ACH Service Terms (Beta)

1. ACH Service Relationship

Square, as a third party sender in the ACH network, offers services that allow you to originate Automated Clearing House (“ACH”) debit entries to your Square account (the “ACH Service”) and you desire to use such services. You agree that your use of the ACH Service is subject to these terms (“ACH Service Terms”) and the applicable provisions of the Payment Terms (“Payment Terms”). You agree that the ACH Service shall be deemed part of (and included in) the definition of “Payment Services” under the Payment Terms. You agree to accept and abide by all such terms.

2. Fees

You will pay Square the fees and charges as agreed in writing, as well as other amounts owed, pursuant to these terms and Section 4 of the Payment Terms. Such other amounts shall include, without limitation, any amounts charged to Square or you by the National Automated Clearinghouse Association (NACHA), the administrator of the ACH Network, in connection with your use of the ACH Service.

3. Transaction Limits

You shall operate and use the ACH Service in accordance with the transaction limits approved by Square and in accordance with the NACHA Operating Rules. Square may modify your transaction limits at any time upon reasonable notice to you.

4. Compliance.

You agree to comply with the rules, guidelines and bylaws of NACHA (available on the NACHA website) and other applicable laws and regulations related to the operation and use of the ACH Network, which may include Uniform Commercial Code Article 4A or Regulation E. The foregoing rules, guidelines, bylaws, laws and regulations shall all be deemed part of (and included in) the definition of “Network Rules” and NACHA shall be included in the definition of “Networks,” both as defined in the Payment Terms.

5. Authorizations

You are solely responsible for obtaining authorization to debit your customer’s bank accounts for ACH payments, and you agree that you shall obtain such authorization for each ACH payment transaction. When you use the ACH Service to initiate ACH debits from your customers, you represent and warrant that you have all necessary authorizations and approvals from your customer for Square to originate an ACH debit from the customer’s bank account to fund the full amount of each payment requested. Square shall not be liable for any return, reversal or other failure (or any related costs) arising from your acts and omissions, including failure to obtain your customer’s authorization for an ACH debit transaction. Square is permitted to document and store ACH authorizations, including timestamp and applicable ACH credentials.

6. Termination

In addition to the term and termination rights set forth in Section 35 of the Payment Terms, either party may terminate any or all Payment Services in accordance with their rights under the Payment Terms, including the ACH Service. Square may terminate your use of the ACH Service for violation of any Network Rules, including, without limitation, acceptable limits for ACH returns.

7. Settlement and Returns/Reversals

(a) You acknowledge that funds paid to you by your customers through the ACH Services shall only be made available to you once the ODFI receives final settlement. “ODFI” shall mean an Originating Depository Financial Institution for the processing of the ACH Services. In the event that Square makes available to you any provisional credit and such ODFI does not receive the final settlement, the ODFI is entitled to a refund for the amount of the provisional credit. You agree that you shall be responsible for all such refunds, and Square shall have the right to be reimbursed and recover such refunds or other amounts that are charged to Square by the ODFI in connection with the ACH Service pursuant to these ACH Service Terms and the Payment Terms.

(b) You shall not have the right to cancel or amend an ACH transaction entry after its receipt by Square, except to void or cancel the Transaction prior to settlement.

(c) When using the ACH Service, you understand and agree that it may take more than 60 days for Square to receive notice of the return or reversal of an ACH debit and for Square to exercise any of our rights granted or reserved under these Terms or the Payment Terms. You agree to maintain a sufficient balance in your linked bank account to satisfy all obligations to Square in connection with your use of the ACH Service, including returns, reversals, and associated fees, and to add funds immediately if Square notifies you that your funds in your linked bank account are insufficient. Square reserves the right to recover all outstanding amounts due to Square in accordance with the Recovery Authorizations set forth in Section 2 of the Payment Terms.

8. Violation of Laws

You warrant to Square, as an originator of entries made under the NACHA Operating Rules, that no entry delivered to Square or the ODFI, if accepted by the ODFI, will cause Square or the ODFI to be in violation of any regulation or sanction administered by the federal or state government or otherwise causes Square or the ODFI to be in violation of federal or state law.

9. Relationship to Payment Terms.

These ACH Service Terms are hereby incorporated into and made part of the Payment Terms. To the extent the ACH Service Terms conflict with the Payment Terms, these terms shall control with respect to the ACH Service and only to the extent of such conflict.