Direct Debit Terms

By agreeing to use Direct Debit Services if made available to you as part of the Services provided by Nium, you agree to these Direct Debit Terms and any applicable Direct Debit Scheme rules. Capitalized terms not otherwise defined in these Direct Debit Terms have the meanings given in the  Nium Direct Services Agreement or the End Customer Terms and Conditions, as applicable.  

I.  General Provisions

Direct Debit means the authorized collection of an amount via a Direct Debit Scheme from: (a) your bank account with a third-party financial institution for onward payment to your Nium Account; or (b) from your Nium Account for onward payment to a third-party financial institution, as applicable.

1. Direct Debit Instructions. To use Direct Debit, you shall provide Nium with instructions which authorizes Nium and/or our Financial Partners, using a Direct Debit Scheme, (i) to receive funds to your Nium Account from an external bank account; or (ii) to send funds (including by permitting a third party to initiate debit requests) from your Nium Account to an external bank account (“Direct Debit Instructions” or “Entries”). Your Direct Debit authorization must comply with the requirements of the applicable Direct Debit Scheme, including any required wording, disclosures, and presentation of applicable payer protections. Direct Debit Instructions will be processed in accordance with the rules and timings set forth by the applicable Direct Debit Scheme and/or our Financial Partner (as applicable).
2. Advance Notice. You agree that Nium, the Platform Provider, or the relevant third party initiating the debit (as applicable) will provide advance notice of the amount and timing of any Direct Debit, or any changes to such Direct Debit, where required by applicable Direct Debit Scheme rules.
3. Bank Account Eligibility and Details. To receive funds via Direct Debit to your Nium Account, your Direct Debit Instructions must include your bank account details at a third-party financial institution, which may include but are not limited to, the name of your bank, the bank account number, routing number for your bank account, and the type of account, for example, checking or savings. You represent and warrant that your bank account is legitimate, open, and in good standing, and you understand that we will require you to verify your bank account details before you can initiate direct debit transactions. You agree to promptly update us if there are any changes to your bank account details.
   
   Your bank account must be able to accept debits denominated in the currency indicated in the Direct Debit Instructions. You confirm that you are the only person required to authorize and you agree to authorize the direct debit from your bank account, such as in the form of a direct debit mandate, or, if applicable, you confirm that you have obtained the authorizations of all required parties to authorize the Direct Debit in accordance with the rules of the applicable Direct Debit Scheme.
4. Sufficiency of Funds; Unpaid Direct Debits. It is your responsibility to ensure that there are sufficient funds available in your bank account or Nium Account, as applicable, in order to execute on your Direct Debit Instructions. Direct Debits will be processed in accordance with the rules and general timings of the applicable Direct Debit Scheme. The debited amount will be reflected in the debited bank account after a successful debit in accordance with the timing of the applicable Direct Debit Scheme. 
   
   Where you have insufficient funds in your Nium Account or where access to your Nium Account has been suspended or terminated, we reserve the right to return a Direct Debit Instruction as unpaid in accordance with the rules of the applicable Direct Debit Scheme rules. In the event that we process a Direct Debit Instruction that you are unable to pay via your Nium Account for any reason, you will remain liable to us for the applicable Direct Debit amounts.
5. Direct Debit Authorization. 
   1. Each time you choose to fund your Nium Account via Direct Debit, you authorize us and/or our Financial Partner to debit your bank account up to such amount pursuant to your Direct Debit Instruction, including any applicable taxes and fees. Your authorization under these Direct Debit Terms will remain in full force and effect until the later of (i) the closure of your Nium Account, or (ii) payment of all fees and other amounts you owe under the applicable services agreement between you and Nium.
   2. Where you authorise a third party to debit your Nium Account, you acknowledge and agree that: (i) such authorisation constitutes a direct debit mandate between you and the relevant third party under the applicable Direct Debit Scheme; (ii) Nium and/or our Financial Partners may act on debit requests submitted by such third party in accordance with that mandate and applicable scheme rules; (iii) Nium does not control, verify, or guarantee the underlying goods or services provided by the third party or the amount, timing, or frequency of any debit request; and (iv) you are responsible for reviewing, authorising (where required), and managing any such mandates, including any amendments, suspensions, or cancellations.
    
6. Correction of Errors. In addition to authorizing debits to the bank account, you also authorize us to credit your bank account if necessary to correct an erroneous direct debit in the amount necessary to correct the error. If we make an error when executing a Direct Debit Instruction, you will be entitled to a refund in accordance with applicable Direct Debit Scheme rules, including (where applicable) an immediate refund under the direct debit guarantee. If you receive a refund you are not entitled to, you agree to pay it back to Nium immediately.
7. Scheme Protections. Where required by an applicable Direct Debit Scheme, you will benefit from mandatory payer protections provided under such scheme, including (where applicable) the Direct Debit guarantee. Such protections may include: 
   1. the right to a full and immediate refund from your bank or financial institution in the event of an unauthorised or incorrectly processed Direct Debit;
   2. the right to receive advance notice of the amount, date, and frequency of any Direct Debit, or any changes to such Direct Debit, unless otherwise agreed; and
   3. the right to cancel a Direct Debit mandate at any time by contacting your bank or financial institution.
      
      Nothing in these Direct Debit Terms limits any rights you may have under applicable Direct Debit Scheme rules.
    
