ACH Authorization Requirements

Authorization Requirements for Consumer (PPD) Transactions

Debit Transaction Authorization

• Must be in writing and signed or similarly authenticated
• Needs to be easily identified as an authorization and state the term clearly (amount and timing of debits)
• Must state how the Consumer can revoke the authorization
• A copy of the authorization must be provided to the Consumer
• You must be able to make a copy of the authorization available to Bank Five Nine upon request
• Authorizations must be securely retained and kept for two years after the last ACH debit to the Consumer

ACH Debit Authorization Example

Credit Transaction Authorization

• Authorization is not required to be in writing but you may choose to get an authorization in writing
• Please Note: Bank Five Nine highly recommends that credit authorizations be obtained
• Authorizations must be securely retained

ACH Credit Authorization Example

Authorization Requirements for Commercial (CCD & CTX) Transactions

• A written agreement must be in place between you and the other company
• Agreements do not have a specific format requirement but you must obtain the Receiving Companies agreement to be bound by NACHA Operation Rules
• Trading Partner agreements should contain authorization requirements and procedures as agreed upon by the parties
• Agreements must be securely retained