Upon completion of the Merchant ACH Application and Agreement please fax all sheets back to iboomerang. 866-426-3285
Merchant Name: Business Information DBA (If Applicable): Street Address: City: State: Zip: Mailing Address: (If different) City: State: Zip: Phone Number: Fax Number: Federal EIN: Established: Entity: Corporation Partnership Sole Proprietor Non-Profit Government Type of Business: Website URL: Primary Contact Name: Business Contact Information : Phone Number and Extension: After Hours Number: Email Address: Secondary Contact Name: : Phone Number and Extension: After Hours Number: Email Address: Owners/Partners/Key Officers Name: : Phone Number: of Birth: Social Security #: Ownership% (Owners/Partners) Home Address: Name: : Phone Number: of Birth: Social Security #: Ownership% (Owners/Partners)
Home Address: PPD Average Item: ACH Debit/Credit Processing Services Requested Max Single Item Limit: Daily Limit: Average Item: Max Single Item Limit: CCD Daily Limit: ARC WEB RCK TEL NOTE: All TEL authorizations should be recorded or an email (or) written verification of the transaction provided to the Payer in advance of the effective date of the payment. All authorizations (recordings, email confirmations, digital signatures or hard copies), whichever is applicable, must be retained and available upon request. If payment authorizations are over the telephone, indicate which of the following methods are employed to verify permission from the payer: An email confirmation is sent to the payer prior to the effective date of the debit. The verbal authorization is recorded and stored. A written notification or agreement is mailed to the payer. Monthly # of Transactions Known Business Name: (16 characters) Entry Description: (10 characters) example memberdues, rent, jewelry Customer Service Phone Number: ACH Volume Monthly # of Monthly $ of Returns Returns Merchant Information Transmitted with Transactions Proof of Authorization Requests Person to contact to acquire copy of proof of authorization on any given transaction: Authorization Contact Phone Number: Authorization Contact Email Address:
Merchant Profile Please describe in detail the product(s) and/or service that you market: How do you generate/advertise/solicit business? What is your return/refund policy? Do you perform recurring billing? YES NO If yes, what is the frequency? Weekly Monthly Quarterly Annually Other Applicants requesting WEB or using XML must complete the following: Does your site support Secured Sockets Layer (SSL) based transaction from a browser, the level of at least 128-bit or greater? Do you immediately delete all checking/savings account details off the Internet server? Do you encrypt checking/savings account details for storage? Do you operate a firewall, which is regularly updated? Do you have policies and procedures to keep all account details secure and confidential? Do you have intruder detection software and procedures to deal with a breach? Please confirm that your website contains the following: Complete description of the goods or services offered, returned merchandise and refund policy, customer service contact, including electronic mail address and telephone number, and Privacy Policy Merchant Settlement Bank Information Account Name: Yes No Account Number: Account Name: Routing Number: Merchant Monthly Fee Collection Bank Information (if different)
Account Number: Routing Number: FEE SCHEDULE Credit Origination $ Rejected Transaction $0.25 Credit Return $ Discount % % Credit Late Return $ Rolling Day Reserve % % Credit Chargeback $5.00 ATM Verify $0.30 Debit Origination $ NCN Verify $0.04 Debit Return $ MONTHLY FEES Debit Late Return $ ACH Platform Access $ Debit Chargeback $10.00 Monthly Minimum $10.00 Notice of Change (NOC) $ NOC Auto-Correction $0.25 Incoming Wire (Domestically) Actual Cost ONE TIME FEES Outgoing Wire (Domestically) Actual Cost Application Fee $ Returned Settlement $25.00 Set Up Fee $ DEFINITION OF FEES AND CHARGES: Credit/Debit Origination - Submission of a credit or debit entry into the ACH platform for transmission to a receiving bank. Credit/Debit Return A credit or debit origination entry that is returned by the receiving bank Credit/Debit Late Return A credit or debit origination entry that is returned after file settlement has occurred Credit/Debit Chargeback A credit or debit origination entry that is returned as unauthorized Notice of Change (NOC) A notice from a receiving bank correcting data that was previously transmitted NOC Auto-Correction Automated tool to correct an entry that contains previously corrected information. Incoming/Outgoing Wires Utilization of the bank s Fed wire service to move monies the same day. Returned Settlement A settling transaction, (i.e. Offset, Fee, etc.) that was returned by the receiving bank Rejected Transactions An origination entry that cannot be processed for because it violates NACHA rules, such as the account information was previously reported as a closed account, invalid account, or as an account that is not authorized to accept ACH debits. Discount % - A non refundable percentage withheld from all transmitted debits. Rolling Day Reserve % - A percentage of settlement funds withheld to guard against future fraud/chargeback claims and released on a rolling day schedule. The terms of the reserve are subject to change without notice based on merchant performance. ATM/NCN Verify (Fraud Scrubbing) A ping of the ATM Verify network to see if the bank account provided is open and active. In some cases, the dollar amount may also be verified. NCN pings several bad check writer databases to determine if the account already has outstanding/uncollected items. ACH Platform Access - The monthly ACH platform fee for access to and use of the ACH System Monthly Minimum - The minimum monthly fees charged based on aggregate per item fees for each month Application Fee - A one-time fee for credit scoring, risk analysis, and other due diligence required by the bank Set-Up Fee This one-time fee is for the new Account Set-Up, including System entry and Activation on the ACH Platform
