Lydia e-money account agreement for individuals – 02/04/2024
General
Article 1 : Definitions
“Authentication” means the process by which Lydia verifies the identity of the Customer or the validity of the use of a specific payment instrument, including the use of Customer Personalised Security Data.
“Strong Authentication” means authentication measures that rely on the use of two (2) or more elements from the categories of “knowledge” (something that only the Customer knows), “possession” (something that only the Customer has) and “inherency” (something that the Customer is) and that are independent in the sense that the compromise of one does not compromise the reliability of the others, and that are designed to protect the confidentiality of authentication data.
“Beneficiary” has the meaning given in Article 3.1 of the “Lydia E-money Account Agreement”.
“Personalised Security Data” means any personalised data provided by Lydia or the Customer for Authentication purposes (e.g., username, password, PIN).
“EEA” means the European Economic Area consisting of all EU Member States, Iceland, Norway and Liechtenstein.
“SEPA area” means the member states of the EEA, Switzerland, San Marino and Monaco.
“Electronic money” means monetary value that is stored in electronic form, including magnetic form, representing a claim on Lydia as an issuer of electronic money and that is issued without delay against the delivery of funds and for the purpose of payment transactions. The e-money units are called units of value, each of which constitutes a claim embedded in a security. Each electronic money unit shall be issued without delay against the delivery of funds. They may only be issued at a nominal value equal to the funds collected in return. They shall be redeemed at the face value of the e-money units.
“Payment initiation service provider” means an institution authorised to provide a payment initiation service, i.e. a payment service consisting in initiating a payment order at the Customer’s request from the Customer’s Lydia Account.
“Lydia Transfer” means a peer-to-peer (account-to-account) transaction allowing the transfer of funds between two Lydia e-money or payment accounts, at the Customer’s request and subject to acceptance by the Payee.
“SEPA Transfer” means a payment transaction whereby Lydia transfers, on the Customer’s instruction, a sum of money from the Customer’s account to another account, opened in the books of a banking, payment or electronic money institution established within the SEPA area.
Article 2 : Purpose
This “Lydia Electronic Money Account Agreement” governs the conditions for issuing, managing and making available to the Customer by Lydia an electronic money account. The electronic money account opened hereunder is intended to record the payment transactions of the Client, an adult natural person not acting for professional needs, relating solely to his private life, to the exclusion of all professional transactions.
This “Lydia Electronic Money Account Agreement” forms an integral part of the Agreement as defined in the “Entry into relationship agreement”. As such, all of the stipulations and definitions of the “Entry into Relationship Agreement” and of the Fees and Limits Appendix apply.
Unless otherwise indicated, capitalized terms that are not defined in this “Lydia electronic money account agreement” refer to the terms defined in the “Entry into relationship agreement”.
Article 3 : Characteristics of the Lydia account
1. General characteristics
The Lydia Account is an electronic money account opened in the books of Lydia, as an electronic money institution. It is governed by article R. 561-6-1 of the French Monetary and Financial Code.
The Lydia Account is an individual account, Lydia does not allow the opening of joint account Wallets. However, the Customer may designate Participants to the management of a Wallet.
The Lydia Account allows the Customer to instantly receive funds for his/her benefit and/or to make an immediate transfer of funds to the Lydia Account of another Customer (hereafter the “Beneficiary“).
The funds transfer operation, called “Lydia Transfer”, is carried out by means of electronic money, which is accepted by the Customer as the exclusive means of payment for the receipt of funds for his benefit or the transfer of funds to another Customer.
2. Duration
As specified in the “Entry Into Relationship Agreement“, the Agreement is concluded for an indefinite period of time.
It can be terminated at any time and without need for justification at the Customer’s or Lydia’s initiative under the conditions set out in the “Entry Into Relationship Agreement”.
It will also end with the verification of the Customer’s identity. The Customer will then be invited to open a Lydia payment account for payment transactions.
