Electronic Check Authorization Clause Samples
The Electronic Check Authorization clause permits a party to process payments using electronic versions of checks, rather than requiring physical paper checks. In practice, this means that when a customer provides their bank account information, the payee can initiate an electronic debit from the account, often by converting a paper check into an electronic transaction or by using information provided online or over the phone. This clause streamlines payment processing, reduces delays associated with mailing and clearing paper checks, and helps ensure timely receipt of funds.
Electronic Check Authorization. When you or any person with authority authorize any Electronic Check you agree: (1) that we may pay the item as submitted to us; (2) that you shall be solely responsible for all information transmitted regarding such item(s) including but not limited to the payee(s) the amount(s) of the item(s), and endorsements or the lack thereof; and (3) you agree to indemnify us for all losses we incur in connection with any Electronic Check you authorize.