Hostile Code R05 R06 R07 R08 R10 R14 R15 R29 Notes Maximum 1% Return Rate Unauthorized Debit to Consumer Account Using Corporate SEC Code Returned per ODFI Request Authorization Revoked by Customer Payment Stopped by Customer Customer Advises Unauthorized Representative Payee Deceased Beneficiary or Account Holder Deceased Corporate Customer Advises Not Authorized Non-hostile Code Notes Non-hostile Notes Maximum 40% Return Rate R01 Insufficient Funds R22 Invalid Individual ID Number R02 Account Closed R23 Credit Refused by Customer R03 No Account/Unable to Locate R24 Duplicate Entry R04 Invalid Account Number R30 RDFI is Not an ACH Participant R09 Uncollected Funds R31 Permissible Return R12 Branch Sold to Another DFI R32 RDFI is Not a Settlement RDFI R13 RDFI Not Qualified to Participate R34 RDFI Not Qualified to Participate R16 Account Frozen R35 Return of Improper Debit Entry R17 RDFI Cannot Process R36 Return of Improper Credit Entry R20 Non-Transaction Account R42 Routing Number/Check Digit Error R21 Invalid Company Identification The Merchant warrants and accepts to respect the above NACHA return rates limits. If unauthorized return rate grows to be too high, the bank will flag the account and begin to request proof of authorizations continuously and may decide to suspend the account or cancel it altogether. and/or ODFI reserves the right to close the account at any time if Merchant s return rates exceed NACHA limits for more than 2 consecutive months
Term and Conditions This agreement is between (merchant), CC Operations, LLC dba echeckit () and Originating Depository Financial Institution (ODFI) is entered into on the date signed and accepted by all parties. These terms and conditions and the merchant application constitute the entire agreement between and merchant with respect to the subject matter hereof. is providing merchant access to a web-based ACH Platform for the purpose of originating debit and credit transactions through the Automated Clearing House (ACH). Merchant acknowledges that all ACH transactions will be originated in accordance with these terms and conditions and the NACHA Rules and Regulation (Rules), as periodically amended, and any other government regulations that may relate to ACH originations. 1. Term: The initial term of this Agreement is for a period of 2 years (two), and such term shall be automatically extended for successive Renewal terms; provided, however, that either party may terminate this Agreement at any time after the Initial Term without cause and without breach of this Agreement upon thirty (30) days prior written notice. 2. Entry Submission: Upon acceptance of this Agreement and setup of Merchant s Merchant Account, Merchant will be able to originate ACH entries into the ACH Platform. Entries with an effective date of the following business day in the ACH Platform by 5:00 PM PST each business day will be subject to transmission that day. Other factors, such as credit holds may delay the transmission of these entries. 3. Fees and Charges: Merchant agrees to pay the fees and charges for the services rendered hereunder in accordance with the Fees and Charges Schedule as set forth in this agreement. Merchant will be notified via electronic mail when a debit entry, such as the monthly Fee Settlement, has been generated and a debit entry will be transmitted via ACH to the Merchant s designated bank account. Merchant agrees that it shall, at all times, maintain a sufficient balance in its designated bank account to cover debit related entries, including Monthly Fee Settlements. If attempts a debit entry to Merchant s bank account for any reason granted within the context of this agreement and receives a return notification for any reason, may charge Merchant a Returned Settlement fee. The fees and charges are subject to change upon 30 days prior written notice (by electronic or U.S. mail) to the Merchant. Upon receipt of any notice of fee increase, Merchant may, by written notice to at least 10 days prior to effective date of any such fee increase, terminate this agreement as set forth in paragraph 9. If Merchant does not terminate the Agreement, it shall be deemed to have accepted the fee increase. 4. Authorizations and Agreements: Merchant shall obtain written authorization agreements executed by an authorized account signer in order for to debit funds pursuant to the Rules for electronic funds transfers. In the event of a WEB or TEL entry, Merchant will obtain, and provide to upon request, the minimum requirements for WEB or TEL entries as set forth in the Rules. to ensure that its security measures are adequate, and make all necessary changes, to ensure that all authentication techniques are in accordance with all applicable laws, regulations, statutes, and the Rules. Upon a valid request from a Receiving Financial Depository Institution (RDFI) for proof of authorization, will notify the Merchant, and Merchant will be required to provide such valid proof within four (4) days of such request. Failure to provide such proof, as required by the Rules, may result in suspension or termination of Merchant s ACH Account. In addition, Merchant shall be liable for any and all liabilities, claims, costs, expense, reimbursement obligations, fines, and penalties, which arise due to such failure to timely produce original payee authorization agreements. The provisions of this paragraph will survive the termination of this agreement. 