3. Verification of the Customer’s identity
Verification of the Customer’s identity is necessary when one of the following conditions is met:
– The monetary value received on the Lydia Account or the payments made through the Lydia Account exceed 150 euros over a thirty-day period;
– The cumulative amount of all the Customer’s charges on his Lydia Account exceeds 1000 euros;
– The Lydia Account is used to make a payment transaction for the purchase of consumer goods or services with a unit amount of more than 50 euros, initiated via the internet or by means of a remote communication device;
– Transfers of funds to a bank or payment account opened with a banking, e-money or payment institution, other than Lydia and established in a member of the European Union or in a member state of the EEA, exceed EUR 50 per transaction or a cumulative amount of EUR 150 since the creation of the Lydia Account;
– The Lydia Account was created more than 12 months ago.
If one of the above conditions is met, the Customer must carry out the procedure for verifying his identity. At the end of this procedure, the Lydia Account becomes a payment account and the Customer must adhere to the Lydia Payment Account Agreement. The payment account will automatically be credited with the nominal value of the electronic money units, previously held in the electronic money account.
If the Customer fails to verify his identity or if the Customer does not wish to open a Lydia payment account, his Lydia Account will be blocked. The Customer will no longer be able to make new fund transfers to a Beneficiary or receive new fund transfers from other Customers.
The Customer may also request closure from Lydia in the following manner:
– Directly in the Lydia mobile application by tapping on the Help tab.
– By email to Customer Support at support@lydia-app.com
– By letter addressed to : Lydia, Support Client Lydia, 14 avenue de l’Opéra, 75001 Paris.
The Lydia Account will then be closed and the refund of the Electronic Money will be made by Lydia by SEPA Transfer to a bank, payment or electronic money account opened with a bank, payment or electronic money institution established in a Member State of the European Union or in a State party to the EEA and of which the Customer is one of the holders.
The refund will be made at the face value of the e-money units. Lydia will bear the costs of this transaction.
4. Lydia Account Balance
Electronic money is issued by Lydia against the remittance of funds in euros (€) by the Customer. It can only be issued for a nominal value equal to that of the funds collected in return.
Therefore, the Lydia Account balance must always be in credit and the Customer must ensure that the balance in his Lydia Account is sufficient before executing any Lydia Transfer.
In the event that the balance in the Lydia Account is insufficient to execute a Lydia Transfer, such transaction will be, in whole or in part, rejected by Lydia. Charges, as detailed in the Fees and Limits Appendix, may be applied where applicable.
Article 4 : Online access to the Lydia account
The Lydia Account and its associated services are accessible online from the Lydia Application.
Article 5 : Lydia account transactions
1. Credit transactions
The topping up operations of the Lydia Account from which the Customer can benefit are the following:
– Lydia Transfers ;
– Lydia Account topping up operations by bank or payment cards not issued by Lydia.
In order to be able to receive funds on his Lydia Account, the Customer must ensure that he has a valid Lydia Account (not blocked or not closed).
2. Debit operation
The payment transactions debited from the Lydia Account that the Customer can benefit from are the following:
– Lydia Transfers ;
– Partial or total refund of e-money (see Article 7 of Part 2 “Specific conditions of the e-money account”) (e.g., “Refund of E-money”).
In order to be able to receive funds on his Lydia Account, the Customer must ensure that he has a valid Lydia Account (not blocked or closed).
In order to be able to transfer to a Beneficiary, the Customer must ensure that the Beneficiary has a valid mobile phone number.
The transfer of funds to a Beneficiary is instantaneous, subject to the Beneficiary opening a Lydia e-money or payment account.
If the Beneficiary fails to open such an account and if he/she provides his/her bank details by means of a form dedicated to this purpose, Lydia will make a SEPA Transfer to the Beneficiary’s bank or payment account. If the Beneficiary fails to carry out one of the above actions, the SEPA Transfer is put on hold by Lydia for a period of seven (7) days and automatically cancelled on the eighth (8) day. The amount of the SCT will then be automatically refunded to the Customer’s Lydia Account.
Article 6 : Topping up the Lydia account with a bank or payment card
ARTICLE 6 LOADING THE LYDIA ACCOUNT WITH A BANK OR PAYMENT CARD
Before any transfer of funds to a Beneficiary, the Lydia Account must first be topped up with electronic money by the Customer.
The Lydia Account can be topped up with e-money via the Lydia mobile application by means of a bank or payment card belonging to the User (CB, Visa Mastercard), authorising fund transfers and held at an institution located in the EU or EEA.
