Is an electronic signature legally binding?

Yes. In the United States electronic signatures meeting ESIGN (15 U.S.C. ch. 96) or UETA requirements are legally equivalent to handwritten signatures, provided intent, consent, attribution, and record retention are satisfied.

Do I need a notary or witnesses?

Most payment agreements do not require notarization, but state-specific requirements or bank onboarding policies may ask for notarized signatures or witness attestations; verify with your bank or state law.

What if bank account details were entered incorrectly?

Correct the agreement and provide a revised voided check or bank verification; incorrect details can cause failed settlements and may trigger merchant penalties or remediation fees.

How to handle disputes or chargebacks referenced in the agreement?

Follow the dispute-resolution clause, preserve all transaction records, and provide the processor with requested evidence; include explicit chargeback liability and reserve terms in the agreement.

When is a BAA required for processors?

If the processor will handle protected health information tied to payments, a HIPAA Business Associate Agreement is required to allocate privacy and security responsibilities.

How can I revoke or amend the agreement?

Amendments should follow the modification clause—usually written amendments signed by authorized parties. Revocation may require notice periods and settlement of outstanding obligations.

Electronic Signature
Templates
Miscellaneous
Accepted Payment Service Agreement

Accepted Payment Service Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

ACCEPTED PAYMENT SERVICE AGREEMENT

This Accepted Payment Service Agreement ("Agreement") is entered into as of Effective Date: , by and between Client Name: , located at and Payment Service Provider: , located at .

WHEREAS

WHEREAS, Client desires to engage Provider to accept, process and remit payments made to Client by credit card, debit card, automated clearing house ("ACH") or other electronic means in accordance with the terms set forth herein; and

WHEREAS, Provider represents that it is duly authorized and qualified to provide payment processing services and will comply with applicable card brand, ACH network rules, and data security requirements; and

WHEREAS, the parties wish to set forth their respective rights and obligations with respect to the handling, settlement and reconciliation of Payment Transactions and related services.

SCOPE OF WORK

Description of Services

Provider shall (i) provide payment processing services for transactions initiated by Clients' customers ("Payment Transactions"); (ii) route transactions to applicable networks and acquirers; (iii) perform settlement and remittance to Client less applicable fees; and (iv) provide transaction reporting and reconciliation in accordance with mutually agreed formats.

PAYMENT TERMS

Processing Fees and Compensation Settlement Schedule Flat or Minimum Fees (if applicable) Late Fee on Overdue Remittances

All fees due to Provider shall be deducted from settlement amounts prior to remittance to Client, unless otherwise agreed in writing. Provider may withhold funds, establish a reserve, or delay settlements if Provider reasonably believes there is increased risk of chargebacks, fraud, non-compliance, or breach by Client. Client is responsible for chargebacks, fines and penalties resulting from Client's non-compliance with applicable rules.

TERM AND TERMINATION

Term Commencement: Term Expiration:

Notice Period for Termination

Either party may terminate this Agreement for convenience by providing the Notice Period above. Either party may terminate immediately for material breach by the other party that remains uncured after ten (10) business days' written notice, or immediately for insolvency, bankruptcy filing, or criminal conduct affecting payment operations.

CONFIDENTIALITY

Each party shall maintain in confidence and not disclose to any third party any non-public business, technical or financial information received from the other party, including transaction data and cardholder information ("Confidential Information"), except as required by law or by card brand or network rules. Confidential Information shall be used only to perform obligations under this Agreement. The obligations in this Section survive termination for a period of three (3) years, provided that trade secrets and payment card data remain protected for as long as required by applicable law and network rules.

DATA SECURITY AND COMPLIANCE

Client shall comply with card brand rules, ACH network requirements, applicable anti-money laundering laws, and maintain compliance with Payment Card Industry Data Security Standard (PCI DSS) where applicable. Provider shall implement commercially reasonable controls to protect payment data and shall notify Client promptly of any confirmed data breach affecting Client data.

INDEMNIFICATION; LIMITATION OF LIABILITY

Each party agrees to indemnify, defend and hold harmless the other party from liabilities, losses, claims, and expenses arising from the indemnifying party's breach of this Agreement, negligence, willful misconduct, or violation of law. EXCEPT FOR WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES. PROVIDER'S AGGREGATE LIABILITY FOR DIRECT DAMAGES SHALL NOT EXCEED THE TOTAL FEES PAID BY CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE SIX (6) MONTHS PRECEDING THE CLAIM.

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the governing jurisdiction selected by the parties: . Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration unless the parties mutually agree otherwise.

ENTIRE AGREEMENT

This Agreement, together with any annexes, exhibits and executed addenda, constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior written or oral agreements. No amendment shall be binding unless executed in writing and signed by both parties.

MISCELLANEOUS

Notices required under this Agreement shall be given in writing to the addresses provided above or to such other address as either party may designate in writing. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect.

CONTACTS FOR NOTICES

Client Primary Contact Provider Primary Contact

Client Printed Name:

By:

Date:

Provider Printed Name:

By:

Date:

What the Accepted Payment Service Agreement Is and when it applies

An Accepted Payment Service Agreement is a contractual document that sets terms between a merchant (or payee) and a payment service provider, payment facilitator, or processor. It defines accepted payment methods, transaction fees, settlement timing, chargeback handling, fraud controls, data security obligations, and termination conditions. The agreement also allocates responsibilities for compliance with federal and state laws, tax reporting, and data-privacy requirements. Organizations use this document to standardize payment acceptance, protect funds flow, and create an auditable record of operational and regulatory responsibilities.