5. Returned Transactions: will notify Merchant by electronic mail upon receipt of a returned transaction. Merchant authorizes to deduct returned debits from any settlement credit due to Merchant, or in the event no such settlement is due, originate a debit entry to the Merchant s designated bank account for a returned debit. In the event the return is a credit that was previously offset by debiting the Merchant bank account, the returned funds will be credited back to the Merchant s bank account within the standard settlement period. Refer to Fees and Charges for applicable fees. 6. Rejects and NOCs: confirms that all pending transactions have no prior returns associated with invalid account information or invalid/revoked authorization. If a pending transaction is found with a prior problem, has the right to void (reject) the transaction and Merchant will be notified of such reject via electronic mail. In the event an NOC was received correcting account data, will correct pending transaction in order to comply with the Rules. Refer to Fees and Charges for applicable fees. 7. Settlement: In settlement for each credit entry submitted by Merchant, will transmit an Offset Settlement debit to the Merchant s designated bank account on the effective date of such credit(s) and will then hold credits for a minimum of two days prior to transmitting through the ACH. In the event that the Offset Settlement is returned, held credits will be voided and the Merchant will be notified via electronic mail. If the Offset Debit is returned after the credit(s) have been transmitted through ACH, the debit will be Merchant agrees to periodically review its authentication techniques
resubmitted and a Returned Settlement Fee will be applied. Debit entries will be settled five (5) business days from the date the entry is submitted to the ACH, unless a shorter term is agreed upon in writing by both and Merchant. Returned debit entries received after the settlement is transmitted, will be subject to additional fees, and a debit will be initiated to reclaim funds. In the event that fraudulent activity is suspected, has the right to hold settlements while an investigation is made. Merchant will be notified via electronic mail of any such event. 8. Rolling Reserve: Upon, or at any time after, execution of this Agreement, may establish a Rolling Reserve requirement of at least 10% of Cleared Funds to be held by for a period no less than 90 days or as otherwise indicated on page 5 Merchant Fee Schedule. may from time to time and at its absolute and sole discretion impose or amend the Rolling Reserve to cover future indebtedness of Merchant to that may arise out of or relate to the obligations of Merchant under this Agreement, including, but not limited to, Chargebacks, fees, fines and penalties. may fund the Rolling Reserve Account by deduction from payments due to Merchant or a charge against Merchant s Operating Account as agreed upon by Merchant. The Rolling Reserve Account will be maintained for a minimum of 3 months after the date on which this Agreement terminates or until such time as determines that the release of the funds to Merchant is prudent, in the best interest of and commercially reasonable, and that Merchant s account with is fully resolved. Upon expiration of this 3 month period or when determines that the release of the fund is prudent, in the best interest of and commercially reasonable, any balance remaining in the Rolling Reserve Account will be paid to Merchant and reserve the right to returns such funds in monthly increments over the same number of months that such funds were originally held. will inform Merchant in writing of any charges debited to the Rolling Reserve Account during this period. If during the terms of this Agreement agrees to a lower Rolling reserve rate, due to Merchant s good practice or for other reasons, then may raise the rolling reserve rate to what was initially negotiated (page 5 Merchant Fee Schedule) upon 2 day s warning, if considers in its absolute discretion that the precondition for the lower rate has changed. 9. Hardware and Communication Services: Merchant shall be solely responsible for establishing and maintaining its telecommunications lines and equipment necessary to transmit data between Merchant s equipment and. 10. Security: Merchant shall take commercially reasonable security precautions to prevent unauthorized or fraudulent use of the ACH Platform by Merchant, its employees, agents, and customers. will assign to Merchant one or more user identification numbers and temporary passwords for Merchant s use in accessing ACH Platform. Upon accessing the ACH Platform with the temporary password, Merchant will be required to change the user password. will not have access to this password. In the event Merchant is unable to access the ACH Platform due to password problems, Merchant will have to telephone the Support Department and upon providing satisfactory identification, will be provided a new temporary password. The use and confidentiality of such numbers and passwords shall be the sole responsibility of Merchant and Merchant must institute appropriate safeguards to keep such access passwords secured. shall not assume any responsibility to discover any possible breach of Merchant s security. Merchant shall immediately notify if it discovers any breach of security of the ACH Platform and/or Merchant access. 