Payment Telecheck Template

Payment Telecheck Agreement

Parties and Recitals

This Payment Telecheck Agreement ("Agreement") is entered into by and between:

Payor Name:

Payee Name:

WHEREAS, Payor desires to authorize Payee to accept and process payment(s) by telephone check authorization and electronic debit from the Payor's checking account, and

WHEREAS, Payee, as merchant or service provider, will process such telephone-based check authorizations, including verification and guarantee services through third-party check verification and payment processing agents, and

WHEREAS, the parties wish to set forth the terms governing such telecheck payments, verification, warranties and remedies.

Scope of Work

Payment Terms

Payment Amount:

Authorization to process telephone check (Telecheck-style) and/or electronic debit from the account provided
Alternate method: card or ACH only if separate authorization is executed

One-time payment    Recurring payments

If recurring, frequency:    Number of occurrences:

Late fee for overdue balances: . Returned check or ACH fee: .

Account Information and Authorization

Authorization: By signing below Payor authorizes Payee to verify banking information and to initiate debit entries to the account specified above for the amounts and on the schedule set forth herein. This authorization remains in effect until revoked in writing in accordance with the Term and Termination provisions.

Representations, Warranties and Indemnity

Payor represents and warrants that the bank account information provided is true, complete and that Payor is authorized to make payments from the account. Payor further represents funds will be available when withdrawals are initiated. Payor shall indemnify, defend and hold harmless Payee and its processors, agents and affiliates from any claims, losses or expenses arising from Payor's breach of these representations or from insufficient funds, reversal, chargeback, or returned payments.

Term and Termination

Term Commencement Date: . Term Expiration Date (if applicable): .

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to termination. Either party may terminate immediately for material breach, insolvency, or unauthorized use of Payor's bank account information.

Confidentiality

Each party shall treat as confidential all non-public information received from the other party in connection with this Agreement, including account numbers, routing numbers, transaction data and business terms. Confidential information shall not be disclosed except to the extent necessary to process payments, to comply with legal obligations, or to enforce rights under this Agreement. Confidential obligations survive termination for a period of two years.

Processing; Verification

Payor acknowledges that Payee may utilize third-party verification and processing agents to verify check information, to guarantee check payments and to process debits. Such agents may retain transaction records and may rely upon the representations contained in this Agreement. Payee is not responsible for delays or declines arising from such third-party verification.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles.

Entire Agreement and Amendments

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations and agreements. Any amendment or modification must be in a written instrument signed by both parties.

Miscellaneous Provisions

Remedies provided are cumulative and not exclusive. If any provision of this Agreement is held invalid, the remainder shall remain in full force and effect. Notices shall be in writing and delivered to the addresses for each party shown on this Agreement.

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