General Conditions of Cash Advance Payment 

These general conditions of use apply to the service of advance payment of receivables arising out of payment transactions (“Cash Advance Payment”) performed by means of the platform of Mercado Pago.com Representações Ltda., on the site www.MercadoPago.com.br (hereinafter referred to as “Mercado Pago”), which is offered to anyone who meets all requirements offset in these terms of use (hereinafter referred to as a “user” and, in the plural, “users”).

Accepting this instrument and the Mercado Pago general terms and conditions,and any other documents relating thereto, is absolutely indispensable for performing the Cash Advance Payment.

The user must read, ensure that it has understood and accept all conditions established in these rules of use, as well as in any other documents incorporated hereto by reference.

1. Purpose

  • Mercado Pago provides users the possibility of receiving funds arising out of the payment transactions carried out by means of the Mercado Pago platform in advance, thus enabling the user to receive their sales before the established payment date, by means of a disbursement by Mercado Pago in the user’s graphical account.

  • The funds paid in advance represent mere settlements of obligations already acknowledged by Mercado Pago, arising out of lawful legal business entered into by means of the Mercado Pago Payment Arrangement by the user, after deduction of fees and charges.

  • The user acknowledges that requesting, accepting or obtaining the cash advance payment service constitutes an acceptance of these general conditions and any other documents incorporated hereto by reference. The user agrees that its rights and obligations regarding advance payments are additionally regulated by any other information specifically indicated upon request and acceptance of the advance payment.

2. Conditions for requesting cash advance payment

  • The user shall have a graphical account with Mercado Pago, whereby any funds paid in advance shall be disbursed.

  • The user shall have a “Non-available” balance in its graphical account arising out of lawful legal business done on the Mercado Pago platform and duly accepted or acknowledged by Mercado Pago. The advance payment may be requested by means of the Mercado Pago site at any time during the day, and once the transaction is completed, the amounts shall be available in the user’s graphical account within two (2) minutes as from consummation, if the transaction is approved. Mercado Pago may, at its sole discretion, provide the possibility of automatically transferring funds to a bank account indicated by the user. In such event, the amounts shall be credited in such bank account by the end of the banking hours on the business day following that of the request for a cash advance payment, except in the event of any system failure.

  • The user may request the full or partial advance payment of funds that may potentially be paid in advance expected to be available in the user’s graphical account. The total amount that may be potentially paid in advance shall be indicated in the user’s graphical account as an “Amount Available for Advance Payment”.

  • Even if Mercado Pago authorizes the cash advance payment, it may perform the transaction for only a part of the request, in accordance with its evaluation criteria. Any moneys not paid in advance shall be released to the user within the term originally agreed upon for availability.

  • For formalization and effectiveness of the cash advance payment, the user must meet, at Mercado Pago’s sole discretion, all requirements assessed by Mercado Pago, and shall comply with this instrument, the Mercado Pago general terms and conditions and any other related documents, among other things.

  • Mercado Pago may also require any documents and/or take any other measures required to formalize the advance payment. For that reason, the user expressly authorizes and acknowledges, as a condition precedent to the advance payment of the user’s funds, that Mercado Pago may adopt any of the measures above and any other measures deemed to be required regarding risk analysis for performing the advance payments, including consulting third party information.

  • Mercado Pago may cease the performance of the cash advance payment services at any time.

3. Fees and Charges

  • In connection with the cash advance payment and the services provided to the user by Mercado Pago, the user agrees to pay the advance payment fee that compensates the services provided by Mercado Pago (“Advance Payment Fee”).

  • Mercado Pago is authorized to deduct the following from the advance payment amount: (i) the advance payment fee; (ii) any costs arising out of the advance payment, as expressly identified to the user upon simulation of the advance payment and upon acceptance; and (iii) any amount due to Mercado Pago and/or to the companies of the same economic group of Mercado Pago.

  • Mercado Pago shall disburse the advance payment amount exclusively by means of the crediting of such amount (after the deduction of the advance payment fee and any other costs) in the user’s graphical account. The user expressly authorizes the exclusive use of its graphical account for disbursement of the respective advance payment. If, upon the cash advance payment, the user chooses to transfer such amount to the bank account indicated by the user, such amount shall be debited from the user’s memorandum account in addition to the withdrawal fee, in accordance with the Mercado Pago terms and conditions.

  • The user agrees that Mercado Pago may modify these general conditions, as well as the fees and costs applied to the user and any other documents unilaterally referred to herein, upon prior communication on the Mercado Pago website. The user is liable for reviewing said terms of use from time to time, provided that the continued use of the advance payment services by the user after said changes shall be regarded as confirmation of the user’s acceptance of the changes in the fees.

4. Payment

  • Any taxes levied on the cash advance payment shall be the user’s liability, even if they are withheld by Mercado Pago as required by law.

