26.6. 2022

1. Parties
a. An agreement is made between the customer and Netgíró greiðslumiðlun, ssn. 510122-2830 (hereinafter “Netgíró”). The customer is the one who meets the provisions of these terms and conditions and has been approved by Netgíró.
b. As applicable, the General Terms and Conditions for transactions with Kvika banki hf. (hereinafter “Kvika’s general business terms”) also applies to the customer’s business and Netgíró, but Netgíró’s business terms take precedence if any, cf. Articles 1.1. and 1.2. in Kvika’s General Business Terms.

2. Customer application.
a. All those who have reached the age of 20, are registered with an Icelandic social security number, domiciled in Iceland and have an e-mail address and a mobile phone number for use in communication with Netgíró, may apply for access to Netgíró by filling in an application at Netgíró website, a smartphone application (or App) or other ways available at any given time.

b. Based on the customer’s consent, Netgíró will provide the necessary information to assess the customer’s credit and solvency and whether it meets other conditions that Netgíró imposes on its customers. The assessment is based on information on credit score and defaults as stored in Creditinfo’s database and Netgíró’s credit rating, which is based on information about previous customer transactions with Netgíró. Netgíró reserves the right to reject an application for a transaction based on a credit rating and payment assessment.

c. If the customer wishes to withdraw his application, he must notify Netgíró in writing by sending an e-mail to netgiro@netgiro.is .

3. Effect of contract.
a. Contract between parties takes effect as soon as a customer has confirmed the registration by consenting to Netgíró’s terms.

4. Maximum limits, payments, and account summary.
a. Use of Netgíró payment solution is restricted to maximum limits based on Netgíró’s credit rating and Creditinfo’s credit rating.

b. Netgíró’s customers can choose to pay with the payment options available at Netgíró. The price list for Netgíró’s services can be found at https://www.netgiro.is/verdskra .

c. Payments shall be submitted to Netgíró according to dates determined by Netgíró and appear in the client’s online bank. Customer cannot change payments that have been paid with credit cards.

d. Customer can at any time pay his debt in full. Customer’s limit is updated once payments are made to Netgíró.

e. If a customer returns a merchandise to a merchant, it is subject to the merchant’s terms of service whether the Netgíró limit is updated of the amount of the product or the customer receives an in-store credit. If the merchant’s terms of service allow a refund, the seller is obliged to notify Netgíró of the returns made and the customer’s limit is updated as the amount of the product is refunded, or a portion refunded as applicable. If payment has taken place by credit card, the amount will be refunded to the relevant credit card. Netgíró’s customers pay interest, costs and other fees incurred due to use, in accordance with Netgíró’s price list.

f. The customer pays the notification and payment fee according to Netgíró’s price list which can be accessed at www.netgiro.is/verdskra.

g. Netgíró creates claims on the customer’s online bank account for purchases made. Customer can access the billing summary on “Customer pages” at https://www.netgiro.is/e through Netgíró’s phone application (App.). The overview shows customer purchases and payments as well as other useful information. For payments with credit cards, see Article 5. in these terms.

h. Upon returning or changing of a product or service that leads to price changes, Netgíró may change an invoice in accordance with the price change, whether for a reduction or an increase. If the merchant collects a special change charge for price changes or commodities, it shall be charged by issuing a new Netgíró invoice for the change fee in accordance with the information sent by the merchant to Netgíró. 


5. Netgíró loans
a. Netgíró customers can apply for a Netgíró loan. The loan amount is determined by the customer’s credit ratings and Netgíró’s credit rating.
b. Netgíró obliges to pay the loan to the client’s bank account after signing of a loan agreement.
c. A loan agreement is considered binding from the time the loan agreement is signed electronically.
d. Borrower undertakes to repay the loan as follows:

1. Equal pay (annuity). The borrower shall repay the loan, principal and accrued interest, in equal monthly payments (annuity) in accordance with the provisions of the bonds.
2. Netgíró creates claims customer’s online bank for each due date.
3. The customer can pay the loan before for the agreed maturity, in whole or in part, without paying a special payment fee, following a request to Netgíró, which subsequently creates claims in the client’s online bank. 

e. In other respects, reference is made to these terms.

