Common use of Settlement Process Clause in Contracts

Settlement Process. All Transit Fare Revenues will be the property of the Authority and to the extent at any time held by the Contractor, any Subcontractor (including Fare Media Vendors) or others (whether held in any Merchant Account or otherwise) will be held by each of them in trust on behalf of and for the account of the Authority. The Settlement Account for all Fare Transactions will be a deposit account in the name of the Authority and designated by the Authority (each a “Settlement Account”) in an authorized Authority- approved depository bank. Electronic credits and payments, including cash, checks, and Bankcard and all other forms of electronic payments for Fare Product purchases via the Web Site, Fare Media Vending Devices, Customer Care Call Center, WMATA Retail Network, autoload services or any other mechanism or location established by Contractor for the sale of Fare Products (collectively “Sales Channels”) or for transactions received from the Card Processors shall be made or, if cash or checks, deposited only to a Settlement Account as directed by the Authority. All cash and check payments for Fare Transactions received by Contractor or by a Fare Media Vendor shall be deposited to a Settlement Account as directed by the Authority not later than 5:00 pm the Business Day following such Fare Transactions. All automated clearinghouse (ACH) credits initiated by Contractor, wire transfers received by Contractor, refunds of Fare Media Charges as Transit Value to a transit account and all other forms of electronic payments (e.g. PayPal payments) received by Contractor for Fare Transactions shall be credited directly to a Settlement Account as directed by the Authority. Contractor shall prepare a report detailing the information for each calendar day of operation of the NEPP System (each an “Operating Day”) and within three (3) Business Days following each Operating Day shall transfer to the Settlement Account an amount equal to any Revenue Shortfall for such Operating Day. Contractor shall perform the remittance, reporting and reconcilement services as part of its daily settlement procedures as described in the Trust Agreement. Contractor shall transmit the required Card Payment Data to the Card Processor for authorization and settlement on the same Business Day that such Card Payment Data is originated. Card Payment Data shall be transmitted by the Contractor on the same date on which such payment is scheduled for authorization and settlement by the aggregation process of the NEPP System. For the purpose of allowing Contractor to accept Bankcards for the payment of Transit Fares and Fare Transactions, Contractor shall enter into a written agreement with each Card Processor (each a “Merchant Agreement”). Contractor shall at all times comply with (and shall ensure that all Subcontractors at all times comply with) all Payment Card Network Rules and the terms and conditions of all Merchant Agreements. Each Merchant Agreement and any amendment thereto shall be acceptable in form and substance to the Authority. Without limiting the generality of the foregoing and unless otherwise approved by the Authority in writing, each Merchant Agreement shall include provisions consistent with the requirements of this Section relating to Card Fees, Vendor Fees, Chargebacks, Settlement Account, Interchange, Merchant Discount and settlement process, all such fees and processes to be approved in advance and in writing by the Authority. There shall be no terms or conditions in any Merchant Agreement which allow the Card Processor to make claims against the Authority for any unpaid fees, charges or other amounts due from Contractor for services performed by the Card Processor including, Card Fees or Chargebacks or which describe or create a liability of any kind for the Authority. Contractor shall use all commercially reasonable efforts to enter into a Merchant Agreement consistent with the following provisions: