Common use of Electronic Check Clause in Contracts

Electronic Check. With Bank’s approval, all electronic check transactions using Bank’s eCheck Program must be processed on point- of-sale equipment certified as acceptable for entry and collection of consumer paper draft data for conversion to ACH file format. Conversion capability is limited to consumer paper draft Items as defined by National Automated Clearinghouse Association (“NACHA”) Operating Rules. Bank assumes no liability for checks accepted by Merchant for check conversion that are not defined as acceptable by the NACHA Operating Rules. Items accepted at the point of sale converted to electronic transactions must be deposited within seventy-two (72) hours of acceptance. Merchant agrees that the eCheck Program is strictly a conversion program and offers no verification, guaranty, or warranty that funds are available in the account on which any Item converted to an electronic transaction is drawn. Bank shall have no liability in the event funds are not available for any reason.