6. Errors and comments
a. If customer has comments regarding invoices, such comments shall be notified in writing to Netgíró before the due date. Otherwise, the invoice is considered correct.

b. Netgíró is not responsible for defective products paid for using Netgíró. Complaints about such incidents shall be directed to the relevant merchant. Netgíró is not responsible for the quality of purchased goods or services.

c. Netgíró is not responsible if a customer is refused the use of Netgíró as payment method by a merchant, nor the damage that may result from the incident.

d. If customer believes that their Netgíró account has been used fraudulently, he must notify Netgíró immediately. Whenever suspicious usage is suspected, Netgíró will close customer’s account. Customer is obliged to assist Netgíró in the processing of the case and limit damage as much as possible.

7. Final due dates, defaults, and other arrears
a. If customers do not pay their invoices on final due date, interest rates are calculated as advertised by the Central Bank of Iceland at any time, on invoices from due date to payment date. While the client is in default, Netgíró reserves the right to block further transactions until the debt is paid in full.

b. If an invoice, installments of a loan and/or partial payment agreement is in arrears, 14 days have elapsed from the final due date, and no payment has been made for them, the remainder of the loan/partial payment agreement will be defaulted. Upon defaulting, customers must pay their remaining balance plus interest and costs.

c. Netgíró reserves the right to require a customer to pay expenses incurred by the company as a result of evaluating customer, such as credit rating and defaults. For collecting expenses or fees, Netgíró abides to laws on collection No. 95/2008 and regulation on the maximum amount of collection costs, etc. no. 37/2009.

d. Customer allows Netgíró to request registration on Creditinfo’s default debtors’ registry on defaults that have lasted for at least 40 days from final due date, subject to other conditions. Further information can be found at https://www.creditinfo.is/lausnir-og-gogn/vanskilaskra.aspx

e. In the event of a material breach of the customer’s obligations under a contract, Netgíró is authorized to default customer’s invoices and loan agreements immediately. Defaulting has the same meaning as that all invoices and agreements have reached their final due date. Considerable arrears of customer are deemed to have occurred regarding Netgíró is when any of the following items have occurred:

i. The invoices and/or instalments of loan/partial payment agreements have passed the final due date without customer having negotiated payments.
ii. The authorisation of defaulting in a financial instrument is used where customer is a debtor or a guarantor, customer is sentenced by the District Court for payment of monetary debt, customer is subject to distraint, either successfully or not, client requests a moratorium, a client seeks a composition agreement, customer seeks voluntary composition agreements according to Act no. 21/1991 on bankruptcy etc., a bankruptcy request is submitted, a request is made for forced sale of the customer’s property, customer is seeking debt mitigation by the debtor’s ombudsman or the Netgíró estimates that customer cannot meet their financial obligations.
iii. Customer takes up a permanent residence outside of Iceland.
iv. Customer has given Netgíró false information when signing up.

f. All misuse of account is in accordance with the General Penal Code No. 19/1940 and charges will be pressed to the police.

8. Interest.
a. Interest rates available for loans at any given time are published in Netgíró’s price list on its website, www.netgiro.is/verdskra .

b. The loan has a fixed annual interest rate. Interest is calculated daily from the date of disbursement of the loan. The rule Act / 365 fixed is used.

9. Personal information and treatment
a. Netgíró only requests the personal information necessary to service its customers or as laws or regulations requires. The same applies to the personal information Netgíró gathers on its customers from public entities, such as National Register. The information is used solely for the purpose of which they were obtained. Collection and processing of personal data is made in accordance with Act no. 90/2018 on privacy and personal data protection, European Union Universal Data Protection Regulation No. 2016/679 (“GDPR”) and Law No. 81/2003 on telecommunications.

b. The Netgíró database keeps electronic information about customers, their transactions and their communications to Netgíró. The database also keeps track of agreements made with Netgíró. The personal information Netgíró receives is registered electronically in Netgíró’s database. Customer agrees that Netgíró uses their social security number as the username in both computer system and the Netgíró database. All personal information registered in the Netgíró database is encrypted.

c. According to Article 48, Act on telecommunications no. 81/2003, Netgíró is authorized to record calls with customers. The purpose of recording calls is to maintain sources of communication between the parties and improve the quality of the service. 

d. When customer applies, Netgíró requests a special consent from the customer to obtain information from CreditInfo hf.’s database. By giving Netgíró consent, the customer gives Netgíró full mandate to request credit information from Creditinfo and register a customer for credit monitoring. By agreeing to the terms, customer authorizes Netgíró to share their social security number and registered email to Creditinfo, who can send a notification by email on the subject to customer. Limits and terms change according to changes in the applicant’s credit rating.

