You can also write to us at Direct Express®,
Payment
Processing Services, PO Box 540190, Omaha, NE 68154-0190 or visit our website
at www.usdirectexpress.com. Calling us is
the fastest way to report this loss. Once your Card or PIN is reported to us
as lost, stolen or destroyed, your Card will be cancelled, and you will have
no liability for further Transactions involving the use of the canceled
Card.

Your Liability for Unauthorized Transactions

1. Tell us AT ONCE if you believe your Card or PIN has been lost or
   stolen. Telephoning us at the Customer Service number is the best
   way of keeping your possible losses down. You could lose all the
   money in your Card Account. If you tell us within two (2) Business Days,
   you can lose no more than $50 if someone used your Card or PIN
   without your permission. If you do NOT tell us within two (2)
   Business Days after you learn of the loss or theft of your Card or
   PIN, and we can prove that we could have stopped someone from using
   your Card or PIN without your permission if you had told us, you
   could lose as much as $500.

   If you can’t telephone us, you can write to us at Direct Express®,
   Payment Processing Services, PO Box 540190, Omaha, NE 68154-0190. If
   you are a California resident, you will not be liable for the $500
   amount described above in any event. If you are a New York resident,
   your liability for the unauthorized use of the Card will not exceed
   $50.

   Also, if the written Transaction history or other Card Transaction information provided to you shows transfers that you did not make, tell us at once. If you do not tell us within 120 days after the transfer allegedly in error was credited or debited to your Card Account, you may not get back any money you lost after the 120 days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip, a hospital stay, or the illness of a family member) kept you from notifying us, we will extend the time periods.

2. Once your Card or PIN is reported lost, stolen or destroyed, the Card will be canceled, and you will have no liability for further Transactions conducted with the Card.

In Case of Errors or Questions about Your Card Transactions

1. Call the Customer Service number below or write to us at the address
   below as soon as you can if you think an error has occurred in your Card
   Account. We must hear from you within 120 days after the transfer allegedly in
   error was credited or debited to your Card Account. You will need to tell us:
   1. Your name and Card number.
   2. Why you believe there is an error, and the dollar amount
      involved.
   3. The approximate date when the error took place.

      Please provide us
      with your street address, email address and telephone number,
      as well, so that we can communicate with you.

2. If the error cannot be resolved over the phone, you must provide us
   written notice of the error within 10 Business Days at Direct
   Express®, Payment Processing Services, PO Box 540190,
   Omaha,
   NE 68154-0190.
3. We will determine whether an error occurred within 10 Business Days
   (20 Business Days for new Card Accounts opened less than 30 days) after we hear
   from you, and we will correct any error promptly. If we need more time,
   however, we may take up to 45 days to investigate your complaint or question. If
   we decide to do this, we will credit your Card Account within 10 Business Days
   (20 Business Days for new Card Accounts opened less than 30 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 Card Account. For errors involving new accounts,
   point-of-sale, or foreign-initiated transactions, we may take up to 90 days to
   investigate your complaint or question.
4. We will tell you the results of our investigation within three (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 we used in our investigation to make our determination.
5. If you need more information about the error resolution procedures, call
   us at the Customer Service number below.

Fees

We will charge you and you agree to pay the fees and charges described on the List
of All Fees included with your Card. See the brochure accompanying your Card for
ways to avoid fees. If you believe a fee was charged when it should not have been,
call Customer Service at the number below.

Adjustments to Your Card Account

There are occasions when adjustments will be made to your Card Account
balance
to: reflect a merchant adjustment; resolve a dispute regarding a Transaction
posted
to your Card; correct deposits or Transactions posted in error; or because
the
Agency required the return of the Benefits received after you died or were
declared
incompetent (“Reclamation”). These adjustments could cause your Card Account
to have a negative balance.

If you do not have sufficient funds in your account to cover a Transaction or fee, the
amount owed may be deducted from future credits to your Card Account and/or we
may seek reimbursement from you, your estate or beneficiaries.

