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Direct Deposit service agreement

Learn about the service agreement for the QuickBooks Desktop Direct Deposit service.

When you sign up for the QuickBooks Direct Deposit service, you sign a Service Agreement that dictates the terms of the service. This article describes the basic terms of the agreement without going into the level of legal detail covered in the actual Service Agreement.

This description is intended to give you an easier-to-read overview of what you agree to in the Service Agreement, but it may not reflect the latest changes to the agreement.

Signup and activation process

You can subscribe to the Direct Deposit service only if you (meaning your company) are an active subscriber to a QuickBooks Payroll Service. The service begins after we receive all the information we request from you and process it.

The information you provide must be accurate and complete; otherwise, you may not make direct deposits and we can't perform the service correctly. We treat all information you submit as confidential. However, to process your activation, we may need to submit your information to third parties and review the reports they return. These third parties may include your bank, credit reporting agencies, and any other agencies needed to validate your identity or credit history. They provide credit reports and other similar reports on your business and its principals.

How the Direct Deposit service works

The following outlines the Direct Deposit service process:

  1. Using QuickBooks Desktop, you initiate electronic withdrawals from an account you identify in order to fund the direct deposit paychecks to your employees.
  2. In some cases, Intuit may use wire draw-down requests or other funding methods; we'll call all these funding methods debits. Debits can also be initiated to pay fees for the service and any adjustments to those fees.
  3. You send payments over the Internet in an online session called a "transaction."
  4. At the end of your transaction, we confirm that we received it.
    If you don't receive our confirmation before the session is over, your transaction won't be processed.
    If you do receive a confirmation, it doesn't guarantee that your transaction is error-free. We may find errors later that prevent us from completing your transaction. However, we'll make reasonable efforts to tell you if we can't complete your transaction for this or any other reason.

Transactions taking place after certain processing deadlines may be considered to occur on the next business day.

Limitations and special fees

Be aware of the following limitations and special fees with respect to your use of the Direct Deposit service:

  • You can use the service only for paycheck direct deposits
  • Internet access for connecting to the service isn't included, nor is advice regarding deductions or direct deposit to employees
  • We may establish certain security limits on transactions we process, such as a maximum number or dollar amount of transactions, and may change these limits from time to time, and may choose not to disclose them
  • Use of the service may affect some capabilities of QuickBooks Desktop
  • The service operates only with a compatible version of QuickBooks Desktop You may sometimes need to purchase and install updates or upgrades (or allow Intuit to install them electronically) to continue using the service. Some updates or upgrades may be provided free or at reduced cost.
  • Optional special processing requests may be available as part of the service for an additional charge
  • Special processing fees may apply to some transactions

Your Responsibilities

You must send us your transaction at least two banking days before the pay date of the payroll. If you don't, there may be additional charges or your transaction may not be processed.

You must also make sure you have sufficient funds in your account to cover the payroll as of one banking day before the pay date, as debits are charged to your account on that day (one day prior to the pay date).

After that, no interest or earnings on the payroll amount accrues to you, and Intuit holds the money until the payments are made.

After your online session is over, you can't change your transaction.

Conditions governing ACH transactions

By signing up for Direct Deposit, you agree to the following conditions:

  • Your transactions will be governed by ACH (Automated Clearing House) rules
  • The origination of ACH transactions to your account will comply with applicable provisions of U.S. law
  • You warrant to Intuit everything that Intuit must warrant as an ACH Originator
  • You accept any liability you or Intuit may incur as a result of your transactions
  • If Intuit tells you an account number or other information concerning your transactions has changed, you must use this corrected information to initiate future transactions

Authorizations you grant

Because Direct Deposit is an automated service, you must grant the following authorizations when you sign up:

  • You authorize Intuit to initiate debit entries to your account, and to debit the same to such account
  • You authorize Intuit to collect any sales tax, use tax, or other taxes payable on the service in the same way your fees are paid
  • You authorize Intuit to send transactions, electronically or by any other commercially accepted method, to the appropriate financial institution
  • You authorize and direct the financial institution that holds your account to charge each debit to your account and pay that amount to Intuit
  • You authorize and direct the financial institution that holds your account to respond to inquiries from Intuit regarding your information and your account

This authorization will remain in full force and effect until Intuit has received written notification from you of its termination. The timing of your notification must afford Intuit and the financial institution a reasonable opportunity to act on it.