  • The user acknowledges that Mercado Pago may pass on to the user the amount of any new taxes and charges that may be created and become enforceable by the applicable authorities in connection to this agreement.

5. Term 

  • This instrument is valid and binding upon the user until full compliance with the user’s obligations, accrued by any fees, costs and other amounts due to Mercado Pago as agreed upon herein.

6. User’s obligations

  • Upon acceptance and consummation of the cash advance payment, the user automatically, irrevocably and irreversibly authorizes Mercado Pago to use said cash amounts r of which the user is the creditor (and which are hereby paid in advance) for settlement of the cash advance payment transaction performed.

  • The user shall not assign the rights and obligations arising herefrom. Any assignment made in violation of this rule shall be invalid and not enforceable against Mercado Pago.

  • Regarding amounts that may be paid in advance arising from sale transactions, the user hereby acknowledges and agrees that it is liable for lawfulness of the funds, as well as for any reversing entries, debits and cancellations occurred in relation to such funds, and the user shall reimburse Mercado Pago in case of any reversed entries, debts, CHARGEBACK (payment challenged) or cancellation of the funds paid in advance.

  • The delay or non-default of any amounts due by the user to Mercado Pago in connection herewith, for any reason whatsoever, shall subject the user to payment of: (i) monetary restatement of the amounts due, based on the National Price Consumer Index of the Brazilian Institute of Geography and Statistics (INPC/IBGE) or, in the absence thereof, on any other index that may legally replace it; (ii) default interest of 1% per month; (iii) fine of 2%, (iv) delivery of the user’s debt to outside collection agencies for negotiation and/or judicial or extrajudicial collection; and (v) communication of the user’s default to credit protection bodies and entities, including the collection of all expenses and fees incurred with judicial or extrajudicial collection.

  • It is hereby agreed that the amounts due, including but not limited to the amount of any reversed entries, debits and cancellations, accrued by the corresponding monetary restatement, fines and interests, may be automatically debited from the user’s graphical account, and that Mercado Pago may occasionally offset them against any future credits made in the graphical account, without prejudice to Mercado Pago’s right to collect said debts by any judicial or extrajudicial means available.

Limitation of liability

  • Mercado Pago shall not be liable for any conflicts, errors, system unavailabilities and losses relating to the cash advance payment. Mercado Pago is not and shall not be liable for any exclusion, loss, error, interruption or failure in the performance of the advance payment. The user exempts Mercado Pago, its controlled, controlling or associated companies, as well as their respective managers, agents, employees and advisors, from any liabilities, lawsuits, judicial or extrajudicial actions, claims or requests from third parties arising out of the cash advance payment of Mercado Pago, including court costs and attorney's fees. The user agrees with the deduction from the user’s graphical account to redress any losses or damages that may be caused to Mercado Pago and/or third parties.

  • With due regard for the limitation of liability provisions established herein, which the user agrees to accept, Mercado Pago’s liability for any other acts or facts causing damages shall be limited to any direct damages provenly suffered by the users due to Mercado Pago’s exclusive wrongdoing. Mercado Pago shall not be held liable for indirect damages, loss of profits, loss of data or loss of revenues arising out of any failures in the cash advance payment.

  • The user shall indemnify Mercado Pago for all damages caused as a result of  misinformation or default of any of the obligations hereunder, including all expenses and fees incurred with judicial or extrajudicial collection.

  • Mercado Pago does not warrant continuous or uninterrupted access to and use of the Mercado Pago platform, which may occasionally be unavailable due to technical difficulties or internet failures or any other circumstances beyond the control of Mercado Pago. The users shall not attribute liability to Mercado Pago or claim any indemnity in connection to any damages resulting from any such difficulties, even if said failures affect the amounts that should be credited in or debited from the user's Mercado Pago account as a result of the advance payment

Miscellaneous

  • Validity: the invalidity of any section hereof shall not affect the validity of the remainder hereof or this instrument as a whole.

  • Defined terms: capitalized terms used but not expressly defined herein shall have the same meanings attributed to them in the Mercado Pago terms and conditions of use and any other documents incorporated hereto by reference.

  • Notices: the user represents that all notices delivered by Mercado Pago at the main electronic mail address registered by the user on the Mercado Pago platform are valid.

  • Tolerance: The tolerance by any of the parties in relation to the other party’s failure to comply with any obligations shall not be construed as a waiver of the right to demand compliance with such obligation or as a forgiveness of or amendment to the provisions hereof.

  • The provisions of this instrument shall be immediately valid and enforceable.

  • This instrument shall be governed by and construed pursuant to Brazilian law, and the parties elect the Courts of the Judicial District of São Paulo, State of São Paulo, to resolve any issues relating thereto, expressly waiving any other courts.