Remember, you always have the right to dispute adjustments posted to your
Card
Account.

Our Liability to You

If we do not complete an electronic fund transfer (Transaction) to or from
your Card Account on time or in the correct amount according to these Terms,
we will be liable for your losses or damages. There are some exceptions,
however. We will not be liable, for instance, if:

1. Through no fault of ours, you do not have enough available funds in your
   Card Account to complete the Transaction;
2. We believe you may not have authorized the Transaction;
3. Circumstances beyond our control (such as fire, flood, water damage,
   power failure, strike, labor dispute, computer breakdown, telephone line
   disruption, or natural disaster) prevents or delays the transfer,
   despite reasonable precautions taken by us;
4. The debit card system being used, including but not limited to the ATM
   or POS terminal was not working properly and you knew about the problem
   when you started the Transaction;
5. The Agency did not transmit Benefits for us to credit to your Card
   Account;
6. Funds in your Card Account were held as a result of legal process, a
   Transaction hold or security freeze described in these Terms; or
7. The Transaction could not be completed because your Card was damaged.

Suspending or Canceling your Card.

1. We may temporarily suspend or permanently terminate your use of the
   Card, including electronic access to your Card Account:
   1. immediately if: you breach any of the provisions of these Terms; we are
      notified to do so by the Agency; we believe that there has been or may be
      unauthorized use of your funds, Card or PIN; there are conflicting claims
      to your funds; you have made more than one claim of unauthorized Transactions; we believe your Card is being used for any unlawful purpose;
      or we believe you are named as a specially designated national by the Office
      of Foreign Asset Control or presidential order; or
   2. within 30 days after giving you notice of our intent to suspend
      or terminate your Card.
2. You may cancel your Card by giving us prior written notice or
   telephoning us at the Customer Service number below.
3. Termination of your Card does not relieve you of your responsibility to
   reimburse us for any amounts owed to us under these Terms even if you
   cancel the Card.
4. You should notify the Agency when your Card is permanently canceled to
   make other arrangements for receiving your Benefits.

LEGAL & GENERAL TERMS

1. Governing Law. The funds in your Card Account are
   deemed held in the State of Michigan. Unless a federal law or regulation
   applies to a specific section of these Terms or use of the Card, these
   Terms will be governed by and interpreted in accordance with the laws of
   the State of Michigan. Depending on where you live, you may have
   additional rights under certain state laws that apply to us and your
   Card. We will comply with applicable federal and state law.
2. Limitation on Time to Sue. Unless prohibited by law, an action or proceeding by
   you to enforce an obligation, duty or right arising under these Terms or
   applicable law with respect to your Card or Card Account must be
   commenced within 12 months after the cause of action accrues.

3. Dispute Resolution, Venue, and Waiver of Right to Jury
   Trial/Judicial Reference. If you have a problem with or related
   to your Card or Card Account, please call Customer Service at the number
   below immediately. In most cases, a telephone call will quickly resolve
   the problem in a friendly, informal manner. If, however, a dispute cannot
   be resolved informally, you or we may file a court action in the state
   where you have told us you reside with a court having subject matter jurisdiction.

   Unless the law provides otherwise or the claim is brought before a
   court in the State of California, you and we both agree to give up
   the right to a trial by jury to resolve each dispute, claim, demand,
   court action, and controversy (“claim”) between you and us arising
   out of or relating to your Card and/or Card Account. This includes,
   without limitation, claims brought by you as a class representative
   on behalf of others and claims by a class representative on your
   behalf as a class member.

   For claims brought in a court in the State of California, you and we
   agree that such claims shall be resolved by a reference proceeding
   in accordance with the provisions of Sections 638 et. seq. of the
   California Code of Civil Procedure (“CCP”), or their successor
   sections, which both of us agree constitutes the exclusive remedy
   for the resolution of any dispute, including whether the dispute is
   subject to the reference proceeding. The referee in the reference
   proceeding (i) shall hear and determine all issues, including but
   not limited to discovery disputes, (ii) is empowered to enter
   equitable and legal relief, rule on any motion otherwise permissible
   under the CCP, and (iii) may issue a decision disposing of all
   claims which shall be entered by the court as a final, binding and
   conclusive judgment, subject to appeal. A judicial reference
   proceeding is a trial decided by a court-appointed referee and not
   by a jury.