Why a clear Accepted Payment Service Agreement matters

A precise agreement reduces operational risk, clarifies fee and settlement expectations, and documents who is responsible for compliance, data security, and dispute resolution.

Who commonly prepares or signs this agreement

Multiple parties rely on Accepted Payment Service Agreements to run payment operations and manage risk.

Merchants and sellers who accept credit, debit, ACH, or alternative payments for goods or services.
Payment processors, acquirers, and merchant service providers that onboard merchants and manage settlements.
Legal, finance, and compliance teams that must document tax reporting and consumer-protection obligations.

The document ensures operational clarity across commercial, financial, and legal teams during onboarding and ongoing reconciliation.

Stepwise process to complete the agreement

Follow these steps in order to prepare, review, and finalize an Accepted Payment Service Agreement with minimal delays.

01

Gather documents: Collect legal name, EIN, bank account and proof of identity.
02

Complete fields: Enter required details and double-check numeric fields.
03

Review terms: Finance and legal confirm fees, chargeback rules, and indemnities.
04

Sign and retain: Obtain authorized signatures and store executed copy securely.

How to configure the digital onboarding workflow

Set these workflow options when onboarding a merchant to ensure secure signing and automated routing.

Field	Configuration
Authentication	Email link + SMS OTP for higher-assurance signer verification
Payment Collection	Enable ACH and card tokenization; require PCI controls
Settlement Frequency	Daily or weekly net settlement per merchant agreement
Audit Trail	Enable immutable audit log with timestamps and IP addresses

Where to send or file the completed agreement

Route executed agreements to these destinations to complete onboarding and meet compliance obligations.

Processor onboarding: Store executed copy in the processor’s onboarding folder for merchant activation
Banking partner: Send verified bank details to the acquiring bank for settlement setup
Internal billing: Route terms to billing for fee configuration and reconciliation
Compliance archive: Keep a retained copy in compliance records for audit and dispute support

Technical considerations for eSigning and eDelivery

Choose a platform that supports secure eSigning, required integrations, and the document formats you use.

File formats: PDF and DOCX are standard for preservation and redaction
Integrations: Connectors for Salesforce, NetSuite, and Google Workspace speed onboarding
Authentication options: Email link, SMS OTP, KBA, or SAML/SSO for higher assurance

Ensure the platform retains an auditable certificate of completion, supports export to archival formats, and aligns with your privacy and PCI requirements.

Security and compliance elements to include

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Audit trails: Timestamps and IP logs

Certifications: SOC 2 Type II

Payment compliance: PCI DSS

Health-data BAA: HIPAA (BAA required)

Common preparation mistakes to avoid

Entering incorrect bank routing or account numbers, which causes settlement failures and manual remediation.
Using vague fee language such as 'reasonable fees' instead of exact percentages or fixed cents per transaction.
Failing to identify the authorized signer or provide proof of authority, which delays activation or invalidates the agreement.
Overlooking data-security responsibilities and not specifying who maintains PCI or encryption controls for stored payment data.

Principal penalties and legal risks to note

Chargeback exposure: Financial loss and higher processing rates

Backup withholding: 24% tax withholding for missing/incorrect TIN

I-9 penalties: $281–$2,789 per violation

HIPAA fines: Civil and criminal penalties possible

Tax information errors: 1099 penalties up to $330 per form

Breach remediation: Notification and forensic costs

How Accepted Payment Service Agreements differ from related documents

Compare this agreement to adjacent documentation to ensure you choose the correct form and clauses for payments and liability.

Criteria	Payment Agreement	Merchant Authorization
Purpose	defines processing terms	authorizes charges
Duration	multi-year or ongoing	single transaction
Signatures required	authorized officer	cardholder/customer
Typical use	onboarding merchants	recurring billing consent

eSignature vendor pricing and capabilities relevant to payment agreements

Use pricing and feature comparison to select an eSignature provider that supports secure signing, audit trails, and necessary compliance; signNow appears first per vendor ordering rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card	Varies	Varies	Varies	Varies
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

FAQs and troubleshooting for the Accepted Payment Service Agreement

Answers to common questions about signing, enforcement, and handling errors when working with payment agreements.

Need help? Contact support

Is an electronic signature legally binding?
Yes. In the United States electronic signatures meeting ESIGN (15 U.S.C. ch. 96) or UETA requirements are legally equivalent to handwritten signatures, provided intent, consent, attribution, and record retention are satisfied.
Do I need a notary or witnesses?
Most payment agreements do not require notarization, but state-specific requirements or bank onboarding policies may ask for notarized signatures or witness attestations; verify with your bank or state law.
What if bank account details were entered incorrectly?
Correct the agreement and provide a revised voided check or bank verification; incorrect details can cause failed settlements and may trigger merchant penalties or remediation fees.
How to handle disputes or chargebacks referenced in the agreement?
Follow the dispute-resolution clause, preserve all transaction records, and provide the processor with requested evidence; include explicit chargeback liability and reserve terms in the agreement.
When is a BAA required for processors?
If the processor will handle protected health information tied to payments, a HIPAA Business Associate Agreement is required to allocate privacy and security responsibilities.
How can I revoke or amend the agreement?
Amendments should follow the modification clause—usually written amendments signed by authorized parties. Revocation may require notice periods and settlement of outstanding obligations.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now