e. A decision on the amount of limits and terms is taken by automated data processing and the outcome of such processing may lead to automatic rejection of transactions, such as the applicant’s registration of defaults at CreditInfo hf. The customer agrees to grant Netgíró permission to base a decision on the provision of services, the amount of limit and terms and interest rates on automated data processing, which is based mainly on credit ratings and debt.

f. According to Act no. 33/2013 on consumer loans, lenders are obliged to assess the applicants’ credit ratings prior to the conclusion of a loan agreement. Credit ratings are also retrieved for the purpose of determining the amount of limit and facilities of a customer at Netgíró, and to update the relevant limits and credit facilities. If it is found that, when assessing the client’s credit and solvency, that the person is on the default register, Netgíró reserves the right to reject customers.

g. Credit rating score predicts the likelihood of serious future defaults and is based on information collected and/or communicated by Creditinfo, such as information from default registers list, limited company register, tax file, etc. The credit rating is based on data synchronization and may contain historical information, such as the status of default and credit rating. Further information on Creditinfo’s credit rating can be found at www.creditinfo.is.

h. Information about the customer and his loan or transactions, as well as the information on which his credit facility and limit authorization is based, may be transferred in conjunction with the transfer of the rights and obligations of Netgíró, cf. clause 16.c. of these terms. Information will only be handed over to Icelandic commercial banks or their subsidiaries, so that security and confidentiality are insured in the manner claimed by Act no. 161/2002 on financial undertakings and according to the recommendations of the Financial Supervisory Authority. The information about a customer that may be transferred under this provision is information about the social security number, amount and terms of financing and the customer’s credit rating.

i. Customers may revoke consent and credit rating monitoring at any time, and such withdrawal shall come into effect when Netgíró has demonstrably received such withdrawal. Withdrawal of consent does not, however, affect the legality of processing based on the consent until its withdrawal. This consent will cease when parties’ business relationship ends. Until then Netgíró is authorized to retrieve and use the information that this consent takes to fulfil the conditions set out above. Accepting processing of the above data is a prerequisite for the contractual relationship. By withdrawal of customer consent, Netgíró may reject further transactions.

j. For more information about Netgíró’s handling of personal information, please refer to the company’s privacy policy at the following URL: https://www.netgiro.is/personuverndarstefna/.

10. Marketing
a. Netgíró uses the personal information that the company collects from customers in connection with marketing and business surveys and measures that reduce risk of trade and lead to a higher quality assessment. Customer always has the right to object to the processing of personal data for the purpose of direct marketing.

b. Netgíró sends its customers mail and other marketing materials based on customer consent and Netíró’s own legitimate interests. Customers may opt out of marketing emails via delisting from Netgíró’s email lists.

11. Communications and important information
a. Upon confirmation of registration, the customer undertakes to abide by the terms and conditions that apply to Netgíró’s services at any time. Changes to initial registration, e.g. address, phone number or email address, customer must change information on “Customer pages” at www.netgiro.is or report a change to Netgíró by contacting the support team. Netgíró gathers such information to the National Registry to ensure proper registration of the customer. If a change is notified or changes are not made to Netgíró, Netgíró cannot guarantee that notifications will be sent to customers at the scheduled time.

b. Announcements from Netgíró include confirmation of customer changes, announcements regarding contract terms, changes to them and changes in price lists. Netgíró sends notifications to customers, either by electronic mail, mail and SMS (SMS and “push notifications”).

c. Use of email and other electronic communication channels may include risks, such as that such communication does not guarantee the confidentiality or security of communication. Netgíró is not responsible for any damages that customer may incur due to the use of the above-mentioned communication methods. Netgíró’s support team regularly performs due diligence of customers by following orders by phone or email. See opening hours of customer support here: https://www.netgiro.is/thjonustuver/

12. Termination of contract
a. Between Netgíró and customer, Act no. 33/2005 on distance selling of financial services apply. According to the provisions of the Act, the customer is entitled to terminate the contract without payment and penalty thereof and without giving any reason, if a customer sends a notice to Netgíró within 14 days of the date of the transaction.

b. The deadline for termination of a contract will begin when Netgíró purchases have taken place. If the last day of the deadline falls on a weekend or is a holiday, the deadline ends on the next working day. If customer terminates contract after his application is received, Netgíró will be entitled to claim a payment for the services already provided by Netgíró, pursuant to Article 14 of Act on distant selling of financial services. If a customer wishes to withdraw from a contract in accordance with the above, customer must submit their request in writing to Netgíró before the expiry of the deadline. Netgíró may require a customer to pay for the services already provided at the customer’s request before the time limit for exercising the right to withdraw from the agreement has expired. To ensure proof of a wish to withdraw from a contract, e.g. customer can send a letter to Netgíró with a registered post and store a receipt from the mail. The right to terminate a contract does not apply to contracts that have been fully respected by either or both parties at the customer’s request.

c. A notification that a customer withdraws from a contract shall be directed to Netgíró in a verifiable manner. If a customer wishes to terminate a contractual relationship with Netgíró for other reasons, notification of that matter shall be sent to the address and email address of Netgíró in a verifiable manner. After termination, customers may not request further services unless they apply for access to Netgíró again.