   You understand that without this jury trial waiver or agreement to
   submit claims for resolution by a reference proceeding, you may have
   a right to a jury trial on such matters, but you nevertheless agree
   voluntarily to waive that right. You acknowledge that you have had
   the opportunity to discuss this provision with your legal
   counsel.

4. Privacy. We and our agents, acting on our behalf,
   collect nonpublic personal information about you (e.g., your name,
   address, telephone number, social security number, and date of birth)
   from the following sources: information we receive from you on
   applications/enrollments forms for the Card; and information about your
   Transactions with us or with others, including but not limited to the
   Agency. We do not release personal nonpublic financial information
   obtained in connection with this Card program about current or former
   Cardholders to anyone, except to process and/or enforce Transactions
   with us and with others; to facilitate your Card enrollment and Agency
   payments/adjustments; to provide educational materials and other Card
   program features; as permitted or required by law, regulation, legal
   process or court order; to report to local, state and federal
   authorities if we believe a crime may have been committed involving a
   Card; or as otherwise requested by you. We restrict access to nonpublic
   personal information about you to our agents and employees who have a
   need to know that information in order to process your Card and
   Transactions. We maintain physical electronic and procedural safeguards
   that comply with federal regulations to guard your nonpublic personal
   information.
5. Assignment. You may not assign your rights or
   obligations in connection with these Terms or your Card to others.

6. Legal process. We may comply with any subpoena, levy
   or other legal process which we believe in good faith is valid.
   Unless the law prohibits us, we may notify you of such process by
   telephone, electronically or in writing. If we are not fully
   reimbursed for our record search, photocopying and handling costs by
   the party that served the process, we may charge those costs to your
   Card Account. We may honor legal process that is served in any
   manner at any of our offices, including locations other than where
   the funds or records sought are held, even if the law requires
   personal delivery at a different location.

   Note: Certain benefit payments are protected from garnishment by
   federal and/or state law, which may impose requirements and
   limitations on legal process.
   A fee of up to $50.00 may be assessed for the review and processing
   of estate claims including the distribution of any remaining funds
   to a deceased cardholder’s estate.

7. Change in terms. We may add to, delete or change these
   Terms at any time by providing you with prior notice as required by law.
8. Severability/Waiver. If any provision of these Terms is
   deemed unlawful, void or unenforceable, it will be deemed severed from
   these Terms and shall not affect the validity and enforceability of the
   remaining provisions. We may delay enforcing our rights under this
   Agreement without losing them. Any waiver by you or us will not be
   deemed a waiver of other rights or the same rights at another time.
9. Unclaimed Property. Under certain circumstances, we are
   required by state law to relinquish the balance in accounts in which
   there has been no activity for a specified amount of time, such as
   deposits, withdrawals, balance inquiry or any other Customer-initiated
   contact. The time period for relinquishment, also called escheatment,
   varies by state. You agree that we are not liable for any loss you may
   incur due to our good faith compliance with these laws.
10. Direct Express® Cash Access: This feature will
    allow you to obtain cash from your Direct Express® card at Walmart Money
    Services or Walmart Customer Service with no purchase necessary. All you
    need is your Direct Express® card, a valid photo ID, and PIN. There
    are restrictions on cash limits that can be received through this option.
    This optional service is available in the U.S. and Puerto Rico. No
    additional Walmart fees apply. Additional authorized retailers may be
    offered in the future.

The Direct Express® Debit Mastercard® card
is issued
by Comerica Bank, pursuant to a license by Mastercard International
Incorporated. Mastercard® is a registered trademark of
Mastercard
International Incorporated.

Customer Service: 1-866-606-3311