The Customer must first enter the card details in the Cards tab of the Lydia application. Bank or payment cards issued outside the EEA or equivalent countries may be restricted or prohibited for regulatory or risk management reasons. In this case, data entry is refused.
The top-up operation by credit or debit card entails a request for authorisation as well as a Strong Authentication. The entry and validation of personalised Security Data, as well as the completion of the Strong Authentication procedure by the Customer, constitutes the User’s consent to his order to transfer funds by card and to credit the Electronic Money Account.
Article 7 : Refund of electronic money
The User may obtain partial or total reimbursement of the unused E-Money at any time and without charge. The refund is made at the nominal value of the E-Money units.
The request for reimbursement must be made to Lydia in the following manner:
– Directly in the Lydia mobile application by clicking on the Help tab;
– By email to Customer Support at support@lydia-app.com;
– By post addressed to : Lydia Solutions, Lydia Customer Support, 14 avenue de l’Opéra, 75001 Paris.
The Customer must indicate the amount of the refund desired and his/her bank details. As soon as Lydia Customer Support receives the refund request for the indicated amount and the Customer’s bank details, Lydia will immediately debit the E-Money Account and make the corresponding SEPA Transfer to the User’s bank, e-money or payment account.
The refund can only be made to a bank or payment account of which the Customer is the holder or one of the holders and opened with a banking, payment or electronic money institution established in an EU Member State or in a State party to the EEA. The execution time of a SEPA Transfer is maximum one working day from the moment Lydia receives the transfer order.
Article 8 : Statements of accounts
The Customer’s Lydia Account statements are issued monthly and made available to the Customer on a durable support from the Lydia App or by request to customer service.
At any time during the contractual relationship and at the Customer’s request, account statements may be sent to the Customer free of charge on paper. It is recommended that the Customer keep his account statements for a minimum of five (5) years.
Electronic money transactions
Article 9 : Consent and revocation of an ordre to top up or redeem electronic money
For the execution of a charge or refund transaction, the Customer must give his consent, which is materialised by compliance with the Authentication procedures communicated by Lydia in case of initiation of a payment transaction from the Lydia App. In the absence of consent, the top up operation or series of operations is deemed to be unauthorised.
The Customer may not revoke a top up or refund order once it has been received by Lydia. The order then becomes irrevocable.
Article 10 : Strong authentification
In accordance with applicable regulations, Lydia applies Strong Authentication measures when the Customer:
– Access your Lydia account online;
– Initiates an electronic payment transaction;
– Executes a transaction through a means of remote communication that may involve a risk of payment fraud or other fraudulent use.
Lydia reserves the right to waive the obligation to apply strong authentication measures in cases expressly covered by the applicable regulations, and in particular the technical regulatory standards concerning authentication and communication.
Article 11 : Execution of a payment order
The period within which Lydia shall execute a payment order shall run from the time of receipt of the payment order in the manner and according to the means of communication provided for herein.
It is agreed between the Customer and Lydia that the time of receipt shall be, inter alia, the Business Day on which all information necessary for the execution of the payment order has been received by Lydia.
Where the Customer and Lydia agree that the execution of the payment order will commence on a particular day or at the end of a specified period or on the day on which the payer has made the funds available to Lydia, the time of receipt shall be deemed to be the agreed day (subject again to all necessary information having been transmitted).
If the time of receipt is not a Business Day, the payment order shall be deemed to have been received on the next Business Day. Cut-off times for the acceptance of payment orders may apply depending on the payment transaction concerned.
Article 12 : Refusal to execute a payment order
Lydia may refuse to execute a payment order given by the Customer. In this case, Lydia will notify the Customer of its refusal by any means at the latest by the end of the first business day following the moment of receipt of the payment order. The notification shall be accompanied, if possible, by the reasons for the refusal, unless prohibited by another relevant provision of EU or national law. Where the refusal is justified by a material error, Lydia will, if possible, inform the Customer of the procedure to be followed to correct such error.
In the event that the refusal is objectively justified, Lydia may charge a fee for sending the aforementioned refusal notification.
A rejected payment order shall be deemed not to have been received.
Article 13 : Fees
The services provided hereunder shall be charged by Lydia in accordance with the Fees and Limits Appendix. All fees due by the Customer shall be automatically deducted from the Customer’s Lydia Account.