8. Fees Chargeable. If your bank rejects a Direct Debit or if a Direct Debit is subsequently disputed by you or your bank for any reason other than as a result of our error, we may charge you additional administration fees to investigate the issue.
9. Revoking Direct Debit. Subject to applicable Direct Debit Scheme rules, we may revoke your ability to use Direct Debit at any time for any reason, including if (i) we are unable to debit your bank account or Nium Account, as applicable, for any reason; (ii) you have requested a refund of any amount that has been properly paid, or if determined in our discretion that any errors in the Direct Debit were caused by you; (iii) you breach these Direct Debit Terms or any applicable services agreement; (iv) we determine your use of Direct Debit may cause us to breach or incur liabilities under the applicable Direct Debit Scheme rules or our obligations to our Financial Partners; or (v) requested by a Direct Debit Scheme or a Financial Partner.
10. Amending or Cancelling Direct Debit Instructions. You can amend or cancel a Direct Debit Instruction by providing Nium with written notice in accordance with the timelines notified to you in the direct debit mandate, or by arranging it through your bank.
11. No Liability. Subject to section I. F (Correction of Errors) above, Nium is not liable to you for any losses suffered by you, or amounts payable by you to third parties, arising from any Direct Debit Instruction failing to be processed for any reason other than due to our error. Nium is not responsible for the acts or omissions of any third party initiating a direct debit, except to the extent required by applicable law or Direct Debit Scheme rules. 

II. Pre-Authorized Debit Agreement – Canada

In addition to the General Provisions in Section I, the following provisions apply to Direct Debit transactions made through the Automated Clearing Settlement System in Canada (“ACSS”). In the event of conflict between the General Provisions and this Section II, this Section II shall govern.

1. PAD Agreement and Authorization. In addition to Section I.D., you authorize Nium and/or our Financial Partner to initiate debit and credit entries to your bank account maintained at an institution that is a member of the Canadian Payments Association (“Payments Canada”), in each case, in accordance with applicable services agreement between you and Nium and this Pre-Authorized Debit Agreement (“PAD Agreement”). 
   1. PAD Category. You agree that any debit withdrawal is a pre-authorized debit (“PAD”) for business purposes, as defined under Rule H1 of Payments Canada.
   2. PAD Amount and Timing. The amount of any PAD will vary and be based on the amount authorized by you from time to time.
    
2. Waiver/Modification of Pre-notification/Confirmation. You waive the right to receive pre-notification or confirmation of the amount or timing of any PAD, and you agree that you do not require advance notice of the amount or timing of any PAD before the debit is processed. Without limiting the foregoing sentence, you acknowledge that no notice or confirmation is required for the amount or timing of any PAD or changes to the amount or timing of any PAD, when the debit of such amount or change in such amount is triggered by a specified act, event or other criteria under the applicable services agreement.
3. Changes to Your Bank Account. If you change your bank account, you will need to agree to a PAD Agreement for the new bank account and you will provide Nium written notice and information regarding the new account as Nium deems necessary. Following receipt of your written notice, it may take Nium up to ten (10) business days to reflect any change to your bank account.
4. Amending or Canceling PAD Agreement. You may revoke this PAD Agreement upon thirty (30) days’ prior written notice to us. You may obtain a sample cancellation form, as well as further information on your right to cancel a PAD authorization by contacting your financial institution or by visiting www.payments.ca.
5. Revoking PAD Agreement. In addition to Section 1.G, we may stop issuing PADs either in accordance with the terms of this PAD Agreement or, where cancellation is not addressed, in accordance with the rules of Payments Canada.
6. Recourse/Reimbursement Statement. You have certain recourse rights if any debit does not comply with this PAD Agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on your recourse rights, you may contact your financial institution or www.payments.ca.
7. Contact Information. You can contact us at support@nium.com to make inquiries, obtain information, or seek recourse with respect to any PAD issued by Nium.

III. ACH Debit Authorization Agreement – United States

In addition to the General Provisions in Section I, the following provisions apply to Direct Debit transactions transmitted through an automated clearing house in the United States (“ACH”). In the event of conflict between the General Provisions and this Section III, this Section III shall govern.

1. ACH Transactions. Transactions transmitted through ACH shall be subject to the applicable the laws of the United States and ACH Operating Rules (the “ACH Rules”) of the National Automated Clearing House Association (“NACHA”).  You agree to comply with and be bound by the ACH Rules. We can reject an ACH transaction if it is not in compliance with the ACH Rules or applicable laws.
2. No Notification. You hereby waive any notice of debit from Nium. After you authorize an Entry, you will not receive a separate notice from us of the amount, timing of the debit, or any other information about the debit, before we process and debit your account. To determine if a transfer has been credited to your Nium Account, you can review the transactions on your Nium Account.
3. Reinitiation of Debit Entries. If we are unable to collect the amount of any debit due to insufficient funds in your bank account, then we may reinitiate that debit in the same amount up to a maximum of two (2) additional times in accordance with the ACH Rules.
4. Revoking Direct Debit. In addition to Section I.G, we may revoke your ability to use Direct Debit if (i) you breach the ACH Rules; (ii) we determine your use of Direct Debit may cause us to breach or incur liabilities under the ACH Rules; or (iii) as requested by NACHA.

IV. Australia

In addition to the General Provisions in Section I above, in order to use Direct Debit in Australia, you must sign or otherwise authorise a Direct Debit Request. Where a Direct Debit Request is provided to you by Nium, in the event of any conflict between the General Provisions and the terms of the Direct Debit Request, the terms of the Direct Debit Request will govern. The terms of the Direct Debit Request include and are subject to the terms of any Direct Debit Service Agreement referenced in the Direct Debit Request.