Returned ACH Entry Warning Notices. As part of Bank’s ACH Services underwriting process as generally set forth in Section 2 above, Bank routinely monitors Client’s historic ACH Entry return levels and dollar amounts. Under the NACHA Rules, if a Client’s ACH Entry return levels exceed certain parameters, then Bank, as the ODFI, is instructed to take certain actions to mitigate a Client’s unacceptable levels or dollar amounts of ACH Entry returns. Client understands and agrees that in order to protect itself from risks, and to inform its Clients of problems with returned ACH Entries, Bank will inform Client of Client’s excessive ACH Entry return levels or dollar amounts, as determined by Bank in its sole discretion, and Client agrees to take all steps requested by Bank immediately to decrease the levels and/or dollar amounts of Client’s ACH returns. If Client fails to comply with the required actions as outlined by Bank then such failure to comply shall be deemed to be a material violation of this Agreement, and Bank may, in its sole and absolute discretion, immediately terminate ACH Services to Client.
Returned ACH Entry Warning Notices. Where Bank or NACHA believes the return rate for Client's Entries returned as unauthorized exceeds the normal and acceptable return rate for Client, Bank shall notify Client of such excessive administrative return rate and/or overall return rate. Client, upon request from Bank, will provide the following information: (i) Client's address, telephone number, contact person, principal owner(s) and taxpayer identification number; ii) the name, address, telephone number, contact person, principal owner(s) and Rev. 03/2021 Page 18 of 30 taxpayer identification number of any Third-Party Service Provider acting on behalf of Client with respect to origination of Entries, (iii) a general description of the nature of the business of Client; and (iv) an explanation of the reason(s) for the excessive return rate. The Client will provide this information to Bank within five Business Days after receipt of the request from Bank. As part of Bank’s ACH Services underwriting process, Bank routinely monitors and submits reports to NACHA regarding Clients’ historic ACH Entry return levels and dollar amounts. Under the NACHA Rules, if an individual Client’s ACH Entry return levels exceed certain parameters, then Bank, as the ODFI, is instructed to take certain actions to mitigate a Client’s unacceptable levels or dollar amounts of ACH Entry returns. If Bank does not comply with such requirements in its role as an ODFI, Bank is subject to censure, fines and penalties imposed by NACHA. Client understands and agrees that in order to protect itself from risks, and to inform its Clients of problems with returned ACH Entries, Bank has implemented an “Excessive ACH Returns Warning Notice and Escalation Procedure,” whereby Bank will inform Client of Client’s excessive ACH Entry return levels or dollar amounts, as determined by Bank in its sole discretion, and Client agrees to take all steps requested by Bank immediately to decrease the levels and/or dollar amounts of Client’s ACH returns. If Client fails to comply with the required actions as outlined by Bank in any “Excessive ACH Returns Warning Notice,” then such failure to comply shall be deemed to be a material violation of this Agreement, and Bank may, in its sole and absolute discretion, immediately terminate ACH Services to Client. Client also acknowledges and agrees that it is bound by all of the NACHA Rules and other applicable state and federal laws and regulations regarding error resolution procedures for Receivers (includin...
Returned ACH Entry Warning Notices. As part of Bank’s ACH Service underwriting process as generally set forth in Section 2 above, Bank routinely monitors and submits reports to NACHA regarding Customers’ historic ACH Entry return levels and dollar amounts. Under the NACHA Rules, if an individual Customer’s ACH Entry return levels exceed certain parameters, then Bank, as the ODFI, is instructed to take certain actions to mitigate a Customer’s unacceptable levels or dollar amounts of ACH Entry returns. If Bank does not comply with such requirements in its role as an ODFI, Bank is subject to censure, fines and penalties imposed by NACHA. Customer understands and agrees that in order to protect itself from risks, and to inform its Customers of problems with returned ACH Entries, Bank has implemented an “Excessive ACH Returns Warning Notice and Escalation Procedure,” whereby Bank will inform Customer of Customer’s excessive ACH Entry return levels or dollar amounts, as determined by Bank in its sole discretion, and Customer agrees to take all steps requested by Bank immediately to decrease the levels and/or dollar amounts of Customer’s ACH returns. If Customer fails to comply with the required actions as outlined by Bank in any “Excessive ACH Returns Warning Notice,” then such failure to comply shall be deemed to be a material violation of this Agreement, and Bank may, in its sole and absolute discretion, immediately terminate ACH Service to Customer.