11. Warranty: Limitations on Liability: shall be responsible only for performing the Services expressly provided for in this Agreement, and may be liable only for its gross negligence in performing those Services. shall not be responsible for the acts or omissions of the Merchant or its owners, directors, officers, employees, or representatives (including without limitation the amount, accuracy, timeliness of transmittal, or authorization of any entry received from the Merchant) or those of any other person, including, without limitation, the Bank, any Federal Reserve Bank, transmission or communications facility, any Receiver or Receiving Depository Financial Institution (including without limitation the return of an entry by such Receiver or Receiving Depository Financial Institution), and no such person shall be deemed 's agent. will not be responsible for any loss, liability or delay caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communication, networks, legal constraints or other events beyond its control. Because of the difficulty of determining actual damages for any failure of to perform its obligations under this Agreement, the parties agree that the extent of any damages hereunder, if any, shall be limited in amount to the Transaction Processing Fees paid for one calendar year through the month prior to which the loss occurred. IN NO EVENT SHALL CCOPS BE LIABLE FOR ANY CONSEQUENTIAL, SPECIAL, PUNITIVE OR INDIRECT LOSS OR DAMAGE WHICH THE MERCHANT MAY INCUR OR SUFFER IN CONNECTION WITH THE PERFORMANCE OF THIS, INCLUDING ANY LOSS OR DAMAGE FROM SUBSEQUENT WRONGFUL DISHONOR RESULTING FROM CCOPS 'S ACTS OR OMISSIONS PURSUANT TO THIS. CCOPS DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THOSE OF MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN RELATION TO THE SERVICE, ITS USE AND THE RESULTS OF SUCH USE. Without limiting the foregoing, specifically disclaims any warranty (i) that the service will be uninterrupted or error-free, (ii) that defects will be corrected, (iii) that security methods employed will be sufficient, or (iv) the service will be correct, accurate or reliable. 12. Termination of Service: shall have the right to immediate termination of this Agreement if the Merchant's representations and warranties contained in this Agreement are not true and correct both on the day made and at any time during the term of this Agreement. may also cancel any account for any Merchant if it participates in any illegal, unethical or other
unacceptable behavior that, in its sole discretion, deems to adversely reflect on 's reputation, and either party may terminate this Agreement if the other party (i) is in default of any obligation under this Agreement (which shall include nonpayment of fees and charges) and such default has continued for fifteen (15) days following notice and opportunity to cure, (ii) files or suffers the filing of a petition for relief under the bankruptcy laws or (iii) makes an assignment of all or substantially all of its assets for the benefit of creditors. Any termination of this Agreement shall not affect any of the obligations of either party arising prior to such termination. Notice of termination must be given in writing by Merchant. Upon termination of this Agreement by Merchant as set forth in this Paragraph, the Merchant shall notify of the effective date of such termination, and any processing fees due to must immediately be paid upon notice of cancellation. Accounts are not closed until the account balance is paid in full. is hereby authorized to debit from Merchant's bank account the amount of all fees due upon cancellation. shall continue its obligation to notify Merchant of any returned transactions and Merchant will continue to authorize the settlement of such returned items to the Merchant s bank account. Any termination by Merchant will not affect s rights or obligations arising before the termination. 13. Compliance with Rules, Laws, and Regulations: Merchant hereto agrees to comply with all applicable laws and regulations, including without limitation, such laws and regulations of federal, state, and local governmental authorities, the Office of Foreign Assets Control (OFAC) the national Automated clearing House Association (NACHA), and the Federal Reserve Regulation E (12 C.F.R. Part 205). has established reasonable rules, regulations, and operational guidelines with respect to use of the Service by Merchant, and Merchant agrees to adhere to such and any future amendments as notified. reserves the right to suspend Merchant s ACH Platform Access, and to hold funds if deemed appropriate, if evidence exists that transactions have been submitted that are not in compliance with such Rules, laws, and regulations, until such time that compliance is assured. 