ACH Origination Agreement Template

This ACH Origination Agreement is made on [Date] by and between:

Originator / Customer: [Company Name]
Address: [Address]

Financial Institution: [Bank Name]
Address: [Address]

1. Purpose

This Agreement sets out the terms under which the Financial Institution will provide ACH origination services to the Originator.

The Originator wishes to initiate ACH entries, and the Financial Institution agrees to process those entries subject to this Agreement, applicable operating rules, internal procedures, and account requirements.

2. Accounts and Services

The Financial Institution will provide ACH origination services for the following account or accounts:

Account Name: [Account Name]
Account Number: [Account Number]
Type of Account: [Checking / Other]

Permitted ACH services include:

☐ ACH credits
☐ ACH debits
☐ recurring entries
☐ one-time entries
☐ payroll entries
☐ vendor payments
☐ customer collections
☐ other: [Describe]

3. Authorized Users

The Originator authorizes the following persons to submit files, approve entries, or communicate instructions regarding ACH activity:

Name: [Full Name]
Title: [Job Title]
Authority: [Submission / Approval / Full Access / Other]

Name: [Full Name]
Title: [Job Title]
Authority: [Submission / Approval / Full Access / Other]

The Originator shall promptly notify the Financial Institution of any change in authorized users or access rights.

4. Entry Authorization

The Originator represents that each ACH entry initiated under this Agreement will be properly authorized and supported by any required records or approvals.

The Originator shall maintain proof of authorization and related records for the period required by applicable rules, law, or internal policy.

The Financial Institution may request copies of such records for review.

5. Security Procedures

The parties agree to use the following security procedures for ACH origination activity:

☐ user credentials
☐ dual approval
☐ file authentication
☐ callback verification
☐ token or multifactor access
☐ exposure limits
☐ other: [Describe]

The Originator agrees to follow all agreed security procedures and to protect access credentials, devices, and internal approval controls.

6. Submission and Processing

The Originator shall submit ACH files or instructions in the format and manner approved by the Financial Institution.

Submission deadlines, processing windows, and settlement timing shall be handled as follows:

[Insert file cutoff times, processing dates, same-day rules if applicable, and other timing details]

The Financial Institution may reject any file or entry that is incomplete, inconsistent, exceeds approved limits, or does not comply with this Agreement.

7. Exposure Limits and Funding

The Financial Institution may establish limits on the number, amount, or type of ACH entries initiated by the Originator.

Approved limits, if any:

Per File Limit: [$Amount]
Daily Limit: [$Amount]
Monthly Limit: [$Amount]

The Originator shall maintain sufficient available funds for debit settlement, return exposure, fees, reversals, adjustments, and any other obligations under this Agreement.

8. Rejected, Returned, and Reversed Entries

The Financial Institution may refuse, reject, return, or reverse entries as permitted by this Agreement, applicable rules, or operational needs.

If an entry is rejected, returned, or reversed, the Financial Institution may notify the Originator and may charge the related amount back to the Originator’s account.

The Originator shall review all notices, returns, and exception reports promptly.

9. Fees

The Originator shall pay the fees associated with ACH origination services as follows:

Setup Fee: [$Amount, if applicable]
Per Entry Fee: [$Amount, if applicable]
Monthly Service Fee: [$Amount, if applicable]
Return or Exception Fee: [$Amount, if applicable]

Additional fee terms, if any:

[Insert details]

The Financial Institution may debit fees from the designated account or bill them separately as agreed.

10. Records and Audit Rights

The Originator shall keep accurate records relating to entries initiated under this Agreement, including authorizations, submission details, and internal approvals.

The Financial Institution may request information reasonably necessary to review activity, confirm compliance, investigate exceptions, or address operational risk.

11. Liability and Indemnification

The Originator is responsible for the accuracy, authorization, and proper purpose of all entries it initiates or causes to be initiated.

The Originator agrees to reimburse, indemnify, or hold the Financial Institution harmless from losses, claims, returns, reversals, fees, penalties, or expenses arising from:

unauthorized entries;
incorrect instructions;
breach of this Agreement;
failure to follow security procedures;
failure to maintain required authorizations;
other improper ACH activity attributable to the Originator.

Any liability of the Financial Institution shall be limited to the extent stated in this Agreement and applicable law.

12. Suspension and Termination

The Financial Institution may suspend or terminate ACH origination services if:

the Originator breaches this Agreement;
the Financial Institution identifies unusual or risky activity;
required funds are not available;
security concerns arise;
continued service is not acceptable under internal policy or applicable rules.

Either party may also terminate this Agreement on [Number] days’ written notice unless a different period is stated below:

[Insert notice period or other termination terms]

13. Notices

Any notice under this Agreement shall be sent to the following contacts:

Originator Contact: [Name, Title, Email, Phone Number]
Financial Institution Contact: [Name, Title, Email, Phone Number]

Notice method:

☐ email
☐ mail
☐ secure portal
☐ other: [Describe]

14. Governing Law

This Agreement shall be governed by the laws of [State], except to the extent superseded by applicable banking rules, payment network requirements, or other mandatory law.

15. Entire Agreement

This Agreement contains the full understanding between the parties regarding ACH origination services and replaces prior discussions on that subject, unless otherwise stated in writing.

16. Signatures

Originator Signature: __________________________
Name: [Full Name]
Title: [Job Title]
Company: [Company Name]
Date: [Date]

Financial Institution Signature: __________________________
Name: [Full Name]
Title: [Job Title]
Bank: [Bank Name]
Date: [Date]