Common use of Identification of ACH Transactions to Block Clause in Contracts

Identification of ACH Transactions to Block. Customer and Bank acknowledge that ACH transactions are originated according to certain processing rules which require the use of an Originator Name and Originator Identification Number imbedded in the transaction to identify its source, and this imbedded data is a critical component of Bank's ability to apply Customer’s instructions regarding the blocking or allowance of specific transactions. Bank shall act in good faith to process Customer's ACH Fraud Prevention Services instructions. However, if the identifying information in the transaction is inconsistent or is described inconsistently by Customer in its ACH Fraud Prevention Services instructions, Bank shall be held harmless for posting an ACH transaction to Customer's account and any dispute related to such a transaction shall be between Customer and the originator of the transaction.