Businesses that accept payments via a checking or savings account (i.e. ACH) are required to obtain a signed agreement (ACH Authorization) that grants permission to charge or refund the bank account for a customer or business. The ACH Authorization must be signed prior to the ACH transaction and the signed ACH Authorization must remain on file for at least two years.
An ACH authorization form will typically specify the following:
- Customer or business name
- Routing number
- Account number
- Transaction type: one-time charge, refund or recurring
- If recurring, start date and frequency
Please Note: ARC, BOC, POP is not supported and checks are not meant to be converted to PPD / CCD.
ACH Authorization Form Options
Option 1 - Use PayJunction's built-in ACH Authorization form to collect signatures for all ACH transactions.
All ACH transactions that are processed via PayJunction automatically include an ACH Authorization Form that can be signed by the customer. By default, PayJunction requires an email address for all ACH transactions. By providing your customer's email address, PayJunction automatically emails the ACH Authorization form to the customer. The customer can then sign the ACH Authorization form via their phone or computer by clicking on the link in the email.
Example language that's included on the ACH Authorization Form:
I authorize COMPANY DBA ("COMPANY") to electronically debit or credit my account in accordance with this ACH authorization form. I understand that this authorization will remain in full force and effect until I notify COMPANY in writing with at least one week prior notice to revoke this authorization. If payment is rejected due to Non Sufficient Funds (NSF), I understand that COMPANY may attempt to process the transaction again within 30 days.
Option 2 - Collect Paper Copy of ACH Authorization Form
If you prefer to collect a paper copy of the ACH Authorization Form, we've provided an example ACH authorization form below.
Please note, the ACH form template is intended to be updated for your specific needs.
Example ACH Authorization Form Template
Why are ACH Authorization Forms Important?
Per NACHA rules, here are some additional reasons that a customer can dispute an ACH transaction:
- The transaction was never authorized by the account owner.
- The transaction was processed earlier than the date specified on the authorization form.
- The amount charged is different than the amount that was authorized. However, it is possible to obtain ACH authorization for variable amounts.
If a customer disputes an ACH transaction, and an authorization form was not obtained, then the business could lose the dispute.
The Electronic Funds Transfer Act adopted as Regulation E by the Federal Reserve Board requires that a consumer be provided a right to stop payment on any of a series of pre-authorized transfers from the consumer’s account. This right applies until the third business day before the settlement date of the transfer.
There is no warranty for the example ACH authorization form provided herein. PayJunction provides access to the example ACH authorization form on this webpage "as is" without warranty of any kind, either expressed or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. The entire risk as to the quality and performance of the example ACH authorization form is with you. Should the example ACH authorization form prove defective, you assume the cost of all necessary repair or correction. It is the merchant's responsibility to ensure the example ACH authorization form meets the requirements outlined by NACHA.