ACH Operations Credit and Risk Criteria. Bank’s ACH operations credit and risk analysis shall be based on certain factors deemed relevant by Bank in its sole discretion, including, but not limited to, the following factors: (i) the credit worthiness, financial condition and financial performance of Customer, particularly Customer’s capital adequacy relative to Customer’s ACH activity volume; (ii) the nature, conduct and geographic location of Customer’s business, including whether Customer engages in certain high-risk ACH activities or transaction environments, or whether certain “Standard Entry Class” (“SEC”) codes that Bank either deems to be high-risk or does not allow are present in Customer’s ACH transactions; (iii) the historic level and dollar amounts of Customer’s ACH returns, including any return levels or dollar amounts in excess of generally acceptable ACH return parameters (as determined by Bank in its sole discretion), or a sudden increase in Customer’s ACH return levels; and (iv) whether Customer adheres to all authorization requirements set forth in detail in Section 5 below.
ACH Operations Credit and Risk Criteria. Bank’s ACH operations credit and risk analysis shall be based on certain factors deemed relevant by Bank in its sole discretion, including, but not limited to, the following factors: (i) the credit worthiness, financial condition and financial performance of Client, particularly Client’s capital adequacy relative to Client’s ACH activity volume; (ii) the nature, conduct and geographic location of Client’s business, including whether Client engages in certain high-risk ACH activities or transaction environments, or whether certain “Standard Entry Class” (“SEC”) codes Bank either deems to be high-risk, or does not allow, are present in Client’s ACH transactions; (iii) the historic level and dollar amounts of Client’s ACH returns, including any return levels or dollar amounts in excess of generally acceptable ACH return parameters (as determined by Bank in its sole discretion), or a sudden increase in Client’s ACH return levels; and (iv) whether Client adheres to all authorization requirements set forth in the NACHA Rules. For the avoidance of doubt, under no circumstances is Client allowed to initiate any ACH Entries to a Receiver that is located in a country outside the U.S., and Client is specifically not permitted to initiate IAT Entries. Client understands that failure to abide by such restrictions may result in Bank immediately suspending or terminating Client’s ACH Services.
