Insufficient Funds; Failed Payments Clause Samples
The "Insufficient Funds; Failed Payments" clause defines the procedures and consequences when a party fails to make a required payment due to a lack of available funds or a failed transaction. Typically, this clause outlines the steps the payee may take, such as notifying the payer of the failed payment, imposing late fees, or suspending services until payment is received. Its core function is to ensure that both parties understand the repercussions of payment failures, thereby encouraging timely payments and providing a clear process for resolving payment issues.
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Insufficient Funds; Failed Payments. If there are insufficient funds in your Payment Account to complete a Payment transaction you have initiated, we may either refuse to process the transaction or complete the transaction, with or without overdrawing the Payment Account, in our sole and absolute discretion. Subject to the requirements of applicable law, you are responsible for the amount of any Payment transaction we complete on your behalf, as well as applicable fees and charges, whether or not your Payment Account becomes overdrawn. Our election to execute any Payment transaction if or when you have insufficient funds in your Payment Account to cover such transaction in no way obligates us to execute any other Payment transaction if or when you have insufficient funds. You further agree that:
(i) Upon demand, you will reimburse us immediately in the amount of any Payment transaction that we have executed on your behalf;
(ii) We may make repeated attempts in our discretion to debit your Payment Account for the amount of any Payment transaction that we execute on your behalf, including, but not limited to, debit by ACH transaction;
(iii) If we complete a Payment transaction on your behalf and you do not have sufficient funds in your Payment Account to cover such transaction, (x) we may assess our standard paid overdraft item/returned item fee, as in effect and disclosed in our pricing schedules at such time, against your Payment Account, whether or not we overdraw your Payment Account, and/or (y) we may cancel, suspend, or limit your use of the Bill Pay Service and/or your Payment Account without notice, and/or exercise any other rights or remedies available to us;
(iv) You will reimburse us for any fees or costs we incur in attempting to collect the amount of any executed Payment transaction from you to the fullest extent allowed by law; and
(v) We are authorized to report the facts concerning the collection or recovery of any Payment transaction to any credit or consumer reporting agency.
Insufficient Funds; Failed Payments. If there are insufficient funds in Customer’s applicable Account to complete a payment transaction Customer has initiated, Bank may either refuse to process the transaction or complete the transaction, with or without overdrawing the Account, in Bank’s sole and absolute discretion. Subject to the requirements of applicable law, Customer is responsible for the amount of any payment transaction Bank completes on Customer’s behalf, as well as applicable fees and charges, whether or not Customer’s Account becomes overdrawn. Bank’s election to execute any payment transaction if or when Customer has insufficient funds in Customer’s Account to cover such transaction in no way obligates Bank to execute any other payment transaction if or when Customer has insufficient funds. Customer further agrees that:
i. Upon demand, Customer will reimburse Bank immediately in the amount of any payment transaction that Bank has executed on Customer’s behalf;
ii. Bank may make repeated attempts in its discretion to debit Customer’s Account for the amount of any payment transaction that Bank executes on Customer’s behalf, including, but not limited to, debit by ACH transaction;
iii. If Bank completes a payment transaction on Customer’s behalf and Customer does not have sufficient funds in Customer’s Account to cover such transaction, (x) Bank may assess its standard paid overdraft item/returned item fee, as in effect and disclosed in Bank’s pricing schedules at such time, against Customer’s Account, whether or not Bank overdraws Customer’s Account, and/or (z) Bank may cancel, suspend, or limit Customer’s use of the Payment Services and/or Customer’s Account without notice, and/or exercise any other rights or remedies available to Bank;
iv. Customer will reimburse Bank for any fees or costs Bank incurs in attempting to collect the amount of any executed payment transaction from Customer to the fullest extent allowed by law; and
v. Bank is authorized to report the facts concerning the collection or recovery of any payment transaction to any credit or consumer reporting agency. If Customer has a dispute with any other user of the P2P Service, Customer releases Bank from any and all claims, demands and damages (actual and consequential) of every kind and nature arising out of or in any way connected with such dispute.
Insufficient Funds; Failed Payments. If there are insufficient funds in your Payment Account to complete a Payment transaction you have initiated, we may either refuse to process the transaction or complete the transaction, with or without overdrawing the Payment Account, in our sole and absolute discretion. Subject to the requirements of applicable law, you are responsible for the amount of any Payment transaction we complete on your behalf, as well as applicable fees and charges, whether or not your Payment Account becomes overdrawn. Our election to execute any Payment transaction if or when you have insufficient funds in your Payment Account to cover such transaction in no way obligates us to execute any other Payment transaction if or when you have insufficient funds. You further agree that:
(i) Upon demand, you will reimburse us immediately in the amount of any Payment transaction that we have executed on your behalf; (ii) We may make repeated attempts in our discretion to debit your Payment Account for the amount of any Payment transaction that we execute on your behalf, including, but not limited to, debit by ACH transaction;