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

Identification of ACH Transactions to Block. The Customer and the Bank acknowledge that ACH transactions are originated according to certain processing ACH 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 the Bank’s ability to monitor for transactions which the Customer desires to block. The Bank shall act in good faith to process the Customer’s Operating Instructions. However, if the identifying information in the transaction is inconsistent or is described inconsistently by Customer in Operating Instructions or input incorrectly by the Customer, the 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 the Customer and the Originator of the transaction. Any ACH Debit Entry that is paid in accordance with the Service shall be considered properly payable and Customer agrees that Bank shall have no liability to Customer for paying ACH Debit Entry in accordance with the Service.