14. Indemnification: The Merchant shall be liable for and shall indemnify and hold harmless and the Bank and their employees, officers, directors, agents and affiliates from and against any claim, loss, damage, penalty, cost or expense (including attorneys' fees and expenses) resulting or arising from (a) any breach of any of the representations, warranties and agreements of the Merchant contained in this Agreement, (b) failure to comply with NACHA Rules, regulations, or applicable laws, (c) any fraudulent, wrongful, or negligent act or omission of Merchant or any of its employees, agents, independent contractors, or customers, (d) any unauthorized transmission by Merchant of data from Merchant, (e) any unauthorized entry by Merchant of information into the ACH Platform, (f) any use by Merchant of the ACH Platform or the Services other than in strict compliance with the procedures and terms set forth in this Agreement. Merchant shall not, however, be liable for any special, indirect, or consequential damages, including without limitation lost profits, even though such damages may have been foreseen or foreseeable by Merchant or. The indemnification provisions hereof shall survive the termination of this Agreement. 15. Further Representations and Warranties of Merchant: The Merchant represents, warrants and agrees that (a) All information contained in this Agreement, any application or in any other documents delivered to Bank and/or in connection therewith is true and complete and properly reflects Merchant's business, financial condition and principal partners, owners or officers; (b) this Agreement (i) has been duly authorized, and delivered by the Merchant; (ii) is in full force and effect; (iii) the person executing this Agreement is duly authorized to bind the Merchant to all provisions of this Agreement; and (iv) such person is authorized to execute any and all documents and to take any action on behalf of the Merchant which may be required by now or in the future; (c) this Agreement does not violate any law or conflict with any other agreement to which the Merchant is bound; (d) There is no action, suit or proceeding pending or threatened, which if decided adversely would impair Merchant's ability to carry on its business substantially as it is now being conducted; (e) the Merchant has obtained all necessary regulatory approvals, licenses and certificates to provide any services that it intends to offer; (f) the Merchant shall perform its obligations under this Agreement in accordance with all applicable laws and regulations, regardless of the nature of the laws and regulations, and shall continue to comply with all applicable laws and regulations that may apply to it in the future; (g) Merchant shall be bound by and comply with the Rules as in effect from time to time and acknowledges that entries may not be initiated that violate the Rules, or laws of the United States; (h) it shall pay all taxes and other charges imposed by any governmental authority on the Services provided under this Agreement (i) each person shown as the Receiver on an entry received by from Merchant has authorized the initiation of such entry and the crediting and/or debiting of such person's account in accordance with the Rules, by Regulation E or other applicable law and this Agreement in the amount and on the Effective Entry shown on such entry, and the Merchant will retain all of such authorizations for a period of six (6) years after their termination or revocation or for such longer period as may be required by the Rules or applicable law and provide a copy to upon request; (j) such authorization is valid at the time of transmittal or crediting/debiting by as provided herein and has not been revoked by operation of law or otherwise; (k) entries transmitted to by Merchant are limited to those types of credit and debit entries appropriate for Merchant s business, and is for an amount which, as of the applicable Settlement, will be due and owing, has been specified to be paid, or is a correction of a previously transmitted erroneous entry; (l) all transactions submitted hereunder are bona fide; (m) Merchant has never been terminated for cause from an agreement in which the Services contemplated herein are provided; (n) this Agreement constitutes the legal, binding and enforceable obligation of Merchant, enforceable in accordance with its terms; (o) each entry conforms in all respects to the Rules and applicable law; and (p) Merchant authorizes to audit its
records to confirm compliance with this Agreement. All instructions to Merchant as set forth in this Agreement shall be complied with. Non-compliance may result in immediate implementation of noncompliance fines and/or cessation of service by. 16. Confidentiality/Restriction on Use of or Disclosure of Trade Secrets: Neither party will disclose to anyone, directly or indirectly, either during the term of this Agreement or at any time thereafter, any trade secrets, or confidential information of the other party or use such information other than in the course of services provided under this Agreement. All documents that we prepare, or any confidential information that might be given to you in the course of our services under this Agreement, are the exclusive property of CC Operations, LLC dba echeckit. 17. Status of the Parties: Nothing herein shall be construed to create a partnership, joint venture, franchise, employer-employee relationship by or between Merchant and. No party shall have the authority to commit or bind any other party without such party s prior written consent. 