ACH Authorization Requirements

Authorization Requirements for Consumer (PPD) Transactions
Debit Entry 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 First Bank Financial Centre upon request

ACH Debit Authorization Example

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

ACH Credit Authorization Example

Authorization Requirements for Commercial (CCD) 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