Direct Payment Terms
Last updated as of July 2021
1. ACH Service.
(a) LeafLink offers services that allow you to initiate Automated Clearing House (“ACH”) debit or credit Entries (the “ACH Service”), and you desire to use such services. To offer the ACH Service, LeafLink works with third-party Financial Institutions, and you hereby authorize LeafLink’s Financial Institutions to originate entries on your behalf.
(b) In connection with the enrollment of your bank account in the ACH Service (your “Enrolled Bank Account”), you agree to use LeafLink’s account validation service provider and provide any such additional information that LeafLink may determine is necessary to validate your account or use the ACH Service.
3. Transaction Limits.
4. Types of Entries.
LeafLink will transmit Entries that you initiate that fully comply with LeafLink’s requirements, which are generally consistent with the following ACH Standard Entry Class (“SEC”) Code: WEB.
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, as each is amended from time to time. 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.
You are solely responsible for obtaining or providing authorization to debit your bank account for ACH Entries, and you are solely responsible for ensuring such authorizations comply with the Network Rules and applicable law. You further agree that you shall retain authorization for each such Entry for two (2) years after termination or revocation of such authorization or for such other period as required by the Network Rules. When you use the ACH Service to initiate ACH Entries, you represent and warrant that you have all necessary authorizations and approvals for LeafLink to originate an ACH debit or credit Entry to the customer’s bank account and that each such Entry is accurate and timely. You further warrant that any debit Entry that you initiate satisfies an obligation or corrects an error. LeafLink 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. You agree that LeafLink is permitted to document and store ACH authorizations, including timestamp and applicable ACH credentials.
7. Sufficient Funds; Suspension and Termination.
You acknowledge that funds paid to you by your customers through the ACH Service shall only be made available to you once the Financial Institution receives final settlement. In the event that LeafLink makes available to you any provisional credit and such Financial Institution does not receive the final settlement, the Financial Institution is entitled to a refund for the amount of the provisional credit. You agree that you shall be responsible for all such refunds, and LeafLink shall have the right to be reimbursed and recover such refunds or other amounts that are charged to LeafLink by the Financial Institution in connection with the ACH Service pursuant to these Payment Terms.
9. Cancellation, Amendment, Reversal.
(a) You shall not have the right to cancel, amend, or reverse an ACH Entry after its receipt by LeafLink; nonetheless, upon your request, LeafLink may, in its sole discretion, use reasonable efforts to cancel, amend or reverse an Entry before transmitting to the ACH Network or processing it as an on-us Entry. LeafLink shall have no liability if it fails to effectuate such requests.
(b) LeafLink reserves the right, in its sole discretion, to cancel, amend, or reverse an ACH Entry at any time and for any reason. LeafLink also reserves the right, in its sole discretion, to pause, freeze, or shut down your Enrolled Bank Account’s access to the ACH Service for any reason.
LeafLink or the Financial Institution may reject any Entry, including an on-us Entry, that does not comply with the requirements of these Payment Terms or the Network Rules, and may reject any Entry if you are not otherwise in compliance with these Payment Terms. In addition, the Financial Institution may refuse to process an Entry you initiate in its sole discretion. You shall be responsible for correcting any Entries rejected by LeafLink or the Financial Institution prior to resubmission.
(b) Further, in the event that any attempt to recover funds from you should fail, Recovery Authorizations include your grant to LeafLink of new, original authorizations to recover all or less than all of the amount you owe us and/or belong to us. Recovery Authorizations include all authorizations to take the above steps without prior notice to you and irrespective of (i) whether we have made demand under these Payment Terms, the General Terms or any other agreement you have with us; and (ii) whether the obligation is contingent, matured or unmatured. Recovery Authorizations include all authorizations to take the above steps in complete compliance with the Network Rules (as defined in these Payment Terms) and the NACHA Rules. You agree that your grant of Recovery Authorizations to us has the same legal effect as if you had signed a paper containing the same terms.
12. Violation of Laws.
You represent, warrant, and covenant to LeafLink, as an Originator of Entries made under the Operating Rules, that (a) you will not seek to use the ACH Service in violation of any applicable law or regulation; and (b) no Entry delivered to LeafLink or the Financial Institution, if accepted by the Financial Institution, will cause LeafLink or the Financial Institution to be in violation of any regulation or sanction administered by the federal or state government or otherwise causes LeafLink or the Financial Institution to be in violation of federal or state law.
13. Audit and Review.
You agree to permit LeafLink, the Financial Institutions and their designated third parties to audit, inspect, and review your policies and processes for purposes of ensuring your compliance with these Payment Terms and the Network Rules. You agree to cooperate with any such audit and to respond to reasonable requests for information necessary to complete such audit in a timely manner.
14. Additional Limitation of Liability.
15. Additional Indemnity.
16. Additional Representations & Warranties
(a) You represent and warrant that you have the right and authority to enter into these Payment Terms and that you are responsible for the management and permissioning of your organization’s payment processing.
(b) You represent and Warrant that the bank account provided to LeafLink for use in connection with the ACH Service is the bank account associated with your cannabis business.
(a) “ACH Network” means the funds transfer system (network) governed by the NACHA Operating Rules which provides for the clearing of electronic entries for participating Financial Institutions and Third-Party Senders.
(b) “Balance” means the funds in your Enrolled Bank Account.
(c) “Enrolled Bank Account” shall have the meaning set forth in Section 1(a).
(d) “Entry” is an order or request for the transfer of money to the account of a Receiver or general ledger account of an RDFI (a “credit Entry”); or an order or request for the withdrawal of money from the account of a Receiver or general ledger account of an RDFI (a “debit Entry”). “Entry” may also refer to the transmission of notice or data that is not an order or request for the transfer or withdrawal of funds.
(e) “Fees” are defined in Section 2.
(f) “Financial Institution” means an Originating Depository Financial Institution that originates ACH Entries on behalf of Sellers.
(g) “NACHA Rules” refers to the NACHA Operating Rules.
(h) “Originator” means a person that has authorized a Financial Institution to transmit an Entry to a Receiver’s account at an RDFI.
(i) “RDFI” or Receiving Depository Financial Institution means a Financial Institution qualified by NACHA to receive ACH Entries.
(j) “Receiver” means a person that has authorized an Originator to initiate a credit Entry, debit Entry, or non-monetary Entry to the Receiver’s account at the RDFI.
(k) “Recovery Authorizations” has the meaning set forth in Section shall have the meaning set forth in Section 11(a).
(l) “Third-Party Sender” is an organization that is not an Originator that has authorized an Financial Institution to transmit, for its account or the account of another Third-Party Sender, a credit Entry, debit Entry, or non-monetary Entry to a Receiver’s account at an RDFI. LeafLink acts as a Third-Party Sender in conjunction with the ACH Service.