Common use of Notice to Your Customers Clause in Contracts

Notice to Your Customers. Prior to your receipt of a Check that is to be converted to an ARC/BOC Entry, you must provide your customer (the Receiver) with a clear and conspicuous notice, compliant in form and manner of communication with the Rules and applicable law, that the receipt of each Check will be authorization for the Check to be used as a source document for an ACH debit transaction to the Receiver’s account at his or her financial institution. If the Receiver is a consumer, the notice shall comply with the requirements of Federal Reserve Regulation E, for example: “When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.” In the case of BOC Entries, your Notice must also state: “For inquiries, please call <phone number>.” Note: Transactions to collect returned items fees require additional disclosures.

Notice to Your Customers. Prior to your receipt of a Check that is to be converted to an ARC/BOC Entry, you must provide your customer (the Receiver) with a clear and conspicuous notice, compliant in form and manner of communication with the Rules and applicable law, that the receipt of each Check will be authorization for the Check to be used as a source document for an ACH debit transaction to the Receiver’s account at his or her financial institution. If the Receiver is a consumer, the notice shall comply with the requirements of Federal Reserve Regulation E, for example: “When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.” In the case of BOC Entries, your Notice must also state: “For inquiries, please call <phone number>.” Note: Transactions to collect returned items fees require additional disclosures.”