18. Notices: All notices, requests and other communications under or in connection with this Agreement shall be in writing and shall be given by electronic mail, facsimile transmission, express carrier or United States registered or certified mail, addressed to the applicable party or parties at the address provided to the other or as set forth above, or at such other address as may be designated by notice as provided herein. Any such communication shall be effective upon its receipt. 19. Amendments: From time to time may amend any of the terms and conditions contained in this Agreement, including without limitation, any cut-off time, any business day in order to comply with modifications to applicable laws and regulations and the Rules. Such amendments shall become effective upon receipt of notice by the Merchant or such later date as may be stated in s notice to the Merchant. 20. Assignment: The Merchant may not assign this Agreement or any of the rights or obligations hereunder, without the prior written consent of, which consent shall not be unreasonably withheld. By the execution of this Agreement, if Merchant has requested Check Guarantee Services, Merchant assigns transfers and conveys to all of Merchant s rights, title and interest in any check submitted to under this Agreement and agrees to endorse such checks and to take any further action and follow all of the Rules and Procedures deemed necessary by to aid enforcement of such rights. Merchant agrees to follow all guidelines and procedures regarding check acceptance and customer payments as directed by the. 21. Survival: All representations, warranties, covenants, and agreements of the Merchant contained herein shall survive the execution, delivery and termination of this Agreement. 22. Governing Laws and Jurisdictions: Any and all of Merchant s obligations to hereunder shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. The Merchant consents to the jurisdiction and venue of the Superior Court of the Commonwealth of Kentucky for the County of Jefferson or the U.S. Federal District Court in the Western District for the purposes of any legal action arising in connection with such obligations, the breach thereof or the transactions contemplated herein, and agree that service upon such party in any such action may be made by certified first class mail, to the address on record. 23. Attorney Fees: Merchant will be liable for and will indemnify and reimburse for all attorneys' fees and other costs and expenses paid or incurred by in the enforcement of this Agreement, or in collecting any amounts due from the Merchant to or resulting from any breach by Merchant of this Agreement. 24. Force Majeure: shall not have any responsibility and shall incur no liability for any failure to carry out, or any delay in carrying out, any of its obligations under this Agreement resulting from acts, omissions, or inaccuracies of third parties not under its reasonable control, acts of God (including, but not limited to, fire, floods or adverse weather conditions), labor difficulty, legal constraint, war, terrorism, the unavailability or interruption of transmission or communication facilities or utilities, equipment or other technological failure, emergency conditions or any other cause beyond its reasonable control. 25. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 26. Acceptance: This Agreement shall become the binding obligation of upon completion of its due diligence, including verification of Merchant s credit worthiness and receipt of all requested documentation. Upon acceptance, Merchant will be notified by electronic mail and provided with a unique Merchant Code and login information. 27. Third Party Beneficiaries: Merchant acknowledges and agrees that CC Operations, LLC s Originating Depository Financial Institution ( ODFI ) is expressly made a third party beneficiary of this Agreement as well as Silicon Solutions acting as a reseller of CC Operations, LLC ACH gateway services. 28. Guarantee Requirements: If Merchant has requested check guarantee services under this Agreement, agrees to purchase from Merchant at face value all Qualified checks presented and made payable to Merchant for payment of goods or services provided by Merchant which were returned or dishonored by any U.S. bank, savings and loan, or similar financial institution pursuant to the terms and conditions set forth herein and delivered, physically or electronically to. will be providing payment at 100% face value for all NSF returned items that are not greater than the contractual amount mutually agreed upon and are compliant with the following: - Check Writer s Full Name -Residence Address -Home Telephone Number (including Area Code) -Driver s License Number (including State) -Authorization Code Provided by NCN Verification
Authorization and Representations 1.) This complete and legible fourteen (14) page Merchant Application for ACH Origination, ACH Processing Agreement and Merchant Fee Schedule serves as the entire Agreement between Processor and the Merchant named herein. Merchant acknowledges that this document has been provided to the applying entity and Merchant agrees to be bound by all governing terms and conditions contained herein, effective as of date of signature. It is understood that no strikeouts, interlineations, additions or modification to this preprinted Merchant Application for ACH Origination and ACH Processing Agreement may be made and that this Agreement may be transmitted to or from Processor and/or retained electronically by Processor, which will constitute an original. Merchant acknowledges that they will not receive a countersigned agreement from Processor unless such is requested by the merchant in writing. 