Common use of Electronic Check Clause in Contracts

Electronic Check. “eCheck”) Processing and Preauthorized Electronic Debit Entries. If selected by Merchant as part of the Services, Provider will provide eCheck and electronic debit entry transaction (“Entry”) processing services to Merchant where Merchant has obtained proper authorization from Merchant’s Customer that holds the deposit account to be debited (“eCheck Authorization”). Merchant is responsible for complying with all applicable Rules, laws and regulations governing electronic check processing, check conversion and/or the initiation of preauthorized electronic debit entries. Merchant agrees to maintain and store each eCheck Authorization and provide evidence of eCheck Authorizations to Provider upon its request. Additionally, Merchant agrees to record and store telephone conversations and other data transmissions with Customers for the purposes of demonstrating compliance with applicable Rules, laws, regulations and the requirements of this Agreement. Provider or Processor will report to Merchant those Entries which fail Processor’s verification process designed to identify accounts which have unpaid checks outstanding or have been closed for cause. If an Entry is being declined based on such verification process, Merchant agrees to provide such Customer (in a manner that complies with applicable laws, the NACHA Rules and applicable regulations) a decline notice. Merchant agrees not to reinitiate Entries once they have received a “Payment Stopped” as a reason for a return, unless an eCheck Authorization from the Customer overriding the stop payment has been received. Merchant understands, acknowledges and agrees that Processor verifications are for informational purposes only and are not a guaranty of payment of any Entry. Merchant has no right to cancel or amend any Entry after its receipt by Processor or Bank. Merchant is responsible for payment for an Entry even if the Entry is erroneous or is a duplicate Entry and regardless of whether Merchant was the source of the error or duplicate Entry.

Electronic Check. “eCheck”) Processing and Preauthorized Electronic Debit Entries. If selected by Merchant as part of the Services, Provider will provide eCheck and electronic debit entry transaction (“Entry”) processing services to Merchant where Merchant has obtained proper authorization from Merchant’s Customer that holds the deposit account to be debited (“eCheck Authorization”). Merchant is responsible for complying with all applicable Rules, laws and regulations governing electronic check processing, check conversion and/or the initiation of preauthorized electronic debit entries. Merchant ▇▇▇▇▇▇▇▇ agrees to maintain and store each eCheck Authorization and provide evidence of eCheck Authorizations to Provider upon its request. Additionally, Merchant ▇▇▇▇▇▇▇▇ agrees to record and store telephone conversations and other data transmissions with Customers for the purposes of demonstrating compliance with applicable Rules, laws, regulations and the requirements of this Agreement. Provider or Processor will report to Merchant those Entries which fail Processor’s verification process designed to identify accounts which have unpaid checks outstanding or have been closed for cause. If an Entry is being declined based on such verification process, Merchant ▇▇▇▇▇▇▇▇ agrees to provide such Customer (in a manner that complies with applicable laws, the NACHA Rules and applicable regulations) a decline notice. Merchant ▇▇▇▇▇▇▇▇ agrees not to reinitiate Entries once they have received a “Payment Stopped” as a reason for a return, unless an eCheck Authorization from the Customer overriding the stop payment has been received. Merchant ▇▇▇▇▇▇▇▇ understands, acknowledges and agrees that Processor verifications are for informational purposes only and are not a guaranty of payment of any Entry. Merchant has no right to cancel or amend any Entry after its receipt by Processor or Bank. Merchant ▇▇▇▇▇▇▇▇ is responsible for payment for an Entry even if the Entry is erroneous or is a duplicate Entry and regardless of whether Merchant was the source of the error or duplicate Entry.