13. Change of terms
a. Netgíró reserves the right to change these terms. In the case of non-benefit changes, customer should be informed in a safe manner at least 7 days prior to changes taking affect.

b. Notice of amended terms shall state the reasons for the change and the right of customers to terminate business relationship. When using Netgíró after changing terms and conditions, it is considered that the customer has accepted the change.
c. The publication of changed terms by notification to customers at the registered email address is considered sufficient notification.

14. Various provisions.
a. These Terms of Business, Kvika’s General Terms and Conditions and agreements made on the basis of them between Netgíró and the customer are a complete description of the parties’ contractual relationship, their rights and obligations, and supersede previous obligations. If provisions of terms and conditions or contract are assessed contrary to law, that provision shall be deemed null and void, but other provisions shall remain unchanged and continue between Netgíró and the customer.

b. Customers may not assign their rights or obligations under these terms to third parties unless they have obtained prior written consent from Netgíró.

c. Netgíró is authorized to assign its rights and obligations under these terms or agreements, in whole or in part, to third parties without the consent of customers for funding purposes. The rights and obligations of Netgíró may not be transferred to other than Icelandic financial companies, or their subsidiaries, who hold a confidentiality obligation pursuant to Act no. 161/2002 on financial undertakings.

d. These terms are subject to government decisions, war, nuclear, or items considered to be subject to force majeure cases, so that parties will not be able to comply with these terms and conditions. In such cases, Netgíró may, after notification to the customer, issue an invoice with 10 days notice. Parties also agree on that in the case authorities decide, e.g. tax authorities, to levy taxes, fees or fees on transactions covered by these terms and conditions, the customer undertakes to pay such payment directly to the relevant authorities, with no effect on Netgíró.

e. Netgíró is not responsible for any damage, direct or indirect, which may be caused by default or other invalidity of credit institutions, ie. banks and/or savings banks in which customers are in business.

f. Netgíró is not responsible for any damage, direct or indirect, which may be caused by technical malfunctions or errors in software, operating systems, networks, communications systems, interruptions or interference in such systems, power failure, malfunctions, and malfunctioning of devices and hardware, whether such equipment is owned by Netgíró or used by Netgíró or by others. Customers cannot claim Netgíró for compensation for damage, direct or indirect, due to a loss of power, electronic communications switch or other interference that may occur on the electronic communications network, whether due to line breaks, malfunctions or other reasons, cf. Article 40 Act no. 81/2003 on telecommunications. If the above-mentioned cases prevent Netgíró from fulfilling its contractual obligations with its customer, in whole or in part, Netgíró’ obligations to customer is postponed until the above condition is relieved and can be executed. If the above situation leads to the failure to make payments or receive payments in accordance with contractual obligations, neither customer nor Netgíró shall pay interest because payments are postponed.

g. Netgíró is not responsible for any damages that a third party may cause.

15. Disagreement and jurisdiction.
a. Customer should direct all comments directly to Netgíró customer support team.

b. The parties agree to attempt to settle disputes that may arise in connection with the content of agreement, its performance or otherwise, between themselves. If not, the parties agree to submit a dispute before the District Court of Reykjavík. This agreement is subject to Icelandic law.

c. A suit against a customer may be brought against him in the country where he is considered to have permanent residence at any given time, cf. Paragraph 2 Article 1 Act no. 21/1990 on legal domicile.

16. Measures against money laundering and terrorist financing.
a. Based on the Act on Measures against Money Laundering and Terrorist Financing no. 140/2018, Netgíró must obtain satisfactory information about its customers and planned transactions.

b. By confirming these terms, the customer confirms that the purpose of the transaction does not violate the above laws or other laws or regulations that have been set on the same basis.

17. Entry into force
These terms are valid from 26.6.2022
Ssn. 510122-2830
Katrínartún 2
105 Reykjavík
phone 430-0330