2.) The information provided herein is provided for the sole purpose of establishing ACH origination privileges and utilized confidentially and exclusively by Processor and its sponsoring financial institutions in order to determine eligibility. Merchant agrees that all the information provided herein is truthful and accurate. 3.) Corporate and personal credit and criminal background inquiries on both the legal entity contracting for payment services with Processor and the designated Principals of that entity are required for all private corporations and certain not for profit organizations (501 C-3 Tax Entities). The objective of these inquiries is to confirm that the entity and principals meet Processor s qualifications to originate Automated Clearing House (ACH) debit and credit transactions and to comply with Processor s and its affiliated bank s OFAC (Office of Foreign Asset Control) and KYC (Know Your Customer) requirements. All inquiries and information is for the sole purpose of determining merchant qualifications, to comply with Federal Regulations and act in concert with payments and financial services industry best practices. The acquisition of all such information shall be in strict compliance with the Fair Credit Reporting Act (FRCA) and Bank Secrecy Act (BSA). By signing this Agreement, the principal(s) of the applying entity and as an authorized officer of such, hereby authorizes Processor to conduct the credit and background inquiries for the above stated purposes. 4.) Merchant authorizes Processor to collect fees and charges via an electronic ACH (Automated Clearing House) debit from the bank account(s) indicated herein on a periodic basis as they become due and payable (settlements), and signer(s) attests to be a duly authorized signatory on the bank account indicated for such transactions. Settlements include Offset debit entries as a prefunding requirement to transmit credit entries submitted by Merchant; Fee Settlement to debit Merchant for Fees and Charges as agreed; File Settlements to debit or credit the Merchant for entries that Merchant previously submitted to the Silicon Solutions/eCHECKit ACH Platform for transmission through the ACH System; Late Return Settlements for settling returned transactions, which were returned after a File Settlement was originated and transmitted to the Merchant s designated account. will notify Merchant by electronic mail when debit or credit entries for Settlement purposes are originated. Merchant also understands that they are responsible for notifying their bank of this authorization in order to avoid returned transactions due to the bank filters or any other such services that the Merchant has with their bank that would result in a dishonored transaction. Upon acceptance of this Application/Agreement, will immediately initiate a debit entry to the above account for the Application and Setup fees. 5.) Signer(s) asserts that he or she is a duly authorized officer or representative of Merchant. Merchant Addendum Automated Clearing House (ACH) Agreement 1. GENERAL. By signing this Agreement, Merchant hereby retains and appoints, SS and any Third-Party Sender it may utilize from time to time ( Third-Party Sender ) as Merchant s exclusive data processing and collection agent for processing Entries originated by Merchant for Credit and Debit to accounts of Customers, in accordance with the terms and conditions contained in the Agreement ( Terms and Conditions ). The Terms and Conditions are incorporated by reference in this Agreement and, in addition to any other exhibits, addenda, schedules, terms or amendments, shall comprise and be referred to as the Agreement. 2. AUTHORIZATION FOR AUTOMATIC FUNDS TRANSFER (ACH). By signing this Agreement, Merchant grants consent and authorization to, SS and/or its Third-Party Sender where applicable to initiate or transmit automatic Debit, Credit and Adjustment Entries to the Merchant s Settlement Account and Reserve Account. Each person signing below understands and agrees that, SS,, or its Third- Party Sender, will debit the account specified by Merchant for all setup fees, including any non-refundable application fee, as an ACH item and, upon receipt of the completed Application and Agreement, all subsequent monthly service and transaction fees, Returned Entries, charge backs, required withholdings, fines, fees, damages, or any other cost of processing transactions for Merchant via an ACH
transaction in accordance with the Terms and Conditions included in this Agreement. 3. THIRD-PARTY BENEFICIARY. Merchant expressly acknowledges and agrees that s Third-Party Sender Checkgateway, LLC is an express and intended third-party beneficiary of the Agreement and has all the rights under the Agreement as if it were a party thereto, including, without limitation, the right to enforce any terms of the Agreement or assert claims against Merchant for breach of the Agreement. 4. SIGNATURE. Each person signing below agrees that they have read and agree to the Terms and Conditions which have been provided to them and certifies that all information provided in the Application or otherwise to or its Third-Party Sender to provide services under this Agreement is true, correct and complete. Each person agrees to notify or its Third-Party Sender where applicable of any and all changes which occur from time to time in the information and statements contained in the Application and Agreement or otherwise provided to, Third-Party Sender, the ODFI, or anyone else relating in any way to this Agreement. 