Common use of Refund of Debit Entries Clause in Contracts

Refund of Debit Entries. Customer acknowledges that, under the Rules, a Receiver has the right under certain circumstances to obtain a refund of funds debited from the Receiver’s account pursuant to a Debit Entry. The RDFI, in turn, has the right to obtain payment of the amount of the Debit Entry from Bank as ODFI, by transmitting an adjustment Entry in the amount of such refund (an “Adjustment Entry”). Customer acknowledges that it has received, reviewed and agrees to be bound by the provisions of the Rules governing refunds of Debit Entries and application of Adjustment Entries. Customer further agrees to pay Bank the amount of any Adjustment Entry upon the receipt thereof by Bank. With respect to a refunded On-Us Debit Entry, Customer will immediately pay Bank the amount of such refund.