The Customer authorises Lydia to set off at any time, including after the closure of the Account, any certain, liquid and payable debt that remains outstanding on any grounds whatsoever. Lydia may set off the balance of the Electronic Money Account against any amount due, payable and unpaid by the User to Lydia.
Article 14 : Performance deadlines and value dates
1. Turnaround times
For payment transactions in euro, the Payee’s Lydia Account is credited at the latest by the end of the first Business Day following the moment of receipt of the order by Lydia.
2. Provision of funds
Lydia will make the amount of the payment transaction of which the Customer is the beneficiary available to him immediately after his own account has been credited.
3. Value date
The value date of a payment transaction is the date on which the transaction is recorded on the Lydia Account at the time of execution.
Article 15 : Challenge of a payment transaction and responsibilities
If, upon receipt of his account statement, the Customer becomes aware of a payment transaction that he has not authorised or an error in the processing of a payment transaction, he must notify Lydia without delay. This notification must be made to Lydia in the following manner:
– Directly in the Lydia mobile application by clicking on the Help tab.
– By email to Customer Support at support@lydia-app.com.
– By letter addressed to : Lydia, Support Client Lydia, 14 avenue de l’Opéra, 75001 Paris.
No dispute shall be admitted after a period of thirteen (13) months from the debiting of the payment transaction to the Customer’s Lydia Account or from the date on which the payment transaction should have been executed, under penalty of foreclosure.
These principles shall apply regardless of the involvement of a Payment Initiation Service Provider in the payment transaction.
Lydia shall not be liable in case of force majeure or when Lydia is bound by other legal or regulatory obligations of the European Union or France.
1. Liability in the event of an incorrectly executed payment transaction
Lydia is liable for the improper execution of payment transactions from/to the Customer’s account. However, this liability shall not apply if Lydia is able to prove :
– For Lydia Transfers issued: that the funds have been transmitted to the Payee’s payment service provider within the specified timeframe;
– For Lydia Transfers received: that the funds have been credited to the Customer’s Lydia Account.
Nor shall Lydia be liable if, as a result of the Customer’s communication of non-existent or erroneous bank details, a payment transaction could not be executed or was executed in favour of a person other than the beneficiary desired by the Customer, as Lydia is not obliged to verify that the account to be credited is actually held by the beneficiary designated by the Customer.
In the event of an incorrectly executed transaction due to the Customer providing incorrect contact or bank details:
– Lydia will work to recover the funds involved;
– If Lydia is unable to recover the committed funds, Lydia shall make available to the Customer, at the Customer’s request, any information available to Lydia that may assist the Customer in taking legal action to recover the funds;
– Collection fees may be charged to the Customer by Lydia.
If Lydia is responsible for the non-execution or improper execution of a payment transaction, unless otherwise instructed by the Customer and provided that the relevant transaction has been reported by the Customer without delay, and at the latest within the aforementioned period of thirteen (13) months on pain of foreclosure, Lydia :
– Will modify the balance of the Customer’s Lydia Account by the amount of the incorrectly executed transaction and, where applicable, restores the Customer’s Lydia Account to the state it would have been in if the transaction had not taken place. In this case, the value date on which the Customer’s Lydia Account is credited is not later than the date on which it was debited;
– Will transmit the payment order to the payer’s payment service provider.
In any case, Lydia shall reimburse the Customer for any costs and debit interest incurred by the Customer as a result of Lydia’s failure to execute or improper execution of the payment transaction.
Whether or not Lydia is responsible for it, Lydia shall use its best efforts to trace the non-executed or incorrectly executed transactions and shall notify the Customer of the result of its investigations.
Under legal and regulatory provisions, Lydia may be required to perform verifications, including the implementation of Strong Authentication measures, or to request authorisations before executing a payment transaction. In this case, Lydia shall not be liable for any delay or non execution of such payment transaction.
All of the above provisions shall also apply in the event that the payment transaction was not executed or was executed incorrectly due to a Payment Initiation Service Provider.
2. Liability for unauthorised payment transactions
In the event that the Customer disputes that he has authorised a payment transaction, it is Lydia’s responsibility to prove by any means that the transaction has been authenticated, duly recorded and accounted for and that it has not been affected by a technical or other deficiency.