Guarantees you make to Intuit

In signing up for Direct Deposit, you guarantee to Intuit that:

  • Each person or entity to whom you send payments has authorized the payments and any necessary adjustments to be applied to his, her or its account
  • At the time any payment is made, the payment authorization hasn't been revoked or terminated, as far as you know
  • Your payments comply with the laws that apply to them
  • You are authorized to make withdrawals to your account
  • All the information you provide to enter into the Service Agreement is correct
  • You will create or have Intuit issue a security device (PIN, password, or other) for initiating transactions
  • You will safeguard the security device, and you authorize Intuit and all relevant financial institutions to carry out all transactions initiated with this device
  • You won't hold Intuit liable for any unauthorized use of the security device
  • You are solely responsible for verifying that all transactions have been received and are accurate.

Intuit isn't responsible for the actions of others with respect to the amount, accuracy, timeliness of transmittals, or authorization of entries received from you.

Limitations of liability

In addition to the liability limits already mentioned, you must agree to these limits in signing up for Direct Deposit:

  • If you provide inaccurate information, any penalty or interest incurred as a result will be your sole responsibility
  • Intuit will not be liable in any way if the service can't be performed completely or accurately because of anything not reasonably within our control, including problems with the Internet or inaccurate or incomplete information from you
  • If we make a mistake in performing the service, we are responsible only for making the correct payment, not for any indirect, special, or consequential damages (even if we know such damages are possible).
    If these remedies fail of their essential purpose, Intuit's maximum liability will equal the fees you have paid for the service during the preceding six-month period
  • You agree to hold Intuit harmless against all claims made by you or others resulting from our reliance on information or data you furnish. And against claims resulting from activities Intuit or their agents undertake at your request (or at the request of anyone Intuit believes in good faith to be an authorized agent of yours)
  • You understand that the service is provided "as is" (see the actual service agreement for a more complete description of this limitation)

Insufficient funds and dishonored debits

Intuit may refuse to process your transaction if it reasonably believes that your account balance is insufficient to cover the dollar amount of the transaction — or for any other reason Intuit deems reasonable.

If any amount debited against you is dishonored or returned for any reason (such as insufficient funds, account closed, inability to locate account, or reversal by you or your bank), Intuit may take one or more of the following actions:

  • Reverse any corresponding credit issued to Intuit, you, your employees or any other party without liability to you or any other party
  • Reverse direct deposit transactions
  • Refuse to perform further services
  • Apply any money currently held by Intuit to any amount owed to Intuit by you
  • Charge you a one-time insufficient-funds penalty fee
  • Report this information to relevant credit agencies and financial institutions
  • Terminate your Service Agreement

Intuit may assess and collect interest at the rate of 1.5% per month (18% per annum) on any amounts owing and unpaid 10 days after demand.

If further collection attempts are required, Intuit will charge all its collection costs to you. These conditions apply whether or not the Service Agreement is still in effect.

Changes to the Service Agreement

Intuit may make changes to any term or condition of the Service Agreement, including any fee terms, processing times, deadlines, or special fees.

Intuit will provide notice of any such change where required by law or upon your request. If you continue to use Direct Deposit services after such changes, you are agreeing to the changes.

Review of your service use and related factors

Intuit may review your use of the service, your credit status, or other factors from time to time, including submitting your information to third parties such as your bank, credit reporting agencies and/or other agencies used to validate your identity and/or credit history, and/or reviewing credit or similar reports on your business and its principals provided by these third parties, and may terminate the Service after such a review.

Intuit responses to defaults and bankruptcies

If you become insolvent, become subject to a bankruptcy proceeding, have property seized, or default in a required payment or in performing your agreed-upon obligations, you can expect Intuit to respond to the situation.

Specifically, Intuit may take any or all of the following actions (after first providing written notice):

  • Terminate the Service Agreement
  • Declare all amounts owed to become immediately due and payable
  • Require you to deposit an amount equal to your expected average future monthly charges or annual processing charges to prepay for any future processing


For quality assurance, Intuit may monitor or record telephone calls you make to us in connection with the Direct Deposit service.

You must keep any payroll, tax, or other records you need for reference, even though we may have information about the transactions in our files.

Service Agreement activation and termination

After you sign the Service Agreement, it becomes effective when Intuit accepts it in California. It is then governed by California law applying to agreements made and performed entirely in California, excluding that body of law related to choice of law.

The Service Agreement stays in effect until we receive a termination notice from you and have a reasonable opportunity to act on the notice, or until we terminate the service by notifying you.

If you terminate the service, no fees you have already paid will be refunded.

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