Electronic Funds Transfer Service
This document sets forth the terms under which you may request electronic funds transfers between your Account and accounts held at other financial institutions (the “Service”) These terms are incorporated into and considered part of your Agreement. To the extent there is any conflict between your Agreement and these terms, these terms will govern only with respect to the Service.
1. Certain Definitions.
Terms not otherwise defined here have the meaning set forth in your Agreement.
“ACH Credit” refers to a transaction which electronically transfers funds from your Account to an account at a financial institution, while an “ACH Debit” refers to a transaction which electronically transfers funds to your Account from an account at a financial institution.
“ACH Item” refers to an ACH credit, an ACH debit, or both.
“EFT” means electronic transfer of funds, including ACH Items as well as Intra-ProPay Transfers.
“Intra-ProPay Transfer” refers to an electronic transfer of funds between your Account(s) and other accounts serviced by ProPay.
“Linked Account” means an account other than the Account under this Agreement that you use to initiate EFTs to or from your Account.
2. Linked Account.
By linking an external bank account with ProPay you authorize us to debit your Linked Account for any fees, payments, or penalties you owe or may owe us relating to ACH or Intra-ProPay transactions. Your Linked Account will be governed by your Linked Account agreement with the financial institution that establishes the account. You must immediately notify us of any changes to your Linked Account or if you change financial institutions. You may change the Linked Account associated with your Account profile no more than two (2) times every ninety (90) days.
In order to add funds to your Account, or transfer funds to your Linked Account, you must first register the Linked Account in your Account profile and complete the validation process. When registering a Linked Account in your Account profile, you will be required to enter your Linked Account bank’s name, the routing number of the bank, and your Linked Account number. Once this information is entered, you will be required to validate that the routing number and Linked Account number are correct and that you have the proper authorization to access the account.
To validate the Linked Account, you will be required to verify the amounts of two small deposits that we will make into your Linked Account. This process may take 2 to 7 business days. Once you locate the two deposit amounts, login to your Account profile and enter the two amounts as directed. Once this validation process is completed, you will be able to transfer funds between your Account and Linked Account. This validation process is intended to demonstrate that you have the proper custodianship over the Linked Account.
4. Liability and Obligations for EFTs.
When you request moving funds between your Account and Linked Account through an ACH Item or Intra-ProPay Transfer, you are requesting an EFT. By requesting an EFT, you authorize us to initiate, process, transmit, and settle the EFT in the amount that you specify. You agree that your EFT requests are accurate, timely, and have been authorized. Your authorization will remain in effect after termination of this Agreement and until ProPay has received written notice terminating this authorization and all your obligations to us have been paid in full.
a. Adherence to ACH Rules. For ACH Items, you agree to be bound by the rules of the National Automated Clearing House Association (“NACHA”) in effect as they may be amended from time to time. You also agree not to request an ACH transfer that violates the laws of the United States, which include, but are not limited to, sanctions enforced by the Office of Foreign Assets Control (“OFAC”).
b. Returns, Rejections, Cancellations, and Acceptance.
ACH Items. All credits to your Account resulting from an ACH Debit from your Linked Account are provisional until final settlement is made through a Federal Reserve Bank. If we do not receive final settlement, you will be liable for the amount of any such entry. You may be charged a fee (see your Fee Schedule) for any ACH transactions that result in a returned ACH item, such as, but not limited to, those caused by insufficient funds in your Linked Account, closure of your Linked Account, or if the bank name, routing, or account number of the Linked Account is incorrect. We reserve the right to resubmit for collection any ACH item authorized by you that is returned. ProPay will notify you within 2 (two) business days of the receipt of a returned ACH item. We may reject any entry that does not comply with requirements outlined in this Agreement. We will notify you within two (2) business days from the day the rejected entry would otherwise have been transmitted. ProPay may resubmit any rejected ACH item up to two (2) times.
Intra-ProPay Transfers. You understand and agree that your request to transfer funds is final and irrevocable, that you have no right to reverse or stop such an entry once the entry is communicated to ProPay, and you hereby waive any right you may have of recourse against ProPay or to dispute or reverse a request to transfer funds. An Intra-ProPay funds transfer under this Agreement is the equivalent of sending cash to the recipient. ProPay has no obligation whatsoever to any proposed recipient of funds. In the event of any dispute between you and a funds recipient, you agree that such dispute will be settled between you and the proposed recipient, and you hereby indemnify and hold harmless ProPay against all liabilities, claims and damages incurred by and brought against ProPay by any third party arising out of this Agreement, including but not limited to reasonable attorneys’ fees and costs. We will notify you within 2 business days from the day the rejected Intra-ProPay Transfer would otherwise have been transferred. If the e-mail address used for the transfer belongs to our Account or another ProPay-serviced account, the funds will immediately transfer. If the e-mail address does not belong to a ProPay-serviced account, the transfer request may be denied.