In the event that the transaction has been initiated through a Payment Initiation Service Provider at the Customer’s request, the Payment Initiation Service Provider shall bear the burden of proving that the payment order has been received by Lydia and that, as far as it is concerned the payment transaction was authenticated and duly recorded and correctly executed, that it was not affected by any technical or other deficiency in connection with either the service it provides or the non-execution, poor execution or late execution of the transaction.
In the event of an unauthorised payment transaction reported by the Customer without delay, and at the latest within the thirteen (13) month period referred to above under penalty of foreclosure, Lydia will (i) reimburse the Customer for the amount of the unauthorised transaction immediately upon becoming aware of or being informed of the transaction and, in any event, no later than the end of the next Business Day and (ii) restore the Lydia Account to the state it would have been in if the payment transaction had not been executed, unless Lydia has good reason to suspect fraud by the Customer. In the latter case, Lydia will inform the Banque de France.
All of the above provisions shall also apply in the event that the unauthorised payment transaction was initiated via a Payment Initiation Service Provider.
In the event of unauthorised payment transactions carried out with a payment instrument with Personalised Security Data that has been lost or stolen, the Customer will bear the losses incurred prior to notification for the purpose of blocking the payment instrument up to fifty (50) euros.
The Customer shall not be liable if the unauthorised payment transaction was carried out without using the Personalised Security Data or by misusing the payment instrument or the data linked to it without his knowledge.
Nor shall the Customer be liable for loss or theft of the payment instrument which cannot be detected by the Customer prior to payment, for loss due to acts or omissions of an employee or agent of Lydia or of an entity to which its activities have been outsourced, or where the payment instrument has been counterfeited and, in the latter case, the payment instrument issued by Lydia is still in its possession
In all cases, unauthorised payment transactions are not refunded if the Customer :
– Acted fraudulently ;
– Intentionally or through gross negligence failed to comply with its obligations to preserve its Personalised Security Data;
or
– Reported unauthorised payment transactions more than thirteen (13) months after the date of their debit to the account.
After having informed Lydia for the purpose of blocking the payment instrument, the Customer shall not bear any financial consequences resulting from the use of this payment instrument or from the misuse of the data linked to it, unless he has acted fraudulently.
Article 16 : Security measures
The payment instruments issued by Lydia must be kept with the utmost care by the Customer.
Upon receipt of a payment instrument, the Customer shall take all reasonable steps to safeguard the use of its Personalised Security Data. These obligations apply in particular to confidential codes and to any procedure for securing payment orders agreed between the Customer and Lydia.
Any disclosure of Personalised Security Data to a third party shall constitute gross negligence on the part of the Customer.
As an exception to the above and subject to the contractual terms and conditions between the Customer and Lydia, the Customer is authorised to disclose the Personalised Security Data relating to his Lydia Account and, if applicable, to any other payment service or instrument, to a User duly designated by the Customer and approved by Lydia.
In the event of loss, theft, misappropriation or unauthorised use of his instrument or related data, the Customer must notify Lydia without delay, in order to block the instrument or the means of payment. This notification must be made to Lydia in the following manner:
– Directly in the Lydia mobile application by clicking on the Help tab;
– By email to Customer Support at support@lydia-app.com ;
– By letter addressed to : Lydia, Support Client Lydia, 14 avenue de l’Opéra, 75001 Paris.
In the event of notification of the loss, theft or misappropriation of a payment instrument, the Customer may subsequently obtain from Lydia, upon request and within eighteen (18) months of the notification made, the elements enabling him to prove that he has indeed made this notification.
Article 17 : Blocking of a payment at Lydia’s initiative
Lydia reserves the right to block a payment instrument for objectively justified reasons relating to the security of the payment instrument, the suspicion of unauthorised or fraudulent use of the payment instrument or a significantly increased risk that the Customer will be unable to fulfil his payment obligation.
In such cases, Lydia will inform the Customer of the blocking of the payment instrument and the reasons for such blocking by any means and in any case in a secure manner, which the Customer already accepts, unless giving such information is not feasible for objectively justified security reasons or is prohibited under other relevant EU or national legislation.
