ACH Prefunding Clause Samples
The ACH Prefunding clause requires a party to deposit sufficient funds in advance to cover anticipated Automated Clearing House (ACH) transactions. In practice, this means the party must ensure their account holds enough money before any ACH debits are processed, often by a specified deadline or cutoff time. This clause helps prevent failed payments due to insufficient funds, thereby reducing the risk of transaction reversals and ensuring smooth, reliable payment processing.
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ACH Prefunding. To qualify Customer as an ACH Originator, Bank may require credit transactions to be prefunded. If prefunding is required, Customer will be required to have sufficient collected funds on deposit with Synovus on ACH submission dates as a condition for Bank’s processing of any outgoing ACH Credit Entry. When prefunding is in place, the offset transaction to remove funds from Customer’s account will occur on the date the transactions are submitted rather than on the Effective Entry Date. Bank’s normal overdraft policies and fees will apply if sufficient funds are not available.
ACH Prefunding. All ACH credit transactions are prefunded with a hold placed on available funds excluding any pending RDC deposits pending our processing of your Order. Unless an exception has been granted by Bank, you agree to only originate ACH credit files for payments (i.e., direct deposit, trade payments, etc). If any other type of file is originated, the Bank will immediately terminate the file. Upon receipt of your credit file, the Bank will verify funds availability in the designated settlement account at the Bank. Available (collected) funds must be in your settlement account before you transmit the file to the Bank or your ACH file entries will not be processed. Floats or holds on deposited checks may limit funds availability. The Bank is under no obligation to notify you if a non- sufficient funds condition exists. If contacted, you will agree to immediately deposit readily available funds into the designated settlement account in the form of a cash deposit, account transfer, loan advance or wire transfer to cover the transaction. Should the Bank elect to release the file against non-sufficient funds, it is under no obligation to release subsequent files for which a non- sufficient funds condition exists. Funds will be debited from settlement account on the same day the file is received at the Bank. Prefunded ACH files must be “unbalanced” when delivered to the Bank (i.e., no offsetting debit entry contained within the NACHA formatted file). If a balance file is originated, the Bank may elect to immediately terminate the file. If your file is not processed, you will have to re-initiate the file or choose an alternative payment method. Failure to comply with the conditions could result in termination of ACH services or require credit approval in order to continue using ACH Services. Request to not require any prefunding will require credit approval in order to use ACH Services.