ACH Payment Agreement

ACH Payment Agreement

Parties and Agreement Date

Payer Name:

Payer Address:

Payee / Company Name:

Payee Address:

Agreement Effective Date:

Authorization and Consent

By executing this Agreement, Payer authorizes Payee and Payee's designated processor to initiate Automated Clearing House (ACH) entries to Payer's bank account identified below and to debit and/or credit such account for amounts owed in accordance with the Payment Terms set forth. This authorization shall remain in full force and effect until terminated in accordance with Section "Termination and Revocation."

Bank Account Information (Account to Be Debited/Credited)

Checking Savings

Payment Terms and Schedule

Payment Type: One-time Recurring

If recurring, Frequency: Start Date: Next Draft Day of Month (if applicable):

Representations, Warranties and Covenants

Payer represents and warrants that Payer is an authorized signer on the bank account identified herein, that the information provided is true and correct, and that sufficient funds will be available on the scheduled debit dates. Payee represents and warrants that it will process ACH entries in accordance with applicable operating rules and will not attempt duplicate debits without prior notice and cure opportunity.

Processing, Fees and Returns

Payee may assess a returned-item fee for any debit returned for insufficient funds or other reason, at the rate agreed between the parties. Payer shall be responsible for all bank fees and costs associated with returned entries or chargebacks arising from unauthorized or incorrect information provided by Payer.

Revocation, Cancellation and Termination

This authorization shall remain in effect until Payee receives written notice of revocation from Payer and has had a reasonable opportunity to act (not to exceed 10 business days). Termination of recurring payments shall not affect Payee's right to collect amounts authorized and accrued prior to termination.

Liability and Indemnification

Each party shall indemnify and hold the other harmless from any losses, claims, damages or expenses (including reasonable attorneys' fees) arising from its breach of this Agreement, its negligence, or its willful misconduct. Neither party shall be liable for consequential or punitive damages except in cases of gross negligence or willful misconduct.

Confidentiality and Data Handling

Payee will use commercially reasonable safeguards to protect Payer's account information and will only use such information for purposes of debiting/crediting the account in accordance with this Agreement. Payer consents to Payee's retention of account information for reconciliation and collection purposes consistent with applicable law.

Notices

All notices required under this Agreement shall be in writing and delivered to the addresses provided above. Notices shall be effective upon actual receipt or three business days after deposit in the United States mail, postage prepaid.

Governing Law and Remedies

This Agreement shall be governed by the laws of the state specified in the Payee's address without regard to conflicts of law principles. The parties agree that the prevailing party in any dispute shall be entitled to recover reasonable attorneys' fees and costs.

Special Instructions / Notes

Acknowledgment and Certification

Payer certifies that the bank account information provided is accurate, that Payer is authorized to provide this authorization, and that Payer consents to the initiation of ACH debits and credits as provided herein. Payer understands that erroneous debits may be corrected pursuant to applicable rules, and agrees to cooperate with Payee to resolve any errors.

Authorization to Obtain Documentation

Payer authorizes Payee to request and obtain documentation from the depository institution to verify account ownership and to support processing of ACH entries when reasonably necessary.

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