The Recurring ACH Payment Authorization Form is a document that authorizes a business, owner, or merchant to deduct recurring payments from a customer`s bank account, as agreed by the parties. Payment will be debited at the end of the cycle of each invoice on the date indicated by the Holder on the form. The document collects information such as personal information that correctly identifies the account holder/customer, billing information, bank account information, and specific written authorization for the merchant to collect the payment. Payments are not stopped until a purchase has been made or the account holder has stopped recurring payments. Once you have access to the ACH program, your customer`s authorization is required before you can begin accepting payments. One-time and recurring payments can be authorized over the phone, but there are different requirements for each. And if a customer has issued a one-time approval, you won`t be able to reuse it if they want to set up a recurring payment again. In these cases, you must grant a new permission. An ACH direct debit authorization is a customer`s consent for a company to collect future payments from it. Before a company can begin collecting ACH debit payments from a customer, it must receive an ACH direct debit authorization from them. Transaction schedule (for recurring payments): Your customers can complete an ACH authorization form in one of three ways: Keep the original form as proof of authorization (up to two years after the authorization ends) Step 1 – Download the authorization document – First, check the information at the top of the document: Paper forms result in a greater likelihood of human error, it is therefore worthwhile Before sending a payment request, check the validity of the bank details provided by the customer on the basis of preliminary remarks (more information on preliminary remarks here).

As mentioned above, ACH authorization forms do not have a standard format or layout, but must contain several key elements. Once a customer has returned a completed paper authorization form to you, you must: The online ACH Direct Debit Authorization uses digital authorization forms hosted on the Internet. As with their paper counterpart, online authorization forms do not have a standard format or layout, but must contain several key elements (see above). Keep in mind that all details on how to revoke an authorization, as well as the required notice period, must be provided on the original authorization form. Paper -based – Customers can fill out paper authorization forms and return them to you. Paper authorizations apply to PPD direct debits. For one-time payments: You must record each authorization you collect over the phone. This may be an audio recording or a written notification of approval prior to final oral confirmation. You must keep this record or proof that you sent the notice for two years after the termination of the Agreement.

Bank-approved and fully compliant online authorization forms for your customers Collect the banking information needed to submit payments to the ACH network By phone – you can collect your customers` data over the phone, but you will need to provide additional information when you collect this data (more on this below). Telephone authorizations apply to TEL direct debits. There is no standardized format for an ACH authorization form, but each requires a number of mandatory elements. The form must be at least as follows: As with paper authorizations, when a customer submits a completed online ACH authorization form, you must send a written notification of authorization. This can be done via email. Authorization notification, which is automatically sent to your customers before payments are accepted The amount of recurring transactions (or a reference to the method used to determine the amounts of recurring transactions) (for recurring payments) An explanation that the authorization applies to a one-time ACH fee (for one-time payments) Make sure that no other payments are charged to the customer Physical Security – To protect against the Theft, tampering, or damage Step 4 – Final authorization and signature of the account holder If you use GoCardless as a TPPP, setting up and managing ACH direct debit authorizations is simple: you have an existing relationship with the customer or explain to the customer how to revoke their authorization, including the required notification period (which minimizes the risk of misunderstanding). Online – Your customer can grant authorization online. Online authorizations apply to debits WEB Before you start with the ACH over-the-phone direct debit authorization, you should know that you can only do so in the following cases: Any company that uses online authorizations must undergo an annual security audit, unless it is submitted via a TPPP. This audit is designed to ensure sufficient auditing: once the authorization is complete, you can manage it outside of the ACH network. Customers must contact you directly to revoke an authorization that requires you to: The amount (or alternatively, the method of determining the amount) In this context, an existing relationship means that a written agreement has been reached or that the customer has purchased goods or services from you within the last two years.

This means that you cannot accept “cold call” phone permissions. Request authorization for all future fees so that a company can collect different amounts from its customers For recurring authorizations: You must send the customer a written confirmation in addition to the verbal authorization, which in turn must be made via an audio recording. It must have clear and understandable terms and be easily identifiable as an authorisation. Network Security – To ensure secure collection, storage and distribution Personnel and access controls – To protect against unauthorized access and use. .