ACH Terms

These ACH Terms (“ACH Terms”) govern the initiation, processing, and authorization of Automated Clearing House (“ACH”) transactions through the Services. Capitalized terms not defined in these ACH Terms have the meanings set forth in the applicable agreement between you and M-Cubed, including the Platform Customer Agreement or Terms of Use (the “Agreement”).

1. Authorization to Initiate ACH Transactions.
   1. General. By using the Services to initiate, request, or receive ACH transactions, you authorize M-Cubed and its Payments Partners to originate ACH debit and credit entries to and from your Account or any external payment account you use with the Services, and initiate correcting entries to reverse or adjust erroneous ACH entries, re-initiate returned or rejected entries where permitted under the National Automated Clearing House Association Operating Rules (“Nacha Rules”), and originate debit entries to collect Fees, chargebacks, returns, reversals, adjustments, negative balances, indemnification amounts, or other amounts owed under the Agreement. This authorization constitutes your written authorization under the Nacha Rules and is effective as of the date you accept the Agreement.
   2. Preauthorized Recurring ACH Debit Authorization.
      1. To the extent you authorize recurring or scheduled ACH debits in connection with your use of the Services, you hereby provide your written authorization for preauthorized electronic fund transfers from your external payment account.
      2. You authorize M-Cubed and its Payments Partners to initiate recurring ACH debits in amounts determined by reference to: (i) Transactions authorized by you or your Platform Users through the Services, (ii) Fees and other amounts incurred under the Agreement, and (iii) any negative balances, chargebacks, reversals, returns, indemnification obligations, or other amounts owed in connection with your use of the Services, in each case as reflected in your Account at the time of debit.
      3. The amount of each debit may vary based on your activity in the Services and the obligations described above. Recurring debits may occur on the dates Transactions are initiated, on scheduled billing dates, upon the occurrence of negative balances or other amounts due, or as otherwise described in the Services.
      4. To the extent permitted by applicable law, you agree that advance notice of the amount or timing of recurring debits is not required where such amounts are determined in accordance with this authorization. Nothing in these ACH Terms limits any rights you may have under applicable law to stop payment of a preauthorized electronic fund transfer.
      5. A copy of this authorization is available to you at the time of acceptance and may be accessed and retained by you at any time. Please save or print a copy of this authorization for your records.
2. Scope of ACH Activity.
   1. Permitted Transactions. ACH transactions may include, as applicable: debits from your external payment account to fund your Account; credits to external payment account for withdrawals or settlements; debits or credits initiated on behalf of Platform Users, where applicable; and fee collections, adjustments, returns, reversals, and corrections.
   2. Limits and Frequency. ACH transactions are subject to per-transaction, daily, or rolling volume limits established by M-Cubed or its Payments Partners, risk-based limits determined in M-Cubed’s discretion, and applicable Nacha Rules and Payments Partner requirements. Unless otherwise agreed in writing, M-Cubed may establish, modify, or suspend transaction limits at any time to manage risk, comply with Payments Partner requirements, or satisfy applicable law. ACH debits and credits may occur multiple times per Business Day and may not occur on every Business Day. “Business Day” means Monday through Friday, excluding U.S. federal banking holidays.
3. Representations and Warranties. You represent, warrant, and covenant that: (a) you have obtained all necessary authorizations, consents, and mandates required under applicable law and the Nacha Rules to initiate ACH debits and credits, including from any Platform Users or third parties whose accounts are debited; (b) you are authorized to initiate ACH entries to each Account, external payment account, and any third-party account for which you initiate entries; (c) all ACH transactions initiated through the Services comply with the Nacha Rules, applicable federal and state law, applicable Payments Partner requirements, and the Agreement; (d) all bank account and routing information provided is complete and accurate; (e) you will maintain sufficient funds in applicable accounts to cover ACH debits, returns, reversals, chargebacks, and Fees; and (f) you will not use ACH to process transactions involving Prohibited Data or High Risk Activities.
4. Returns, Reversals, and Chargebacks. ACH entries may be returned for reasons including insufficient funds, unauthorized transactions, invalid account information, or administrative returns. You are solely responsible for all returned transactions, all related fees, penalties, and assessments imposed by Payments Partners or Networks, and maintaining return rates within thresholds established by Nacha or M-Cubed. If a Platform User, counterparty, consumer or other account holder claims that an ACH debit was unauthorized, you are responsible for providing proof of authorization in compliance with the Nacha Rules. You bear all associated liability unless the unauthorized transaction resulted solely from M-Cubed’s gross negligence or willful misconduct. M-Cubed may initiate reversing or correcting entries in accordance with the Nacha Rules, and you authorize M-Cubed to debit your Account or external payment account for amounts related to reversals or corrections.
5. Revocation and Suspension. You may revoke your ACH authorization by providing written notice to M-Cubed at least 20 Business Days before the effective date of revocation. Revocation does not affect transactions initiated prior to the effective date of revocation, does not relieve you of liability for prior transactions, returns, or related obligations, and may result in suspension or termination of your access to the Services. M-Cubed may suspend ACH processing immediately if your return rates exceed permitted thresholds, you breach these ACH Terms or the Agreement, a Payments Partner requires suspension, or your activity presents material risk of fraud, loss, or regulatory non-compliance.
6. Platform Customers. If you are a Customer enabling Platform Users to initiate ACH transactions under the Platform Customer Agreement, you are responsible for ensuring Platform Users comply with these ACH Terms and the Agreement, you are liable for ACH transactions initiated by or on behalf of Platform Users, and you must obtain and retain valid authorizations from Platform Users and/or their customers, provide evidence of such authorizations upon request, and monitor return rates and fraud associated with Platform User activity.
7. Bank Requirements and Nacha Compliance. ACH processing is subject to the Nacha Rules, Payments Partner underwriting and compliance requirements, applicable federal and state law, and risk management policies implemented by M-Cubed or its Payments Partners. M-Cubed may update these ACH Terms as necessary to reflect changes in Nacha Rules, Payments Partner, or applicable law. Material updates will be provided in accordance with the Agreement.
8. No Guarantee of Processing. M-Cubed does not guarantee that any ACH transaction will be processed without delay, completed, or free from return, reversal, or dispute. Processing is subject to network availability, Payments Partner requirements, fraud screening, compliance reviews, and risk determinations.
9. Electronic Authorization. You agree that these ACH Terms constitute your written authorization under the Nacha Rules. Electronic acceptance of the Agreement satisfies applicable authorization requirements, and you may retain a copy of these ACH Terms for your records.