Bank Validation Template

Bank Validation Template

Agreement Date:

Requesting Company:    Company Contact:

Bank / Verifying Party:    Bank Contact:

WHEREAS

WHEREAS, Requesting Company requires independent validation of a designated bank account to establish account ownership and routing accuracy prior to initiating ACH or other electronic transfers; and

WHEREAS, Verifying Party has the capability to contact the financial institution, execute agreed validation procedures, and communicate results to Requesting Company in accordance with the terms set forth in this Agreement; and

WHEREAS, the parties desire to set forth their mutual obligations, limitations of liability, confidentiality responsibilities, and procedures for validation in a written agreement.

Scope of Work

Bank Account Information

Routing (ABA) Number:    Account Number:

Account Type: Checking Savings Other

Authorization: Account holder authorizes Verifying Party to contact the financial institution to verify account ownership and routing information.

Validation Procedure

Validation Method(s) to be used (select all that apply):

Micro-deposit verification (two small deposits posted and confirmed)
Instant account verification via secure API or third-party connector
Written or verbal confirmation from bank representative

Validation Completion Date:

Payment Terms

Fee Amount:    Billing Schedule:

Late fee assessed at on overdue balances, plus reasonable collection costs and attorneys' fees.

Term and Termination

Term Commencement Date:    Term End Date:

Either party may terminate this Agreement without cause upon days' prior written notice. Termination does not relieve any obligation to pay fees accrued through the effective date of termination.

Confidentiality

Each party shall maintain the confidentiality of Non-Public Information disclosed in connection with this Agreement, shall use such information solely for the purposes of performing the validation services, and shall protect such information with at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care. Confidential information shall not include information that is or becomes generally known to the public other than by breach of this Agreement.

Representations, Warranties and Indemnity

Each party represents and warrants that it has full authority to enter into this Agreement and to perform its obligations. Requesting Company represents that it has obtained any necessary authorizations from the account holder to permit verification. To the extent permitted by law, Requesting Company shall indemnify and hold harmless Verifying Party from claims, losses or liabilities arising from Requesting Company’s failure to obtain authority or from inaccurate information provided by Requesting Company.

Limitation of Liability

Except for claims arising from willful misconduct or gross negligence, neither party shall be liable to the other for consequential, indirect, special or punitive damages. The aggregate liability of Verifying Party for any claim arising under this Agreement shall not exceed the amount of fees paid by Requesting Company for the specific validation giving rise to the claim.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws provisions.

Entire Agreement

This Agreement, including any exhibits or schedules hereto, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior or contemporaneous oral or written agreements, proposals, and communications. Any amendment or modification must be in writing and signed by authorized representatives of both parties.

Notices

Sign Now