ACH Payment Service Clause Samples
The ACH Payment Service clause establishes the terms under which payments are processed electronically through the Automated Clearing House (ACH) network. It typically outlines the responsibilities of both parties regarding the initiation, authorization, and timing of ACH transfers, and may specify requirements for providing bank account information or handling failed transactions. This clause ensures a clear, standardized process for electronic payments, reducing administrative burdens and minimizing payment delays or disputes.
ACH Payment Service. You must obtain all authorizations required under applicable law and the ACH Rules to make ACH Payments. We may also ask you to obtain authorizations. You must give us copies of authorizations if we ask for them. You must give us all the information we need to complete your ACH Payment. You must tell us if the Payee is a vendor or Employee. The information must be correct. When you send us Instructions, you authorize us to complete your Instructions. You authorize us to electronically debit the Pay From account listed in your Instructions. You may only send ACH Payments to Payees in the United States with accounts at ACH member banks. You authorize us to update your Payee's information if your Payee asks us to. You must only make Employee payments to Employees with Employee payment entitlements. You must give us an Employee's voided check or deposit slip for the Employee's checking account if we ask for it. The Online Service should not be your permanent record for accounting, tax or any other purpose. You must only make vendor payments to Payees with vendor payment entitlements. We may limit the amount of money you can send in one (1) ACH Payment or in one (1) day. You may not send more than $100,000.00 per Same-Day ACH transaction. We may establish lower transaction limits for you and may block any attempted Same-Day ACH transaction that exceed(s) the limit(s). We may adjust the limits at any time in our sole discretion with notice to you. We must receive your Instructions before the Cut Off Time to send it on the same Business Day. The Cutoff Time for making a Standard ACH Payment is 8:00 PM Eastern Time. Same-Day ACH Payments must be authorized before the stated Cut Off Time. Payments not authorized by the stated Cut Off Time for the day will be scheduled for the next available Same-Day ACH Payment delivery, which may be the next business day, unless cancelled by the user. This may result in the transaction settling the next day and these transactions may be charged a Same-Day delivery fee. Same-Day ACH Payments not authorized before the stated Cut Off Time will expire after 48 hours. If we receive your Instructions after the Cut Off Time, we may still debit your account that day. We will debit your Pay From account based on the Deliver By you choose. Approved Instructions received by us before the Cut Off Time your Instruction Calendar day you send Approved Instructions (other than Repeating ACH Payments or Employee payments) received by us after Fo...
ACH Payment Service. 4.5.1. Obligations
4.5.1.1. Company represents and warrants that (1) any of its and its Suppliers’ bank accounts selected for the ACH Payment Service will have been established in the United States primarily for business purposes and not for personal, family or household purposes, (2) it will provide complete and accurate information regarding its and its Suppliers’ bank accounts and ACH Payments (including ACH Instructions), including, but not limited to, Supplier authorizations required under the Nacha Rules to initiate such ACH Payments to Suppliers, (3) it will execute and maintain a written agreement with each Supplier authorizing Company in accordance with the Nacha Rules to initiate credit ACH Payments to Receiver’s designated bank account, (4) any such written agreement and authorization have not been terminated or revoked on the date any ACH Instructions are submitted by Company to American Express to initiate an ACH Payment to the relevant Supplier, and (5) Company will
4.5.1.2. Company hereby agrees that the ACH Payment Service will be used exclusively by Company, for payments owed by Company to Supplier, and not for payments by third parties to such Supplier.
ACH Payment Service. 4.5.1. Obligations
4.5.1.1. Company represents and warrants that (1) any of its and its Suppliers’ bank accounts selected for the ACH Payment Service will have been established in the United States primarily for business purposes and not for personal, family or household purposes, (2) it will provide complete and accurate information regarding its and its Suppliers’ bank accounts and ACH Payments (including ACH Instructions), including, but not limited to, Supplier authorizations required under the Nacha Rules to initiate such ACH Payments to Suppliers, (3) it will execute and maintain a written agreement with each Supplier authorizing Company in accordance with the Nacha Rules, to initiate credit ACH Payments to Receiver’s designated bank account, (4) any such written agreement and authorization have not been terminated or revoked on the date any ACH Instructions are submitted by Company to American Express to initiate an ACH Payment to the relevant Supplier, and (5) Company will immediately take the necessary action to cause the Portal to reflect (i) any change to Supplier’s bank account or RDFI information or (ii) notice if a Supplier revokes its authorization to receive ACH Payments from Company or otherwise terminates its written agreement with Company. Company acknowledges and agrees American Express assumes no liability for any communication to Suppliers on Company’s behalf or at the direction of Company.
4.5.1.2. Company hereby agrees that the ACH Payment Service will be used exclusively by Company, for payments owed by Company to its Suppliers, and not for payments by third parties to any such Suppliers.