ACH Blocking Sample Clauses
An ACH Blocking clause is designed to prevent unauthorized or unwanted Automated Clearing House (ACH) transactions from being processed through a bank account. In practice, this clause allows the account holder to instruct their financial institution to block certain ACH debits or credits, either from specific originators or for particular transaction types. By implementing such controls, the clause helps protect account holders from fraudulent withdrawals or errors, ensuring greater security and control over electronic fund transfers.
ACH Blocking. ACH Blocking Service provides a way for you to request that all ACH Entries against your applicable Account(s) be blocked. Unless mutually agreed otherwise, blocked Entries will be returned with the return codes we specify. You agree not to authorize others to initiate Entries that are inconsistent with the blocking services you request from us. In the event we fail to block a debit Entry that was not authorized by you, our sole obligation shall be to promptly re-credit the amount thereof to your Account(s), and we shall be subrogated to all of your rights and remedies related to that Entry and the transaction out of which it arose. In the event that we fail to block a credit Entry, our sole obligation shall be to transfer the subject funds back to the Originator of the Entry, if requested by you. You agree to execute such additional documents as we may reasonably request from time to time relating to the services provided hereunder (e.g., NACHA-required affidavits).
ACH Blocking i. You may choose to automatically block and return all incoming ACH debit Entries before posting to the Account (“ACH Blocking”). You are not required to establish Customer Rules for ACH Blocking.
ii. Alternatively, the ACH Blocking Service also allows you to review and confirm Automated Clearinghouse (ACH) debit Entries prior to posting to Accounts (“ACH Filtering”). The following terms and conditions shall apply to ACH Filtering:
(i) You will establish and remain responsible for maintaining, through the Bank’s system, your rules (“Customer Rules”) which govern permissible Entries by originating Company ID, Standard Entry Class, Dollar Range, or as otherwise specified further in the User Guides.
(ii) You will review exceptions you receive from the Bank through email or through the Bank’s system, and determine if the exceptions will be treated as authorized or unauthorized Entries. If an exception item is a valid debit transaction, you may establish a Customer Rule after authorizing to pay the entry so that future entries will be paid automatically.
(iii) You will make exception decisions online through the Bank’s system on each Business Day by the deadline specified in the User Guides.
(iv) You acknowledge that ACH Filtering does not cover ACH debit Entries which Bank has already paid or finalized or which Bank is already committed to pay or honor under applicable laws, regulations, the ACH Rules or the Customer Rules.
(v) The Bank shall compare incoming ACH debit Entries against your Customer Rules and accept those Entries which are authorized under your Customer Rules as established by you in the Bank’s system.
(vi) The Bank shall submit to you as exceptions (“ACH Exceptions”) any ACH Entries which do not meet your Customer Rules (unless you have chosen ACH Blocking, in which case all ACH Entries will be returned).
(vii) Bank shall make reasonable efforts to make exceptions available to you on each Business Day by the deadline specified in the User Guides.
(viii) ACH Exceptions will not reflect in your Account records if they are returned.
(ix) The Bank shall default to a “return” decision for any ACH Exception for which you have not submitted a decision on the same Business Day by the deadline specified in the User Guides.
ACH Blocking. If you elect to use ACH Blocking, ACH transfers will be blocked and returned to the sender based on the parameters you establish through the Online Service.