Common use of ACH Blocking Clause in Contracts

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.