5. PERSONAL GUARNTEE To endure and in consideration of Third-Party Sender s acceptance of the Merchant Application and this Agreement, the undersigned agrees to be bound by all terms and provisions of this Agreement (which includes this Addendum and the Terms and Conditions) to the same extent and in the same manner as Merchant, and unconditionally and irrevocably personally guarantees performance of all of Merchant's obligations under the Terms and Conditions provided at: http://www.echeckit.com/documents/ccgv_terms_v8.pdf (as amended, renewed or extended) and payment of all sums due to Third- Party Sender by Merchant thereafter and, in the event of a default, hereby waives notice of default and agrees to indemnify Third-party Sender for any and all funds due from Merchant pursuant to terms of this Agreement. Guarantor(s) further agrees that Third-Party Sender may proceed directly against Guarantor(s) without first exhausting Third-Party Sender s remedies against the Merchant, any other person or entity responsible to Third-Party Sender or any security held by Third-Party Sender. Signatories must represent at least a 50% ownership interest in the applicant business. PLEASE CAREFULLY REVIEW THE ACH TERMS AND CONDITIONS PROVIDED TO YOU AND AVAILABLE AT http://www.echeckit.com/documents/ccgv_terms_v8.pdf WHICH ARE HEREBY INCORPORATED INTO THIS BY REFERENCE. THE TERMS AND CONDITIONS YOU ARE AGREEING TO ARE VERSION 2 (v.2). BY SIGNING BELOW YOU (I) REPRESENT AND WARRANT THAT YOU HAVE FULL POWER AND AUTHORITY TO BIND THE PARTY ON WHOSE BEHALF YOU SIGN; (II) ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD AND AGREE TO THOSE TERMS AND CONDITIONS AND (III) AGREE TO ACCEPT ELECTRONIC NOTIFICATION OF ANY CHANGES TO THOSE TERMS AND CONDITIONS. CONTINUED ORIGINATION OR ACCEPTANCE OF DEBIT OR CREDIT ENTRIES FROM OR BY COMPANY OR ITS THIRD-PARTY SENDER AFTER RECEIVING NOTIFICATION OF CHANGES TO THE TERMS AND CONDITIONS WILL CONSTITUTE MERCHANT S ACCEPTANCE OF THE CHANGES AND ITS TO THE CHANGED TERMS AND CONDITIONS.
Authorization of ACH Payments Regulations governing origination of an ACH debit payment require that the Originator (You the Merchant) have and retain evidence that the Payer duly authorized the payment. This proof of authorization can be in the form of a.) A written purchase, service, membership or subscription agreement signed by the Payer, b.) A Voice recording verifying a verbal authorization, c.) An email confirmation sent to the Payer prior to the effective date of the debit, d.) A digital copy of the Payer and Payment details supplied over the internet by the Payer indicating authorization when the transaction is initiated online. In the event of a claim by a Payer that they did not authorize an ACH debit originated by you Processor may require that we retrieve from you one of the above Proof of Authorizations. YOU MUST BE ABLE TO PROVIDE THIS UPON REQUEST BY PROCESSOR within 7 business days. Failure to provide a Proof of Authorization may result in termination of your ACH Merchant Account and is considered to be a material breach of the ACH Processing Agreement. I/We agree to insure that valid Proof of Authorizations are acquired from Payers prior to the initiation of an ACH item and that I/We shall not intentionally or knowingly originate an ACH debit item utilizing the ACH System wherein authorization from the Payer was not provided. Furthermore, I/We agree to maintain any and all Proof of Authorizations for a period of 2 (Two) years from the date of the transaction and provide such to Processor upon demand. Contract Execution - Merchant By signature(s) below the applicant(s) hereby attest under penalty of perjury that the information contained herein is true and correct. The applicant(s) expressly grant permission for Silicon Solutions Corporation Limited / CC Operations, LLC dba echeckit / Processor/ODFI and any other service provider to verify information regarding the personal and business information referenced in this application, which includes but is not limited to: personal and business credit reports, public record searches, bank and trade verifications, and other risk analysis as deemed necessary. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. Signatories above must represent at least a 50% ownership interest in the applicant business.
CC Operations dba echeckit Jessica Benzakein Processor/ODFI Contract Execution Operations Manager CC Operations, LLC Additional Due Diligence Needed From Applicant Secure Internet Si Two months of recent bank statements and/or previous year s financials Copy of a voided check from the business depository account (must have business name imprinted on check) or letter from bank showing account information Legible copy (colored preferred) of Driver s License or Passport for each signer/principle Sample of authorization for each SEC Code requested and/or authorization scripts/recordings for TEL transactions If the business is a partnership, a copy of your partnership deed that is complete, current If the business is incorporated, a copy of your Articles of Incorporation Any certification and/or licenses of vendors whose services merchant will be providing Please verify that merchant signatures are on Page 3, 11 & 12, and all other pages are initialed where designated. Please note that additional due diligence documents may be required based on business type, SEC Codes, or as rebuttal of derogatory information obtained.