c. Accuracy of Information. For ACH items, You acknowledge that if the Linked Account’s financial institution name or identification number are incorrect or inconsistent, we may rely on the identifying number alone, even if the number identifies a financial institution, person, or account other than the one named. For Intra-ProPay Transfers, You must identify the account into which to transfer funds by the accountholder’s e-mail address. You acknowledge that if the e-mail address is inconsistent or incorrect, payment of the entry may still be made on that basis.
d. Fees. You shall pay the fees for this Service in accordance with the Fee Schedule, which is incorporated into this Agreement by reference. Such fees will be calculated and debited from amounts in your Account or will be netted out from the incoming funds due you under this Agreement.
e. Liability. Upon written request, we will attempt to cancel an EFT before transmitting it. However, we shall have no liability if we fail to do so. We may reverse any EFT we believe, in our sole discretion, may be subject to dispute or reversal or violate this Agreement. We assume no liability for any unauthorized transfer request(s) and the attendant transfer of funds, unless and until we receive appropriate and timely notice by you of the unauthorized transfer requests. We have no obligation to initiate EFTs if we believe, in our sole discretion, that the funds are unavailable or the EFT request is invalid or subject to reversal, or if you are in default of this Agreement. You also understand that ProPay will not, and has no obligation to, confirm the validity of the recipient or the underlying transaction pursuant to which the funds are transferred. You agree that you are responsible for paying us any amount attributable to the transfer of funds pursuant to this Agreement, including but not limited to non-sufficient fund fees that overdraw your Account.
f. Transfer Amount Limitations. For a listing of current limitations associated with the electronic transfer of funds, see the Limits Section in the Agreement. We may limit the amount you are allowed to add to your Account from your Linked Account. Any increase in the limits disclosed in your Agreement are purely discretionary and subject to our approval. Call Customer Service for more information.
We reserve the right at our discretion to limit the maximum amount of funds you are allowed to transfer between your Account and Linked Account, even less than the current amount identified in the Agreement. For fraud and anti-money laundering purposes, we may review EFTs to or from your Account before releasing the funds.
g. Type of Bank Account Required and Change Limitation. ACH Credits to a Linked Account from your Account are limited to Linked Accounts of a financial institution located in the United States of America (“US”), its territories (Puerto Rico, Guam, American Samoa, and the US Virgin Islands, collectively “US Territories”), or Canada. ACH Debits from a Linked Account to your Account are limited to Linked Accounts of financial institutions located in the US or US Territories. EFTs to or from a savings account are also prohibited.
h. EFT Disputes. It is very important that you contact Customer Service at once if you believe your user ID or password has been compromised, or if someone has transferred, or may transfer funds using your Account without your permission. Any recourse for unauthorized or inaccurate EFTs are subject to the terms of your Agreement.
EXCEPT AS OTHERWISE EXPRESSLY STATED IN THIS AGREEMENT, WE MAKE NO WARRANTIES, EITHER EXPRESS OR IMPLIED, OF ANY KIND WITH RESPECT TO THE SERVICE. EXCEPT AS OTHERWISE EXPRESSLY STATED IN THE AGREEMENT, WE EXPRESSLY DISCLAIM, AND YOU EXPRESSLY WAIVE, ANY AND ALL WARRANTIES, INCLUDING WITHOUT LIMITATION THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NO DESCRIPTIONS OR SPECIFICATIONS, WHETHER OR NOT INCORPORATED INTO THIS AGREEMENT, SHALL CONSTITUTE WARRANTIES OF ANY KIND.
You shall indemnify and hold harmless MetaBank and ProPay for any action we take with respect to your Account, including funds in any Account. You also indemnify and hold us harmless for acting in accordance with any instruction from you. Further, you shall indemnify and hold us harmless from any and all loss, cost, expense, claim, damage and liability (including attorneys’ fees and costs) paid or incurred by any one or more of them, arising from, caused by, or attributable to, any of the following:
English Language Controls
Any and all claims or damages made by third parties arising out of this Agreement, including but not limited to all attorneys’ fees and costs paid or incurred in the enforcement of the Agreement and those resulting from any transaction processed under this Agreement, or any breach by you of this Agreement and those related to any bankruptcy proceeding;
Willful misconduct, fraud, intentional tort or negligence by you or that of your employees, agents or representatives;
Any and all claims or damages by you which are the result of theft, embezzlement, unauthorized use, transfer or withdrawal of funds with respect to your Account.
Translations of this Agreement that may have been provided are for your convenience only and may not accurately reflect the original English meaning. The meanings of terms, conditions, and representations herein are subject to definitions and interpretations in the English language.